The e-commerce industry is reaching a critical tipping point. As delivery volumes continue to climb, online retailers and logistics partners are facing a particular set of delivery challenges heading into 2025: skyrocketing operational costs, increasing customer demands, and stricter sustainability regulations.
Along with these challenges, online shoppers are increasingly demanding when it comes to accessing fast, flexible, and sustainable delivery options. In order to remain competitive and win over more customers, e-commerce retailers need to diversify their shipping options. They can do this by making out-of-home delivery available at checkout to improve profitability, reduce last mile emissions, and increase delivery success rate.
Out-of-home delivery helps increase e-commerce profitability
Customers may still expect fast and free shipping, but this way of doing business has proven unsustainable for all but the biggest retailers. For most e-commerce brands, maximizing operational efficiency is key to making the most of slim shipping margins.
E-commerce retailers and carriers are faced with meeting increasing demand for fast and flexible delivery while providing shoppers with the best possible experience. One thing is clear: traditional last-mile delivery models must evolve to meet modern demands.
By encouraging out-of-home delivery options at checkout, retailers can enhance customer experience, boost their margins, and offer a more sustainable alternative to traditional home delivery. As we’ll explore, the benefits of utilizing out-of-home methods extend far beyond simple cost savings, potentially reshaping the future of last-mile logistics.
Here’s what you can expect from this article:
- What’s driving the adoption of out-of-home?
- Out-of-home delivery is an efficient last mile solution
- How sustainable is out-of-home delivery?
- Out-of-home increases delivery success rate
- How to make last-mile delivery more sustainable
- Why retailers should offer out-of-home delivery at checkout
What’s driving the adoption of out-of-home delivery methods
Out-of-home delivery includes delivery to points other than the recipient’s home address, such as staffed service (PUDO) points and automated parcel lockers (APMs). In the past few years, adoption of out-of-home delivery methods has increased.In the Sendcloud platform alone, we’ve seen a 28% year-on-year increase in service point delivery.
To understand the trend more, we sent 4000 European shoppers an Out-of-Home Delivery Survey. Our results indicated that a majority of online shoppers have used delivery to a parcel locker or service point at least once:
- Service points are widely adopted in France (77%) and the Netherlands (75%) who both have the highest familiarity with using OOH options.
- Germans are more familiar with parcel lockers (46%) than service points (30%).
- UK customers have a nearly equal familiarity with parcel lockers (44%) and service points (46%)
In order to understand this uptick, we first must understand how customer expectations are evolving:
“I think consumers actually initiated the whole [OOH] shift. We saw they wanted control over the parcel delivery, but also flexibility. Especially after COVID we saw that people wanted more control and flexibility, which drives them to choose out of home delivery more often.” – Matthijs Pluimers, Lead Parcel Lockers at PostNL
Customers want delivery on their terms
When asked what is driving the adoption of out-of-home delivery methods, carriers point to the evolving demands of online shoppers. Compared to a few years ago when the demand for e-commerce surged, post-COVID consumers are looking for delivery options that fit their increasingly dynamic schedules and need for convenience.
In 2025, online shoppers want more control over how, where, and when they receive their parcels. Out-of-home delivery options, such as parcel lockers and PUDO points, give people the flexibility to pick up orders on their own time.
“[In the BeNeLux] About 20-30% of people prefer to have a parcel delivered to a PUDO point. Why is that? Because both of the people living in a home are working from the office or don’t have time to wait at home for a delivery. There is an ‘any place, anywhere, anytime’ mentality, where consumers want to receive the parcel when it suits them.’ – Jorin Aardoom, Director Out of Home BeNeLux for DPD
According to our customer survey, 55% of shoppers say the convenience of not waiting at home for a package is their top reason for choosing out-of-home delivery.
Multiple delivery options give customers control over their experience
Digitally native shoppers expect seamless access to products and services across all devices, at any time, from any location. As younger generations gain buying power, this ‘anywhere, anytime’ mentality reflects the growing importance of convenience and flexibility in e-commerce, especially when it comes to receiving a package.
Offering out-of-home delivery choices at checkout puts customers in control of their experience from the moment they buy. This gives online retailers the upper hand when it comes to meeting customer expectations and ensuring more successful deliveries:
“Providing more delivery options is better for customer satisfaction. We see customers are happy if they can collect a parcel somewhere else, either on the way from work or when shopping at the supermarket. We do see a growing trend. As a sustainable company, out of home delivery fits our goals very well.’ – Maarten Brondijk, Supply Chain Manager at Jimmy Joy
In fact, offering flexible delivery options seems to be a key way to attract more customers. Our Out-of-Home Delivery Survey asked online shoppers what delivery factors have the most influence on their decision to purchase from one online store over another. The data revealed that 67% of online shoppers would like to be able to select a specific delivery day and time at checkout and 58% want the flexibility to adjust the delivery date and time while their parcel is in transit.
