Benefits Of Amazon Apartment Lockers
While multifamily properties have been addressing the rapid rise in package deliveries for years, a quality solution residents love is now more important than ever. This is because the global pandemic accelerated e-commerce growth in 2020 like no year prior. According to Digital Commerce 360, e-commerce sales rose 44.1% in 2020 in the United States to $861,000,000,000! This accounts for approximately 20.3% of all retail sales in the country.
For property managers at apartment communities, this means a lot of packages and deliveries. While there are many delivery services, Statista reports that Amazon accounts for 50% of all retail sales in the United States. This makes Amazon Apartment Lockers, formerly called Amazon Hubs, a great package management solution for multifamily properties. Here are the biggest benefits of Amazon Apartment Lockers at multifamily properties.
In 2020, every other apartment rental application in the United States was submitted by a millennial. SpendMeNot reports 47% of millennials order from Amazon at least one time per week. This makes an Amazon Apartment Locker an obvious amenity for any property looking to attract and retain millennial residents.
Amazon Apartment Lockers are not just a way to attract and retain millennial residents. They are also a great tool to address the never ending stream of Amazon deliveries that are only projected to continue increasing in the future.
Easy Package Pickups and Returns
Amazon Apartment Lockers are virtually maintenance free and incredibly easy to use. Residents receive a message from Amazon with a pin code once their package is ready for pickup. They input the code on the locker’s touchscreen and it automatically opens the locker containing their package. Since they are 100% electronic, residents can collect packages 24 hours per day, 365 days per year.
Another benefit of Amazon Apartment Lockers is easy returns. According to the e-commerce software platform Zentail, anywhere from 5% to 15% of all Amazon orders get returned. While returning packages is not a major concern of property managers, this is a marketable convenience feature that will appeal to current and future residents.
Amazon Apartment Lockers typically cost between $10,000 and $20,000 depending on the size and configuration of the unit. This is the cost to purchase the unit from Amazon, which includes shipping, installing, and onboarding the unit. Properties already using another locker type system typically do not incur any significant installation costs other than purchasing the unit.
Even though Amazon Apartment Lockers have a sleek profile, they still take up space. Apartment buildings that do not already have a package locker system or dedicated mailroom can incur costs to create this space. These costs can be minimal, such as running electrical and data cables, or significant, if a property has to buildout a space for the Locker. Another potential cost is upgrading access controls to allow residents and couriers 24/7 access to the lockers.
Property managers interested in installing an Amazon Apartment Locker at their property can click here to get a free quote from a local contractor to create a Locker space at their property.
Not Just Amazon Packages
Unlike Amazon Lockers installed in locations like Whole Foods, Rite Aid, 7-11, and local shopping malls, Amazon Apartment Lockers accept deliveries from all major couriers. This is because Amazon Apartment Lockers were specifically designed for multifamily buildings. As a result, Amazon Apartment Lockers offer a turnkey package management solution for multifamily properties.
No Long Term Costs
Unlike other package management solutions or virtual doormen, there are no long term costs for Amazon Apartment Lockers. Once properties invest in a locker unit, they do not pay any monthly fees to Amazon to host or operate the unit. They are also transferrable on the sale of multifamily properties and depending on how many lockers are installed, can certainly be considered a capital expenditure.
While Amazon Apartment Lockers are virtually maintenance free, any defects or repairs are covered by Amazon. In the event a locker stops working, Amazon also provides customer support via a 24 hour 1-800 number. These are two of the biggest reasons Amazon Apartment Lockers are truly a headache free package management solution.
Reduced Operating Costs
High rise apartment buildings with over 300 units are likely receiving hundreds, if not thousands, of Amazon packages every week. At really large properties, managing and handling all of these packages can require a fulltime mailroom employee. A full time employee, who is not able to address package issues over the weekend, will typically cost a property at least $30,000 to $40,000 annually.
Installing Amazon Apartment Lockers eliminates the need for a dedicated mailroom employee. This savings can be used to reduce operating costs. For property managers with P&L responsibility, the reduced operating costs can be a great way to increase net operating income.
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