Past the Porch: The Future of Retail Fulfillment Beyond Home Delivery

As the landscape of online shopping evolves, so do consumer expectations around how their orders are fulfilled. Recent research by HubBox explores key trends, challenges and motivations shaping the future of e-commerce, where delivery options extend beyond traditional home delivery to meet diverse needs.

The Dominance of Home Delivery

Seventy-six percent of American shoppers receive their online orders at home. However, this preference varies significantly across demographics. Gen Z and millennials receive home deliveries about two-thirds of the time, indicating a shift in fulfillment preferences. In contrast, urban dwellers receive 68 percent of their online orders at home, compared to 82 percent among rural consumers.

Several factors drive these differences, including lifestyle choices, concerns over package security, and convenience. As urban areas grow more congested and younger consumers prioritize flexibility, alternative delivery methods such as access points (local package collection locations) and buy online, pick up in-store (BOPIS) to pick up packages are gaining traction — especially for those who value convenience and security over receiving packages directly at their doorstep.

The Rise of Access Points

One of the most notable trends in 2024 is the increasing popularity of pickup points, which is driven by several factors. Convenience tops the list, with 27 percent of consumers citing it as their primary motivation for using these options. This figure rises to 35 percent among millennials. Porch piracy, a significant issue affecting 36 percent of U.S. shoppers, further fuels the demand for secure options to pick up packages. Gen Z and millennials are particularly affected by this type of theft, with over half reporting incidents in the past year.

Cost also plays a significant role in the adoption of out-of-home deliveries. More than half (56 percent) of U.S. shoppers say they would consider using a local package collection point if it meant lower fulfillment costs. This number jumps to 68 percent for millennials, who are more cost-conscious when it comes to shipping fees.

The data suggests that as the industry evolves, local pickup points present an opportunity for businesses to reduce costs while meeting consumer needs for flexible delivery solutions. These methods can be especially advantageous in urban areas, where last-mile delivery is both expensive and logistically complex.

Addressing Delivery Pain Points

Despite the convenience of home delivery, it's not without its challenges. Our research identifies several pain points that continue to frustrate consumers. The most common issues include deliveries to the wrong address (37 percent), damaged goods (28 percent) and late deliveries (28 percent). These problems not only inconvenience customers but erode customer loyalty and can significantly harm a brand’s reputation.

When a delivery goes wrong, 56 percent of shoppers place the blame on the courier, but 31 percent still hold the retailer accountable for late or failed deliveries. For new brands, the stakes are even higher: 37 percent of consumers said they would not shop again with a brand if their first experience involved a late delivery. This underscores the importance of retailers taking greater control over the fulfillment process to ensure positive customer experiences.

The Growing Importance of Green Delivery Options

Environmental concerns are increasingly influencing consumer behavior when it comes to delivery options. While 63 percent of shoppers believe retailers could do more to make deliveries environmentally friendly, cost and convenience remain primary factors in the decision-making process. A significant portion of consumers (59 percent) say they would only choose eco-friendly delivery options if they were just as convenient as traditional methods.

However, there's a growing appetite for more sustainable practices. Seventy percent of consumers support the idea of grouping deliveries together to reduce carbon emissions, and 52 percent would choose a green delivery option if the carbon cost were displayed at checkout. These findings show that the sustainable delivery trend is likely to grow as awareness of environmental impacts increases.

Peak Trading Challenges

Demand for convenient locations to pick up online orders increases during peak trading periods, such as Black Friday and the holiday season. For example, 56 percent of consumers opt to use them to avoid missed home deliveries, while 63 percent of consumers find these fulfillment options more convenient during Black Friday shopping.

Interestingly, 66 percent of consumers said they would try a local pickup delivery option if offered a special Black Friday discount code. This suggests that promotional incentives could play a key role in encouraging the adoption of alternative delivery methods during peak periods when delivery demand is at its highest.

What’s Next for Fulfillment?

Our 2024 research underscores the shifting nature of fulfillment preferences among U.S. consumers. While home delivery remains the most popular option, the growing adoption of pick-up points — driven by convenience, cost savings, and security concerns — signals a significant shift in consumer behavior. For retailers, addressing delivery pain points, offering multiple fulfillment options, and promoting sustainable practices will be key to meeting today’s shoppers' diverse needs and maintaining their loyalty in an increasingly competitive market.

Sam Jarvis is the CEO and founder of HubBox, the market leader in e-commerce software for local pickup.