A parcel locker is an automated post box that permits users to have a self-service collection of oversized letters and parcels and the distribution of parcels. Smart Lockers are a massive automated system that offers many advantages for businesses and customers. They allow access to your assets or inventory in nearby areas and far different places. Intelligent lockers are as advanced as their high-tech operation and, therefore, easy to manage the huge amount of products, materials, and other items that belong to your clients.
Expansion of the smart parcel locker network across the globe provides the ever-expanding e-commerce industry with a cost-effective and environmentally friendly solution for their last mile deliveries.
“Smart parcel locker market growth is supported by sound global e-commerce and logistics market dynamics”
Utility of Smart Parcel Lockers
Self-service lockers are designed to ease the delivery of last-mile packages by online retailers. These durable lockers are placed in many locations, including bus stops, Metro stations, shops, office buildings, shopping malls, and community centers where customers can pick up their parcels at a preferred time.
Each locker terminal includes small, medium, and large lockers to accommodate different dimensions of parcels. When customers are issued the unique password (OTP), they go to the machine, use their credit or debit card to pay in a flash, and then collect their parcel. The lockers also come with real-time tracking and reporting features. A parcel terminal can operate approximately 700-100 parcels per day.
COVID-19 has changed the way that e-commerce is conducted worldwide. In the wake of the explosion of e-commerce and the ongoing logistical issues increasing numbers of businesses are exploring the many delivery options available. Parcel lockers, for example, are just one kind of delivery option growing in popularity.
There are plenty of advantages to investing in lockers for parcels. From reducing costs in the logistic chain to decreasing greenhouse gas emissions, there are many advantages associated with automated parcel lockers. Could they become the next generation of delivery last mile? Are they just an idea that will eventually end?
Smart Parcel Lockers: Market Size
According to RationalStat analysis, the global smart parcel lockers market is estimated at US$ 810 million in 2022 and will likely to reach US$ 1.5 billion by the end of 2028, primarily driven by need for last mile deliveries, cost efficient, and e-commerce growth.
Latest Developments in the Smart Parcel Lockers Market
- In December 2022, Relais Colis, a key player in the France out-of-home parcel delivery market will install 200 to 300 Quadient smart lockers in Carrefour retail stores.
- In July 2022, InPost announced its intention to increase its parcel locker network with new key partnerships with companies such as WHSmith and Galp.
- In September 2022, DHL Parcel UK announced a new partnership with Quadient to offer smart lockers parcel pick-up throughout the UK.
- In September 2022, Logistics partner ORIAN also announced the rolling out of SwipBox Infinity parcel lockers across Israel.
- In May 2022, Quadient announced that Decathlon, a leading global sporting goods retailer, will equip dozens of additional stores with Quadient’s automated parcel lockers in 2022.
- In February 2022, InPost, the leading e-commerce enablement platform, launched 14,000th smart parcel locker in Poland.
Solution of Last Mile Delivery
Smart lockers address the last-mile problem from various perspectives. They offer added security and transparency to your deliveries and streamline the systems couriers use to deliver parcels.
- Make delivery routes simpler: By condensing an apartment, subdivision complex, and office park to a single, smart lock system, drivers need to make more stops. Instead of driving to 10 different locations to complete ten deliveries, they stop at one. By centralizing deliveries in an intelligent locker, Post workers can reduce time and improve capacity. With increased efficiency, the time-consuming process of delivery last mile is reduced and the time spent waiting for your "out waiting for the delivery" portion of your shipping reduces!
- Additional BIPOS Options: A different option for those who do not want to wait for delivery time or spend time browsing the shelves (and expose themselves to COVID). This is the most popular online purchasing method, picking it up in the shop. Known as BIPOS, Smart lockers offer the perfect infrastructure for companies looking to provide a quick collection service to their customers. With temperature-regulated options, this works for grocery shops and restaurant to-go orders!
- Improve Security: Mistakes can happen, and packages may be lost. Particularly in the bustle of apartment complexes and offices and delivery mishaps, every day can cause problems with the ease of a door-to-door courier service. It is a common final-mile problem (reminder to sign up for an insurance plan for renters!). In 2020 43% of the population reported having their package stolen with a smart locker system that allows couriers to place parcels directly in a secured steel structure and not leave them on the street.
- A Clear Chain of Custody: Although each courier has the tracking number and program, they do not account for how a package is handled following delivery. For homes or offices, the tense chaos of the mailroom can eat packages to eat breakfast. Smart lockers don't just organize packages. Still, their software will record the completed transactions, including the mail courier's journey to the locker and the locker to a receiver. By adding this information to the chain-of-custody record, the couriers and recipients have added assurance that their mail will be safe.
- 24/7 accessibility: Nobody would like to wait for a delivery or return home only to discover that the parcel left at the door was damaged or taken. Customers want security, experienced delivery service, and the ease of retrieving packages at a time that fits their hectic schedules. This is why many retailers, services, and even restaurants utilize smart lockers to manage their last-mile delivery.
- Guaranteed Delivery: There's nothing that can be guaranteed that a package being delivered to a public area or set on an entranceway will arrive to the purchaser in perfect condition since these delivery methods leave packages at risk of being damaged by weather, negligent neighbors and people passing by, and of course, for theft. Security cameras placed in the apartment lobby or on the door to the front can assist in identifying the culprits, but they need to be able to prevent theft or damage from happening at all.
With the rise of e-commerce and the dependence on courier services, eliminating the issues with last-mile delivery benefits everyone! By reducing delivery routes, enhancing security, and capturing the entire chain of custody, Smart lockers can help address the issue of last-mile delivery. Parcel lockers are now important in last-mile delivery. However, in the case of deliveries across borders, this delivery method is utilized to a limited extent.
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Co-founder and Director at RationalStat
Ujjwal is a thought leader and recognized expert in the market research and consulting field. He is the co-founder at RationalStat, a leading global market research & procurement intelligence firm with 10+ years of industry expertise.