Above all, 82% of online shoppers want the ability to redirect a parcel if the first delivery attempt fails. This points to a clear need for online retailers to give customers more power to arrange delivery on their terms.
Parcel lockers are becoming more popular thanks to 24/7 accessibility
When we talk about customer control over the delivery experience, nothing meets the need for convenience more than a 24/7 parcel locker. Provided the location is convenient and accessible to the recipient, parcel lockers are the ultimate self-service delivery solution and help carriers quickly rise to meet the increased demand for a dense OOH delivery network:
“To facilitate increased demand for out-of-home delivery, we see parcel lockers as the best solution because of the emphasis on self-service. We saw that our parcel lockers scored even higher customer satisfaction than our staffed service points. Parcel lockers also have additional benefits like 24/7 opening hours. They satisfy the biggest driver in the switch more out of home delivery by putting the customers themselves in control.” – Matthijs Pluimers, Lead Parcel Lockers at PostNL
Customers want to control their delivery experience, they don’t want their delivery experience to control their schedule. While parcel lockers offer freedom from opening hours and staffing considerations, they do come with limitations such as storage capacity and locker size. This is why service points also play a vital role in strengthening the out-of-home delivery network. That’s why carriers are investing in both service points and parcel lockers, to create the optimal mix of delivery options that can serve as viable alternatives to home delivery.
“We are building a hybrid network because we think that both options, parcel lockers and service points, can help each other. For instance a parcel locker can help a service point because it has a broader opening hours or it can take away some of the overflow volume. On the other hand, parcel lockers lack the human touch. Let’s say you order a bottle of wine. Then we have to check your ID card, which a parcel locker can’t do yet. But the service point can do that, so they help each other out to create the optimal out-of-home network.” – Matthijs Pluimers, Lead Parcel Lockers at PostNL
Out-of home delivery increases efficiency in the last mile
As the demand for e-commerce grows, carriers are investing heavily in expanding their out-of-home delivery networks. In 2023, the number of parcel lockers in Europe grew by 29% and service points by 6%.
While customer demand ignited the shift, carriers are embracing out-of-home as a way to make last-mile delivery more efficient. These methods help carriers meet economic and environmental challenges while satisfying increasing delivery demand by consolidating the amount of shops a driver needs to make.
“We see that e-commerce is still growing and we expect it to grow further. As a logistical carrier, it’s our job to build the most efficient network and make sure that we can keep on delivering all these parcels in the future. And at the same time, we also have to account for tight labor markets, rising costs, and the aim for more sustainability. A parcel locker can really help to solve these challenges because in the end – delivery to parcel lockers is more efficient than home delivery.” – Matthijs Pluimers, Lead Parcel Lockers at PostNL
Lower CO2 emissions during last mile delivery
The adoption of out-of-home makes last-mile delivery more efficient by consolidating the number of stops a delivery driver needs to make. Instead of making 50 stops to deliver each parcel to individual homes, a driver can make one stop at a PUDO point or parcel locker and deliver everything at once.
“If we can consolidate the last mile by delivering, say 50 parcels at an out of home delivery point, then we can reduce 25% of the CO2 emissions.” – Sem Geurten, Account Manager Strategic Partners DHL
There is also the added benefit of out-of-home options serving as an immediate secondary delivery location if the first attempt fails, eliminating emissions wasted on a second delivery attempt.
While there are several variables that affect total delivery emissions, it can be said that carrier emissions during the last mile are significantly reduced with widespread adoption of out-of-home. While this may not paint the whole picture, our recent customer survey indicated that 53% of customers believe online retailers should offer out-of-home delivery as part of their effort to reduce CO2 emissions.
“Whether out-of-home delivery significantly reduces emissions is an area that requires more study. But we know it offers greater efficiency for carriers, enabling them to deliver more parcels at once, while providing consumers with increased flexibility in how they receive their orders.” – Sabi Tolou – Co-founder and COO at Sendcloud
Reduce city traffic and offer sustainable delivery alternatives
On top of tightening climate regulations, many European metros are facing urban crowding which is not being helped by the increased demand for e-commerce deliveries. While bike delivery and other less intrusive forms of transport are helping to ease the strain, out-of-home provides a scalable solution to reducing city traffic.
Less individual delivery stops means less delivery vehicles crowding city streets – this is good for both the environment and cities concerned with reducing traffic:
“Parcel lockers are important to the city government because they don’t want too much traffic coming in and out. So if a delivery driver can drop all his parcels in one place, this will be beneficial to the neighborhoods and environment.” – Sem Geurten, Account Manager Strategic Partners DHL
The efficiency and convenience of out-of-home delivery is driving adoption in cities. According to our Out-of-Home Delivery Survey, shoppers that live in cities are 48% more likely to prefer delivery to a service point and 70% more likely to prefer delivery to a parcel locker compared to their rural counterparts.
