AACS Member Profile: ParcelPoint

Working with convenience retailers to ease delivery pain for online shoppers.

The demand for services continues and ParcelPoint is delivering such a service for retailers and consumers.

As online shopping approaches fever pitch in Australia, ParcelPoint estimates that more than 40 million deliveries will fail this year because no one is home. In response to growing consumer frustration with missed deliveries, ParcelPoint has established an easier way for busy consumers to receive their parcels – at their local convenience store, when it suits them.

ParcelPoint is a simple concept – customers deliver to a local store, receive an email or SMS notification when their parcel arrives and then collect when it suits them. ParcelPoint locations include convenience stores, newsagencies and grocery stores. Locations are selected based on accessibility with many open 7 days and after-hours.

“We all dread receiving a calling card because it’s generally inconvenient to collect a parcel from the post office or wait at home for a re-delivery,” says Phil Lee, who founded ParcelPoint almost a year ago. “ParcelPoint is all about empowering consumers to receive parcels on their terms.”

ParcelPoint has signed up hundreds of local retailers nationwide, and these agents are being activated in stages. “We put a lot of effort into agent selection and training as it’s critical that every customer has a good experience,” explains Mr Lee.

Benefits for local retailers operating the service as ParcelPoint Agents include:

– Direct commission on every parcel handled, with strong growth prospects in line with online shopping trends.
– Increased foot-traffic, with around 1 in 3 customers expected to purchase something else.
– Access to new local customers with strong loyalty potential.
– Low cost and risk, as there are no setup or monthly fees for ParcelPoint Agents, while the service is designed to utilise the retailer’s existing operations.

In addition to offering the service to consumers directly, ParcelPoint is building partnerships with online retailers and parcel carriers as both groups can benefit significantly from promoting a convenient, more efficient delivery option.

“Our Sydney-area partnership with a local carrier has been a great success, with more than 1 in 4 carded households choosing re-delivery to a ParcelPoint location rather than a second home delivery,” says Mr Lee.

“Online retail grew nearly 30% last year in Australia and many of the leading retailers are pure-plays with no physical stores. They like our model because it enables them to offer a ‘click-and-collect’ service using ParcelPoint locations for customer pickup.”

Australia Post has made public its intention to invest in new parcel services, including extended hours in some post offices and 24hr self-serve parcel lockers. However consumers and online retailers are currently frustrated with existing service levels amid recent price hikes. ParcelPoint is banking on its ability to move faster than the incumbent and emphasises a solution that works for any carrier.

“We know from our discussions with online retailers that many don’t wish to be locked to a single carrier. ParcelPoint enables online retailers to offer a new delivery option to their customers while retaining flexibility to work with any freight provider,” explains Mr Lee.

“We are also building an ultra-local network as we don’t believe consumers wish to travel beyond their neighbourhood to access after-hours services. Some of the new services Australia Post is trialling have resulted in parcels being redirected to locations that are further away than the closest post office.”

ParcelPoint has ambitious plans for the year ahead, having recently secured significant funding to grow the business. “Our Collect service is just the start. We’ll soon be launching outbound services from ParcelPoint locations, enabling consumers and eBay traders to send and return parcels from their local store when it suits them.”

With an experienced management team in place, ParcelPoint is working closely with the convenience retail channel as an AACS member.

Convenience store retailers interested in finding out more can contact ParcelPoint at enquiries@parcelpoint.com.au.