Low-volume residential deliveries will always be operationally expensive and, at some point, could become so pricey that the overall e-commerce value proposition could be placed in jeopardy. Nevertheless, the growth of e-commerce presents a tremendous revenue opportunity for the carriers, but only if they can reduce the operational cost of e-commerce delivery. The two mega-carriers would probably be bankrupt if they only delivered e-commerce shipments using current infrastructure. Making a single-package e-commerce delivery to a residence is a costly proposition for UPS and FedEx.
Reducing the cost of the residential, e-commerce delivery These types of access point facilities (known as PUDOs in other markets) can also act as drop-off points to consolidate consumer drop-off of e-commerce returns and low-volume business shipments. These locations do not offer full-service shipping support however, they are situated perfectly to consolidate multiple e-commerce residential deliveries at a single pickup location. More recently, UPS and FedEx have been developing hybrid, limited-use access points via retail relationships to support consumer pickup of low volume, e-commerce shipments. Full-service, carrier-authorized outlets.The primary parcel carriers have been using access points to consolidate low volume pickups/deliveries and drive operational savings for over 35 years.
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