New research from UPS indicates that 33% of consumers prefer to have packages shipped to locations other than their home, up from 26% last year. Approximately one third (32%) of consumers also said they want packages shipped to another retail location.
As a result, UPS is expanding its Access Point network, which is now available in NYC, Boston, Chicago, the San Francisco Bay area and Washington D.C. metropolitan area.
How does this news align with the rise of the “on-demand economy”? How will it impact or augment the importance of more flexible delivery/fulfillment options for retailers?
Debbie Hauss, Editor-in-Chief: Particularly in urban areas, this type of pickup option should be widely accepted. Right now UPS is starting with Access Points in small businesses such as dry cleaners, but may expand to different types of locations and standalone sites. This service makes sense for a company like UPS. Amazon offers a similar service called Amazon Locker.
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Alicia Fiorletta, Senior Editor: Retailers are clamoring to keep pace with customer demands. We’re in the age of Uber, where we can get a private car just by tapping in an app. Now, Uber is partnering with retailers to provide faster delivery to customers. In a way, I think this is UPS meeting customers in the middle. After all, by partnering with businesses, as Debbie noted, it expands the UPS network, improves customer satisfaction and also drives traffic to these locations. Seems like this move is beneficial for everyone!
Rob Fee, Managing Editor: More flexible delivery options are always a good thing. Although online shopping is incredibly convenient, home delivery isn’t always feasible. Case in point: I recently ordered a Father’s Day present that required a signature upon delivery. Unfortunately, no one was home when the package arrived, and I had to make alternate arrangements. This added two days to the delivery process. A service like UPS’ Access Point removes this hurdle and provides a smoother experience. I’ll certainly be a customer if given the option in the future – particularly for big ticket items or packages requiring a signature.
Glenn Taylor, Associate Editor: UPS is arming itself to catch up with consumer demands that we are seeing fulfilled by more retailers. Consumers might not necessarily be clamoring for same-day delivery if a cheaper option is available, but they do love delivery options on their terms, especially if they don’t have to worry about what happens during the ‘last mile’ of the package. Plus, one would assume the costs of delivery would go down as more packages are delivered to centralized locations. An article from the WSJ gave a good example of how DHL has been leveraging self-service pickup stations in Europe, giving consumers a convenient option when home delivery would otherwise be difficult.
Brian Anderson, Associate Editor: This move makes sense. Consumers want more control of the buying experience; offering more locations for consumers to ship their packages will increase experience and boost the shopper’s overall experience. I feel as though retailers will see this as an opportunity to enhance their delivery/fulfillment needs by giving consumers more say in the shipping process. I know for a fact that Amazon’s flexibility and timeliness when it comes to shipping is one of the top reasons why I like shopping through their company, and UPS’ research and expanded Access Point confirm that it is growing into an important part of the customer experience.
What are your thoughts on UPS’s Access Points? Do you think we’ll see more retailers and logistics companies trying to achieve the same thing? Share your thoughts in the comments section below!
