PUDO Points, Click & Collect, and Parcel Lockers: Your delivery choices explained
Choice. Choice. And more choice.
Much is said about the importance of speed when it comes to parcel delivery. After all, 62% of customers admit that delivery speeds impact their purchasing decisions. But a larger percentage (65%) say they want greater delivery flexibility. By adding PUDO options, as well as Lockers and Click & Collect, you ensure that your customers can always find a delivery option that suit them.
Parcel delivery now provides opportunities for retailers and logistics firms to compete on metrics other than speed (or cost). Offering a variety of different delivery options is increasingly important for customers, but companies need to understand exactly what these options are, what customers want from them, and how they can be facilitated in a frictionless way. Below, we’ve outlined some of the most commonly requested delivery options today – as well as the benefits that each presents.
“Sending orders directly to a PUDO or other pickup location can save up to €1 per shipment.”
PUDO Points (Pick-Up, Drop-Off Points)
As the e-commerce market has grown and the pressure on the last-mile has increased, the different delivery options available to consumers have also expanded in number. One of these options is a PUDO (pick-up/drop-off) point, which refers to any area where customers can receive or leave a parcel. Some of the most common locations for PUDOs include retail outlets, banks, or bespoke locker stations.
The PUDO has become a popular choice for consumers, offering benefits for retailers and customers alike. For the customer, a PUDO point offers higher levels of flexibility, allowing individuals to collect parcels at their own convenience. They also promise greater sustainability and lower costs by cutting down the number of last-mile journeys that a courier has to make.
PUDOs are gaining global appeal but are particularly popular in Northern Europe. For instance, Germany is one of the biggest markets but Finland actually comes out on top in terms of density, with an average of 20 PUDO points per 10,000 inhabitants. At Paazl, we’re currently building the biggest PUDO network in Europe, so the popularity of this delivery option only looks set to grow.
Under Armour drives sustainability by sending 20% of deliveries to pick-up options.
Delivery shipped to pick-up locations are free, without a minimum order threshold. Under Armour has implemented dynamic and local delivery options in every country. Customers are now offered various delivery options, including pick-up points. This option not only reduces costs, but also CO2 emissions.
Click-and-Collect/BOPIS (Buy Online, Pickup In-Store)
Another delivery channel available to customers is click-and-collect or BOPIS (buy online, pick up in-store). This delivery option enjoyed a significant popularity boost during the COVID-19 pandemic, with almost half of the top 500 retailers adopting this model.
The BOPIS model also reduces the number of last-mile journeys that retailers have to facilitate, which not only lower carbon emissions but comes with the added bonus of driving in-store footfall. It may not be as convenient as selecting some PUDOs – consumers can only collect parcels when a store is open, for example – but it remains a popular choice for consumers. In fact, BOPIS retail sales in the US are predicted to exceed $150 million by 2025. With 41% of retailers offering click-and-collect services, this is a channel that is going from strength to strength.
Again Europe, with its well-established e-commerce market is leading the way, with 83% of shoppers in France stating that they had made use of a BOPIS service, while the figure stands at 80% in Sweden. However, the BOPIS market is growing worldwide and is gaining notable popularity in the Asia-Pacific region, where e-commerce is growing rapidly.
How to encourage the use of PUDOs, APMs or Click & Collect among your customers?
Make it clear
Communicate that PUDOs, APMs or C&C are available
Show all pick-up points on a visual, interactive map
Track & Trace
Keep your customers informed with notifications
Make (free) pick-up options the default delivery option
Parcel Lockers/APMs (Automated Parcel Machines)
Enjoying some overlap with PUDO points, the main difference when parcels are delivered to lockers is the complete convenience they offer to consumers. With smart lockers, customers can pick up their items at any time. They will be sent a unique passcode and can use this to collect their parcel at their convenience – there’s no need to make sure a retailer is open.
More and more e-commerce sites are offering customers the option of collecting their parcels from a locker, with out-of-home deliveries now accounting for almost 50% of deliveries in the Nordics, Germany, France, Czech Republic, Hungary, Romania and Poland. In fact, Poland has the largest locker network in Europe.
Although parcel lockers are increasing in popularity, there remains an opportunity for a further increase in density by improving awareness of this as a delivery option. As a result, retailers will be supported in terms of cost optimization and low-emission delivery. E-commerce firms and logistics provides have a role to play here by making sure lockers are clearly promoted as a potential delivery option for customers. At Paazl, we recently updated our checkout widget to include a separate tab for lockers, ensuring this is highlighted for users.
Choice, not confusion
At Paazl, we offer all the aforementioned delivery options via our platform but even so, the increasingly fragmented nature of the delivery market can lead to confusion – for both retailers and customers.
The important thing is to offer choice to consumers. Flexibility and a clear description of the benefits of each delivery option will lead to customers having the best possible delivery experience.
Paazl is a leading shipping service provider (SSP) for brands & retailers in e-commerce. Its all-in-one, multi-carrier platform unburdens the delivery process across webshop, warehouse, customer service and returns. Paazl enables logistical flexibility, consumer loyalty, cost transparency and (inter)national growth. Customers include industry leaders such as G-Star Raw, Rituals, VanMoof, Tag Heuer, Leenbakker and Under Armour.