Local shops to solve e-tailers' delivery issues

Three local retail chains have joined up to a trial scheme which - if successful - could resolve the problem e-tailers have in delivering goods ordered online.

One of the major barriers to business to consumer (B2C) ecommerce has been that the customer needs to be at home to receive any products ordered. As most people work during the day, this is often impractical. It's also expensive and logistically problematic for couriers to deliver at night.

But Jet petrol stations, and the Londis and Spar retail chains, have signed up to a trial which will see them take delivery of goods if the e-tailers use technology from Web start-up Dropzone1.

Under the scheme, once shoppers have made their online order, they will receive an email with the location information of the nearest store where goods can be collected.

The first trial will be in Reading, Berkshire, and will be free to customers. However, if the trial proves successful, it will cost £1 per package and will be paid for by the customer at the point of ordering online.

Dropzone1 is in the process of signing up e-tail partners. Entertainment portal Streets Online is the first, while a number of wine, health, book, music, clothing and travel sites are also interested in getting involved, according to the company.

Ecommerce experts welcomed the initiative. Doug Duffin, senior retail consultant at Cap Gemini, claimed local retailers are an important part of the fulfillment chain. He said: "So far e-tailers have stumbled across the high cost of delivery, but the involvement of the local retailer can reduce the cost dramatically. It will also alleviate the reversal logistics, as at the moment returning your online purchase through a traditional channel can be cumbersome."

Customer satisfaction is a vital part of retail success, according to Chris Charrington, consultant at analyst firm Frost and Sullivan. He said: "Online commerce has been a logistical nightmare from a business to customer perspective. Large delivery companies are not necessarily interested in the small, unprofitable B2C companies. But by delivering locally the corner shops can increase revenue and customers receive their goods conveniently."

Duffin said supermarkets and large e-tailers will increasingly rely on local outlets for delivery, but added a note of caution. "There will be a need to build trust between all parties involved. E-tailers must be able to trust the delivery firm and customers the local shops. The right technology must be in place for the operation to work seamlessly," he said.

A spokesman for Dropzone1 claimed final negotiations with other suitable late-opening outlets and major petrol companies are currently taking place.