While home delivery continues to be the first choice for most UK shoppers, out-of-home (OOH) delivery is quickly gaining ground. Consumers value OOH delivery for its sustainability and convenience, but it’s the cost savings that are truly driving shoppers to embrace parcel lockers and service points over traditional home delivery.
Research from Sendcloud reveals that 82.3% of UK shoppers still favor home delivery when given the choice. However, this preference shifts significantly when shipping costs come into play. When home delivery includes a fee and service point delivery is free, 61.7% of shoppers opt for the latter, compared to just 38.3% who are willing to pay for home delivery.
Although sustainability and flexibility play a key role in the rise of out-of-home delivery, it’s ultimately the cost advantage that’s pushing consumers to make the switch. Out-of-home delivery is more efficient for carriers, allowing them to deliver multiple parcels in one trip. Consumers expect those savings to be passed on to them, and this expectation is shaping their choices at checkout.
While cost savings are a major driver for consumers, they also represent a significant opportunity for retailers. Shipping to parcel lockers or service points is generally more cost-effective than home delivery. By offering OOH options, e-commerce businesses can reduce their shipping costs, improve profit margins, and meet growing consumer demand for flexible delivery. It’s a win-win: retailers who prioritize OOH delivery at checkout not only satisfy their customers but also gain a competitive advantage in the future of e-commerce.
– Sabi Tolou, Co-founder, Sendcloud
Shoppers’ cost sensitivity is underscored by their willingness to pay for delivery. 58.9% of consumers cite lower shipping costs as a major factor in opting for OOH delivery. Additionally, 80% of UK shoppers believe that shipping costs should be lower, or even free, when selecting parcel lockers or service points. For a £50 order, UK shoppers are willing to pay £4.15 for home delivery, but only £3.32 for out-of-home delivery.
Retailers play a pivotal role in accelerating the adoption of out-of-home delivery. According to the research, 52.3% of shoppers would opt for OOH delivery more frequently if it were offered as a standard option at checkout. This underscores the need for retailers to make OOH delivery a default choice to meet consumer demand and stay competitive.
