Open Locker Network
Transforming Retail: How Open Locker Networks Drive Efficiency, Savings, and Sustainability
4 Min Read
Written by: Parcel Pending
In the age of e-commerce dominance, shopping has evolved significantly. With the convenience of online purchases comes the inevitable need for returns, a process that can often be as complicated as it is crucial. However, with the right strategy and technology, returns can evolve from the cost of doing business into a competitive advantage, driving increased sales, customer convenience, and cost-efficiency.
Because orders and returns go hand-in-hand, technology, such as parcel lockers, especially within an open locker network, is a game-changing way to alleviate retailer challenges around growing orders and returns seamlessly and cost-effectively. Below, we explore how open locker networks are sustainably reshaping the landscape of delivery and returns.
What is an Open Locker Network?
An open locker network is a network of 24/7, self-service parcel lockers that offers retailers a dense, scalable solution to consolidate first and last-mile deliveries and returns. The power of open locker networks is that they offer more convenience and choice to customers for their deliveries and returns. This means that they are not required to stop at a specific store but can stop at any locker location within the network to collect their orders or make a return.
Open locker networks are especially important for customers who partake in trip training, whereby consumers combine errands or other activities into one outing rather than returning home in between trips. While this is not a new activity, customers are now including order collection and returns during these trips. As lockers within an open locker network are located at a variety of locations, such as gas stations, shopping centres, parks, or on main streets, customers have an array of locker locations to choose from, with the ability to access the lockers 24/7. By expanding delivery and return location options via an open locker network, retailers are able to better align to the demands of modern consumers while meeting operational needs for a more cost-effective and customer-centric offering.
An important feature of an open locker network is its scalability, which allows those who join it to expand their profitability potential, as the higher turnover rate of the individual lockers means more transactions taking place, resulting in higher revenue and increased savings.
Converting Customers is as Easy as 1, 2, 3
Moving customers towards a more efficient Out-Of-Home (OOH) option by integrating into an open locker network helps retailers create a stronger strategy that drives down costs, improves customer experience, promotes additional sales, and meets consumer sustainability needs. In fact, retailers that have opted into an open locker network saw a reduction in operational costs by up to 50%.*
Retailers may initially hesitate to integrate lockers, fearing consumers won’t readily embrace this new offering. However, it’s remarkable how swiftly consumers adopt locker usage, as customers who have used lockers for deliveries or returns tend to prefer them due to their convenience and ease of use. Marek Rozcki, Managing Partner, Last Mile Experts, noted, “By centralizing returns within an OLN, customers are quick to convert to delivery and collection, helping to drive conversion and increase parcel turnover for a substantial return on investment (ROI).” To support this notion, Laurie Weston, General Manager of E-Commerce, Purolator, highlighted, “Since turning on the returns drop-off function for our lockers, we saw a 237% increase in usage for drop-off.”
Parcel Lockers Promote Increased Sustainability
The last-mile of delivery and reverse logistics are the most expensive part of the shopping journey and the most significant contributor to air pollution, roadway congestion, and CO2 emissions, which is why parcel lockers are critical for retailers to drive local, global, and corporate sustainability goals.
Open locker networks optimise delivery and return operations for a more sustainable process by reducing the number of delivery vehicles on the road and minimising the associated carbon emissions. These networks streamline delivery routes, making them more efficient and eco-friendlier. This reduction in transportation-related emissions aligns with the growing global commitment to reducing environmental impact and contributes to a greener, more sustainable future for retailers and delivery carriers.
Unlock Efficiency, Savings, and Sustainability with Open Locker Networks
Open locker networks offer retailers a unique opportunity to reduce business expenses, enhance operational efficiency, and reduce the environmental footprint associated with deliveries and returns. At Parcel Pending by Quadient, we specialise in crafting and designing top-tier locker solutions and have the know-how to create expansive open locker networks. By joining an open locker network with Quadient, we will help you elevate your business, delivering more sustainability, improved efficiency, enhanced customer convenience, and substantial cost savings.
Contact us today if you’re ready to offer more to your business and customers by joining our global open locker network
Click the image below to download our complimentary eBook to learn more about how your retail business can increase sustainability and provide seamless delivery and returns through an open locker network.