Pickup Points: what benefits for your E-commerce?
Delivery options are increasing and out-of-home delivery dominates. With the “Click and collect”, automatic or associated collection points, the trend highlights that buyers want freedom in their withdrawal options.
The importance of logistics
When you have a lot of orders, you need to know how to manage delivery times, potential returns and make sure to be with the right logistics partner.
In Great Britain, over ten distinct logistics firms offer pick up and drop off (PUDOs) sites for packages. In 2021, Royal Mail topped the list with 11.5 thousand location points, while Collect+ was close behind with 10,000 collection sites. Meanwhile, Hermes had a more limited network, boasting 5,000 PUDOs nationwide.
Number of pick up and drop off (PUDOs) location points in Great Britain as of 2021, by courier:
How do Pickup Points work?
Basically, a pickup point allows the customer to choose where he wants to receive his order. He will be informed of the availability of his package in the pickup point and will only have to collect it.
Out-of-home delivery has the advantage of being more flexible than home delivery. It offers to the customer the possibility of choosing a pickup point according to its location and schedules. That way, there is no more problem receiving parcels.
The different Pickup Points
Out-of-home delivery is very convenient and offers multiple withdrawal modes to better fit the customers’ expectations.
« Click and Collect »
This method is widely used especially among retailers. In fact, they have both an online and a physical store. When ordering online, the customer will choose a pickup in store.
The store can quickly manage the withdrawal, almost immediately if it has the item in stock. In addition, this method allows it to indirectly create customer turnover and possibly increase sales.
Although they require a rather complex infrastructure, parcel lockers are more and more common. They are often located in public places (shopping centers, railway stations) and even private (common areas of neighborhood associations).
In general they are available 24 hours/day, 7 days/week, and they offer even more flexibility to the buyer. He receives a notification with the delivery information and can go to collect his order. The only disadvantage of this method is the size and weight of the packages since they must respect the dimensions of the locker.
Associated collection points
In this case, the collection points work similarly to the pickup in store, except that the store in question can be as well the local bakery as the neighborhood grocery store or even the laundry near home.
It is a network of partners so that the customer can choose the place that suits him best. He can decide according to the schedules of the trade and also the proximity of his place of work or his home.
The post office
In the same way as associated collection points, it is possible to choose a post office as a delivery point. When the package is available, the customer will receive a notification allowing him to collect it.
This option can be useful for deliveries where there are no other pickup points for example.
4 advantages of pickup points
Usually free, this option is often used by buyers. It offers many benefits for both the customer and the seller.
Buyers ask for flexibility. They want to find the solution that will best meet their needs. Which is the pickup point nearest his office or home? Or which one it is open early in the morning and late at night?
Pickup points allow the customer to decide when to pick up their package. He can add it to his “to do list” and continue his day without having to stay at home waiting for delivery.
Another important aspect for buyers is choice. By offering several options, they will only have to choose the one that best meets their needs. The fact that there is the choice brings a good brand image.
Pickup points offer many varieties to your customers, strengthening the reliability of your business. In addition, it shows that you are attentive to their needs and that you optimize the customer experience.
Save time and energy
In logistics, the most common problem is when the delivery person can’t find the customer at home. In this case, the package must be returned to the warehouse, which presents a risk of damage but also an additional cost.
This problem can obviously occur in the pickup points if the customer does not pick up his package. The risk is still minimized since it is the customer who manages the withdrawal according to his time and availability.
Avoid failed deliveries
Carriers often ask the seller for penalties in the event of repeated failed deliveries. Pickup points model allows to avoid the return of the package, since it remains available for a determined period in the shop selected by the customer.
By leaving a certain margin for the customer to recover his package, you can improve the customer experience at the lowest cost. The only drawback of pickup points is that if the delivery or withdrawal is not going well, the customer will tend to blame your business rather than the pickup point. Thus, it is necessary to determine the good partners to offer a service of quality.
By offering several delivery methods, you can best meet the expectations of users. If they aren’t satisfied with your site, they will not hesitate to go elsewhere.
With ShippyPro, you can sort the prices of all your carriers according to the price and the delivery time, in order to choose the best for you. You can also get a list of pickup points for carriers.
At the moment of the validation of his basket, the customer will only have to choose his delivery method. Remember that pickup points are on the rise and it would be a shame not to take advantage of them.
- Pickup points offer flexibility to the customer who will be able to collect his parcel according to his availability within the time limit.
- They bring variety with the different modes of withdrawal (Click and collect, parcel lockers, associated collection points or post office).
- You can save time and money for your E-commerce.
- And finally, they avoid failed deliveries and therefore the penalties associated with them.
ShippyPro is the complete shipping software for online and offline retail. With Label Creator, Track & Trace, Easy Return and Analytics features, our software simplifies your shipping operations. ShippyPro integrates with over 160 couriers and 80 sales channels, making it compatible with a wide range of products and use cases.