Dive Brief:
- UPS announced a new partnership with online logistics solutions provider HubBox this week to expand e-commerce delivery options for consumers and retailers worldwide that are looking to have packages delivered somewhere other than a home address.
- By partnering with HubBox, retailers can offer online customers a variety of buy online, pick-up in-store (BOPIS)-style delivery options that allow customers to pick up items at a UPS Access Point of their choice. The carrier's 2019 UPS Pulse of the Online Shopper survey found one in five consumers prefers to have items delivered somewhere other than their residence because of convenience, security or other factors.
- Through the new partnership, customers can choose from 40,000 UPS Access Point and 38,000 drop-box locations around the world to get their orders, while retailers can take advantage of the fact that UPS residential surcharges won't apply to the deliveries.
Dive Insight:
As e-commerce has grown year over year, solving last-mile delivery challenges and offering a wider range of options for customers has become an area where retailers seek a competitive advantage.
Retailers feel the need to offer fast and convenient shipping in the race to beat Amazon. For online or brick and mortar brands alike, targeting the 20% of consumers that prefer non-home delivery options is a prime opportunity.
UPS has taken advantage of this through an aggressive expansion of its Access Point network into thousands of retail stores including CVS, Michaels and Advanced Auto Parts. Now, retailers can integrate HubBox into their existing e-commerce platform — such as Shopify, Magneto or SAP — enabling them to offer customers the option to choose an Access Point for delivery automatically at checkout.
In some cases, the Access Point could be in one of the retailer's own brick and mortar locations, allowing stores to set up a BOPIS program simultaneously. BOPIS has already begun to prove itself as a winning strategy for brands such as Kohl's and Nordstrom, companies which have reported increased foot traffic and sales by enabling shoppers to pick up or return online orders and peruse the aisles while they're there.
It's a shift in consumer shopping habits that experts predict will only increase over time. Package Concierge released a survey earlier this year which found that 58% of GenZ shoppers (ages 18 to 25) have used BOPIS for a purchase, and 60% said it was a factor in deciding where to shop.
