Posti will make a major investment to prepare for growth in e-commerce. Posti will significantly expand its parcel locker network so that, by 2022, there will be 4,000 Posti parcel lockers in Finland. Finland has the most comprehensive parcel locker network in the world, and in the future, up to 85% of Finns will have a parcel locker less than one kilometer from their home address. At the same time, the possible uses for parcel lockers are also being expanded. In the future, it will be possible to use parcel lockers for purposes such as recycling and doing C2C trade in addition to picking up and sending parcels.
Posti’s investment in parcel lockers is significant and will make Finland a pioneer when it comes to the number of parcel lockers. Posti has been rapidly expanding its parcel locker network: at the end of 2018, Posti had 1,000 parcel lockers. Posti will quadruple the number of Posti parcel lockers within the next few years.
E-commerce is growing in Finland at a rate of 10% per year. The rate is expected to increase as Finnish consumers estimate that they will make more online purchases in the future than they do now. Almost one fifth (18%) of the respondents estimate that they will buy everything or almost everything online in 2025. This information comes from Kantar TNS’s 2019 online shopping survey commissioned by Posti. It provides a comprehensive overview of the current state of online shopping in Finland.
“With this investment, we are preparing for growth in e-commerce. In Finland, households receive around 10 parcels per year. In Central Europe, however, the figure is twice as high and, in the US, it is three times as high. As the e-commerce sector grows, the volume of parcels is also expected to increase,” says Kaisa Ilola, the Head of Customer Experience and Channels at Posti.
In the future, there will be a Posti parcel locker near every Finn. In urban areas, there will be a parcel locker located at most a kilometer away from every home address by 2022. In sparsely populated areas, parcel lockers will also be available closer to home—usually within five kilometers of the home address.
“In practice, this means that there will be a Posti parcel locker near every Finn. In 2022, consumers will pass a parcel locker every day on their way to work, school, a grocery store or a hobby. Finns are used to mailboxes being part of the infrastructure. In the future, Parcel lockers will form a new kind of part of a scenery. The number of parcel lockers will be increased, but at the same time, we are also looking for new uses for parcel lockers. In the future, parcel lockers can be used for purposes such as recycling raw materials, doing C2C trade and delivering rental devices,” says Ilola.
Posti parcel lockers are available throughout Finland. Posti currently has nearly 1,600 parcel lockers. In September, Posti’s 1,500th parcel locker was opened in the REDI shopping center in Helsinki.
Finns prefer to receive their parcels through parcel lockers. Up to 59% of Finns report having used a parcel locker, but this figure is set to increase. Increasing the number of parcel lockers makes Finns’ everyday life easier since parcel lockers are also available in the evening and on the weekends. Parcels can also be put into the lockers during those times. At best, a parcel that was ordered on Friday can be picked up from a parcel locker on same day.
“Having a comprehensive parcel locker network also helps curb climate change. Consumers can significantly lower the CO2 emissions of their deliveries with parcel routing. Online shoppers can reduce their CO2 emissions by up to 70% by routing their parcels along their everyday routes, for example to a parcel locker located at their workplace or the grocery store that they use,” says Ilola.
Posti is currently undergoing the greatest transformation in its history: consumer behavior has changed, digitalization is increasing, the volumes of paper mail are decreasing at a growing rate and competition is becoming fiercer. The volume of parcels delivered by Posti is growing: parcels and logistics already amount to over half of Posti’s net sales. Posti is looking for significant growth opportunities in parcels, e-commerce and logistics services.
Posti has prepared for e-commerce growth with multi-million investments and by constructing a nationwide parcel locker network that is popular among consumers. A decision has been made to invest a significantly greater amount of money in the development of the parcel locker network.
“Posti is a global leader in parcel lockers. For instance, DHL has announced that it will increase the number of DHL parcel lockers in Germany to 7,000. With Posti’s additional investment, the number of parcel lockers per capita will be six times higher in Finland than in Germany, a country that is considered a pioneer in the use of parcel lockers,” says Ilola about the significance of the investment.