If you're a small business owner, you may find yourself constantly brainstorming new and creative ways to increase revenue, improve brand awareness, and bring more foot traffic into your store or office. In this article, we outline one strategy that may help you do all three: hosting an Amazon Locker. Keep reading to learn the ins and outs of Amazon Lockers and how to become an Amazon Locker location.
What Is an Amazon Locker?
As one of the largest online shopping retailers, Amazon is always looking for new ways to improve customer experience. As part of broadening their shipping options, they created Amazon Locker kiosks, which are self-service package delivery stations.
This allows customers the option of having their Amazon packages delivered to a locked box at a location of their choice instead of them being delivered on their doorstep or elsewhere, which may be less convenient or less secure.
An Amazon Locker kiosk contains multiple locked boxes. A customer can request that their package be delivered to a local Amazon Locker, and then Amazon notifies them and sends a six-digit code they can use to retrieve their package from the locker when it arrives.
Where Are Popular Amazon Locker Locations?
Amazon Lockers are located in a variety of places, including retail store lobbies, convenience stores, grocery stores, transport hubs, offices, and even residential properties and universities. By having lockers available in a wide variety of pickup locations, customers are better able to find a locker that is convenient for their package deliveries.
Who Uses Amazon Lockers?
Anyone who has an Amazon account can use an Amazon Locker, and there are many reasons people choose to have their packages delivered to a locker instead of their residence. For one, it is a good way to avoid porch thieves. When packages are left on a front porch or in an apartment lobby, they can be stolen.
Another reason some Amazon customers choose to use lockers is convenience. For example, if you are away from home and want a package delivered to where you are, you can choose to pick it up at a nearby locker. Even if you aren't traveling, you might want to have a package delivered at a locker near your workplace or somewhere else if the contents of that package will be needed in that location.
Amazon Prime members have the option of two-day, one-day, or even same-day shipping. This means they can order an item in the morning and have it delivered a few hours later. If they're at work, they may want to select a nearby Amazon Locker delivery site as the shipping address during checkout.
Where Does My Small Business Fit in?
As a small business owner, if you have a retail location or storefront, you can join Amazon's network of locker locations and become an Amazon Hub. This means having an Amazon Locker in your business location. There are many reasons this can be beneficial to your business, as described in the next section.
The Benefits of Becoming an Amazon Hub
Businesses big and large join Amazon's network of hub locations every day. Joining Amazon's locker program costs you nothing and comes with a whole host of potential benefits.
Increase Foot Traffic
First and foremost, becoming an Amazon Hub increases foot traffic in your business location. While Amazon's customers come to your store to pick up their packages, something in your storefront may catch their eye or they may opt to seek your services or purchase your products due to the convenience.
Recently, Kohl's stores in Chicago saw up to 9% growth in retail sales in locations with Amazon Lockers. The more people who come by to pick up an Amazon package, the more people will set foot in your store and the easier it becomes to get new customers.
Improve Brand Awareness
The increased foot traffic also helps increase brand awareness. Anyone coming to your Amazon Locker will see the name of your business, both when they select their package pickup site and when they enter your store or business. This makes your brand's name creep into their awareness. When it comes time that they need products or services that you offer, your business's name will stand out among competitors and the familiarity of it is more likely to drive them your way.
Customer Satisfaction and Loyalty
Having an on-site Amazon Hub Locker adds to the convenience of visiting your business. Customers can direct their package delivery to your location for no additional cost and achieve a sort of "two for one" convenience of being able to get their needs met from you and pick up their packages all at the same place. This makes your products or services more convenient than competitors. Your customers will be happier and more likely to return regularly.
How to Become an Amazon Hub
Becoming an Amazon Hub allows you to attract more customers and creates opportunities for additional revenue. To get started, simply visit the Amazon Hub website, click on "partner with us" and answer a few quick questions.
The main requirement for hosting an Amazon Locker is that you have space for one in your business location. When filling out the questionnaire from Amazon, you will be asked to describe your location type, whether it is in a shopping center, what your hours of operation are, and where you are located. You will then be asked to enter contact information and will hear back in approximately two weeks.
Not everyone who submits an application will qualify, however. Whether or not Amazon approves you for an Amazon Locker depends on customer demand for lockers in your area and your business's location and hours of operation.
How It Works
If you are approved for an Amazon Locker, Amazon will arrange to have an appropriately sized Amazon Locker installed at your business location. After that, it's no more work than hosting a vending machine. The lockers have a touch screen self-service kiosk that allows delivery persons to deliver packages and customers to retrieve their packages.
Joining Amazon's Hub network is free. Amazon covers the manufacturing, shipping, installation, and maintenance of its lockers. If customers have any issues with using the locker, Amazon offers 24/7 customer service via a phone number printed on each locker. Simply direct customers to the customer service number if they come to you with any questions or concerns.
What Sizes Do Amazon Lockers Come in?
The lockers come in different sizes, and your business location must be large enough to host the locker. Lockers are 6 feet tall and come in lengths of 6 feet, 9 feet, 12 feet, and 15 feet.
Note that you will also need to have a standard 110-volt, 15-amp circuit at the locker location to power the self-service kiosk. Because the lockers use cellular modems, no wired data is required. Outdoor installation requires hard-wired electrical lines.
Learn More About Running a Small Business With Skynova
Skynova has a whole host of resources for small business owners. Visit the Skynova learning page to find tutorials about accounting, estimates, invoices, taxes, and insights about running your business. Skynova's blog is also filled with a variety of articles on topics of interest to small business owners, and Skynova's accounting software and templates are designed to make the process of running your business that much easier.
Notice to the Reader
The content within this article is meant to be used as general guidelines and may not apply to your specific situation. Refer to Amazon's requirements to ensure that your business location meets their standards and is approved to host an Amazon Locker.