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Debunking 5 Myths of Click and Collect Delivery

April 21, 2024

Last mile delivery is changing how businesses build and maintain relationships with consumers. We understand that retailers like you are concerned about the sustainability of alternative delivery methods, such as click and collect delivery. You might have heard some rumors or horror stories in last mile logistics, but this blog will shed some light on a few myths or misconceptions surrounding click and collect.

Our objective is to provide you with a comprehensive understanding of the realities and opportunities associated with this delivery alternative. Dispelling these misconceptions is crucial to making informed choices that align with your business goals and meet customer expectations.

Already have an idea about click & collect delivery services? Start offering them today!

1. No One Uses Click and Collect Delivery

Contrary to the belief that Click and Collect is an underutilized service, the reality paints a different picture. As society is back to normal amidst the COVID-19 pandemic, and restrictions on face-to-face contact have been lifted, consumers are once again able to interact with minimal risks. This freedom extends to consumer preferences regarding how they collect their parcels. Many consumers have embraced click and collect as their delivery method when online shopping. This is supported by our recent research report that mentions:

From 2021 to 2023, the percentage of consumers using OOH (Out of Home) services leapt from 38% to 64%.

This shows a whopping 26% increase in adoption in a span of 2 years. By showing that consumers embrace this delivery alternative in retail, we uncover a strong preference for this service and emphasize its positive impact on the shopping experience.

2. It is Inconvenient for Consumers

At first glance, we understand the notion of receiving your parcel at a different location from your home may seem like an inconvenience. We understand that as a business, customer satisfaction is a top priority—which includes convenience in the last mile.

Contrary to this misconception, this offers a notably convenient option for shoppers. The beauty of click and collect lies in its flexibility, allowing consumers to pick up their purchases at a time and place that suits them best. In fact, it is becoming a growing preference as it eliminates the hassle of waiting for deliveries. Out-of-home delivery alternatives provide a middle ground between the immediacy of in-store shopping and the patience required for traditional delivery services.

The appeal of parcel collection is growing stronger, with 73% of shoppers preferring to pick up packages from a nearby location in 2023, marking an 8% increase from 2021. Overwhelmingly, convenience is the top reason why consumers want to collect parcels from a location near their home outside business hours

And more importantly, the proportion of consumers who don’t prefer parcel collection has decreased by around 7% over the past three years.

Lower shipping rates is also another convenience brought by having a click and collect delivery option. When delivery costs are high, speeds are slow, and convenient options like Click & Collect are absent, you risk shoppers abandoning their carts.

An enormous 84% of shoppers say they’re likely or highly likely to use a collection point when it’s cheaper than delivery or free.

As wallets continue tightening, retailers should make consumers aware of ways to reduce overall costs, such as OOH (Out of Home) or parcel points.

3. Click and Collect Delivery Increases Risk of Parcel Theft

Dispelling the misconception that click and collect increases the risk of parcel theft is crucial in understanding the security measures and benefits associated with this service.

In reality, click and collect actually minimizes the risk of theft by providing a secure pickup location for purchased items. With designated collection points in stores, consumers can retrieve their parcels at their convenience, reducing the window of vulnerability compared to doorstep deliveries.

Additionally, many click and collect systems require identification or proof of purchase upon pickup, further enhancing security measures. We understand that dropping off consumer orders at a location different from their homes may seem risky at first, that is why third-party providers, such as HUBBED, ensure the parcel points in the network thoroughly complies with our strict safety standards. The staff present in these locations are also trained to maintain a seamless and positive pick-up experience for your consumers.

52% of shoppers in 2023 don’t have a safe place to leave parcels at home.

Did you know that by having safer delivery options you can create opportunities by improving delivery confidence with consumers?

Safe deliveries present sound opportunity for retailers to drive business growth.

Almost two-thirds of consumers (63%) would shop online more if they had options to ensure the secure delivery of parcels.

Online retailers offering additional, safer delivery options have a sound opportunity to meet customer demands and sell more

4. It is Logistically Challenging for Retailers

This statement is inaccurate when considered in the broader context. We understand that the notion of click and collect delivery being logistically challenging for retailers may initially raise concerns as the logistics of managing orders, inventory, and consumer expectations can be daunting. However, it’s important to note that delivery alternatives when implemented thoughtfully can alleviate some of these concerns.

Through click and collect, you can efficiently manage inventory and minimize operational complexities by centralizing order pickups at designated locations or leveraging existing store infrastructure.

With advancements in technology, many of these applications integrate seamlessly with existing inventory management systems, making the process more streamlined and less demanding on logistical resources. Third parties also ensure that their customised solutions will align to business and operational needs– providing a frictionless solution for parcel management.

Robust technology coupled with a technology team comprised of responsive, quick to adapt, and expert problem solvers can ensure a smooth integration to your existing supply chain infrastructure.

5. It is Only for Enterprises

The beauty of click and collect lies in its versatility, as it caters to businesses of all sizes– not just large enterprises. Numerous retailers, from small businesses to large enterprises, have embraced click and collect for its convenience and efficiency.

Many providers offer customized solutions tailored for larger enterprises, ensuring seamless integration into existing systems. However, these same providers also providing plugins specifically designed for small to medium enterprises to ensure convenient and safe delivery options are available for their growing customer base. This adaptability empowers businesses to implement click and collect in a way that suits their unique needs, fostering growth, and enhancing customer satisfaction. The key is to explore the customizable options available, allowing you to leverage its full potential, regardless of your business size.

Navigating the evolving landscape of online retail is undoubtedly a concern for retailers seeking sustainable and consumer-friendly last mile alternatives. Whether your concerns revolve around either adoption rate, consumer preference, security, integration, or scalability, it is undoubtably certain that offering click and collect as a delivery alternative is a sustainable solution for your business.

You may start providing this sustainable delivery alternatives now by partnering with HUBBED. Learn more about our click & collect delivery service now.