When Parcel Lockers work (and when they don't): a guide for online retailers

Parcel Lockers can help lift conversion, reduce missed deliveries, provide additional security, and give customers more control over how they collect. But they're not right for every order, every customer or every category. Here's how to know when to offer them - and how to set them up so they actually deliver.

Why customers hesitate at checkout

A customer living in an apartment and working irregular hours adds a $180 dress to their cart. They've already missed two deliveries this year. Now they've reached the delivery step at checkout.

That moment matters. Delivery isn't just fulfilment – it's part of the buying decision.

When delivery options feel unclear or inconvenient, customers hesitate. And sometimes that hesitation is enough to stop a purchase altogether.

It's no surprise, then, that 3 in 4 consumers shoppers want more delivery choice at checkout.¹  The opportunity isn't simply offering Parcel Lockers – it's knowing when they add value and making them easy for customers to choose.

How Parcel Lockers work (and why they help)

Australia Post Parcel Lockers are secure, self-service delivery points where customers can collect parcels at a time that suits them – available 24/7 at most Parcel Locker locations.

Instead of delivering to a home or workplace, parcels are sent to a convenient locker location. Customers then receive a notification and access code to collect their parcel within two business days.

Where Parcel Lockers add the most value

1. Flexibility that fits modern lifestyles

Parcel Lockers let customers collect parcels on their schedule — early morning, late at night or between commitments. As one shopper put it: "Definitely worth it… I can go at 5am before work or literally any time."

Why it matters: Ideal for customers who aren’t reliably home, including shift workers, commuters and apartment dwellers.

2. Fewer missed deliveries

Deliveries go to a secure, fixed location, reducing re-delivery attempts and missed delivery cards.

Why it matters: Fewer failed deliveries means less friction for both your team and your customers.

3. A more secure experience

Parcel Lockers provide a safer alternative to doorstep delivery, particularly for higher-value or sensitive items, or customer who’ve experienced porch piracy 

Why it matters: Security concerns can directly impact purchase decisions.

4. Stronger confidence at checkout

When customers see a delivery option that fits their lifestyle – and know the retailer uses Australia Post for delivery – they're more likely to complete their purchase. That confidence helps reassure customers they'll have access to services they already trust, including Parcel Lockers, PO Boxes, tracking notifications and the AusPost app. 

Why it matters: Delivery is part of the decision – not just what happens after it.

Where Parcel Lockers can create friction (and how to plan for it)

Parcel Lockers aren’t one-size-fits-all. Understanding the limitations helps you set the right expectations.

Size and parcel restrictions

Customers tell us: "I didn't know my parcel was too big - I had to go to the Post Office anyway."

Some items can’t be delivered to Parcel Lockers due to size or weight limits.

What you can do: Communicate suitability clearly at checkout and on your website or app. Most customers will then choose the right option.

Collection timeframes

Customers have 2 business days to collect their parcel from a locker. After that, it's moved to a nearby Post Office, where it can be collected during opening hours for up to 10 business days before being returned to sender. Australia Post automatically sends collection reminders and expiry times via email, SMS and push notifications through the MyPost app – so customers always know their deadline.

What to plan for: Reinforce collection windows in your post-purchase communications and point customers to their AusPost notifications for the exact deadline.

Getting the delivery details right

When customers choose a Parcel Locker through your checkout widget or Shopify app, they simply select a location – there's no address to type or remember. Confusion tends to only arise when locker details are entered manually.

What you can do: Keep the locker option clearly labelled at checkout and let customers pick from the widget or Shopify app, so the right details are captured automatically.

When should you offer Parcel Locker delivery?

Parcel Lockers work best in specific scenarios.

Ideal use cases

• Urban customers and apartment dwellers 
• Customers who aren’t home during the day 
• High-value item deliveries 
• Time-sensitive purchases (e.g. gifts or events) 
• Peak delivery periods 

Less suitable for

• Oversized or bulky items
• Rural areas with limited Parcel Locker access 

The three-question Parcel Locker fit test

Use these questions to decide if Parcel Lockers are right for your business

• Are missed deliveries a common issue? If yes → Parcel Lockers can improve customer satisfaction. 
• Do your customers value flexibility? If yes → Parcel Lockers remove friction at checkout. 
• Are your products within Parcel Locker size and weight limits? If yes (size/weight limits met) → Parcel Lockers are a viable option. 

Three yeses? Parcel Lockers are likely a strong fit for your delivery mix.

How to set Parcel Lockers up for success 

To maximise impact, support the option with clear communication across the customer journey:

At checkout

• Let customers know their orders are delivered by Australia Post
• Clearly label Parcel Lockers as a delivery option
• Provide clear guidance on size, eligibility and collection timeframes

After purchase

• Reinforce that there is a limited time to pick up the parcel from the locker 
• Direct customers to tracking and app notifications via the AusPost app

In your customer communications

• Explain how Parcel Lockers work
• Address common questions about availability and suitability 

Common questions customers ask (and how to answer them)

Are Parcel Lockers worth it? Yes, especially for customers who value convenience, security and flexibility. 

Why do parcels sometimes not go to Parcel Lockers? Capacity limits, parcel size restrictions or incomplete details can result in transfer to Post Office.

Can all parcels be delivered to Parcel Lockers? No. Limits apply based on size, weight and certain goods. 

How long do customers have to collect their parcel? Customers have 2 business days to collect from a Parcel Locker before it's transferred to a nearby Post Office for collection within 10 business days.

Do customers pay extra for Parcel Locker delivery? No. Parcel Locker delivery is included as a standard delivery option, with no additional cost to the sender or receiver.

The bottom line: making Parcel Lockers work for your business

Parcel Lockers aren’t just another delivery option - they’re a way to remove friction at one of the most important moments in the customer journey. 

When implemented well, Parcel Lockers can: 

• Give customers more delivery choice
• Reduce missed delivery friction
• Support a clearer checkout experience

Done well, Parcel Lockers don’t just offer another delivery option – they help customers feel more in control. 

Want to understand what customers really think about delivery?

Read: What Reddit reveals about delivery – and what merchants can do about it.