SingPost POPStation: a global eCommerce model

SingPost’s clever embracement of the online shopping revolution is a case study other national postal services around the world should take notice of.

Last week, SingPost opened its 100th POPStation – a parcel delivery and collection service which has cut the delivery time of online purchases by as much as a day, boosted convenience for customers and vendors alike – and reduced its own operational overheads and logistical challenges at the same time.

The SingPost POPStation is a delivery and collection network system which now provides a receiving point for customers with an average distance of no more than 2.5 km from any resident in the city state.

Essentially, POPStation is a locker delivery service which does away with the need for customers to have to be available at one place to receive their deliveries, and for postal staff to traverse the city making personal deliveries. It’s tailor made to the online retailing industry, because it standardises delivery systems and gives both vendors and SingPost the economies of scale of making lots of deliveries to a single point.

Shoppers can have their items delivered to automated smart lockers in any one of the 100 POPStations, all of which are accessible 24-seven. As well as receiving items, consumers can make returns easily onsite as well. Customers receive their delivery notifications and a PIN for their secure locker via smartphone.

“POPStation is well suited for urban cities like Singapore as it lets the parcels do the waiting, catering to busy lifestyle of Singaporeans in this digital age,” explains SingPost senior VP of Singapore Parcel, Lim Ann Nee, in a statement.

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She says SingPost invested in the POPStation to further raise the level of convenience for customers back in April 2013, hoping to better serve Singapore’s fast-growing eCommerce sector, already worth an estimated $4.4 billion annually. It was well-received during a six month pilot, SingPost “inundated” with requests for new POPStations in various communities.

“It has revolutionised parcel collection and delivery processes for both customers and service providers in Singapore,” said Ann Nee.

Post-trial new stations were opened at the rate of one every four days and parcel volumes to the stations have increased six-fold.

“We have also added new innovative features to enhance customer experience such as POPStation app, posting of parcels and payment service for online purchases. POPStation is popular with consumers.”

So popular, Ann Nee says the state-owned mail company is already planning another 100 POPStations.

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Davilia Koh, a 36 year old homemaker who has been using POPStation for two years, has been using the service since the trial was launched.

“It is a great idea! I get my items… about one or two days faster than home delivery. With POPStation, I have better control of my time.”

Security is ensured not just by a one-time PIN/QR code to open the locker, but by surveillance cameras and centrally controlled systems which allow SingPost to track the status of each parcel. IT support is also available 24-seven.

SingPost’s own data shows consumers retrieved their parcels within two calendar days, down from three in 2013. Most customers are aged in their 20s to 40s.

Ann Nee added: “We are committed to continue meeting the needs of our customers. POPStations are scalable and they are just the thing to meet the boom in eCommerce as well as lifestyle needs and priorities of online shoppers.”

Meanwhile, SingPost is developing a new app-based system to further personalise the delivery service for consumers, a prototype of which was shown at the opening ceremony of the 100th store.

P-POPS (Personal POPStations) is tailored to address the needs of SMEs and individuals, leveraging mobile technology to offer “a seamless, cool and fun customer experience for both the consumers and our parcel ambassadors”.

It has no user interface as it is entirely managed by smart device/phone. It does not require 3G/4G or WiFi access to unlock the locker. P-POPS will communicate direct with the consumer’s smart device/phone via the Bluetooth technology. It will be fully integrated into POPStation network, offering consumers an omni-channel experience.

Ann Nee says P-POPS will dovetail SingPost’s plans to transform how it serves its customers and strengthens its parcel delivery service in Singapore.

Mark Bouris, executive chairman of SingPost’s technology partner TZ Limited, says the new system will be piloted this year and “should set another benchmark in expanding the boundaries of last mile parcel delivery”.

Alibaba partnership

All this technology – and market-leading innovation – was likely behind Chinese eCommerce giant Alibaba’s choice of SingPost as its first logistics partner in a new Merchant Delivery Scheme.

Alibaba.com members registered in Southeast Asia, particularly in Singapore, Malaysia and Thailand, will enjoy preferential rates and discounts on certain delivery services. For instance, Singaporean members will enjoy a discount on SingPost’s “Speedpost” services and International Mail services, while Thai and Malaysian members can obtain preferential rates using the “Ezyparcel” services.

This partnership is part of Alibaba’s goal of transforming itself into an end-to-end trade platform, rather than just a wholesale platform.

Said Eric Sin, senior manager of strategic partnership and global business Development of Alibaba.com: “The growing penetration of eCommerce has made it easier for small businesses to conduct trade with buyers in overseas markets. However, logistics remains a challenge due to high costs and the complexity of moving goods across borders. The ‘Alibaba Merchant Delivery Scheme’ will better serve the logistics needs of our Southeast Asian members. By leveraging on the strong delivery networks of our partners in the region, such as SingPost, we hope to offer our small business members a cost-effective and seamless logistic solution to lower their barrier to conducting international trade.”

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