“In bigger cities, it’s becoming harder and harder for delivery drivers to park their van somewhere. So I think especially in the bigger cities out of home delivery will be a bigger factor in the future.” – Sem Geurten, Account Manager Strategic Partners DHL
Out-of-home supports sustainable e-commerce growth
Sustainability is an increasingly important factor that e-commerce retailers need to consider, both from a customer and regulatory perspective.
According to our our survey, 41% of European consumers believe online shopping is a problem for the environment. The same research indicates that nearly 45% perceive delivery to a service point or parcel locker as more sustainable than home delivery.
“Consumers are gradually becoming aware of the environmental impact of their shopping habits. While the sustainability of OOH delivery can vary based on transportation methods and pickup processes, it’s clear that people are gravitating towards options they perceive as greener and more convenient.”- Sabi Tolou – Co-founder and COO at Sendcloud
On the regulatory side, out-of-home delivery will play a key role in reducing emissions in the e-commerce sector. This is already evidenced in the new law that went into effect in Belgium in 2024, requiring B2C e-commerce retailers to offer at least one out-of-home alternative to home delivery. The aim of this law is to accelerate sustainability in the e-commerce industry while improving the experience for online shoppers.
Out-of-home delivery will play an increasingly vital role in the future as e-commerce retailers and carriers increase the sustainability of their operations. Especially as low-cost, high volume shippers like Temu and Sheinn gain traction in global markets. With miniscule margins and massive volume, maximizing efficient and sustainable delivery will be essential to supporting e-commerce growth.
“If you’re just looking at volumes like Temu – they are shipping 1M – 2M parcels per year in the BeNeLux. But the rate of the parcel and the profitability is very low – around €3 each. It’s very cheap. It’s impossible to sustain these margins with just an at home logistics set up, so lockers and parcel points will be very important.” – Jorin Aardoom, Director Out of Home BeNeLux for DPD
How sustainable is out-of-home delivery, really?
Is out-of-home delivery a more sustainable solution? The answer is – it depends. As we mentioned above, customer behavior also contributes to the overall environmental impact of the last mile.
Out-of-home delivery may reduce emissions on the carrier side, but what about the way customers pick up their packages? Our reserch revealed that 61% of customers go by car to collect their parcel. 45% go by foot if the location is close enough meaning that the density of service points and parcel locker networks plays a role in the total impact of OOH delivery on the environment.
“If you’re picking up your parcel with a bicycle that’s by far more green than our vans driving to every doorstep, whether it’s electric or diesel. It’s still more sustainable if you pick it up by yourself by bike, but that does imply that you need to be as close as possible.’”- Jorin Aardoom, Director Out of Home BeNeLux for DPD
True sustainability goes beyond the last mile
While adopting out-of-home delivery methods can reduce environmental impact during the last mile, the truth is this is only a small part of the total emissions generated by e-commerce.
Shopping behavior plays a big role in the total emissions generated by e-commerce activity. Customers return over 30% of the products they buy online and often purchase multiple sizes or colors of one item with the intention of returning the unwanted product. This doubles the amount of emissions and waste from a single order as the parcel makes the return trip to sender and creates inventory waste.
“The average parcel we deliver right now in the Netherlands is about 295 grams of CO2 emissions. But if you order 5 pairs of jeans in different sizes and colors and you keep one and send 4 back… each pair of jeans has a 32 kilogram CO2 discharge just to make. So we have to be mindful not just of the delivery emissions, but also for consumers – being mindful of what you order and why you send it back.” – Sem Geurten, Account Manager Strategic Partners DHL
To achieve sustainability in the e-commerce industry, customers, carriers, and merchants need to change the way they do things. Customers must adopt more conscious shopping habits, while carriers increase the efficiency of their operations and merchants make these sustainable alternatives available at checkout.
OOH increases rate of successful deliveries
One of the biggest advantages of out-of-home delivery is its ability to dramatically increase first-time delivery success. As online orders climb, so do the risks and costs of failed deliveries. In 2022 alone, failed deliveries cost UK retailers £68,084 and German retailers €144,354.
With out-of-home delivery options like parcel lockers and service points, retailers have a reliable “safe place” where parcels can await pickup. These methods have a near 100% delivery success rate, meaning that almost every order reaches the customer without the need for repeat delivery attempts. This not only reduces the costs and emissions associated with re-deliveries but also provides a much better customer experience.
“Back in the day when parcels still had a 3x knock on the door protocol, we would knock 2-3 times and if you weren’t home we’d redirect to the nearest parcel point. But in those days it could be 5-10 kilometers from your home. Now most of the time it’s at the end of the street or in the city center on your way home from work. You are able to pick up your parcel when you find it necessary and this customer centricity is key.” – Jorin Aardoom, Director Out of Home BeNeLux for DPD
Deliver parcels the first time and reduce repeated attempts
Delivering the first time right benefits everyone. Carriers save time, merchants avoid unnecessary surcharges and WISMO inquiries, and customers get the experience they expect.
