Before I get into this I note that by parcel pickup service I do not mean Australia Post parcel services through a Licensed Post Office. I happen to think an LPO in the right location inside a newsagency can be a good move.
No, here I am writing about agency business, where a newsagent acts as an agent for a parcel pick up or drop off service.
The financial compensation is low. You get paid peanuts, often not reflecting the time involved.
The time spent can be considerable. Customer queries and more can take up too much time.
Customer anger can be high. Having to wait while you serve people buying products tends to frustrate parcel people who want immediate service. Product customers can be angry too when you serve parcel pickup customers ahead of them.
Space requirements at a premium location in store can be high. And it can vary based on volume.
Distraction from high margin retail can cost profit. The time spent dealing with parcels is time spent not being a retailer.
These are the key reasons why I think offering a parcel pickup and drop off service is hot good for an Australian. newsagency business.
A core argument for these services, that they generate valuable foot traffic, is often a myth in my experience, looking at plenty of business performance data from newsagencies over the years.
The parcel customer is typically a destination visitor, not a shopper prepared to browse. Their goal is speed and efficiency. Any delay, whether waiting for you to finish with a retail customer or seeing you serve someone else, creates friction, not a sales opportunity.
Newsagents offering parcel pickup and drop off services are absorbing the courier company’s final-mile delivery costs. These newsagents are often seen as the face of service failures. When a parcel is late, damaged, or missing, it is the newsagent who can cop the customer’s frustration.
Regulars here would know I am not a fan of agency business as it is not good retail, it is not you investing in your business. Parcel services are that – not you working on and in your business for your profit.
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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.