Over the past few years, Amazon has installed its bright orange delivery lockers in numerous locations across the U.S., including hotel lobbies, convenience stores, and supermarkets. Now, the company plans to significantly expand this initiative, using the lockers to accelerate Prime deliveries and strengthen its logistics network.
According to a source familiar with the company’s strategy, Amazon is working to dramatically grow its Amazon Hub Locker network. The company is evaluating over 1,000 potential new locations for its lockers each month, with plans to approve a substantial number of those sites. Currently, Amazon operates fewer than 10,000 lockers in U.S. convenience stores, apartment buildings, and universities, indicating an ambitious expansion effort.
“Amazon is looking to nearly double the program in just one year,” the source stated.
Amazon declined to comment on the matter.
These self-service lockers, typically painted in bright orange, allow customers to pick up or return Amazon packages, including electronics, toys, and books (excluding perishable items). Customers can access their lockers by entering a code on a touchscreen or scanning a barcode.
This locker expansion aligns with Amazon’s goal to speed up deliveries and achieve one-day Prime shipping across the U.S. A larger locker network enables delivery workers to drop off multiple packages at a single location rather than making individual stops. Additionally, the expansion could help Amazon fill gaps in its logistics network following FedEx’s decision to cease delivering Amazon’s U.S. packages.
For brick-and-mortar retailers, housing Amazon lockers could increase foot traffic, although it comes with a degree of irony. Traditional retailers, which have struggled due to the growth of online shopping, may view Amazon as both a potential partner and competitor.
Laura Behrens Wu, founder and CEO of shipping software provider Shippo, noted some challenges with locker expansion. While lockers may provide a safer alternative to doorstep deliveries, some customers might be reluctant to pick up packages away from home. Moreover, the increase in store visitors may not necessarily translate into more sales. “If someone is already carrying boxes, they might not want to buy even more items to take home,” Wu observed.
Amazon has already made moves to expand its locker program. In May, the company announced plans to install lockers in 200 Stein Mart discount stores, and in June, Rite Aid expanded its partnership with Amazon, adding in-store package pickup to over 300 of its stores, which already host lockers.
In an effort to attract more retailers, Amazon has been customizing the appearance of its lockers to match the branding of specific locations. For example, Amazon installed blue and black lockers branded with Chase’s logo at a Chase bank in Seattle, and created lockers that blend seamlessly into a Hilton hotel in Virginia.
Amazon Locker is just one of several ways the company is collaborating with brick-and-mortar retailers to enhance customer convenience. Department store chain Kohl’s, for instance, accepts Amazon returns at all 1,100 of its U.S. stores. The Kohl’s partnership has proven successful, with a 9% increase in new customers during a pilot program in Chicago, according to eMarketer.
The Amazon Locker program has similarly driven store traffic, with some locations seeing up to 600 locker visits per month, the source reported. For Amazon, these initiatives help offset its limited physical retail presence while making it easier for delivery workers to drop off packages.
“It simplifies last-mile delivery, allowing less experienced workers to complete the task,” Behrens Wu added.
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