GLOBAL NETWORK OF PARCEL LOCKERS: THE NEW FUTURE IN LAST-MILE PARCEL LOGISTICS

Jacek Powałka

Over 43% of retailers in the UK (the most developed market) offer C&C Over 50% of clients in France, the UK and Belgium have used C&C services 1/5th of all e-commerce sales in the UK are now C&C

CLICK & COLLECT IS THE EMERGING GIANT

http://www.uk.capgemini.com/news/uk-news/almost-1-in-5-multichannel-sales-are-now-click-and-collect

56% OF CUSTOMERS REFRAIN FROM SHOPPING ONLINE DUE TO FAILED DELIVERY RISK

InPost Parcel Lockers reduce failed delivery risk and give additional flexibility on location and time of pick-up.

40% of customers indicate that delivery timeslots are too vague

Source: Imrg UK Consumer Home Delivery Review – May 2013

Click & Collect

retailer’s high-street

store

local shop or

specialized PUDO

87% of shoppers chose C&C because they could select the time of collection.

46% of shoppers questioned had abandoned their basket at checkout because of delivery concerns (mainly the high cost of home delivery)

76% of shoppers surveyed said they expect no delivery charge

43% of shoppers are prepared to travel up to 5 miles to collect their order while 37% are only willing to travel 1 mile.

4

http://www.retailgazette.co.uk/articles/23311-feature-is-the-uk-a-click-collect-nationhttp://internetretailing.net/issue/internetretailing-magazine-march-2014-volume-8-issue-3/the-final-mile/

THE CONVENIENCE OF CLICK & COLLECT

24/7 service

Low shipping costs

Free shipping to end customer

Market penetration

5

FREE RETURNS DRAMATICALLY DRIVE SALES

USA

UK

China

Russia

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

77%

73%

74%

70%

Free returns as an incentive to buy more

I would buy more often if I don't have to pay shipping for re-turn or exchange

”Buyers who returned merchandise at no charge increased their purchases from about 50 percent to about 350 percent.” - Amanda Bower Washington and Lee University

67 % of customers willing to shop more with that retailer, 64% would also recommend that retailer to a friend.

http://www.rundlemall.com/bm.doc/ecommerce_bp0106131.pdfhttp://kuow.org/post/charging-customers-returns-bad-businesshttp://pressroom.ups.com/pressroom/staticfiles/pdf/fact_sheets/2013_PulseShopper_FINAL.pdf

Proven solution that helps to grow sales and customers satisfaction

„The logistics service of warranty repairs of Samsung equipment using InPost parcel lockers significantly increases

customer satisfaction and reduces the time needed to carry out any warranty repair.”

Konrad SzewczakService Administration

Development Specialist

Samsung

We are ready to provide references from 69 business customers using InPost Lockers

„Offering InPost Parcel Lockers Returns increased sales of shoes by 4%, resulted in higher

competitiveness and customers satisfaction”

Pavel WilkVice president

Eastend Club

END TO END AUTOMATION OF ECOMMERCE

WE KEEP IT SIMPLE

THE MOST SUCCESSFUL PRIVATE POSTAL OPERATOR IN EUROPE

• International, • Fully automated, • Open,• Proven shipping solution, • Offering the most convenient way • To pick up & send your parcels 24/7/365 • That gives real value for the customers.

Integer.pl’s price on the stock market

2307% growth from the IPO

343,56

258,06

193,55

129,03

64,52

02009 2010 2011 2012 2013 2014

8

The best customer service provider

Retail supplier of the year

United Kingdom, 2014

A FIRST CLASS CUSTOMER EXPERIENCELive Demo

WHY MARKET RESPONDS POSITIVELY TO OUR DELIVERY SOLUTION?

PARCEL TERMINALS ADDRESSES THE MOST IMPORTANT INCONVENIENCIES Failed delivery in parcel terminals is almost non-existing and the time of delivery

is only 48h in over 99% of cases!

Delivery Failed

First Time

Delivery was Late

Delivery Failed

Completely

Source: Imrg UK Consumer Home Delivery Review – May 2013

Delivery atweekend & 5pm-8am

12

Courier

• Expensive• Limited time

window• Unlimited

locations

Shop

• Very limited locations

• Limited by opening hours

• Low cost for the shop

• Up-sell opportunity

Parcel locker

• Open 24/7• Low cost• Multiple

locations• Limited up-sell

opportunity• Promotional

options

Collection point

• Limited by opening hours

• Locations often change

• Low cost• Multiple

locations

COURIERS ARE LESS SUITABLEAlternative drop-off options for returns prove the most efficient

CROSS-BORDER- A GLOBAL E-COMMERCE PHENOMENON

13

By 2015 cross-border e-commerce is projected to reach 20% in the EU

There is a distinct gap between Western and Northern Europe vs Southern and Eastern Europe

By 2020 cross-border e-commerce will grow 5 fold, reaching $130bn USD in key Western European markets and the USA alone.

