What Is Out-of-Home Delivery? A Retailer’s Guide to Click and Collect, PUDO and Locker Networks

Parcel locker

For years, delivery to the door was the gold standard of eCommerce convenience. But consumer habits are changing. More shoppers now actively choose to collect orders from a nearby location rather than wait at home for the doorbell to ring.

Out-of-Home (OOH) delivery gives customers the flexibility to pick up parcels from parcel shops, automated lockers and retail collection points at a time that suits them. For retailers, it opens the door to lower costs, fewer failed deliveries and a more sustainable supply chain. It is also becoming a critical part of the last mile delivery picture, offering an alternative to traditional doorstep fulfilment.

In this guide, we break down what Out-of-Home delivery means, explore the three main OOH models and explain how retailers can add these options to their checkout with minimal complexity. If you are looking for a managed Out-of-Home Delivery solution, GFS provides access to 75,000+ locations across the UK and internationally.

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What Is Out-of-Home Delivery?

Out-of-Home Delivery is a delivery method where a parcel is delivered to a location other than the customer’s home address. Instead of a courier arriving at the front door, the shopper collects their order from a designated pick-up point at their convenience.

The UK market alone saw a 33% year-on-year increase in locker locations during 2024 (InPost Group FY2024 Results). In the UK, major carriers including InPost, DPD and Evri have invested heavily in expanding their OOH networks, with InPost alone operating over 9,200 parcel lockers nationwide (InPost, 2024 Annual Report).

The shift is being driven by practical consumer frustrations. Missed deliveries, porch theft and the inconvenience of waiting at home during delivery windows are pushing shoppers towards alternatives that put them in control of when and where they collect.

The Three Main Out-of-Home Delivery Models

There are three primary OOH delivery models, each with distinct advantages depending on your customer base and operational setup.

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1. Click and Collect (In-Store Collection)

Click and Collect allows customers to order online and pick up from a physical retail store. This model is particularly popular with high street retailers who have existing brick-and-mortar locations. Customers benefit from guaranteed availability, the ability to inspect goods before leaving the store and the option to make additional purchases while collecting. For retailers, Click and Collect drives footfall and in-store spend. Research shows that a significant proportion of Click and Collect customers make an additional purchase during their visit to the store (IMRG).

Collecting parcel from shop

2. PUDO Points (Pick-Up and Drop-Off)

PUDO points are staffed retail locations, such as convenience stores, newsagents and petrol stations, where customers can collect and return parcels. Unlike Click and Collect, PUDO points are carrier-operated and not tied to a specific retailer. This makes them ideal for online-only brands without physical stores. PUDO points are typically within a 10–15 minute walk of the customer’s home, with long opening hours that fit around work schedules. The over-the-counter handoff also provides a layer of security against parcel theft.

Parcel locker

3. Parcel Lockers (Automated Parcel Machines)

Parcel lockers are unattended, self-service collection points where customers use a code, QR scan or mobile app to retrieve their parcel. Many locker networks operate 24/7, making them the most flexible OOH option. Locker adoption is accelerating across Europe. InPost’s UK locker network grew by 33% year-on-year in 2024 (InPost Group FY2024 Results), and according to InPost, 65% of residents in London, Birmingham and Manchester now live within a seven-minute walk to the nearest locker. Lockers are particularly popular with younger consumers, with penetration rates as high as 68% among 16 to 24 year olds (Whistl, UK Subscription Box Boom Report).

Why Retailers Are Adopting Out-of-Home Delivery

The business case for OOH delivery extends well beyond customer convenience. Here are the key reasons retailers are making the switch.

Fewer Failed Deliveries, Lower Costs: In dense urban areas, up to 25% of home deliveries fail on the first attempt (SmartRoutes, 2025). Each failed delivery costs the carrier, and ultimately the retailer, time and money in re-delivery attempts, customer service queries and potential refund requests. OOH delivery eliminates the failed delivery problem entirely because the parcel is always delivered to an accessible, secure location on the first attempt.

Higher Checkout Conversion: Research suggests that a significant majority of online shoppers will abandon their basket if their preferred delivery option is not available. Offering Click and Collect, PUDO and locker options alongside standard home delivery gives customers the flexibility they expect and reduces cart abandonment at the point of purchase.

Reduced Parcel Theft: Millions of parcels are stolen from UK doorsteps each year (Quadient 2025 Parcel Theft Report). Secure collection points and lockers remove this risk completely, reducing claims, replacements and customer dissatisfaction.

Operational Efficiency: Consolidating multiple deliveries into a single drop-off at a PUDO point or locker bank is significantly more efficient than individual doorstep deliveries. This reduces driver routes, fuel consumption and the operational complexity of managing failed delivery re-attempts.

Parcel locker

How OOH Delivery Simplifies Returns

Out-of-Home delivery networks are not just for outbound deliveries. PUDO points and locker networks also serve as convenient drop-off locations for returns, allowing customers to send items back without booking a courier or waiting for a collection slot. This self-service returns experience reduces friction for the customer and cuts returns management costs for the retailer. GFS Global Returns Pro provides access to 320,000+ global return locations across 35 languages, giving customers a seamless

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The Sustainability Case for Out-of-Home Delivery

OOH delivery is inherently greener than door-to-door parcel handover. Consolidating dozens of individual home deliveries into a single stop at a PUDO point or locker significantly reduces vehicle mileage, emissions and urban congestion. InPost reports that their locker deliveries cut CO₂ emissions by as much as 97% compared to traditional doorstep services. For retailers with sustainable shipping commitments, adding OOH options to the checkout is one of the most impactful changes you can make.

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How to Add Out-of-Home Delivery to Your Checkout

Integrating OOH delivery options does not require building relationships with dozens of individual locker and PUDO providers. With a managed multi-carrier delivery partner like GFS, retailers gain access to the UK’s widest network of collection points through a single integration. GFS Checkout uses intelligent shipping rules to present personalised delivery options at the checkout, including Click and Collect, PUDO points and locker locations, based on the customer’s address, order type and availability. New collection points are added automatically as carrier networks expand, so your checkout always reflects the latest options without any development work.

GFS provides access to 75,000+ Click and Collect and PUDO locations across the UK and internationally, covering all major locker and parcel shop networks through a single relationship. To find out how GFS can help you offer OOH delivery solutions to your customers, get in touch with our team today.

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