What is a Smart Locker? A Complete Guide

Updated March 28, 2026

 

Smart lockers are changing the way that consumers shop. In light of growing consumer preference for convenience and flexibility in how they pick up a package or online order, more retailers are recognising the benefits associated with integrating a smart locker system into their store pickup services.

In short:

• Smart lockers provide secure storage and automate self-service pickup and returns for online orders
• When integrated with cloud-based systems, lockers can enable real-time tracking, notifications, and access control
• Lockers enable reallocation or reduction of labor while improving visibility and creating added customer convenience
• Built-in authentication ensures secure, contactless retrieval without staff involvement

In this article, we’ll break down exactly what a parcel locker is and what problems it can help retailers address. We’ll also look at some of the benefits associated with utilizing smart retail parcel lockers, both from the retailer’s and the customer’s perspectives. Gaining a better understanding of how smart package lockers work, the key benefits, and their role in a retail environment can provide valuable insights into how this smart locker technology is revolutionizing retail shopping.

Retail Smart Locker Systems Explained

A retail smart locker is a storage solution that has integrated smart technology built into it, allowing it to automate order fulfillment, notification, and distribution. This enables clients with smart package lockers to simplify the order pickup process, making it more convenient for their customers to retrieve items at their convenience.

Once an order is delivered into a retail smart locker system, the recipient is automatically notified that their order is ready for pickup and provided access instructions. Access instructions generally take the form of an access code, order number, or barcode that they can enter or scan from their mobile device. Once they arrive at the locker location, the user enters their verification information at the kiosk touch screen or accesses their assigned locker using a mobile app. Once the verification information is entered correctly, the right locker door will open, and the customer will be able to retrieve their package.

What Are the Components of a Smart Retail Storage Locker?

A retail smart locker system combines physical locker hardware and cloud-based software to automate secure order storage, access, pickups, and returns. At its core are locker compartments that provide secure storage for online orders and other assets that can be distributed from or returned to a retail storefront.

Each smart locker includes a user interface, such as a touchscreen or mobile app, that enables seamless access using PIN codes, barcode scanning, or other authentication methods. These features help users quickly retrieve or return items while maintaining strong access control through user verification.

Behind the scenes, cloud-based software and order management software (if integrated) power the locker system. This allows retailers to automate notifications, enable real-time tracking, and generate reports using a detailed audit trail of every interaction. These capabilities help businesses improve operational efficiency and keep track of inventory across locations.

Additional components, such as integrated access control systems, enhance security and support asset tracking. Together, these elements create a smart locker solution that helps businesses automate order fulfillment and return workflows, protect sensitive items, and provide a secure, seamless pickup and return experience.

Why Choose a Smart Package Locker?

There are several reasons why retailers might choose to use a smart locker solution over a traditional locker or counter collection. Smart locker options offer a lot, automating a variety of functions that would typically be carried out by one or more employees. This improves store efficiency, creates opportunities for operational cost savings, and advances digital transformation for retail locations. Retailers that use smart locker systems can save in more than one part of their store operations.

Benefits of Smart Locker Systems

Automated smart locker technology, unlike a typical package delivery locker or traditional lockers, uses a PIN code and a kiosk screen for easy access to the compartments, securing access to orders and reducing reliance on staff to pick up orders or make returns.

For example, an electronic locker can significantly reduce labor costs associated with offering click-and-collect options, or buy online, pick-up in-store (BOPIS) services. Once a store associate retrieves an order and delivers it into the intelligent locker system, they can return to other tasks around the store and the order is secure until the customer collects it. In contrast, a typical BOPIS in retail process involves a staff member assisting with each step of the transaction.

Benefits of Smart Lockers for Retailers

Retailers can also use an electronic locker system to help save on first-mile and last-mile shipping costs. Using a smart locker system to offer a Buy Online, Pick-Up in Locker (BOPIL) solution, in addition to services like curbside pickup, allows retailers to leverage the inventory at their store and the logistics network that supports it to quickly fulfill and return online orders. With intelligent parcel locker solutions, consumers benefit from faster access to their online orders (with order fulfilment often faster than even the most expedited shipping services), while retailers reap as much as a 90% reduction in shipping costs. Learn more about the difference between BOPIS vs. BOPIL here.

