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Parcel Lockers: How They Work and Why They’re Useful

ranjeetSR

Ranjeet Sharma

Senior Specialist @ Shiprocket

May 23, 2025

8 min read

The use of the parcel locker delivery system has gained popularity in recent years, especially after the pandemic. The market size for smart parcel lockers was calculated at USD 902.6 million in 2023 and is expected to increase to USD 2,552.4 million by 2032. With the growth in online shipping, the volume of packages sent has also increased massively. This has created challenges for postal services, delivery providers, and buildings receiving packages. 

Parcel lockers have provided an effective approach for recipients to pick up their packages through a contactless, secure, and convenient method. With parcel lockers, many packages can be dropped off at a common place, reducing the need for delivery vehicles to make multiple stops. This approach ensures that packages are delivered efficiently.

In this blog, you will learn how parcel locker systems operate, who uses this facility and how they benefit both delivery services and recipients. 

What are Parcel Lockers?

A parcel locker is a secure box where deliveries are placed for safe retrieval. It comes in various sizes to accommodate packages of various dimensions. This flexibility ensures it is suitable for small envelopes, medium-sized boxes, and even larger parcels, thus covering a wide range of delivery requirements. This simplifies logistics for both senders and recipients.

These lockers are of immense value to residential and commercial spaces. They are used in apartment complexes and residential communities where residents can pick up deliveries at any time. Commercial lockers are usually located in office buildings and retail centers, giving businesses an option to simplify their delivery processes. Unlike regular lockers, smart parcel lockers use software that enhances their functionality, offering features like code-based access for users to get their items quickly.

Some lockers have specific industry designs. For instance, the temperature-controlled lockers in the grocery and pharmacy sectors keep all perishable items secure. This specialised feature addresses specific needs while maintaining convenience.

Who Are Parcel Lockers Designed for?

A parcel locker is designed to accommodate a wide range of users, providing security and convenience for those who need a safe place to store their packages. Here’s who benefits most:

  1. Retailers

Retail businesses providing services like “Buy Online” and “Pick Up In-Store” benefit immensely from lockers. These lockers allow customers to retrieve their online orders without waiting in line or relying on store staff. Shoppers enjoy the convenience of taking their online orders whenever they have time that fits their schedule. By using parcel lockers, retailers make the collection process easy, advantageous for both customers and staff.

  1. Logistics Professionals

In the logistics industry, parcel lockers help manage the last leg of package delivery. They reduce the need for repeated delivery attempts and make it easier for logistics companies to track and store packages securely. This also decreases the time delivery personnel spend locating recipients. Lockers’ efficiency enhances the overall delivery process, benefiting logistics teams and their clients.

  1. Courier Services

Delivery companies now tend to use parcel lockers to ensure the timely and safe delivery of goods. As online shopping has significantly increased, so have missed deliveries. To combat these issues, lockers perfectly fill the gap by offering secure storage for packages, free from the fear of theft, so users can pick them up when they want.

  1. Residential Buildings

Common with apartment and residential communities, a parcel locker is very useful in quickly managing incoming deliveries. They would serve as a secured location where packages are safely put until the residents can pick them up. The reason behind the establishment of the system is that it reduces the chances of stolen packages and provides peace of mind to those living in apartments or large residential complexes. 

  1. Commercial Buildings

Parcel lockers efficiently manage deliveries for employees and tenants in office buildings or business complexes. With them, a company won’t have to worry about sorting and distributing mail or packages for its employees. This system improves efficiency for both small and large businesses, ensuring that deliveries are handled smoothly without interfering with the working day. 

A Peek Into How Parcel Lockers Function

Parcel lockers simplify package delivery and collection, offering flexibility and ease for both senders and recipients. Here’s a look at how these systems operate.

