Parcel Lockers

Parcel Lockers (PL), or automated parcel machines (APM), are static machines that are used to send and receive parcels for consumers. Thus, they are an extension of delivery options for both first and last mile deliveries. Our report provides an in-depth assessment of the Parcel Locker ecosystem, covering the different business models, their part in the delivery value chain, key players and a market outlook.

Parcel Lockers are perfect to achieve cost-effective and convenient first and last mile delivery operations. The core objective is to reduce overall logistic costs. In addition, end-consumer convenience is increased and thus stickiness with the respective parcel delivery company. The network of Parcel Lockers helps the company to reduce the rate of unsuccessful delivery attempts and increase the share of drop of points. Hence, it decreases delivery costs and increases service options for clients.

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Parcel Locker Delivery

Ecommerce consumers expect fast and cheap (or increasingly even free of costs) delivery of their online purchases. Hence, efficient parcel delivery is the backbone of all Ecommerce activities and thus needs to be delivered at high quality. At the same time, the delivery process is highly cost sensitive, as around half of total Ecommerce transportation costs occur in the last mile. Thus, improvements related to last mile delivery are of utmost importance for logistic operators and their customers.

Deliveries can be separated into four main delivery locations:

Parcel Locker (PL),
Click and Collect (C&C),
Pick up & Drop off (PUDO), and
Home Delivery (HD).

All these delivery locations have their unique strengths and weaknesses. Our Parcel Locker Report deep-dives on the different operating models and helps you to understand the ecosystem in detail.

Parcel Locker manufactures

Various companies develop, deploy, and run different types of parcel locker networks. Leading manufacturers are companies such as Amazon Locker, Cleveron, Keba, Inpost, InstaBee, Quadient, TZ Limited, Viaboxx, Yamato. Based on rich market insights, the report elaborates on the different market positioning and USPs of each of these companies.

Parcel Locker operating model

Parcel Lockers can be operated in open or closed systems. These systems can be deployed by either a logistic company like DHL, an e-Commerce retailer like Amazon or an independent entity like Cleveron. The report helps you to understand the difference between existing Parcel Locker operating models and assess the strengths and weaknesses of each.

Last Mile delivery cost components

Key cost components of any last mile delivery operation are fixed and variable costs. Examples for fixed costs of operating parcel locker networks are: Vehicles (if not leased), routing devices, scanners, and printers. Some examples for variable costs are: Vehicles (if leased), routing software, labor costs, fuel/electricity, third party routing data, fleet management system, and insurance. The report analyses these different cost components and compares deliveries to parcel lockers against other types of deliveries to end-consumers.

Delivery speed

Overall, the delivery speed for last mile parcels can be split into five major service level offerings:

Instant delivery: Delivery within 60 to 120 minutes,
SameDay delivery. Delivery within same day but more than 2 hours,
NextDay delivery. Delivery within the next day,
Standard delivery: Delivery within 1-3 days, and
Slow but convenient delivery: Consolidation of several orders / parcels, delivered at predefined time slots based on the receiver's preference.

Features of last mile deliveries

Core features of last mile delivery products are:

Delivery speed (2 hours, SameDay, NextDay, 1-3 days delivery, etc.)
Insurance coverage (yes/no)
Traceability (yes/no)
Destination of delivery (Home Delivery, Parcel Lockers, PUDO, Click and Collect)
Returns (yes/no)
Dedicated time delivery slots (e.g. between 7-9 pm CET)
CO2 neutrality / sustainable operations

Last mile delivery trends

The first parcel lockers were deployed more than 15 years ago. Since then, various innovations have impacted parcel locker operators. This includes refrigerated parcel lockers to send and receive groceries, self-driving parcel lockers from companies such as Udlev, lockers in highly trafficked residential areas and many more.

Due to the increased popularity of parcel lockers, there is a lot of R&D development going on focused on further improving their user experience. This is accelerated by the rise of Ecommerce giants such as Alibaba, Amazon and Rakuten, which launch their own delivery operations. Traditional logistic companies and smaller Ecommerce players need to improve their logistics through options like parcel lockers in order to compete with the constantly increasing market standards when it comes to last mile delivery.

News in the parcel locker world

Many companies are aggressively expanding their parcel locker networks, such as DHL and Amazon. And startups and scaleups such as InstaBee are launching new locker networks and introducing their solutions to new markets. Overall, parcel locker activities can be observed across the globe. However, the vast majority of parcel lockers are deployed in urban environments in Europe and North America. Leading tech companies also tested their own solutions. Google acquired the Canadian company BufferBox a couple of years ago but terminated a further roll-out.

Learn more about Parcel Lockers, its business models, key market participants, outlook, trends and many more relevant information in our dedicated parcel locker report. You can buy it here!