2020 saw the e-Commerce sector experience the equivalent of 10 years’ growth in a matter of months.

Although the effect of the pandemic is unprecedented and is unlikely to be repeated, this growth is projected to continue, along with click-and-collect sales.

Research from US-based firm Emarketer found US click-and-collect sales in 2020 were up 106.9% to reach US $72.46 billion, and forward indicators suggest this figure will keep growing to surpass US $140 billion by 2024.

Source: Insider Intelligence, Emarketer

This represents a shift in the way consumers shop, away from physical stores and onto a multitude of e-Commerce platforms – representing both opportunities and challenges for modern retailers. 

Traditionally, the retail model involves going to a physical store to buy a product. The trading hours are fixed, and the selection of goods and services is often limited. Customers are required to stand in line and will have to return to the physical store if they need to return their product. 

This is a model which is not very consumer-friendly.

While retailers have tried to respond to this by offering online sales, friendly user experiences, and in some cases free shipping or returns, the last mile delivery process – when an item finally makes it to a customers hands – has not kept pace.

Last mile delivery contributes a massive 41% of the overall logistics cost and yet packages still regularly aren’t delivered, are stolen, or returned to the post office or courier depot.

220 – 262 billion parcels are expected to be delivered by 2026 and the world needs to change the way it’s managing the last mile delivery process.

The New Model of e-Commerce

TZ Limited (ASX: TZL) is well positioned to capture the growing market for last mile delivery solutions with their innovative IoT parcel locker solutions.

“TZ has been exposed to this market and has grown with this market,” Scott Beeton, CEO of TZ limited, said in a recent investor briefing, commenting on the company’s position to capitalise on the market changes.

In TZ’s e-Commerce model, consumers receive a notification when their parcel has been delivered to a locker bank or 24 hour collection hub ready to be taken home. They can pick it up anytime, and they are not restricted to having it delivered to their home or office. They can return it immediately with no need for postal returns.

Source: TZL investor presentation

“You have a much more enhanced solution and you overcome some of the issues of the old model,” said Mr Beeton.

The company provides its clients (including Apple, Westpac, Microsoft and numerous US universities) with both physical locks and cabinetry, and a software platform enabling users to control and record who accesses each lock.

This is the real opportunity for smart lock manufacturers, Mr Beeton said, creating a compelling last-mile delivery solution for retailers, whether that be through click-and-collect or 24-hour postal collection hubs.

To learn more about the e-Commerce boom, click-and-collect, and how TZ is leading the charge to improve collection options amid this trend, join a live investor briefing with TZL’s CEO, Scott Beeton on Friday 14th May at 11am (AEST). Book here. 

Reach Markets have been engaged by TZL to help manage their investor communications.

Sources:

• McKinsey: The Quickening
• MarketingMag: 2020 changed the way Australians shop. Can your store keep them in 2021 and beyond?
• eMarketer: Click and collect, an already popular option, finds a new gear
• Fixlastmile: Last mile delivery for eCommerce: Challenges, benefits, and future implications
• Stockhead: TZ celebrates silver anniversary, aims to become the gold standard
• CapGemini: The Last-Mile Delivery Challenge
• joc.com: Global parcel volumes expected to double by 2026 on e-commerce boom