Who uses out-of-home delivery options, and why?

04 December 2024
James Ashdown

In today's world of convenience and flexibility, pickup points and lockers are increasingly common at online checkouts. Customers now expect this option when shopping online, but who uses them, and why?

Woman retrieving parcel from locker bank

Who uses out-of-home delivery options?

Pickup points and delivery lockers have gained significant traction across the UK, with over half of consumers having already used a pickup point in the last year. Across Europe, pickup points have long been a delivery staple and it’s quickly growing in popularity in the US too. Younger generations are leading the charge with research conducted by Retail Economics and InPost revealing that 71% of Gen Z and 68% of millennials have utilised lockers for an online purchase.

However, it’s not just about age. A study by Savanta and HubBox, which surveyed 1,000 consumers, highlights that 68% of urban residents and 71% of hybrid workers also favor pickup points for their online deliveries. These findings suggest that lifestyle factors, such as living in densely populated areas, or juggling office and remote work, drive the popularity of pickup points and lockers among these groups.

71%

of Gen Z have used lockers for their online purchases

68%

of millennials have used lockers for their online purchases

7 out of 10

hybrid workers favor pickup points

Why do people use pickup points and lockers?

The appeal of pickup points and lockers lies in their ability to address key consumer pain points. According to the Retail Economics and InPost study, the top three reasons for using out-of-home (OOH) options are:

  • Convenience (36%): Shoppers no longer have to wait around at home for the 2 minutes that the driver is at the door, with lockers they usually have 2-3 days to pickup an order, with pickup shops it’s often up to 7 days.
  • Lower Costs (19%): Retailers often price an OOH delivery option cheaper than home delivery, making it an attractive option for price-conscious shoppers.
  • Speed (17%): Missing a delivery can add days onto the time it takes for a customer to receive their order. Since OOH delivery has a much higher success rate, consumers can get their orders quicker.

The above is echoed by other studies into why consumers use alternatives to home delivery. YouGov research indicates that 45% of consumers prefer out-of-home delivery options to avoid the frustration of failed doorstep deliveries.

Additionally, 71% of customers would choose OOH delivery if it offered significant cost savings compared to home delivery, as noted by Sendcloud. The combination of flexibility, cost-effectiveness, and reliability is redefining consumer expectations around ecommerce deliveries.

The Benefits of OOH for Retailers

The rise of lockers and pickup points doesn’t just benefit consumers; it’s also a game-changer for retailers. Offering these delivery options can have a direct impact on sales and customer satisfaction.

One critical insight from Sendcloud is that 44% of European consumers abandon their carts if their preferred shipping option isn’t available. This statistic underscores the importance of providing diverse delivery choices, including OOH solutions, at checkout. By integrating lockers and pickup points into their delivery networks, retailers can:

  • Reduce cart abandonment: Customers are more likely to complete purchases when their desired shipping method is available.
  • Converting new types of customers: Flexible delivery options attract a broader audience, with broader wants and needs, including option-savvy and cost-conscious shoppers.
  • Enhance customer loyalty: Offering convenient, reliable delivery choices positions brands as customer-focused and responsive to modern needs.

Ultimately, lockers and pickup points provide a win-win solution for consumers and retailers alike, combining affordability and flexibility with operational advantages that can drive long-term growth.

Conclusion

As the demand for pickup points and lockers continues to rise, their importance in the retail landscape is undeniable. With younger generations, urban residents, and hybrid workers embracing these services in record numbers, OOH is set to remain a cornerstone of ecommerce logistics.

For retailers, the adoption of OOH delivery options represents a strategic opportunity to align with shifting consumer expectations, reduce cart abandonment, improve customer experience, and build a competitive edge in a fast-evolving market.

With home delivery, packages are sometimes left in the yard, risking theft. Many of our customers have busy lives and want a delivery option that guarantees security.

Jonny Archer ,Lucy & Yak