The number of online shoppers worldwide has grown significantly, from 2.37 billion in 2020 to an astounding 2.71 billion in 2024. This 2.71% year-on-year increase can be attributed to a rise in internet connectivity worldwide, including in remote and marginalized areas. Additionally, online shopping has a growing appeal among many buyers because of its convenience, competitive pricing, and time-saving benefits.
According to a Forbes study by Momentive, 88% of shoppers say they want businesses to offer them both online and in-store shopping options. However, despite many shoppers’ shift to online shopping, many end up disappointed by their deliveries because of delays or damage during transit. Sometimes, they’re frustrated by the order tracking process and poor customer service experiences.
Many e-commerce businesses find streamlining the order delivery process challenging because this is not their area of expertise. They may also find managing logistics providers to be difficult and inefficient.
Contactless pickup lockers are a viable solution for most delivery challenges for online businesses and their customers. These innovative lockers bridge the gap between traditional retail and e-commerce by allowing customers to shop online and collect their products from a convenient physical location.
This guide explores everything there is to know about pickup lockers and how they’re revolutionizing the e-commerce industry.
What Is Self-Service Delivery?
Self-service delivery is a shipping method where customers collect their deliveries from conveniently located smart lockers. It utilizes click-and-collect lockers or contactless pickup lockers in retail shopping centers, fitness clubs, outdoor public spaces, residential buildings, or around neighborhoods. The lockers are strategically positioned in locations with extended working hours or 24/7 business models.
The pickup lockers or curbside contactless pickup stations may be located outside the stores to provide additional convenience to customers and delivery drivers by ensuring they don’t need to go inside to collect their orders. This also facilitates fast pickup and improves customer satisfaction.
These smart lockers eliminate the challenges and corresponding anxiety associated with last-mile delivery, such as inaccurate addresses and uncertain delivery routes. Implementing smart lockers aims to provide shoppers with flexibility, convenience, and safety by minimizing the number of lost or stolen packages. These secure lockers also streamline the order return process and minimize handling costs.
Types of Self-Service Lockers
There are many types of self-service lockers made for different business and user needs. Some businesses benefit more from buy online pick up in store (BOPIS) solutions. Examples include e-commerce companies looking for a safe and convenient way to ship products, grocery stores interested in offering efficient curbside pickup solutions, or carrier companies in need of alternative delivery solutions.
The main types of self-service lockers utilized by these businesses include:
- Food-service pickup lockers: These are centralized food order collection points with heating or cooling systems, mostly utilized by restaurants.
- Parcel pickup and drop off: These are lockable storage boxes that allow logistics carriers to track, manage, store, and deliver parcels to locations near the customers.
- Supply vending: These are designed to help with inventory management and the automated reordering of supplies, such as safety equipment.
- Asset tracking systems: These are meant to assist with the tracking and distribution of highly sensitive items, like forensic evidence and keys.
How Do Click-and-Collect Lockers Work?
Smart lockers use internet connectivity and sensors to enable the delivery and collection of processed orders. Click-and-collect lockers are used when customers buy a company’s products online via an app or a website. The store selects and packs the item, and a carrier places it in a secure locker compartment.
These lockers are equipped with authentication systems, such as biometrics, barcodes, QR codes, unique PIN codes, or one-time passwords for increased safety. Click-and-collect lockers eliminate the need to sign for packages but require the presentation of the authorization credentials to access and collect the packages.
The system sends a notification to the customer via email or SMS or to the package recipient when the parcel is placed inside the locker and is ready for collection. The notification also includes the unique access code or credentials necessary to open the locker. Some of the features of pickup lockers that make them secure and preferable for many retailers include:
- Real-time notification system that sends inserts alerts when orders are delivered.
- User-friendly interface to ensure quick access.
- Options to fit packages of different sizes and shapes.
- Integration with order processing and management software.
- Digital time stamps for accurate order tracking.
- Cloud-based tracking for enhanced package monitoring.
6 Benefits of Pickup Lockers for Businesses
Implementing pickup lockers helps streamline retail business operations, which has many advantages, including providing customers with a convenient, effective, and secure online shopping experience. Below is a breakdown of the main benefits of contactless pickup lockers and a BOPIS retail strategy in general.
1. Cost Efficiency
Pickup lockers are more cost-effective than traditional delivery methods because they eliminate manual package handling and shipping costs. They also minimize overhead costs associated with damaged goods and failed or delayed deliveries and improve operational efficiency. Businesses enjoy cost savings from minimizing the percentage of lost or misplaced packages.
Contactless pickup lockers offer versatility and numerous customization options, such as multiple compartment sizes, making them a cost-effective investment with a positive return. Smart lockers further encourage long-term cost savings because they’re durable and require minimal maintenance. With these contactless pickup methods, customers also enjoy the convenience of online shopping without worrying about high, costly delivery fees.
2. Improve Customer Experience
Contactless pickup lockers enhance the customer experience by making it fast and convenient for customers to retrieve their packages. Customers can be in and out of a store or at a curbside pickup station in no time without requiring assistance from store attendants. Business owners can remotely monitor all deliveries and customer pickups using built-in cameras and infrared scanners.
Click-and-collect lockers may be located outside to allow customers accessibility and flexibility. They cater to customers with busy schedules who are looking for quick and efficient services, sometimes allowing them to collect their orders even outside regular store operating hours.
