Pickup point

What it means

A pickup point is a shop, branch or self-service parcel locker where customers collect parcels from online stores at a time that suits them. Networks of pickup points are run by carriers and delivery providers, often in partnership with shops or petrol stations.

For an online store, delivery to a pickup point is usually cheaper than home delivery by courier, because the carrier drops many parcels at one location. It also reduces failed deliveries when the customer is not at home, and with them the cost of redelivery or returns.

For customers, a pickup point is convenient, especially if it is near home or work and open long hours. Parcel lockers allow collection at night and at weekends, making them an increasingly popular delivery option.

How it works in practice

An online store should offer several delivery methods and state prices, delivery times and conditions clearly, including how long a parcel waits at the pickup point. Paying on collection, cash on delivery, may raise conversions but also brings the risk of uncollected parcels.

Pickup points are also used in reverse logistics, when a customer returns goods after withdrawing from the contract or making a complaint. Easy returns via a pickup point increase customer satisfaction, but the store must budget for return shipping costs.

When using an external fulfilment provider, connection to pickup point networks is usually part of the service. In cross-border e-commerce, it helps to work with carriers that also have pickup point networks in the target countries.

What to watch out for

Towards consumers, the seller generally bears the risk of damage or loss in transit until the customer takes delivery. An online store should therefore agree clear terms with its carrier on compensation and the procedure for transport claims.

Uncollected parcels are returned to the store, creating shipping costs in both directions. For repeated non-collection, it is wise to set out in the terms whether the store can claim its costs and to consider restricting cash on delivery for high-risk customers.