In 2023, Out Of Home deliveries of eCommerce orders reached 15.9 per cent of total online product purchases. The figure, presented last May by the Netcomm Consortium, thus reveals a growing interest among Italian consumers for alternative forms of order delivery and pick-up to traditional Home Delivery.
Yes, but what exactly is Out Of Home delivery? If you are looking for an answer to this question, you are in the right place.
In this article, we will explain exactly what is meant by Out Of Home deliveries and, above all, why they are becoming increasingly popular (also) in Italy.
First, however, a necessary premise must be made.
Out Of Home – or, to use the more common acronym OOH – is a term used not only in logistics, but also in the field of marketing. One speaks in fact of Out Of Home Advertising or Digital OOH Advertising to refer to all those forms of advertising, analogue or digital, that reach consumers outside the home. For example, on public transport or in underground stations. If you were looking for the meaning of Out Of Home in the context of marketing, you can click here to find the information you were looking for.
Having clarified this fundamental aspect, let us now return to the subject of Out Of Home deliveries and the meaning of this term in logistics.
What is meant by Out Of Home deliveries
When we speak of Out Of Home deliveries, we are referring to all those forms of delivery and return of online orders that do not have the consumer’s home as the final destination of the goods, as is the case with Home Delivery, i.e. the delivery to the home we have all become accustomed to.
Out-of-home deliveries are therefore generally made at Lockers and Pick-up Points where the customer can go to collect – or return – his or her parcel.
What Lockers are and how they work
Lockers – or proximity micro-hubs – are automated lockers available 7 days a week, 24 hours a day, which allow a package to be deposited or picked up at any time of the day or week. They are generally located in high-traffic areas, such as stations, bus stops, supermarkets or strategic points in the city.
How do they work? During the checkout phase, the customer chooses this delivery method and the locker closest to their home, place of work, or the one that is most practical for them (generally a place they frequent often or would already pass by).
Once the order has been processed and entrusted to the courier, the latter deposits the package at the locker chosen by the customer during checkout.
Once the courier has left the parcel in the Locker, the customer receives a notification by email or sms that the parcel is available for collection, together with a code with which he can open the locker containing the parcel.
At this point, all that remains for the customer to do is to go to the Locker at a time most convenient for him (within a maximum time limit), collect the package and take it home with him.
What Collection Points are and how they work
Pick-up Points – you might also hear them referred to as PUDOs, which stand for Pick-Up/Drop-Off – are all those commercial premises that offer e-shoppers the possibility of picking up a parcel or returning an order. Since they are businesses of various kinds, such as newsagents, tobacconists, petrol stations or neighbourhood shops, Pick-Up Points can be located anywhere in the city.
As with the Locker, the customer chooses this method of collecting his online order during checkout, selecting the Pick-up Point most convenient for him.
The courier will deliver the parcel to the business selected by the customer and where the customer can go to collect his order after receiving notification of successful delivery.
In the case of a return, on the other hand, the customer only has to go to the business selected from those available and deliver his or her parcel.
By now, you may have already begun to understand why Out Of Home deliveries are becoming increasingly popular with consumers and are gaining ground not only in Italy, but throughout Europe.
All the advantages of Out Of Home deliveries
The advantages that these alternative delivery methods offer both consumers and merchants are considerable.
1. Greater flexibility for customers
Certainly, the first advantageous aspect is flexibility. Thanks to Out Of Home deliveries, the customer is no longer bound to be at home when the courier arrives, but can choose where and when to pick up the order according to his needs.
2. Increased conversions
This is not only a convenience, flexibility also directly affects the purchase choices and conversions at the checkout of your online store. If the customer realises he cannot be at home when the order is delivered, he may abandon the purchase (and you will lose a sale), or he may choose to proceed with the order anyway, running the risk of non-delivery (with all the problems – and costs – that entails, especially for you). Out Of Home deliveries, on the other hand, always guarantee 100% delivery.
3. Reduction of costs and delivery times
Also, be aware that 70% of checkout abandonments are due to logistical factors related to shipping. In fact, 48% of users say they have given up an online purchase because of shipping costs that they consider too high, while 22% say they consider shipping times too slow.
Out-of-home deliveries, in addition to having a lower cost for the end customer, generally allow delivery within 24 hours from the time of purchase.
4. Easier handling of returns
Should it become necessary to return purchased goods, the customer can enjoy an easier and faster method of return, again without having to depend on the courier. As is well known, if the customer knows that he can easily return the purchased goods in the event of any problem, he will be more inclined to purchase. The overall customer experience is therefore positively affected.
5. Greater environmental sustainability
Finally, there is also an advantage in environmental terms. Out-of-home deliveries reduce CO2 emissions, making eCommerce more sustainable.
We’re pretty sure that at this point the only doubt you have left is: how do I integrate Out Of Home deliveries into my online store now? Let’s see the answer now.
How to integrate Out Of Home deliveries to your eCommerce
To immediately offer your customers the possibility to pick up their online orders at Lockers and Pick-up Points you can rely on GEL Proximity.
Thanks to our Network of more than 180,000 already active Pick-up Points nationwide, you can easily build and manage your customised network, merge Click & Collect services with third-party Proximity Points, and reduce technology and maintenance costs with a single integration.
You can connect GEL Proximity using our dedicated libraries and APIs, or by downloading the module/plugin from the marketplace of your eCommerce software.
GEL Proximity is a Pay per Ship service, i.e. you only pay for what you ship when the customer chooses the pick-up option at a Locker or Pick-up Point.
What are you waiting for, activate your GEL Proximity account now.
