Make missed deliveries a thing of the past!
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.cornerdrop.com |
| Sectors | Automotive & Transport Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 8822345 |
| Incorporation date | 20 Dec 2013 |
Idea
See CornerDrop on National TV, December 3rd at 7.30pm on The Money Pit, Dave TV.
Introduction
CornerDrop make missed deliveries a thing of the past. We provide an alternative delivery address platform that is accessible by anyone, using any delivery method.
Online retail battles with, a consistent issue of delivering parcels to customers. Current alternative solutions by couriers are available, but in our experience they are generally only offered if their networks are used – they are ‘gatekeepers’ to their own networks.
CornerDrop covers the entire UK and provides the technical means for online retailers, consumers and couriers, to offer our network as an alternative delivery option. It’s a simple integration which offers consumers a more convenient delivery option.
We are also working on ways that our network could be used to revolutionise the retail experience, that take advantage of our virtual warehouse, such as forward inventory (items available for sale immediately from the CornerDrop locations, for new product launches), etc..
Intended impact
Our mission is to make sure that all consumers never miss a parcel and can collect (or return) locally, at their convenience. In fact, the thought of missing a parcel never enters the mind and is removed from the decision making process. CornerDrop is driving towards making missed deliveries a thing of the past.
According to research (IMRG Blackbay UK Consumer Home Delivery Survey 2014) only 50% of people are available to accept deliveries during normal daytime delivery hours.
However, online parcel volumes continue to grow, with 2015 looking to have close to 20% growth in overall volume, a total online retail market of 1.05 billion parcels.
There are solutions available to large retailers that may offer timed delivery slots, automatic delivery to alternate (random) locations, evening deliveries, weekend deliveries etc. But, all at the behest of which carrier is contracted to which retailer.
We believe that Click and Collect remains a cornerstone of efficient delivery of retail purchases as it maintains a level of control by the consumer. Growth predictions make this avenue account for 50% of the total delivery market by 2017.
Yet, despite this rise in the use of Click and Collect, half of online retailers were still yet to offer this service in 2014.
So CornerDrop is attractive to online retailers and consumers because;
- We offer a simple method to receive parcels and plug-ins that enhance the customer’s online shopping experience.
- Choice and convenience for both retailers and their customers. Physical stores or local businesses offer the service to attract new customers.
- The flexibility to order from any online store and deliver to any of our network of local stores. We offer a consumer product direct from our own website.
Substantial accomplishments to date
Since our initial SEIS funding, CornerDrop has;
• Signed a landmark contract with epay that integrates CornerDrop in payment terminals across the UK, bringing us up to speed with major competitors
• Nisa Local, with 2,500 stores, select CornerDrop as a preferred click and collect alternative
• CornerDrop click and collect is now available for online retailers with a Magento Extension
• Advanced discussions with 'top ten' Couriers to use our network
• National TV exposure in December 2015
• A brand new website, offering a more effective way for us to speak to our customers
• APIs now available on request
• An expanded Development team
Our CornerDrop network is accessible to anyone who wishes to enhance their online delivery offering, and our partnerships should ensure we remain the fastest growing accessible network of collection points in the UK.
Today, we have in excess of 750 locations across the UK, with aggressive growth plans for 2016.
Monetisation strategy
Revenue will be generated in two ways: a consumer product and a trade product.
Consumer Website
(a) Consumers can purchase a relevant code directly for themselves. The code and the delivery address can then be placed into the alternative delivery address section of any website.
(b) The maximum retail cost is currently £1.98 per code (or delivery item) including VAT.
Trade sales/APIs
(a) Extensions will be developed using our APIs that will allow the CornerDrop codes to be generated within the checkout process itself. This will be a more streamlined process for the customer. Magento is our first.
(b) There will be no charge for the extension itself, but codes will have to be purchased in advance, charged on a PAYG basis. The sales value depending upon the quantity purchased in advance, but range between 97.5p to £1.25 +VAT depending on quantities.
(c) The first extension has now been developed for the Magento Community Edition eCommerce shopping platform. This is one of the most popular platform in the UK and will allow us to attract on-line retailers from launch. We will publish in the Updates section new customers as they come on board.
(d) The extensions will be marketed through the relevant shopping platform(s) own extension marketing sites (in the case of Magento an area called Magento Connect should a successful relationship develop) and direct sales.
(e) Our APIs are now available to partners to develop their own solutions to take advantage of our network. These will be charged according to forecast volumes expected through the network.
CornerDrop Payments
The CornerDrop locations are paid per parcel handled. This is a variable amount depending upon technical integrations and services offered by the locations in question.
Use of proceeds
This funding is to maintain the growth of our network into 2016, develop new extensions and deliver revenue through our products.
