Why shoppers want collection points
There is no doubt that convenience makes up a huge part of customers’ needs when shopping online. And as shopping habits continue to evolve – with many retailers experiencing a boom in online sales during the pandemic – offering more flexible delivery options is vital.
In the US alone, purchasers opting for collection points sky-rocketed by 107% in 2020 vs the previous year, and that figure is set to reach even higher in 2022. But what exactly are collection points, and why are they in demand from shoppers?
What are collection points?
Collection points are an alternative option to home delivery. Rather than having a package delivered to their home or office, shoppers can pick it up from a secure location of their choice and at a time that suits them. Examples of collection point locations include retailers’ own stores, UPS Access Points (of which there are over 20,000 across the US), and other convenient locations like Walmart, CVS Pharmacy and Amazon Lockers.
Why are collection points attractive to shoppers?
If a shopper isn’t sure they’re going to be home for a delivery, their choice is either to abandon checkout, or risk missing their package. Using a collection point solves this dilemma. First time delivery is guaranteed, and the package is held securely at the shopper’s chosen location until the shopper is ready to collect their package at a date and time that suits them.
Doorstep theft and porch privacy are becoming increasing areas of concern, with over 210 million packages stolen from porches and apartment buildings in the last 12 months alone. This fear leads to decreased conversions from shoppers who are seeking a collection option.
Denver, San Francisco and Austin are amongst the ten worst cities hit by doorstep theft, and according to a survey by Forbes, over 49% of Americans fear that their package will be stolen. That’s because there are reports of thieves following delivery trucks and taking packages that are left waiting, many of whom are caught on doorbell cameras with little the homeowner can do. Alternatively, choosing collection points means that packages are safely held at pickup locations, saving shoppers time, stress, and worry.
Retailers benefit from offering collection points too
As for retailers, research shows that up to 77% of shoppers have abandoned baskets due to unsatisfactory delivery options at checkout, with many preferring collection points over home delivery. And as collection point packages are held at secure pickup locations, retailers will start to save on costs like customer service, returns and the replacement of lost or stolen items. By offering collection points alongside home delivery, retailers are also broadening the choice available to their shoppers.
The average spend per transaction usually increases with collection point orders, too, as customers are comfortable purchasing more expensive items knowing that their orders won’t be left on their doorstep. In 2021, and measured across 50 retailers, we found that the average basket values for orders to collection points were 28% higher than orders delivered to home.
How do collection point orders work?
Implementing a collection point solution at checkout can be done in a user-friendly way that retains the qualities of the retailer’s customer experience. Larger retailers such as Williams Sonoma and J.Crew have already added collection points as an option to their online checkouts, and many more retailers in the US are following suit.
Here’s how collection point orders work for customers:
Want to learn more about offering a collection point solution? Discover how HubBox can help both retailers and carriers.