The largest surplus in cross-border e-commerce is the UK’s $1bn USD, but the potential for growth is global.

We are proud to have one of the highest Net Promoter Scores out of all service companies

NET PROMOTER SCORE InPost Parcel Lockers 91% UPS 86% DHL 84% Polish National Post 56%

0 10 20 30 40 50 60 70 80 90 100

Dedication to offer the best delivery service in the world is represented at all stages of its development. As no other lockers provider we have our own R&D, factories in Europe, IT and product development team working closely with our clients.

41% of InPost Parcel Lockers customers have increased frequency of online shopping

Source: InPost Parcel Lockers Research (sample 1000+), April 2014, Australia

16

3480 InPost locations across 18 countries currently and growing

M

INPOST LOCKERS GLOBAL EXPANSION

Existing Network

National Operators

Expansion Plan 2015

Australia, Chile, Great Britain, Ireland, Italy, France, Malaysia, Latvia, Lithuania, Ukraine, Estonia, Poland, Russia, Slovakia, Czech Republic, Saudi Arabia, Columbia, Costa Rica,

Selected clients:

Top locations:

INTEGRATED SENDERS

620060+ a week

GREENER DELIVERY SOLUTION

COURIER VERSUS INPOST LOCKERS

95% reduction of CO2 emission and fuel consumption

Yearly analysis, source: calculations by University of Science and Technology in Krakow, Poland

18

COURIER INPOSTLOCKER

Parcels daily per one courier 600 60

Kilometers daily per one courier 70 150

CO2 emission per parcel 14g 300g

Fuel consumption per parcel 0,01l 0,23l

UK LOCATIONS – SAFE, CONVENIENT, SECURE WITH CCTV AND REMOTE 24/7 SUPPORT

Click to watch our short film!

29,7% OF PARCELS ARE COLLECTED AT WEEKENDS

Source: InPost data. All users statistics. 201321

50.93% ARE COLLECTED BETWEEN 5 PM AND 8 AM

For a big group of the users we are the only delivery option

(Dear Rossen, if we change time slots it will not be an attractive message. If that can not stay.. I have some other idea. Lets talk..)

IMPROVED CUSTOMER SATISFACTION

80% of e-shoppers who use the parcel lockers would be more likely to use

an online retailer which offered it in its delivery service1

74% prefers parcel lockers than courier2

73% of UK shoppers walked away from an e-store because there was

insufficient choice of delivery options3

1 Ireland research (Parcel Motel conducted [November 2012]2 InPost research 3OnePoll research in a study for DPD [August 7, 2012]

22

WHAT ELSE COULD THE LOCKER DO?CLICK HERE:POSSIBLE BESPOKE SOLUTIONS

Enlarged Parcel Locker at Tesco in Warsaw – 200 boxes

25

PRICE OF DELIVERY AND ONLINE PROCESS SIMPLICITY ARE THE MOST IMPORTANT FACTORS FOR e-SHOPPERS

Source: Perspectives on retail and consumer goods, McKinsey&Company

• Close to your home and work – located in office centers, residential areas and petrol stations

• You can drop off your laundry in 7 sec – directly in the Hi’Shine Laundrybox or on the website

• Highest quality wash is guaranteed by 5asec – the leader on the Polish market • You pick up your laundry the day after – clean

and ironed• Simple and intuitive like cash machine • Available 24/7• Price lower than in traditional laundry

Hi’Shine Laundryboxes is an innovative & smart solution which offers you the ultimate washing convenience

New products

VIRTUAL ADDRESS – CASE STUDYParcel Motel

Client is shopping in the UK e-shop and wants his parcel to be delivered to Ireland

Client enters name and personal number together with Nightline UK hub address

Parcel is shipped to the UK hub address at low fee or free of charge for domestic parcel

Nightline transferes it across the border to its hub in Ireland

Final delivery to APM locker at local domestic fee

WE KEEP IT SIMPLE

T: 0330 335 0950sales@inpost.co.uk www.inpost.co.uk