Package deliveries are booming, with e-commerce sales estimated to exceed $6.3 trillion globally this year. With exponential growth comes last-mile logistical challenges for delivering packages efficiently and securely to consumers — the vast majority of whom have come to expect exceptional service every time they place an order.

For carriers and shippers, even more challenges abound for containing costs, ensuring security, and addressing concerns about pollution. One tech-driven trend, open locker networks, is emerging to alleviate the increasing pressure on legacy systems. Open locker networks provide a system of shared, secure parcel lockers in public or semi-public locations that are accessible to multiple carriers, retailers, and other businesses. Featuring advanced digital interfaces, consumers use their unique code to conveniently retrieve a package or process a return at the locker.

Open Locker Networks Drive Customer Satisfaction in Europe

The open locker shared usage model has already gained a strong foothold in Japan and Europe, with thousands of lockers dispersed at easily accessed, common touchpoints for consumers. Strong partnerships with major carriers and national retail networks have formed, especially along daily commuting routes, which has sped up adoption and usage. By their very nature, open locker networks allow any carrier to participate, instead of incurring the cost to operate a privately owned distribution network.

This trip-chaining approach of dropping multiple packages at a single location optimizes the logistics process and drives customer satisfaction by offering greater flexibility and convenience. The cultural shift with consumers is real, as locker hubs become increasingly accessible in new ways. One European pub operator, for example, offers secure parcel lockers on site. You can grab a beer and pick up or return your package – all in just a few steps.

European shippers and carriers have learned you can optimize efficiency without sacrificing customer experience. Carrier customer studies indicate that lockers are the preferred pickup method, winning out over less efficient, more traditional options like curbside pick-up or waiting at a retail customer service desk. Within the smart locker system, customers retain the ultimate control of how and when to retrieve a package with a simple scan of a QR code. Moreover, they feel confident doing so in a secure environment knowing their belongings won’t get stolen sitting out in the open. In multi-unit residential housing, package lockers rank as a top amenity, second only to parking.

Congestion and Sustainability Factors Increase US Demand for Open Lockers

Despite the inherent challenges of a sprawling urban terrain, open locker networks are beginning to emerge in the United States, and the energy is moving toward this model. In denser areas, alleviating congestion and complying with environmental targets is a major motivator for carriers and municipalities to transform delivery operations.

The trend and dollars are shifting toward solutions that solve the last-mile challenge. New York City launched an initiative to reduce package theft, traffic congestion, and pollution. The city’s program includes public locker hubs featuring security cameras, LED lighting, and anti-theft mechanisms. The city was motivated by the surge in at-home deliveries, noting that 80% of households received at least one delivery weekly and 20% received four or more deliveries weekly. By centralizing drop-off points, the city can address the rise in truck traffic and related vehicle emissions.

In Seattle, a similar program has yielded positive outcomes. The effort reduced delivery times overall by as much as 78% and the average delivery time inside the building was cut by half. The amount of time trucks dwell at the curb was reduced by a third. Customer service didn’t suffer as a result, with a 96% satisfaction rating with the new locker system due to ease of use and fewer missing or stolen deliveries.

Forward-thinking carriers are quick to participate in such programs, recognizing that cities are making sizable investments and will increasingly place expectations around solving last-mile problems. In California, the Los Angeles Cleantech Incubator is implementing a number of initiatives to tackle pollution through zero-emission delivery zones. Another recent example: Miami received a $2 million federal grant from the U.S. Department of Transportation's Strengthening Mobility and Revolutionizing Transportation (SMART) program. The funds will be used to improve transportation efficiency and safety to proactively achieve low-carbon last-mile deliveries for freight and goods.

How Open Locker Networks Benefit Carriers and Consumers

From shipping to delivery, the post-purchase experience is undergoing an evolution to meet the sheer volume and customer demands for speedy, hassle-free experiences. For carriers, open locker networks optimize delivery routes by consolidating deliveries to a single locker location, saving time and reducing fuel costs. The system offers a scalable solution for managing upticks in delivery volume without expanding infrastructure.

For carriers delivering consumer goods, 1.5% of the 23 billion packages delivered annually in the United States are lost or stolen in the last-mile phase. Open locker networks reduce the number of failed delivery attempts and provide a secure drop off for parcels. On the flip side, online purchases have a high return rate: 17.5% or $247 billion of merchandise is returned annually. Smart locker hubs are a convenient alternative for returning packages that don’t require additional staffing, particularly as the latest locker models feature built-in label printers for consumer convenience. Additionally, agile carriers see the benefits of utilizing oversized lockers to cost-effectively create micro hubs in lieu of typical distribution centers—especially valuable in urban areas with more expensive real estate.

Consumers show a strong preference for delivery or returning parcels via smart lockers. They can pick up their packages at a time that suits them, rather than be tied to home delivery schedules. Whether located in apartment buildings, stores, or other public spaces, locker hubs serve as convenient pickup locations that are close to home, work, grocery shopping or other frequented areas. The keyless, secure nature of locker systems means consumers don’t have to worry if their package will get stolen, lost, mistakenly picked up or left out in the elements. They also appreciate that locker hubs are easily opened with a QR code and located in public spaces that are monitored.

The journey to redefine the last mile — and now the first mile of returned packages as well — for more efficient, sustainable delivery solutions continues. On a global scale, carriers and municipalities are embracing open locker networks as a viable way to consolidate deliveries while also exceeding customer expectations. Trends show they are coming soon to an American city near you.

Austin Maddox is Executive Vice President of North American Parcel Locker Solutions for Quadient and is passionately committed to helping businesses address their unique challenges as they relate to increasing volumes of inbound and outbound packages. Visit Quadient at https://www.parcelpending.com.