Less than a week after warning of the likely impact Amazon’s logistics network will have on its growth prospects, Royal Mail has revealed a new click and collect contract with the online retailer.
The deal will involve delivery of online orders to Post Office stores through Royal Mail’s Local Collect service, increasing the number of Amazon pick up locations to over 16,000.
Royal Mail Parcels MD Nick Landon said: “Royal Mail is a key partner for online retailers and by teaming up with Post Office to offer the UK’s largest click and collect service, we are enabling Amazon’s customers to have greater control over the delivery of their items.”
However Jonathan Smith, ex-Yodel chief executive and now chairman at parcel locker firm InPost, feels that the new collection service is not as convenient for customers as Amazon and Royal Mail may think.
He said: “In-store or Post Office pick ups are still deemed by many as less than convenient as they limit collections to opening hours. People lead increasingly busy lives and can’t always stick to set times for pick up or delivery.”
But Angela O’Connell, strategy and marketing director at software firm Metapack, sees the deal as an opportunity for Post Office opening times to be extended as consumers get more demanding about when they wish to pick up their items.
“The challenge will be on Royal Mail to continue to increase flexibility in opening times and pick up locations in order to stay competitive in this dynamic marketplace,” she said. “However, the onus is now on all industry players to keep the momentum and continue to innovate to provide a better delivery experience to shoppers.”
Royal Mail last week said the growth of Amazon’s logistics network could reduce its predicted volume growth from 4% to 1-2% in the medium term.