Modern Day Community Delivery Services

By Mahesh D

The most challenging sectors in the retail industry are order fulfillment and delivery strategies that can be collectively segregated as "logistics". Retailers are facing challenges with the current market conditions, the increased presence of online shopping, shrinking of fiscal measures by banks, and the escalation of operational costs such as transportation and rent. All these factors act as obstructions to the growth of the retail sector. As retailers are committed to delivering as per their estimated delivery date, most of them manage the logistics and bringing back the delivery boxes in stock.Making individual delivery to customers is an expensive proposition. A study reveals that delivery for each individual it may cost up to $13-15, whereas, the customer is charged between $5-7, which means the remaining cost is borne by the retailer.

In order to tackle the delivery problems, retailers have come up with multiple solutions that are being tried out. For instance, few retailers have set-up local satellite collection centers from where customers can collect their orders at their convenience. A few other retailers have opted to use national posts to deliver all of its customer's orders for the next day.

Customers are now looking forward for the last mile delivery in an innovative way, such as community delivery or secure crowd-sourced delivery. Retailers can actually increase the trust of customers who travel from station to station "or" city to city by enabling hassle free and smooth operation. With managers stationed at airports or railway stations to hand over and pick-up packages from customers, the platform has its definitive purpose.

How does Community Delivery take place?

1.  A community member thinks of visiting a store:

• Broadcasts store visit plan to community
• Proceeds to store
• Shops for self
• Receives QR Code on mobile from the 2nd community member - "Online Shopper"
• Flash QR Code at store
• Collect items
• Handover items to fellow community member

2.  A community member receives message

• Shops online
• Makes payment and receives QR Code
• The purchase is notified to the store
• Sends QR Code to the shop goer

Advantages of Community Delivery

Retailer benefits:

• Increases shopping conversions
• Reduced investment and increased ROI
• Increased security
• Instant updates across all POS

​Customer benefits:

• Allow customers to get help immediately from a community member who broadcasted store visit plan to community
• Reduced time in traveling / queue at POS
• Allows customers to select the essential items required, which helps the community member to carry the bags as per the broadcasts
• Access to product information / suggestions

​Procedure Flow of Community Delivery

As more and more retail partners start enabling integration, like payment partners, banks, technology partners, Community Delivery will be used increasingly in retail as well. It has become so popular that all the brick and mortar retailers are implementing Community Delivery along with the traditional method of "Pick 'n' Shop".

Features of Community Delivery

• Shop for items
• Post for community shopping
• Receive acceptance message
• Generate QR Code
• Send QR code to community shopper
• Display QR code at shop to collect items

Community Delivery indeed looks to be the future of delivery. More and more industries are finding that community delivery is the right pitch for their particular need.

The progress of community delivery will continue from the original "E-commerce" to the current "Point of Sale". It might not take over from traditional "Pick 'n' Shop", but rather, it will grow to accompany traditional "Pick 'n' Shop".