The art of retailing has historically produced some unlikely partnerships, and today is no exception. Traditional legacy operations are increasingly hooking up with new-age online sellers to meet consumers’ needs. And now, it’s not just retailers partaking. Package delivery companies like FedEx and UPS are also getting in on the action, creating a whole new playing field for companies and consumers alike.
Of course, what’s driving all of this is the explosion in e-commerce business. The problem, as it’s always been since the dawn of internet selling, is getting those orders into customer’s hands, particularly the last few feet. Between people being home all day to receive deliveries, and many homes not being set up to accept packages – much less keep them until they are eventually called for – online retailers have had to come up with new ways to do business.
Give Amazon credit for trying some of the wildest ideas so far. From drones to systems where delivery people can actually gain access to a home and leave a package, the company has tried all kinds of schemes to circumvent this issue.
But as Amazon has discovered – and others are now learning as well – the simplest and easiest solution is to deliver the package to a holding station where the shopper can access it at their convenience.
One of the earliest tests of this concept was actually a reverse plan that Amazon conducted last year with Kohl’s that allowed consumers to return Amazon purchases to the store. While some compared it to everything from a Trojan Horse to the rooster guarding the chicken coop, it seems to have worked well enough that the two companies expanded on it and rolled out it out chain-wide.
Kohl’s says they like it because it brings more bodies into their stores, and Amazon likes that it cuts down on the frustration consumers have dealing with returns.
The success caused Amazon to connect with selected Rite-Aid drug stores as pick-up spots for their purchases as part of its new Counter program. Amazon was already doing this through its Whole Foods division, setting up lockers in stores to retrieve deliveries.
The next wave in this movement is picking up steam now and it’s coming from the shipping companies themselves. FedEx has partnered with Dollar General while UPS has connected with Michaels, CVS and Advance Auto Parts to allow the stores to be used as pick-up points.
With big legacy retailers like Walmart, Home Depot and Target increasingly going the BOPIS – Buy Online/Pick-up In Store – route, these new partnerships represent a way for digitally native sellers without broad store bases to be competitive. This is yet another variation in retailing that few foresaw when e-commerce first started.
Makes you wonder what’s next, doesn’t it?