A new deal between Bradford-based supermarket chain Morrisons and online retailer Amazon will mean that Amazon customers will be able to collect their deliveries from lockers installed in Morrisons stores.
Amazon lockers are not new and the 1000 or so Amazon Lockers that are already installed in stations, airports, convenience stores, shopping centres and universities worldwide have been shown to work well.
How Do They Work?
When customers order goods from Amazon online, instead of the goods being delivered to home the customer can choose a convenient nearby collection point. One of the biggest advantages for customers is that they don’t have to wait in to receive their parcels but can pick them up on the move, at their convenience from a secure and trusted location.
When the Amazon parcel has been delivered to the Amazon Locker, the customer receives an email or text that contains a code (the email also contains a bar code). The customer then goes to the locker and enters the code or scans the barcode in order to retrieve the parcel.
What’s In It For Amazon?
For Amazon, the new deal with Morrisons means that they can expand their Locker scheme through a valuable new delivery channel. There will also be some brand strengthening benefits.
What’s In It For Morrisons?
Morrisons have had a rough ride in recent times as they were reported to have been late entries into the supermarket online retailing game, and like Asda, Tesco and Sainsbury’s, they have seen the profits trimmed by German discounters Aldi and Lidl. The Amazon Locker scheme is therefore, one way to bring more customers into their stores.
Other third party partnerships that Morrisons have introduced into their stores this year for the same reason include Timpson (dry cleaning, key-cutting and shoe repair). This is also in keeping with the ‘market’ theme that runs through Morrisons stores and the idea that the stores become valuable hubs.
What Does This Mean For Your Business?
This story illustrates how online businesses are refining and differentiating themselves in terms of their distribution to achieve the best possible experience and convenience levels for the customer (remember the much-publicised drone parcel delivery tests too). As well as providing a ‘hard to copy’ competitive, the Locker idea also links in with the omni-channel approach that leading online businesses are adopting i.e. using a variety of channels to provide a seamless and more convenient shopping experience to the customer.