Continued Click and Collect shopper demand opening up more opportunity for SA retailers

Supply chain companies latch onto systems thinking as demand for engineering expertise grows
4th Sep 2023
WhatsApp Maths Hotline a winning formula for KZN learners
12th Sep 2023

Continued Click and Collect shopper demand opening up more opportunity for SA retailers

Click and Collect specialist Pargo’s latest Ad and 4000+ collection points signal a growing appetite amongst SA consumers for time- and place-friendly delivery alternatives

Cape Town, 7 September 2023 – A shoddy delivery service will scupper even the best retailers.

As online shopping has surged, so efficient delivery has become a non-negotiable for consumers. In fact, some surveys indicate that as much as 85% of shoppers won’t buy from a retailer again if their delivery experience is poor.

Amid the e-commerce explosion, patience for delivery drivers being late or courier companies failing to update customers on their orders has worn thin. Frustrations are boiling over and it’s ultimately the retailers who suffer.

The situation is even worse when it comes to South Africa’s townships. Satellite mapping doesn’t always recognise street addresses in these areas, causing drivers to become lost. And that is presuming they are making drop-offs in the first place, as some couriers fear they may become victims of criminals.

So common have problems in delivery become that South African Click and Collect specialist Pargo has even produced a series of online Ads depicting the litany of emotions people go through when they don’t receive their orders on time.

The latest, which airs from today, follows a delivery driver who runs into one problem after the next, from a broken street sign and no cellphone reception to a customer’s mobile going unanswered. This is juxtaposed with a pleasant experience associated with a Pargo Point.

To see the Ad, click here.

The company’s “Live more, wait less” video, which has garnered more than 75,000 views on YouTube alone, shows the impact of a late delivery on a woman’s social life, culminating in a window-rattling scream of anguish.

Pargo CEO Lars Veul says the Ads strike a chord with South Africans because most have experienced these scenarios to one degree or another.

However, by exploring and offering non-traditional delivery methods, retailers actually stand to benefit.

An online poll conducted by South African news publication The Witness earlier this year found that 53.8% of respondents would rather pick up their goods from a pickup point than be delivered to them.

The Click and Collect model, where customers order online and then collect parcels from a designated point of their choosing at a time that is most convenient to them, has found favour across the globe.

In the UK, for example, Click and Collect now accounts for 40% of sales for retailers offering the service.

The model carries a host of benefits for retailers, including:

  • Offering a high level of convenience to customers in that they can collect orders where and when they want to.
  • Upselling opportunities in that shoppers are more likely to buy additional items when picking up orders in-store.
  • Faster order handling.
  • Greater engagement between retailers and customers when parcels are collected in-store.
  • Boosting the omnichannel offering which resonates with modern consumers and builds loyalty.

Pargo has dominated South Africa’s Click and Collect space since launching in 2015.

There are currently more than 4,000 Pargo Points around the country, many of which are located at big-name retailers. This extensive network has allowed it to offer competitive pricing and is far more affordable than traditional delivery methods.

What it means is that effective and cheaper delivery has been opened up to a much wider audience.

Another traditional delivery bane has been addressed by e-mails and text messages being sent when orders are ready for collection.

This “total visibility” on a parcel’s journey to the pickup point establishes further trust in the retailer.

Word Count: 561

About Pargo:

Pargo is a Cape Town-based tech company that solves the challenges of last-mile logistics through its smart logistics platform and fulfilment solutions, which are anchored by a vast, nationwide network of thousands of Pargo Pickup Points. Pioneering Click & Collect back in 2015, Pargo continues to develop their technology and processes to make fulfilment solutions fit for the African logistics landscape, including Home Delivery, Returns and micro-warehousing. Clients that use their tech include Edgars, rain, TFG, Cape Union Mart,Clicks and HomeChoice. Lars Veul is the CEO and co-founder of Pargo, a smart logistics platform that simplifies online delivery through its tech-enabled network of Pargo access points. Prior to starting Pargo, Lars was part of the founding team at Groupon, where he headed up the online marketplace, which exposed him to the challenges of online delivery. He is also an Alibaba eFounders fellow and is part of Endeavor.

PR by Transform Marketing

Comments are closed.