![]() ![]() The phone is critical because it is real time – it puts pressure on the customer to decide. Alternatively, if the customer is not at home but in the vicinity, they might say, “Bring it to me where I am.” There will be an additional charge for this, and this fee goes directly to the driver, not to the courier company. For customers who don’t answer the phone call, the consignment will be delivered to a nearby parcel locker.įor residential deliveries, if there’s no local parcel locker, the customer might ask the courier to leave the parcel at the front door or with a neighbor. The courier driver calls the recipient to say, “I’m here, come and collect your parcel.” The recipient then either meets the courier to collect the parcel or asks the courier to put the parcel in a nearby parcel locker. Phone calls are crucial to the last mile – forget about apps and customer push notifications. This brings us to the other key enabler of e-commerce delivery: the mobile phone.ĭrivers know their patches, so when they get to an office building, they will call the consumer. In China, receiving employees’ parcels isn’t a big deal at small workplaces, but in office buildings, courier drivers aren’t allowed past reception. This contrasts with the Western world, where few lockers are present, and a growing number of companies refuse to accept parcel delivery due to security concerns or simply the time and cost of managing the growing volume of parcels for employees. This has the advantage of meaning that even if the recipient isn’t there, the workplace will accept the package. Huge numbers of people use their work address as their delivery address. As experienced online shoppers, they know their delivery options. Online shopping is so prominent in China that it’s an everyday thing.Ĭhinese urban culture is busy – everyone’s working, so they shop online. The scale of online shopping in China makes parcel lockers indispensable and omnipresent. ![]() This is particularly farsighted and deserves kudos for the Chinese players. This puts even the largest European or North American networks in the shade, the most expansive of which have in the region of 5,000 lockers.Īll these parcel lockers (with the exception of JD) are open networks – even China Post’s network. That’s a total of 310,000 locker installations. Hive Box has 150,000 locker locations, China Post has 100,000, JD.com has 50,000 and Cainiao has 10,000 locker locations. E-commerce parcel volumes were growing in 2018 at 40-50% per annum (now ‘only’ 30% per year), so at that scale last-mile out-of-home solutions had to be developed quickly. The express delivery sector supports annual e-commerce sales of nearly 6.9 trillion Yuan (US$1tn), which is over 19% of China’s retail sales.Ĭhina developed the out-of-home delivery network because it had no choice. Last year’s Singles Day generated 1.88 billion parcels – dwarfing the 175 million items sold during this year’s Amazon Prime Day. That’s 10 times as many as global giant UPS. Juan Sotolongo (722 Consulting), Ian Kerr (Postal Hub Podcast) and Marek Różycki (Last Mile Experts) analyze the marketĬhinese philosopher Confucius said, “For last-mile delivery, use parcel lockers!” Okay, that might not have been Confucius, but they’re wise words nonetheless.Ĭhina’s express delivery sector handled around 50 billion parcels in 2018. Next-day and same-day delivery are the norm, and parcel lockers are crucial in delivering parcels. ![]()
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