By Packeta—Out-of-home deliveries (OOH) are on the rise across Europe. Since 2021, the number of parcel lockers in the European market has increased by more than half, and the number of pickup stations is growing by an average of 7% per year. The eastern part of the continent is leading the way, making it particularly attractive for online retailers with expansion plans.

Locker Paradise Poland

In Poland, the trend toward locker delivery is especially noticeable. According to an analysis by Last Mile Experts, our northeastern neighbors currently boast more than 28,000 lockers, roughly the same number as in the United Kingdom and Germany combined. This is despite the fact that, unlike its western counterparts, the country still has a significant portion of its growth in e-commerce ahead of it. According to forecasts by the consulting firm pwc, the market volume of Polish online retail is expected to increase by 60% by 2026. The Czech Republic, Slovenia, and other countries also offer growth rates that Germany, France, and the UK can only dream of. Conversely, it is already apparent that the growth trend in the East, driven by increasing delivery numbers, will continue to fuel the expansion of locker infrastructure.

OOH vs. Doorstep Delivery: The Last Mile as a Cost Factor

For online retailers, the boom in OOH solutions in Eastern Europe is particularly interesting because it has the potential to save shipping costs exactly where they are currently the highest: on the last mile. While doorstep delivery requires a lot of personnel and time, deliveries to central locker stations can be consolidated for entire neighborhoods. This sometimes means that the cost of shipping to Eastern European lockers is comparable to the national prices for packages delivered to German customers via traditional doorstep delivery.

The popularity of Automated Parcel Machines (APM) and Pickup-Drop-Off points (PUDO) in Eastern Europe shows that the approach works for customers too. They can often pick up their orders around the clock at centrally located delivery points, such as at train stations, on the way from work, or during weekly grocery shopping at the supermarket. Additionally, reducing home delivery trips has a positive impact on the climate footprint and alleviates labor shortages in logistics.

Expansion Strategy: With Cross-Border and Logistics Partners

Surprisingly, many German online retailers often look westward when considering expansion. The lure of a wealthy customer base is strong, but so is the competition in the mostly saturated markets in the West. In contrast, Eastern Europe's potential is often overlooked, likely because the markets there seem harder to serve due to their perceived fragmentation. To overcome these challenges, partnering with locally established logistics partners who already have a reliable network amidst the diversity of delivery services is advisable. Proximity to borders allows—thanks to the single market—the possibility of developing an in-house cross-border delivery system. The omnipresence of PUDOs and lockers in the CEE region, compared to the still predominant home delivery in these parts, along with the enormous growth potential, presents a strong competitive advantage that online retailers should not ignore.

Security, Planning, Delivery Rates: How Retailers Benefit from Lockers and PUDOs

Ultimately, OOH solutions are not much inferior to traditional home delivery from the customer's perspective. Parcel lockers are secure and protected, with individual pickup codes or customer cards serving as proven tools for secure access. The buyer decides which delivery station is most convenient for them and no longer has to rely on the goodwill of a neighbor. The same applies to delivery personnel, who can achieve a delivery rate of nearly 100% with out-of-home shipping. At the same time, lockers and pickup stations improve planning throughout the delivery chain to the customer. This especially benefits retailers in the Czech Republic, which leads Europe with more than 14 lockers per 10,000 inhabitants. Including PUDOs, only Poland, with almost 40 delivery points, does better. Today, it is primarily Eastern European countries that rank among the top 10 with the best OOH coverage, while home delivery remains widespread in the West. Eastern Europe, with its expected market growth and advanced delivery structures, clearly stands out as a top expansion target.

About the Author

Tomasz Dominik has 14 years of experience in business and sales. Before switching to logistics, he worked in recruitment, where he served as the managing director of an employment agency for six years. He then gained further expertise as a Key Account Manager in a logistics and manufacturing company before joining Packeta ten months ago. In his current role as Business Development Manager, Tomasz drives Packeta's business development in the DACH region, leveraging his extensive industry knowledge and sales expertise.

The post With Lockers and PUDOs: Eastern Europe Becomes Expansion Target No. 1 appeared first on Cross-Border Magazine.