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The Essential Role of Parcelpoints in Leading Digital Marketplaces

June 21, 2024

Staying ahead in the Digital Marketplace industry means understanding and adapting to the changing needs of consumers. One such need that has gained prominence in recent years is the demand for flexible delivery options.

In this blog, we explore why Parcel Pick-Up and Drop-Off through parcelpoints have become indispensable for leading marketplaces, backed by data and insights.

Challenges of Digital Marketplaces in Last-Mile Delivery

Last-mile delivery, the final leg of the supply chain from distribution centre to customer, can pose significant challenges for even the top ecommerce businesses. Failed delivery attempts, package theft, and high delivery costs are just a few of the hurdles you can face.

Parcelpoints emerge as the solution to these challenges, offering customers a convenient alternative to traditional doorstep delivery:

Consolidated deliveries for easy parcel pick-up – You can avoid failed deliveries by consolidating your consumer’s deliveries to a parcelpoint near them. Not only can this ease route optimization concerns for couriers, but this also enhances customer experience by reducing the risk of failed doorstep deliveries
Extra security against parcel theft – By opting to drop off your deliveries at parcelpoints, you can help address the risk of parcel theft vs. Traditional doorstep deliveries.
Delight customers with lower shipping costs – Through consolidated deliveries, your business can offer more affordable shipping costs to even the most budget-wary consumers.

Alternative Last-Mile Options Matter for Digital Marketplaces

Consumer Preference:

A study by SQLI highlights the growing influence of Click & Collect, with Barclays data indicating that it now accounts for 40% of sales for retailers offering the service in the UK, showcasing its increasing popularity and importance in the retail sector. The study also emphasises the convenience factor, with customers appreciating the option to order online and pick up in-store, especially during times of postal strikes and delivery backlogs, underlining the importance of efficient and flexible delivery methods.

Interestingly, in an article by Power Retail, the preference for Click & Collect hasn’t always been about saving money. In previous years, many shoppers opted for this method because it offered faster service compared to traditional delivery options. As consumer expectations continue to evolve, the appeal of Click & Collect lies in its ability to blend convenience, speed, and affordability, catering to the diverse needs of modern shoppers.

Cost Efficiency:

According to Netguru, click-and-collect orders in the UK are projected to reach £42.4 billion in 2022, accounting for about 8.4% of the country’s total retail spending. This model offers significant cost savings by reducing last-mile delivery expenses and mitigating uncertainties associated with home delivery schedules or complex addresses, making customers more inclined to shop online, especially from new brands.

In recent years, the way Australian consumers shop has evolved dramatically, with convenience and cost savings driving purchasing decisions. One notable trend is the increasing popularity of Click & Collect services. According to Power Retail, nearly two-thirds of shoppers utilised Click & Collect in the past year. This shift is largely driven by the 52% of shoppers who found it to be a cheaper option compared to home delivery.

Environmental Impact:

Through consolidated deliveries you and your consumers can reduce carbon emissions by adopting to alternative delivery and returns solutions. Our research, Rise of Delivery Choices, states consumer preferences leaning towards the sustainable. Nearly half (45%) of shoppers would like to help reduce Carbon emissions by having retailers deliver parcels to parcelpoints.

Parcel Security:

Our research that we conducted with Australian shoppers state that 70% of consumers now worry about stolen parcels when they are not home to receive them. That’s around a 7% jump over the 2022 figure and 9% over 2021. Additionally, only around half (48%) of shoppers have a safe place outside the home for their parcels to be left. Through the help of parcelpoints you can ease your consumers’ worries by ensuring that their parcels are in dedicated safe spaces in locations that are familiar to them.

Embracing Alternative Delivery Networks for Digital Marketplaces

You can really set your business apart from the competition by giving customers more choices and convenience when it comes to delivery. You can do this by making smart use of what they already have, like retail stores and lockers. This not only makes shopping easier for customers but also helps your business streamline how you get things from point A to point B. Imagine being able to pick up your online order from a nearby store or a locker whenever it’s convenient for you.

The Future of E-Commerce is HUBBED Parcelpoints

As e-commerce continues to expand, your business must prioritise innovation and customer-centric solutions to thrive in this competitive landscape. A network of parcelpoints such as HUBBED Parcelpoints represents a pivotal opportunity for marketplaces to meet the evolving needs of consumers while driving efficiency and sustainability in their operations.

By incorporating HUBBED Parcelpoints into the delivery ecosystem and leveraging data-driven insights, digital marketplaces can enhance customer satisfaction, reduce costs, enhance security and contribute to a more sustainable future.

Start providing alternative last-mile solutions today with HUBBED.