eCommerce Market Update

24 March 2023
by Sam Cullen

Topic of the week – Parcel Collection and Returns Lockers

With the post-pandemic boom in online shopping, when it comes to delivery, Pick Up Drop Off (PUDO) options are becoming a fast favourite with consumers. No doubt you will have spotted one of Amazon’s 5000+ yellow lockers across the UK which allow for customers to conveniently pick up and return their parcels on the go, or when they know they won’t be available for home delivery. Polish provider, InPost has surveyed this growth in locker popularity, pairing with Hermes and ZigZag, and has announced the installation of its 5000th locker this month. InPost have said that they see the mindset of convenient parcel services is only going to grow. In 2021, 72% of people said they want the availability of nearby collection points in case of failed delivery and 87% said they think that convenient options to accept delivery is an important factor when receiving parcels.*

With major retail stores closing down and high streets emptying, more and more retailers are partnering with InPost to make use of these locker systems such as Lidl, Morrisons, Vinted and WHSmith etc. There are even parcel lockers with special refrigeration capabilities for food deliveries popping up, an example in the UK being Lola’s Cupcakes with the ability to order your baked goods and collect when convenient. The company says that average collections take as little as 30 seconds so you can be as quick as possible if you need to deliver a cake to a party for example.

In Portugal and Spain CTT’s locker division ‘Locky’ has expanded its locker locations with over 500 refrigerated units that include ambient temperature, cold and even sub-zero compartments for groceries and other temperature sensitive deliveries.

As the popularity of PUDO delivery continues to grow, we are sure to see the expansion of locker units across the globe, with more and more retailers partnering to provide a range of hassle-free delivery options.

*Parcel Market in the United Kingdom Dossier, Statista

Topic of the week – Parcel Collection and Returns Lockers

In Other News

Major brands are being affected by post-pandemic consumer trends with physical stores from retailers such as New Look and Superdrug closing down. There are many factors that play into this from the effects of the pandemic, the cost of living crisis, and the current state of the economy. Increasing bills and rent prices have a part to play, as certain stores are unable to afford the bulk orders that they could in the past. Post-pandemic consumers now prefer to shop online, with many retailers moving solely online to keep up with this trend. This has led to a decrease in footfall amongst the high streets and physical stores.

eCommerce Market Stats

Check out some related stats for the topic of this week.

As discussed PUDO has been on the rise and has been a preferred delivery method across many European markets.

UK

  • Number of PUDO location points in Great Britain as of 2021 by carrier:
  • Royal Mail – 11,500
  • Collect + - 10,000
  • Hermes – 5,000
  • Projected Retail eCommerce revenue in UK 2023 by segment:
  • Fashion - $67.66 billion
  • Electronics - $39.36 billion
  • Furniture - $29.88 billion
  • Toys, Hobby & DIY - $30.57 billion

Spain

  • Number of PUDO location points in Spain as of 2022 by carrier.
  • Correos – 8,381
  • GLS – 4,100
  • DHL – 3,600
  • Projected Retail eCommerce revenue in Spain 2023 by segment:
  • Fashion - $12.06 billion
  • Electronics - $11.3 billion
  • Beauty, Health, Personal & Household Care - $5.62 billion

Portugal

  • Number of PUDO location points in Portugal as of 2021 by carrier.
  • CTT (Portugal Post) - 2,366
  • DHL – 900
  • DPD/Pickup - 758
  • Projected Retail eCommerce revenue in Portugal 2023 by segment:
  • Fashion - $1,598 million
  • Electronics & Media - $1,247 million
  • Toys, Hobby & DIY - $982 million

That’s all for this week...

If you would like to read more industry related news and insights, check out our articles below, or if you would like to discuss our services, feel free to get in touch!

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