Of course, offering any in-store pickup or return option is beneficial to retail stores. Consider the importance of in-store pickup services for home improvement retailer Lowe’s, for which the store pickup option accounts for 60% of its online sales. Many shoppers at Lowe’s and elsewhere like the value and convenience that online shopping provides, but if given the option, will choose to pick up their product in a store. Now, Lowe’s has installed package locker solutions at all 1,700 of their stores to help better manage the onslaught of BOPIS orders.¹

Benefits of Smart Lockers for Shoppers

Customers who choose in-store pickup may do so out of concern for the security of their purchase. Package theft is becoming increasingly commonplace, especially as a greater amount of our shopping is done online. Retailers are beginning to use an electronic locker system to provide a secure storage solution through which they can fulfill orders faster and allow customers enhanced security for their purchases and the ability to retrieve orders at their convenience.

The biggest advantage of implementing an electronic locker system is that it can streamline the order pickup and return processes for customers. Intelligent locker solutions aren’t intended to replace BOPIS services or home delivery but are instead used to create an easy, efficient, and contactless pickup or return process. This ease and efficiency extends to both store staff and customers. Staff can quickly deliver orders into the system without having to go through the extra step of notifying the customer. In the same vein, the employee won’t have to be involved in the final order handoff to the customer. Instead, the customer is able to collect their order in less than 30 seconds – no waiting in line required.

Why Choose BOPIS Collection from a Smart Locker?

Parcel Pending Smart Retail Lockers are more than just a secure and smart locker solution. They are a valuable asset that can provide retailers with a number of benefits for improved store operations and end-user experience, including:

• Streamlined Operations: Retailers that provide BOPIS and BORIS from smart locker solutions save an average of 45 hours per month managing online orders. Providing collection from a locker in store is also proven to help retailers reduce shipping costs, namely last-mile delivery expenses.
• Improved Customer Experience and Customer Satisfaction: Providing a seamless, contactless collect-in-store solution makes customers 95% more likely to become recurring shoppers.²
• Increased Sales Volume: 61% of shoppers make an unplanned, additional purchase when retrieving their online orders.
• Higher Employee Engagement: By reducing the time spent managing click-and-collect orders, employees are also able to focus on being knowledgeable resources for customers.
• Industry-Trusted: Lowe’s selected Parcel Pending as their exclusive locker solution provider for all 1,700 stores. Learn more about the partnership by checking out the press release here.

Why Smart Lockers Are Essential for Modern Retail Operations

In an effort to create more secure access control systems, particularly to high value items in retail environments, many businesses are able to benefit from smart outdoor or indoor lockers – both in terms of their operation and cost. The use of smart retail lockers offers significant advantages for both consumers and retailers. Customers appreciate smart lockers because the entire process is convenient and accessible from end to end; they can quite literally click and collect. The customer no longer needs to interact with store staff or wait in a crowded line to pick up their order. This allows a customer to quickly stop by a retail location and retrieve their package at a time when it’s convenient for them, creating greater customer satisfaction overall.

For retailers, the main benefit of a smart locker system is the data it provides. A smart locker system provides real-time analytics for each stage of order fulfillment, from the moment an order is placed in the lockers to the moment it’s picked up by the customer. This gives retailers access to data on a scale that simply can’t be matched by standard BOPIS services, including real-time inventory tracking. An intelligent locking system also integrates seamlessly with existing order management software programs and applications, ensuring that retailers can quickly and easily augment their in-store pickup services with smart locker capabilities.

Most importantly, smart lockers offer convenience and flexibility for customers. Customers have shown a strong desire for in-store pickup options; smart lockers enable retailers to offer this service while improving the overall efficiency of their in-store pickup options and store operations.

Retailers are showing an increased interest in secure storage solutions like BOPIL, ones that involve little-to-no human contact to protect both their customers and their employees. Having these protections in place is increasingly important to both employees and consumers.

A Secure, Contactless Solution for Modern Retail

As demand for secure and low-contact solutions grows, smart lockers offer a reliable way to support both. Systems like BOPIL (Buy Online, Pick Up In Locker) minimize human interaction while protecting customers and employees. With built-in security and controlled access, retailers can confidently offer a safer, more efficient pickup experience.

Interested in finding out how BOPIL can help your business and your customers? Reach out to a member of our team today.

 

Sources:

1. Charm, Tamara, et al. McKinsey & Company. The great consumer shift: Ten charts that show how US shopping behavior is changing. (2020, August 4). https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing.
2. Lowe’s. (2020, September 22). Lowe’s Leverages Innovative Technology to Launch Contactless Pickup Lockers Nationwide [Press Release]. Retrieved from: https://corporate.lowes.com/newsroom
3. Parcel Pending. (2019, December). Parcel Pending’s BOPIL® Solution Helps Major Shoe Retailer Improve Its BOPIS Experience [Case study]. Retrieved from: https://info.parcelpending.com/fortune-500-retailer-bopis-bopil