Battle to Lock Up Online Shopping Delivery Business

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13_08_25-battle-online-shopping

Andrew White | THE AUSTRALIAN

LOGISTICS

MARK Bouris has escalated his battle with Australia Post for a share of the online shopping delivery business, signing up a raft of retailers, including Nike.com, to use parcel lockers made by his list-ed technology company TZ. The retailers, which also include clothing group Glue Store, shoe retailer Tony Bianco and Pamper Hamper Gifts, have adopted the lockers as an alternative delivery route for customers who can’t get them delivered to home or work.

In what may be an emerging trend for service providers looking for a slice of the estimated $10.8 billion online retailing mar-ket, Toll Group also last week partnered with one of Australia’s biggest e-tailers, Grays Online. for parcel delivery. Toll said the partnership would significantly increase its estimated 7 per cent share of the business-to-consumer express de-livery market, which is dominated by Australia Post The agreements are designed to boost volumes through TZ’s and Toll’s businesses as shoppers move a growing share of their purchases on line.

TZ is building on a contract it won to provide smart lockers to Singapore Post last year. It participated in a trial for Australia Post in 2010, but lost the subsequent ten-der to a Polish company that also went after the Singapore contract.

Mr Bouris said he had spent the past 18 months putting agreements in place to offer a competing service in Australia that included establishing locker sites and linking with local freight logistics management software group Temando.

Up to one in 10 deliveries in Australia fails because the customer is not home to receive the parcel, and TZ’s ADAM parcel lockers are designed as an alternative to allow pick-ups using a se-cure code sent to the customer. TZ has set up lockers designed to give online shoppers a 24/7 pick-up option at BP and Gull service stations across the country and with shopping centre man-agers GPT and Westfield. Mr Bouris, TZ’s executive chairman, said the the pick-up experience “should be seamless and cool” for online shoppers. “The game here is who can find the sites that are the most compel-ling for customers who want to pick up their goods.”

Toll uses the lockers at the customer’s discretion, but has also established a relationship with newsagents for them to take “failed” deliveries for customers to collect later. ‘ TZ is in partnership with Temando, which boasts relation-ships with 30,000 retailers around the world that use its software to direct online purchases between 200 different delivery services.

Chief executive Carl Hart-mann said Temando, which is owned by management and the former Packer family-backed Ellerston Capital, is involved in the second highest number of par-cel shipments in the country behind Australia Post. “We match what the customer wants to what the courier can do,” he said. “And if we help them get what they want in the system, they become more … efficient and more profitable.”