Lockboxes – The future of e-commerce in Vietnam

The boom in online shopping leads retailers and logistics providers to look for new ways to deliver orders as quickly and efficiently as possible. Parcel lockers or store pick-up options are among the latest delivery options for shoppers. For store pick-up, shoppers can visit the nearest stores for their package after checking out online. For parcel lockers, shoppers will receive a QR or SMS code upon checkout that will open the locker once the parcel is delivered.

The Visa Consumer Payment Attitudes Study 2018 shows that ecommerce saw a growth of 40 percent in total value of purchase compared to the year before. “The accelerated growth is both good and bad news for retailers, who are in need of better delivery options to tackle the challenges of last mile deliveries from warehouses to homes and offices,” Stephen Wyatt, Country Head of JLL Vietnam comments. “Trying to deliver packages to customers who aren’t home can cause delays on delivery routes, while getting orders to individual addresses often means putting vehicles on the roads before they’re full, raising costs and contributing to city center congestion and air pollution.”


A consumer accessing a Amazon lockbox to pick-up their e-commerce order 

Although they are a familiar sight in many other countries, lockboxes are currently not wildly available in Vietnam. DHL has a network of 340,000 lockers in Germany and major UK fashion brands like ASOS utilizes them to let customer return products anytime they want. Sportswear brand Decathlon also installed 1,500 lockers to support its click-and-collect delivery option. These boxes are even creatively used as self check-in device for many AirBnB homes, with house keys stored in a lockbox with a unique code provided only to registered guests.

A good location for lockers depends on retailer customer profiles – how frequently customers order and where they live. Stephen said, this is where big data can provide insight into the most effective locations. What’s key is that customers can pick up the parcel along their usual journey, without a detour. Furthermore, lockers need to be in secure locations with good surveillance to minimize the risk of theft or vandalism.

Down the line, new residential and mixed-used developments in Vietnam could include a block of lockers, accessible by all residents as well as retailers. Currently, most big packages delivered to residential buildings are left at the door or reception table. With hundreds of packages arriving each day for the thousands of residents, parcel lockers can minimize the risk of mixing up or losing packages, Stephen said.

Urbanization is speeding up, and this means more and more people are moving to the city every year. According to JLL’s data, the number of apartments in HCMC has increased from 67,200 to 180,000 units in the period of 5 years, an approx. 190% growth from 2014 to Q2 2019. 

For landlords, providing the convenience of parcel lockers could be an additional perk that attracts commercial and residential tenants – especially as online shopping continues to grow.
In the future, refrigerated lockers for food and grocery orders could also become popular fixtures, JLL concluded.


Editors Note:
This article was originally published by Jones Lang LaSalle (JLL) Vietnam and is published here with their kind permission. JLL is the largest commercial real estate services company of its kind in the world. For more information on JLL, visit them on the web at: https://www.joneslanglasalle.com.vn/en/trends-and-insights