Specifically;
• Extensions for Woo Commerce and Shopify
• Develop our returns service
• Support Point Of Sale materials for new CornerDrops as they come on-line
• Maintain our day to day running costs
Our initial funding was targeted to accomplish the following items that have all been achieved -
• Construct the first plug-in for the Magento Community eCommerce platform – Completed October 2015
• Create and launch the consumer website - Completed March 2015
• Develop the branding for all customer touch points - Completed December 2014
• Produce point-of-sale material for all the launch sites - Completed December 2014
• Support the ‘community-based’, PR and social marketing plans - Launched and Ongoing - follow us on Facebook, Twitter, Google+, Linked In and YouTube
• Assist with operational running costs
Market
Target market
CornerDrop has 3 key target audiences:
1. On-line Retailers: The initial target for CornerDrop is UK-based Magento ecommerce customers. Magento is one of the largest e-commerce platforms, with 9,500 UK customers. Once we have proof of concept with a number of these on-line stores we hope to expand and develop plug-ins for other e-commerce platforms.
2. Collection Points: We are targeting local venues that are open long hours (7 days per week, 8am ‘til late). The types of locations we are targeting are: dry cleaners, hairdressers, gyms, schools, nurseries, coffee shops, off licenses & petrol stations. We also have the ability to integrate in POS systems which will enhance our network further.
3. Consumers: We aim to convert on-line shoppers into Click and Collect shoppers. We will be targeting shoppers of the on-line retailers that take the CornerDrop service, as well as consumers that register directly on our own website for an ‘alternative delivery address’ solution themselves. Click & Collect Market 2013 Report by Verdict Retail suggests that middle-aged affluent females aged 25-44 are most likely to use Click and Collect services.
Sectors:
The Verdict Retail research also indicates that the following sectors will be most used for Click and Collect:
• Clothing and Footwear: Accounts for 23% of on-line shoppers that have used Click and Collect
• Electricals: 15% of on-line shoppers that have used Click and Collect
Characteristics of target market
The missed-delivery problem costs money as well as infuriates customers. In the UK 12% of deliveries fail first time, costing the industry an estimated £1bn in re-deliveries. This has caused logistics companies to focus more on improving the delivery experience, from defined time-slots, to text-based messages and the establishment of parcel shops.
The value of the Click and Collect channel is set to grow by 63% from 2013 – 2018 (10.2% each year CAGR) and is expected to be a £4bn market in the UK by 2018. As home deliveries are predicted to peak in 2015, Click and Collect is generally viewed as the future of delivery fulfilment.
As far as we are aware, logistics companies are only offering a parcel collection service if on-line retailers contract to use their own services. This is likely to only attract Tier 1 (sales >£500m pa) and Tier 2 (£30M-£500M pa) retailers. SME online retailers have no ‘generic’ Click and Collect service available to them to compete.
Marketing strategy
We are a challenger brand and we need to create cut-through and brand share of voice in a competitive and growing market.
The strategy will focus on 3 key areas:
• Growing the number of collection points: We have a target list of locations & shops open 24/7 or 8 ‘til late. We plan to focus on organisations that have 'chains' so we can scale and establish a collection point network quickly.
Uniquely, we believe, we will also enable consumers to recruit their local shops via our community-based, crowd-sourced marketing initiatives.
Our agreement with ePay means rollout to their 6,700 terminal customers have easy access to accept parcels today. Recruitment of these locations is ongoing by ePay’s sales teams.
• Recruiting online retailers: we will focus on targeting Magento eCommerce platform retailers initially. We aim to recruit retailers via the Magento partner program, Magento design agencies and targeted lead generation.
• Driving consumer awareness: We will drive consumer awareness through PR, social, digital and affiliate marketing. Additionally, we will engage with our 'partners’ customers (retailers and collection points) by executing co-marketing activities that targets their databases.
Competition strategy
Current major competitors in the market: Collect+ (5,800 locations), myHermes (5,000), Post Office (12,000), DPD Pickup (Launching in June 2015 with 2,000 locations).
CornerDrop aims to target the growing Tier 2-3 on-line retailers including independent eBay sellers.
The primary competitor is Collect+ which has 5,800+ Stores (collection points) and 260+ Clients (retailers).
We believe that CornerDrop has a number of unique elements that places it at an advantage over its competitors.
Simplicity - Easy registration and simple management of receipt of parcels. Minimal training required for staff to effectively manage the process. If required, we can integrate CornerDrop into Point Of Sale systems.
Consumer registration of CornerDrops - If there is no CornerDrop location convenient for the customer, we make it easy and rewarding for the customer to simply recruit their local store.
Fulfilment independent - CornerDrop does not have any vehicles. Therefore, it is attractive to on-line retailers as they need not change any current fulfilment agreements or processes to offer a click and collect service.
Green - By guaranteeing that a parcel will be dropped off, and accepted, makes the process extremely efficient. Almost one in eight deliveries to customers homes are a wasted journey, not to mention the wasted time and fuel to go and collect the failed delivery from a local depot that could be several miles away.
Consumer driven - Our marketing strategy is to empower the customer to take control of their own deliveries. They can use any delivery service and any website they wish and CornerDrop will accept their parcels. This puts the power of fulfilment back into the consumer’s hands.
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