Keeping pace with changing consumer behavior and industry trends is essential in today’s rapidly evolving e-commerce landscape. Pickup points are emerging as a practical and eco-friendly solution, reshaping how parcels are delivered and collected. These out-of-home (OOH) delivery options provide a cost-effective and sustainable alternative to home delivery, meeting growing consumer demand for convenience and flexibility.
This article explores the rise of pickup points, their role in e-commerce, and the key trends shaping their future.
What are pickup points?
Pickup points are locations where customers can collect or return parcels at their convenience. They come in different forms, including:
- Parcel lockers: Automated machines accessible 24/7 for maximum flexibility.
- PUDO points: Staffed pickup-dropoff locations, often located in retail stores or kiosks.
- Hybrid solutions: Combining automation and personal service to enhance the customer experience.
These solutions are becoming critical in modern logistics by reducing costs, offering flexible delivery options, and supporting sustainability goals.
Why pickup points are gaining traction
Growth of e-commerce
The e-commerce boom during the COVID-19 pandemic significantly increased demand for last-mile delivery solutions. After a brief dip in 2022, the market showed strong recovery in 2023, with e-commerce parcel volumes in Europe growing by 4.9% to reach approximately 19 billion parcels. While complete data for 2024 is not yet available, early indicators suggest continued growth in the sector.
Changing consumer preferences
Consumers increasingly prefer pickup points over home delivery. In Europe, the share of consumers choosing home delivery dropped from 73% to 64%, reflecting a growing appetite for flexible and cost-effective alternatives.
Cost savings and sustainability
Pickup points allow carriers to consolidate deliveries, cutting operational costs and reducing emissions. These benefits appeal to cost-conscious and environmentally aware consumers, making OOH delivery a popular choice.
How re-commerce is driving demand
Re-commerce platforms like Vinted, OLX, and eBay are contributing to rising parcel volumes. The European re-commerce market, valued at €75 billion in 2023, is projected to reach €120 billion by 2025. Consumers are drawn to second-hand goods for their affordability and environmental benefits, while brands are introducing take-back schemes to further encourage sustainable practices.
This growth underscores the need for scalable and efficient OOH networks to support increasing parcel traffic.
Technology and innovation in OOH delivery
Technological advancements are playing a key role in improving OOH delivery systems:
- Automation: Streamlining parcel sorting and reducing handling costs.
- AI-driven optimization: Ensuring pickup points are placed where demand is highest.
- Autonomous vehicles: Trials in select cities show potential to complement OOH networks.
While these innovations may compete with traditional delivery methods, they also create opportunities for greater efficiency and sustainability.
Key players in the OOH landscape
Major logistics providers are leading the expansion of pickup point networks across Europe:
- Deutsche Post/DHL: 148,210 OOH points, including 38,640 parcel lockers.
- DPD Group: 105,860 OOH points, with 18,850 parcel lockers.
- InPost: 67,770 OOH points, including 35,550 parcel lockers.
- GLS: 76,800 OOH points, with 13,080 parcel lockers.
- UPS: 47,310 OOH points, focused on partnerships for growth.
Collaborations like those between DHL and Cainiao or Poste Italiane demonstrate the potential of partnerships to scale operations effectively.
The green last mile
Sustainability is a priority for both consumers and businesses, and pickup points play an important role in creating a greener last mile.
Benefits of OOH delivery for sustainability
- Lower emissions: Consolidated deliveries reduce the number of trips required.
- Energy-efficient infrastructure: Many parcel lockers use renewable energy.
- Consumer buy-in: Shoppers increasingly prefer sustainable delivery options.
While some challenges, like greenwashing, remain, consumer demand for transparency and authentic sustainability efforts is driving positive change in the sector.
Strategies to unlock potential
To maximize the benefits of pickup points, carriers must focus on effective deployment and consumer engagement:
- Dense network coverage: Countries like Poland, with 35,550 parcel lockers, demonstrate the value of widespread access.
- Incentives for consumers: Offering free or discounted delivery to pickup points encourages adoption.
- Data-driven deployment: Using analytics to strategically place pickup points ensures operational efficiency.
The future of pickup points
As e-commerce continues to grow, pickup points will remain a critical component of last-mile logistics. Collaboration, technological innovation, and sustainability will shape the next phase of development.
Trends to watch
- Partnerships: More alliances between carriers and local businesses to expand networks.
- Advanced technology: AI and autonomous systems to enhance delivery efficiency.
- Sustainability: Transparent, eco-friendly practices to meet consumer expectations.
Pickup points are no longer a niche solution; they are becoming the backbone of modern logistics. By investing in these systems, businesses can reduce costs, enhance customer satisfaction, and support a sustainable future.