Why lockers and PUDOs are the future of the last mile

E-commerce has significantly increased B2C parcel volumes, driving the rise of automated parcel machines (APMs), commonly known as parcel lockers. A growing share of e-commerce deliveries is now made “out of home,” primarily through PUDO points or APMs, with the latter experiencing rapid growth. According to a 2017 IPC study, 11% of all parcels are delivered via APMs, and 9% of returns are processed through these machines. With ongoing labor shortages in retail and last-mile logistics, lockers and PUDO points are expected to play an even more prominent role in the future.

The Growing Acceptance of APMs

However, the adoption of APMs varies significantly across different markets. According to IPC research, APMs are particularly popular in Finland, Denmark, and China, where up to 43% of parcels are delivered using this method. A 2015 Hermes study revealed that APMs were the most favored last-mile innovation among UK consumers, with 39% finding them highly appealing.

In countries like Sweden, the Netherlands, and Belgium, APMs are less widely known, but those who use them report very positive experiences. Meanwhile, Germany, Spain, and Poland each have over 5,000 APMs installed, making them leaders in the European locker market.

Why Consumers Prefer APMs

When choosing APMs for delivery, environmental concerns are rarely the top priority for consumers. A Belgian study found that ecological reasons played a minimal role in decision-making. Similarly, in Poland, only 1% of respondents cited ecological factors, while the main drivers were 24/7 availability (55%) and lower delivery costs (32%).

The IPC study also found that the ability to choose the delivery location was important to 47% of respondents, ranking it seventh in their decision-making criteria. Our experience shows that when APMs are well-located in safe, accessible areas, they often outperform both PUDOs and home deliveries in terms of customer satisfaction.

Additionally, making “out of home” delivery options prominent on e-commerce websites, and offering them as a default or free service, also plays a key role in driving APM adoption.

Why Consignors Choose APMs

For consignors, the benefits of APMs align closely with customer experience (CX). One of the most significant advantages is the near-perfect first-time delivery success rate, often approaching 100% for lockers. This efficiency reduces return rates and encourages repeat purchases.

While returns may not always be desirable for sellers, offering a convenient, 24/7 return option via lockers enhances the customer experience and can lead to more loyalty and repeat business.

Lockers, PUDOs, or Both?

It’s important to note that neither APMs nor PUDOs alone provide a complete out-of-home solution. Lockers, while highly efficient, are expensive to install and require planning permissions, rental agreements, and power supply. The ideal model may involve a combination of APMs in high-traffic locations, supplemented by PUDO points to handle overflow during peak times when locker capacity is full.

The Future of APMs: Mobility and Innovation

The concept of APMs continues to evolve. Ford, for instance, is piloting a mobile delivery service in London, where electric vans serve as mobile APMs. Foot and bike couriers deliver parcels for the final leg of the journey.

Amazon has patented a system to integrate APMs within buses, allowing customers to retrieve packages at convenient stops. They are also exploring smart locks for more secure home deliveries. Meanwhile, Google is working on an “autonomous delivery platform” with self-driving parcel delivery trucks.

While these innovations may still need refinement, they indicate a future where consumers will have more options and greater convenience. Until then, traditional APMs and PUDOs, along with retailers’ click-and-collect services, will continue to handle the majority of out-of-home parcel deliveries.

Request a Quotation

Get in touch with us to request a quotation. Our team is ready to assist you with your needs and provide detailed information about our services.

Warehouses in Over 15 Countries Across Europe and the Middle East

 

Our Headquarters and Manufacturing Facility

148, Kliment Ohridski Blvd. Sofia 1756, Bulgaria

C/Colegiata N18, 28012, Madrid, España

Phone Numbers

+ 359 2 408 58 88

+ 34 (91) 0607378

Email Addresses

[email protected]

[email protected]

[email protected]

What is 7+5?

Please answer the question above to confirm you are not a robot. This helps us prevent automated submissions.

Parcel Hive
Why we are called Parcel Hive – Our goal is to make the movement of Parcels around the local communities, countries and world seamless. Our systems and Terminals give the chance of high automation and communication over distance with Single or Multiple core. This is how we envision to keep up with the changing world. Parcel Hive is company that designs and produces high quality, efficient and appealing Automated Parcel Terminals. We cover the full spectrum from A to Z – from The concept to production, Software, Logistical Deployment, Services for Installation, 24/7 Maintenance and support.

Leave your comment