Why are 90% of parcel lockers in Estonia located in the same place? Venipak shares its perspective

According to a recent analysis by the Ministry of Regional Affairs and Agriculture, 90% of parcel lockers are located in the same area and very often very close to each other. Deniss Osman, head of Venipak Estonia, explains how Venipak chooses the locations of its parcel lockers.

“At the moment, Venipak is the only player in the parcel lockers sector that is privately owned, i.e. it is a non-state-owned company. Therefore, we have installed our 160 parcel lockers in Estonia in locations where there is a demand for them, so that it would make business sense. As demand grows, we will further expand our network,” explained Deniss Osman, Head of Venipak Estonia.

Osman adds that, obviously, customers’ habits and needs are also taken into account when deciding where to install parcel lockers. “A survey conducted on behalf of Venipak showed that picking up or sending parcels is often combined with daily errands. For example, nearly half (45%) of the survey respondents in Estonia said they would choose a parcel locker as their delivery method if it was either on the way to or near their home, work or educational institution. At the same time, the rise of e-commerce is also encouraging the use of parcel lockers: 38% of Estonians use them, as many e-shops offer delivery to parcel lockers,” says Osman.

He also points out that, in general, the selection of possible locations for parcel lockers is based on the population of the settlement or town, the attractiveness of the place itself and its potential. “Location’s development potential plays a role, so it is important to monitor how population density may change over the next few years in specific areas.”

Accessibility – how convenient it is for potential users to send or pick up parcels – is no less important. “Among other criteria, we consider it important that parcel lockers are visibility. Otherwise, users would not be able to decide in favour of a particular provider,” said Osman.

He adds that, unfortunately, investing in rural areas or sparsely populated settlements does not pay off in commercial terms, which is why Venipak has only one parcel terminal in Estonia, in a location where there are no other service providers.