Step 1: Placing Packages in Lockers

Delivery workers begin by accessing the locker system to place packages inside. They unlock an available compartment using a keypad, barcode scanner, or QR code. After scanning the package, they assign it to the locker and link it to the recipient. Smart lockers ensure that only the delivery person can access the locker during this step, ensuring package security.

Step 2: Notification to Recipients

Once the delivery is complete, the system sends a notice automatically to the recipient. This can be an email, SMS, or a dedicated app message with a unique passcode or QR code. It tells the recipient that the consignment is due for pickup, avoiding face-to-face meetings and saving the recipient time from waiting at home. 

Step 3: Retrieving the Package

The recipient may go pick up the package at their convenience. The recipient visits the locker location, enters the unique code, or scans the QR code received in the notification. 

Parcel lockers improve efficiency for all parties involved by eliminating the need for manual handoffs. Recipients can retrieve their packages at any time, and couriers can deliver without needing to coordinate with individuals directly. This technology provides a safe way to handle packages, ensuring a seamless experience from delivery to retrieval.

Why Parcel Lockers Are Worth Considering

Parcel lockers are becoming increasingly popular due to their many benefits, making them an attractive option for individuals and businesses alike. From convenience to security, here’s why parcel locker is worth considering.

  1. Convenience

One of the biggest benefits is the convenience they offer. With parcel lockers, one can pick up the packages whenever it’s most convenient — whether it’s in the middle of the night or during the morning commute.

  1. Reduced Missed Deliveries

Missed deliveries are frustrating and costly, especially for businesses. These lockers nearly eliminate this issue by securely storing parcels until they are ready to be picked up. This reduces the likelihood of having to reschedule deliveries, which benefits both consumers and businesses and enhances customer satisfaction.

  1. Enhanced Security

Parcel lockers are designed for enhanced security. Any packages left on the doorsteps are liable to be stolen or destroyed by weather conditions. A locker secures the parcels till they are retrieved, minimising the chances of surprise findings. 

Only authorised individuals with the correct access code can open a locker. This feature ensures that packages are well-kept until they are removed by the intended recipient. 

  1. 24/7 Availability

One of the most attractive features of parcel lockers is that they are available around the clock. This access is invaluable for people with active lives or unpredictable schedules. If, for example, one works an evening shift or has a booked schedule, lockers make it easy for them to keep up with package retrieval 24/7. 

  1. Environmental Impact

These lockers also help reduce the environmental impact of deliveries. By consolidating parcels in one location, couriers can optimise their fuel consumption and reduce the number of trips required. This reduces carbon footprints and goes a long way toward saving the environment. 

  1. Easy Returns

Parcel lockers make returning unwanted items easier than ever. Instead of dealing with complicated return processes, one can simply drop off the returns at a nearby locker. This ease of return eliminates much of the hassle involved in returning products, making the overall shopping experience more pleasant.

  1. Efficiency for Couriers

It’s not just customers and businesses that benefit from parcel lockers. Couriers also find that delivering to lockers is more efficient. By dropping off multiple parcels at one location, they save time and reduce the number of failed delivery attempts, which improves their overall productivity.

  1. Cost Savings

Businesses can also save money by using these lockers. The logistics process becomes easy with fewer missed deliveries and optimised routes for couriers. These savings can be reinvested in the business or passed on to consumers, creating a win-win situation for everyone involved.

Conclusion

Parcel lockers have transformed how customers receive and return packages, offering secure delivery alternatives. These lockers have made processes easy for users by combining both safety and convenience. By learning about how they work and the available types, individuals and businesses can find a suitable option for their needs. 

Parcel lockers improve the delivery experience for both senders and recipients. They eliminate concerns while allowing users to access their packages at their convenience. Thus, parcel lockers enhance modern-day delivery systems for the benefit of everyone involved. For eCommerce companies seeking to improve logistics and distribution, Shiprocket Cargo features enhanced tech-enabled platforms that help make the shipping of heavy and bulk items more efficient. Using the services of such brands can help you streamline the operations, making them more efficient.

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