With smart lockers, customers don’t need to wait in line or wait at home for their deliveries — they can collect their packages at their convenience. The convenience of pickup lockers leads to higher customer satisfaction and encourages repeat business.
3. Build Brand Loyalty
Offering convenient online pickup solutions improves brand relationships and loyalty. BOPIS solutions eliminate customer frustration associated with delayed deliveries and stolen packages, earning businesses a competitive advantage by offering an efficient and secure pickup option. When a company makes it easier and safer for customers to get their orders, it sets itself apart from other retailers that may not excel in that area.
A business can also strengthen customer relationships by minimizing delivery errors. Smart lockers provide real-time parcel tracking and eliminate the hassle of managing delivery personnel. Overall, implementing smart lockers portrays an innovative and customer-centric business model that helps strengthen brand loyalty.
4. Boost Business Efficiency
Streamlining package delivery boosts business efficiency by eliminating the need for delivery and shipping personnel. As a result, employees have more time to focus on other critical business tasks and generally reduce their workloads. Reliable hands-free package management boosts operational efficiency, minimizes the risks of lost or misdelivered packages, and reduces customer complaints.
Smart lockers can be integrated with existing systems, such as point-of-sale and inventory management systems, to streamline workflows and enhance employee efficiency and productivity. They come with advanced tracking features that log the recipient’s contact details, when the package was deposited, and when and how it was retrieved. This transparency minimizes disputes with customers by providing a clear record of all transactions.
Beyond the pickup process, smart lockers make returns affordable and painless for both business owners and customers. Order returns can be completed simply by notifying the business of the return and returning the items to the locker.
5. Enhance Package Safety and Security
While options like curbside pickup and locker collection aren’t immune to issues with safety and security, they’re often better options compared to traditional delivery. Package deliveries come with certain concerns and considerations:
- Package theft or vandalism
- Damage during handling, transit, or storage
- Wrong delivery locations
- Road accidents and abrupt vehicle breakdowns
- Package mishandling
Contactless pickup lockers provide a secure delivery solution customized to a business’s needs and offer customers greater control over their orders. Businesses can place lockers in safe locations and incorporate advanced security features, like secure access codes, CCTV surveillance, and real-time packaging tracking. These measures help prevent theft and vandalism.
Access to the deliveries is limited to unique pins, bar codes, or QR codes, and they’re only available to the customer at the point of storage in the lockers. The contactless method also contributes to higher hygiene standards by minimizing the number of people who come into contact with the package.
6. Reduce Last-Mile Delivery Issues
Last-mile delivery is among the most crucial parts of the e-commerce supply chain. It often affects customers’ unboxing experiences, and without the right measures in place, it can cause the most frustration. The most common last-mile delivery issues include delayed or failed deliveries, which can lead to increased cancellations, shopping order returns, and fewer repeat purchases.
Pickup means customers are more likely to receive their packages as and when they expect without delays. They receive an alert when their package is delivered to the smart locker, and they can collect it at their convenience. It minimizes last-mile delivery costs and caters to the increasing demands of special shipping services, such as efficient food pickup lockers with cooling or heat preservation capabilities.
How Retail Businesses Can Implement Smart Lockers
Smart lockers integrate seamlessly with a wide range of retail businesses. The first step toward implementing BOPIS in retail businesses is analyzing customer preferences to determine their expectations. Retailers must then find a way to combine online and in-store inventory systems to enable demand forecasting and efficient stock management.
Next is selecting and designing specific pickup areas. In-store employees and carriers must be trained to accurately and efficiently manage BOPIS orders to eliminate customer frustrations. In the beginning, it helps to offer customers discounts and promotions to help them warm up the idea of self-service delivery.
Businesses should consider installing covered parking structures to elevate curbside pickups. These premium covered parking structures facilitate curbside pickups and protect smart lockers against UV rays, excessive heat, rain, and hail. These structures have many advantages for businesses, including:
- Improve company branding and visibility.
- Protect employees and customers against the elements.
- Enhance wayfinding and overall efficiency by ensuring customers can easily spot the designated pickup location.
- Offer long-term protection of the smart locker units.
Examples of Businesses That Have Successfully Implemented BOPIS
Some industry-leading companies have been able to successfully implement self-service delivery, such as:
- Target: One of the most recognizable retailers in the United States, Target offers curbside pickup at most of their storefronts across the country.
- Amazon: The multinational e-commerce company has placed Amazon lockers and pickup sites at all its Whole Foods grocery stores nationwide.
- Walmart: The retail giant offers a reliable BOPIS solution that streamlines its grocery order fulfillment strategy by allowing customers to shop online and pick up their orders.
- Nordstrom: The leading fashion retailer offers the option to shop online and pick up in-store or curbside.
Invest in VPS Covered Parking Structures to Transform Curbside Pickups
Businesses looking to implement click-and-collect lockers as a method of curbside pickups are on the right track. This contactless delivery method can help them improve customer experience, boost sales, and enhance their brands. However, to continue reaping the benefits of the locker system for the long haul, they must find ways to protect their locker systems.
One of the best ways to achieve this is by investing in high-quality VPS covered structures. Our curbside shade solutions are made using cutting-edge materials that offer exceptional durability, aesthetics, and functionality. They make it easy to recognize pickup zones, enhancing the convenience and safety of self-service delivery. Our structures also create a safer and more comfortable environment for customers, keeping them protected from intense weather.
Contact us today for a quote or to learn more about how we can help you transform your business premises with our shade solutions.