“It’s never beneficial for any party if we don’t deliver on the first attempt. It costs more for us, it’s a more hassle for the receiver, and it’s more pressing on the environment. So if we can deliver the first time right, it’s always better.” – Sem Geurten, Account Manager Strategic Partners DHL
When customers choose out-of-home delivery options at checkout, they can collect their order at their convenience. Or if a home delivery doesn’t go as planned, they don’t need to wait an extra day or two for re-delivery. Offering delivery to parcel lockers and service points not only eliminates emissions from multiple delivery attempts, but it reduces customer frustration over missed deliveries.
How to make last mile delivery more efficient
The advantages of out-of-home delivery are clear, but who is responsible for increasing last-mile efficiency? Our Out-of-Home Delivery Survey shows 50% of online shoppers believe online retailers and carriers share the responsibility to make out-of-home delivery more accessible.
Online merchants and carriers both have a job to do when it comes to increasing out-of-home adoption. Carriers must invest in efficient ways to expand their parcel locker and service point networks, while merchants need to offer out-of-home options at checkout.
Carriers must find ways to efficiently expand their out-of-home networks
When we talk about sustainability and efficiency gains, network density – specifically proximity to home address, is key to increasing the realizing the full potential of out-of-home delivery.
“We see that consumers don’t want to pick up a parcel while they’re in transit. They just want to use a parcel locker that is nearby their house.” – Matthijs Pluimers, Lead Parcel Lockers at PostNL
The same survey showed, 59% of online shoppers would opt for delivery to a service point or parcel locker if these options were closer to home. And how close is close? On average most shoppers are only willing to travel a maximum distance of 1 kilometer.
In order to expand to meet the rate of demand, many European carriers are joining forces to efficiently expand their out-of-home offering. This can be seen particularly in the case of parcel lockers, where carriers are partnering or using white label solutions to make parcel lockers more convenient for their customers.
‘There are places where you see 8 blocks of parcel lockers in 8 different colors. When you consider the fact that they’re all probably about 30% full, from an economic perspective it just doesn’t make sense. We saw a possibility to add even more customer satisfaction by partnering with GLS. Now customers can collect their parcels from both PostNL and GLS in one parcel locker location. We want to offer a great customer experience where you can always go to one place that is close to where you live.’ – Matthijs Pluimers, Lead Parcel Lockers at PostNL
Online retailers must offer these options at checkout to increase adoption
While carriers continue to expand networks of service points and parcel lockers, customers can only choose these options if merchants make them available at checkout. The fact is, according to our findings 48% of shoppers would use out-of-home more frequently if online stores offered it as an option at checkout.
Offering out-of-home delivery is essential to drive adoption, yet many retailers face the hurdle of technical implementation.
“Not all webshops offer PUDO services at checkout, many only offer home distribution. It’s good to keep in mind that merchants need to make some technical adjustments on their website to offer OOH delivery in the first place. So while the percentage of customers choosing OOH delivery actively is relatively high, it could be so much more if we make a smarter or a simpler solution for smaller merchants to integrate [OOH options] into their webshop.” – Niels Schouten, Strategic Lead Resellers at PostNL
However, overlooking out-of-home delivery means missing out on significant benefits. Adding OOH options at checkout helps satisfy more customers, lower delivery costs, and keep delivery running smoothly.
“There can be a few reasons that an online store might want to start using OOH delivery. So there’s a sustainability factor. There’s a cost factor because we can offer discounts on direct to service point deliveries. And there is a convenience factor in that there’s a bigger first time right. So when we deliver directly to a service point, we never have to try to deliver again and the package will never be returned to the shipper without someone picking it up, because it can always be delivered.” – Sem Geurten, Account Manager Strategic Partners DHL
Retailers who encourage out-of-home delivery will stay competitive
Incorporating out-of-home delivery will help retailers stay competitive in a shifting e-commerce landscape. With customers gravitating towards more sustainable, flexible delivery choices, merchants who offer OOH options at checkout are poised to attract loyal shoppers.
“Retailers that incorporate OOH options at checkout will be well-positioned to remain competitive as consumer preferences continue to evolve.” – Sabi Tolou – Co-founder and COO at Sendcloud
While there’s no one-size-fits-all answer to meeting sustainability goals, out-of-home delivery provides a measurably more efficient alternative to traditional home delivery. By making out-of-home options more accessible to customers and incentivized at checkout, e-commerce businesses can meet changing customer demands, shrink their environmental impact, and make delivery more reliable and resilient.
Inspired to learn more? Read how out-of-home delivery is shaping the future.
