The share of European consumers preferring home delivery for online orders dropped from 73% to 64% over the past year, according to a Last Mile Experts study. At the same time, pick-up and drop-off (PUDO) points and automated parcel machines (APMs, or parcel lockers) are gaining popularity. The leaders in this trend are the UK and France, each with over 50,000 pick-up points, followed by Poland with nearly 40,000 lockers, and Germany.

Delivery methods beyond Europe

Since the 2010s, postal and logistics operators in Europe have actively developed new delivery methods. The UK’s Royal Mail launched Local Collect, France’s DPD introduced Pickup Points, Poland’s InPost established Lockers, and Germany’s DHL created Service Points. Collecting an order from a nearby pick-up point at a convenient time is often more comfortable for buyers than waiting for a courier at home. For e-commerce operators, consolidated delivery to a single location is more cost-effective and reduces the carbon footprint compared to individual home deliveries.

China, with one of the highest e-commerce penetration rates globally and rapid urbanization, is a world leader in the number of lockers. Even before the COVID-19 pandemic, the country had over 300,000 lockers. Today, Alibaba and JD.com’s logistics divisions are expanding into Europe, actively developing local locker networks.

In the United States, home delivery remains the most popular option for online orders. This is largely due to the country’s geography – many Americans live in suburban, single-family homes. However, delivering parcels to pick-up points or lockers is more convenient for e-commerce operators, who offer perks to encourage consumers to choose this option. For example, Amazon offers buyers a $10 discount if they collect their order rather than have it delivered to their home.

Pick-up points most popular in CIS countries

Pick-up points are particularly popular in Eastern Europe, Russia and Central Asia, where urban residents often live in large apartment complexes, while rural delivery infrastructure remains underdeveloped. Wildberries, a top e-commerce player in the region with sales equivalent to $25 billion in 2023, operates about 50,000 pick-up points in Russia, Belarus, and Central Asia. The company’s story began 20 years ago when English teacher Tatyana Kim started selling clothes and shoes online through European mail-order catalogues. She uploaded product listings online, allowing purchases without prepayment.

As the platform grew rapidly, it became essential to ensure delivery across a vast territory. National postal services were unreliable, and private delivery operators were too expensive. As a result, Wildberries focused on creating its own network of pick-up points.

These are not just collection windows but small, branded spaces with fitting rooms where customers can try on clothes and return items that don’t fit. This model helped popularize online shopping in Russia and neighboring countries, where consumers initially lacked trust in e-commerce. Many Wildberries pick-up points operate under a franchise model, driven by local entrepreneurs. Today, over one million sellers list their products on Wildberries, with the company running its own warehouses and offering free delivery to pick-up points.

Emerging markets join the trend

Other emerging markets have turned to pick-up points as an alternative to home delivery to meet local challenges, including poor road infrastructure, security risks and long distances for deliveries. Mercado Libre, Latin America’s equivalent to Amazon, operates pick-up points even in pet shops, stationery stores, and petrol stations – wherever is most convenient for customers.

In Southeast Asia, Shopee has established a network of parcel collection points by partnering with convenience stores and individual residents interested in operating these points service within their neighborhoods. Its rival, Lazada, is also developing collection points through partnerships. Urban pick-up points help reduce delivery costs and are popular among customers who are not at home during delivery hours.

Globally, pick-up points and lockers are becoming an increasingly important alternative to home delivery. In some countries, logistics companies drive the development of these services, while in others, marketplaces themselves lead the way, recognizing logistics and delivery as key competitive advantages.