What is a PUDO network and why should retailers care?

It all starts with two simple words: online shopping. What do you think of when you see these words? Is it the products you recently bought, the items you are thinking of buying right now, or even the statistics you have seen? The list goes on, online shopping is starting to become the new normal for everything. Now, have you ever thought about these two words: alternative delivery?  

 

Alternative delivery to home offers new method to receive goods and is starting to become more noticeable in the eCommerce industry. In this blog, we chat about the PUDO network, an alternative to home delivery network that is changing the way consumers can collect their parcels.  

What is a PUDO network?  

The term PUDO stands for pick-up or drop-off and enables consumers the option to collect eCommerce parcels at locations with extended hours. 

  • PUDO locations provide over the counter services and smart parcel lockers to ensure that parcels stay secure until they are ready for collection.  
  • PUDO locations can be a variety of businesses ranging from convenience stores, newsagents, pharmacies, and service stations that provide flexible hours for collection 
  • PUDO locations are local business which provide consumers alternative delivery options for those who are not home during the day. 

What is pudo infographic- HUBBED parcel collection

How to use pick-up and drop-off?  

For the consumer, there are only a few steps that they take to pick-up and drop-off their parcels. The retailer will provide an additional delivery method for the consumer to choose how they want their parcel delivered through Click & Collect services. 

  1. The consumer orders online.  
  2. The order is processed, shipped, and delivered to the designated PUDO location. 
  3.  The consumer receives a collection notification for the item.  
  4. The consumer shows the notification to the attendant over the counter or visits a parcel locker. 
  5. The consumer collects the item at their convenience and goes on with their day.  

By offering an alternative to home delivery option, retailers benefit with an increased conversion. The demand for alternative options is increasing year on year(YOY) with COVID-19 accelerating growth. Based on the Australia Post Industry Report 2020, “Click and Collect also continues to grow, as it alleviates the cost versus expediency dilemma for sellers and buyers. The number of Click and Collect shoppers grew by 7% between July 2019 and March 2020 when compared to the 2019 financial year”[1].  As businesses adjust to the new era of online shopping in Australia, the need for Click & Collect services will be the next big player entering the market. 

 

Purpose of a PUDO network 

PUDO networks are changing the way eCommerce has traditionally run by providing an alternative to home delivery method. PUDO networks allow greater flexibility for logistics providers to consolidate deliveries to locations that are convenient for consumers with close proximity near their homes and workplaces.

 

Due to the recent increase of online shopping in Australia, the need for increased delivery routes has taken effect in major cities. “Shoppers from major cities also increased their share of online purchases over the past year. In April 2020, the proportion of online purchases made in major cities had increased by 1.4 percentage points, up in 2019. This resulted in 90% of all eCommerce purchases being made by shoppers who live in major cities and inner regional areas in April 2020" [1]. 

Australia Post Industry Report 2020

 

 PUDO networks enable couriers to deliver a higher quantity of goods to designated locations and consolidate the number of parcels they need to deliver individually. Due to the large increase in online shopping in major cities, delays are most likely to happen and slow down the delivery cycle with pressure to deliver in time. With less trips required using the network, logistics providers can save on the cost of the last mile and reduce the number of carbon emissions. Additionally, PUDO networks help local companies gain foot traffic to their stores when customers pick-up or drop-off their goods, allowing for potential sales of goods within the store.  

 

Benefits using a PUDO network  

PUDO is one of the newest forms of convenience for shipping and delivery. Online retailers and brick and mortar stores that sell small to medium sized goods have an advantage when it comes to using a PUDO network. Apparel, consumer electronics, health & beauty sell items that can be easily carried and dropped off. Obviously if you sell refrigerators or large appliances, you wouldn’t want your customer to pick up such an item at a convenient store. By offering consumers a choice on how they receive their parcels, retailers can gain a loyal customer who knows their parcel will have a guaranteed first delivery. 

  • Proximity: local and convenient stores allow for consumers to choose a location that is right for them, whether it be close to home or near the workplace.  
  • Flexibility: Extended hours to collect or return a parcel enable customers can pick up parcels outside of the typical collection period and choose when it compliments their daily life. With more available hours to collect, customers can avoid long queues and leave the PUDO location in a matter of minutes.  
  • Sustainable delivery: Consumers can avoid seeing the missed delivery slip and your courier can drop off more parcels during the day. By helping reduce the number of trips taken by the courier, carbon emissions can also be reduced. 
  • Safety: Consumers can collect their parcels securely at PUDO locations from over the counter services or smart parcel lockers. With the option to select smart parcel lockers, consumers can choose to collect via contactless delivery. 

The HUBBED PUDO network works with a variety of logistics companies helping solve the last mile delivery. With access to 2000+ locations in Australia, retailers and carriers can gain the advantage of a connected network that reduces the number of trips needed to complete a delivery. Check out our earlier blog post to see added solutions that collection point networks provide with the HUBBED PUDO network.

Last thoughts  

PUDO locations offer the eCommerce industry and logistics providers the opportunity to perform at a high rate, with more customer satisfaction. Alternative delivery will not only create effective ways to consolidate parcels, it will also will help reduce the carbon footprint we leave on the environment. 

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[1] Australia Post, 2020 eCommerce Industry Report: https://bit.ly/3eCgdpo