Riding the wave of C2C resale

Lee Graham at Quadient explains how carriers can turn market growth in re-commerce into opportunity

 

‘Re-commerce’ – buying and selling pre-owned goods through online platforms – is booming, fuelled by consumers’ hunger to make more sustainable fashion choices, coupled with the allure of unique, affordable finds. In turn, consumers are increasingly gravitating towards platforms like Vinted and Depop.

 

This opens up new opportunities for carriers – helping consumers fulfil these orders and send items to each other.

 

The European re-commerce market is expected to reach 120 billion euros by 2025, with sellers also finding an extra income stream during the cost-of-living crisis. This growing market segment can drive more revenue for carriers, but they need to nail the last mile if they want to deliver and seize the opportunity.

 

Re-commerce and last mile delivery

According to Cross-Border Commerce Europe, re-commerce marketplaces are growing 20 times faster than the broader retail market. While this rise is a welcome development, its dramatic increase in popularity has introduced challenges to last mile delivery services.

 

First and foremost, carriers are faced with a surge in the number of deliveries they must handle. For example, Yodel reported a 162% increase in deliveries last year owing to a spike in people using online marketplaces including Vinted and eBay.

 

This sudden uptick in parcel traffic means that carriers must undertake more journeys and cover greater distances, straining their logistical and operational capacities. Managing these heightened demands can lead to delays and inefficiencies, making it difficult for carriers to maintain timely and reliable service amidst the growing volume of deliveries.

 

Secondly, the rise of parcel theft in the UK is increasingly problematic for carriers when it’s coupled with re-commerce driving parcel traffic. The most recent research, gathered as part of our series of Freedom of Information requests to UK police forces, reveals that parcel theft was up by 57% in the last year, with more than £200 million-worth of parcels stolen.

 

Unfortunately for carriers, they are often the first to be blamed when parcels are stolen from people’s doorsteps. This can risk damaging reputations with resale platforms and their customers – and, ultimately, losing business to competitors.

 

Enhancing last mile delivery

Providing a wide selection of fulfilment options can help carriers be confident in capitalising on the C2C resale opportunity, while better handling the rise in parcel volume and parcel theft.

 

For example, PUDO (Pick-Up Drop-Off) locations can ease the challenges that have arisen from the growth of recommerce. Out-of-home PUDO locations, such as over the counter collection at local newsagents and parcel lockers, allow customers to collect and drop off packages at secure, centralised locations.

 

PUDO locations also help carriers streamline their delivery routes by consolidating multiple deliveries into single stops, easing the strain of increased parcel volumes. This improves customer satisfaction by offering more flexible and secure delivery options to consumers.

 

At a top level, it is quicker and more efficient to drop off multiple packages at one location – meaning they can fulfil deliveries faster, and even cut the number of miles couriers spend on roads. This sustainability shift is likely to appeal to C2C consumers, considering many of them are making a conscious effort to make greener choices.

 

PUDO locations enable consumers to ‘trip chain’; for instance combining a journey to local amenities with picking up parcels. Given the option, consumers would replace on average 47 parcel deliveries or pick-ups a year by trip chaining. This would take the equivalent of 1.4 billion miles a year off UK roads – making a huge impact, helping carriers boost their sustainability credentials in the process.

 

Ultimately, from a carrier’s perspective, using PUDO locations enables them to be confident in their ability to deliver when parcel volumes rise, ensuring customers are offered the best service as they take fashion re-selling into their own hands.

 

Capitalising on the opportunity

As re-commerce continues its rapid growth, carriers must adapt to the evolving demand of last-mile delivery to fully capitalise on this expanding market. The surge in parcel volumes and the rising threat of parcel theft present significant challenges, but by integrating PUDO locations into delivery strategies, carriers can enhance both security and efficiency. PUDO is an increasingly important part of the mix as carriers work to serve the needs of re-commerce platforms and their customers.

 

If carriers can get last mile delivery right, they can not only meet these challenges, but also gain a competitive edge by providing seamless and consistent services – attracting and retaining customers in a growing global market.

 

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Lee Graham is a member of the Parcel Locker Leadership Team, Europe, at Quadient

 

Main image courtesy of iStockPhoto.com and Diamond Dogs