Could you be denied your parcels this Christmas? The management company for a series of large apartment blocks in the US has taken the bold move to stop accepting their residents' parcels. MD Rob Smith discusses why they've made this decision and if buildings on our shores are likely to follow suit.
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Hello, this is Rob Smith, MD of Blueleaf and in today's Retail Roundup I want to talk about new considerations for ecommerce delivery.
You may have seen in a recent piece of news that a large property management company in the US has stated that it's no longer accepting parcels from ecommerce orders. I think this is really interesting. It's just one company that have said this but they have lots of buildings all over the US. They claim that ecommerce orders are causing them a lot of logistical headaches and they don't have the space or resource to deal with them, so they're refusing to accept delivery.
Now this is an amazing statement as far as I'm concerned. You expect the building you live in to accept parcels on your behalf. This bold step will give a big boost to some of the services we're seeing emerge, such as lockers. I know a lot of workplaces also get frustrated with the amount of ecommerce orders that arrive, especially around peak season. The more this happens, the more we'll see the alternative options, that were kind of in the background, start to gain in popularity. If buildings and workplaces continue to struggle, then these alternative delivery methods will explode.
This goes for click and collect too. Click and collect is very convenient to us as shoppers. If we're already in town, we can pop to the store and pick up our order but does it matter to us whether we collect from the store, which has limited space, or a nearby locker? I'd argue it doesn't make that much difference. It's also a huge opportunity for pure-play retailers if they can deliver to lockers.
So I think this is a really interesting trend and we really should look out for alternate locations for delivery and pick-up. From a retail perspective, stores have limited space; they've only really got space for their stock. So to house click and collect orders and to run a system to manage them is a logistical nightmare. This can make click and collect quite expensive to run so if there's other ways of operating the service, it could get interesting. Worth having a think about.
This is Rob Smith talking about new ecommerce delivery options.