Last-mile delivery preferences: exploring the potential of Parcel Lockers at online checkout and for failed delivery

Master thesis (2023)

Authors

W.T. de Vette Technology, Policy and Management

Contributors

E.J.E. Molin Transport and Logistics - TPM (supervisor 1)
Ron van Duin Transport and Logistics - TPM (supervisor 2)
Faculty
Technology, Policy and Management
Copyright: © 2023 Willem de Vette
Choice modelling Consumer preferences Discrete choice experiment Parcel delivery
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Published Date

25-09-2023

Language

English

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Faculty

Technology, Policy and Management

Abstract

The growth of e-commerce has increased the demand for last-mile delivery. This increased demand
poses the sector of last-mile delivery with challenges such as traffic congestion, route optimization and environmental concerns. Delivery to a Service Point or a Parcel Locker, self-collection alternatives, have to potential to address these challenges. This research employs a discrete choice experiment to gather insights into consumer preference for regular parcel delivery and to uncover previously unexplored consumer preference for alternative delivery preference in the case of delivery failure. This second aim constitutes the main addition of this study. An online survey was conducted which resulted in 210 valid responses. The results show that in the case of anticipated failed delivery, most consumers prefer delivery to their neighbours or have the parcel left at an agreed place around the house. The distance to a Service Point or Parcel Locker is the most important delivery attribute guiding this decision. However, both now and in the future, demand for the PL as an alternative delivery option in case of delivery failure seems low, with few policy options to increase this demand. Regarding parcel delivery preference at checkout, the price of Home Delivery is most dominant in the trade-off consumers make. In contrast to other studies, the opening hours or the delivery moment do not contribute significantly. To best increase the demand for self-collection alternatives, parcel delivery companies should focus on: shortening the distance to the Parcel Lockers or Service Points, locating Parcel Lockers in commercial buildings as opposed to public spaces, and increasing the awareness of Parcel Lockers and increasing the awareness of the benefits of self-collection in general. However, the results of this study indicate that in order for the PL to become dominant ’at online checkout’, both a price incentive and a shortening of the distance from consumer to PL are necessary, but at significant cost. Further research should aim to investigate the demand for changing delivery options through notifications and the viability of
the last-mile delivery market agreeing on lower prices for self-collection as proposed in scientific literature.