Dive Brief:
- Newegg, a high-end tech e-tailer, announced a new shipping option that allows customers to choose one of FedEx's 2,500 locations for pickup within 5 days of delivery, reported PYMNTS.com last week.
- Newegg offers this option as protection against theft and inconvenience, as its products are both pricey and unsecured if delivered when the customer is not available.
- The new, free delivery option favors FedEx over Newegg's other delivery partners, UPS and OnTrac.
Dive Insight:
Last-mile delivery is not only the most challenging aspect of the supply chain, but often the most risky. Last year, 23 million customers had reported their package had been stolen, according to NBC.
Newegg in particular faces a higher risk from leaving its shipments unattended as electronics attractive targets for "porch pirates." Elsewhere along the supply chain, electronics were the second most common target for cargo thieves, often disappearing in bulk.
Newegg and FedEx's solution aims to provide online retailers with the security enjoyed by their brick-and-mortar counterparts, all the while helping the carrier secure market share through the secure service. As Amazon lockers and UPS Access Points show, customers are typically willing to travel short distances for a secure delivery.
In addition, by enabling customers to determine the pickup destination and the date of pickup, the partners are improving both the security and convenience of last-mile delivery.
