Why In-store PUDO (Parcel Pick-Up & Drop-Off) is the New Differentiator

Paul Anastasiou
Jan 16
3 min read

Updated: Jan 21

The way consumers collect and return their online orders has transformed dramatically in recent years. The rise of Out-of-Home (OOH) delivery options, from lockers and drop boxes to convenience stores and third-party retailers has created a landscape of choice and flexibility that shoppers now expect as standard.

With this explosion of OOH solutions, forecast to be 40% by 2030, comes a hidden challenge: every time a customer chooses to collect or return a parcel elsewhere, valuable store footfall and halo spend are lost to other retailers.

For retailers competing in an increasingly convenience-driven market, this means one thing it’s never been more critical to create an exceptional in-store PUDO experience.

The Risk: Convenience That Drives Customers Away

Having built a PUDO network myself, I’ve seen firsthand the real value these solutions offer, undeniable convenience - extended hours, local access points, and quick transactions. But they also divert customers who could otherwise be engaging directly with your brand, exploring your aisles, or making additional purchases.

Every parcel collected from a local convenience store is one less customer walking through your doors. Every return dropped off at a locker is a missed opportunity for incremental spend.

So while the need for delivery choice remains essential, the real opportunity lies in elevating your own in-store parcel journey, making it every bit as frictionless, fast, and rewarding as the best OOH options.

The Problem: Outdated In-Store Models Create Friction

Walk into many retail stores today, and the parcel collection process looks much the same as it did a decade ago. Customers queue at a trade-counter-style desk, wait to be served, and then wait again while a colleague retrieves their order from a storage area.

It’s a model that’s expensive to run and loaded with friction:

Staff-intensive and slow.
Customers spend longer waiting than shopping.
The least efficient and most costly part of Click & Collect is often the in-store handover, not the logistics behind it.

In an era when convenience defines customer loyalty, this approach simply doesn’t meet expectations.

The Solution: Redefining the In-Store PUDO Experience

Retailers who are winning at in-store order collection and returns have recognised this shift and responded with innovation that removes friction at every step.

Some of the most impactful solutions include:

Mobile Check-In: Customers use an app to notify the retailer they’ve arrived, so their order is ready the moment they reach the collection point.
Smart Lockers & Automated Collection Points: No queuing, no waiting, just a seamless 30-second pick-up using a QR code or digital ID.
Digital Returns Journeys: Shoppers generate a returns QR from an app or website, print a label in-store, and scan it into a returns drop box, triggering an instant refund and closing the loop in seconds.

These innovations not only enhance customer experience but also reduce operating costs, increase throughput, and free up colleagues to focus on value-added interactions rather than repetitive manual tasks.

The Opportunity: Turning PUDO Into a Retail Advantage

The message is clear: PUDO is no longer just a logistical necessity — it’s a strategic differentiator.

Retailers who get it right create a new kind of customer journey, one that blends digital convenience with in-store engagement, driving repeat visits and brand loyalty.

By investing in smart, customer-first collection and returns experiences, retailers can transform what was once a back-of-store process into a frontline advantage.

Because when convenience and experience come together seamlessly, everyone wins, customers, colleagues, and the bottom line.