A click and collect service for on-line retailers and their customers, available to everyone.
- London, United Kingdom
Categories: Automotive & Transport Mixed Digital/Non-Digital Mixed B2B/B2C
- Social Media
- Company number
- Incorporation date
- 20 Dec 2013
- Investment sought:
- Equity offered:
Almost one in eight parcel deliveries dispatched by UK carriers are missed every day. That’s over 100 million parcels a year.
Click and Collect seems the ideal solution, where you get your parcels delivered to a local shop. But why can’t you get any parcel from any website delivered to a location of your choice? It could be your local corner shop, but why not a dry cleaners, your hairdresser, your gym, a school, a nursery or even a coffee shop?
CornerDrop provides a click and collect service that could be used by all on-line retailers, enabling their customers to collect parcels from a local drop point early ‘til late, 7 days a week. No more letterbox cards, lost Saturdays or lunchtime queues. We’re delivering flexibility and convenience.
Here's how it works: It’s simple, you place your on-line order and use the unique security code and delivery address. The parcel is shipped to the CornerDrop location. Show your full security code to the member of staff, receive your parcel.
We want to provide consumers with a convenient way to receive their on-line purchases. Our mission is to make sure that consumers do not need to wait in for deliveries and can collect locally at their convenience. Christmas 2013 shoppers spent an average of 142 minutes each waiting at home for deliveries to arrive, costing the UK economy £868 million, according to an independent study released by Collect Plus.
CornerDrop has 3 key target audiences:
1. On-line Retailers: CornerDrop offers Internet retailers a simple ‘Click and Collect’ service that enhances the customer experience and helps boost on-line sales. CornerDrop allows any on-line retailer, regardless of their current fulfilment solution or size, to offer a ‘Click and Collect’ service for their products, by way of a simple plug in or integration into their e-commerce platform.
2. Collection Points: CornerDrop offers local stores a simple new parcel service designed to increase footfall, sales and profitability. It gives customers another good reason to visit their store. We are targeting local venues that are open long hours (7 days per week, 8am ‘til late).
3. Consumers: CornerDrop provides a simple and convenient way for shoppers to collect on-line parcels at a time that suits them.
- Simple: Simple method to receive parcels and simple plug-in which enhances the customer’s on-line shopping experience.
- Local convenience: Choice and convenience for both retailers and their customers.
- Flexible: Order from any on-line store and deliver to any of our network of local stores.
- Our community: We aim to make CornerDrop a community-driven service. Members will be able to recruit local shops to the CornerDrop network and refer family and friends in return for ‘payback’ which initially will be promotional codes for free use of the service.
Substantial accomplishments to date
Jan 2014: Member of the VC sponsored Accelerator Academy
March 2014: Top 20 finalist in the Worth Foundation Fund competition
March 2014: Agreement, by Age UK for all 436 stores to join the CornerDrop network. With 70 local corner shops already registered we have a UK-wide network of over 500 locations
March 2014: A scalable back-end process developed, producing APIs that can be integrated into shopping platforms
September 2014: Seed funding of £75k raised in 2 days through Seedrs
December 2014: All Point Of Sale designs complete and distributed to all Age UK locations
January 2015: Two new full time members join the team, Daniel Killyevo and Suzy Lloyd
January 2015: Consumer site launched - for nominating CornerDrops and buying codes
February 2015: First customers start to register and use CornerDrop to get parcels delivered at their convenience
May 2015: Further seed funding of £50k through Seedrs and participating in the final of MassChallenge UK 2015
Revenue will be generated in two ways: a consumer product and a trade product.
(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 £2.00 per code (or delivery item) including VAT.
(a) Extensions will be developed using our APIs that will allow the CornerDrop codes to be generated within the shopping basket process itself. This will enable a significantly more streamlined process.
(b) There will be no charge for the extension itself, but codes will have to be purchased in advance, the sales value depending upon the quantity purchased (between £1.17 and £1.50 + VAT).
(c) We hope that the first extension will be 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.
(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).
The CornerDrops would be paid £0.50+VAT per parcel handled, monthly in arrears.
Use of proceeds
The funding is to to grow the network to 2,000 locations by October 2015. Additionally, salaries and general running costs during our growth to this target;
• Cash flow to cover operating costs during our growth of the CornerDrop network in 2015
Our initial funding was targeted to accomplish the following items -
• Construct the first plug-in for the Magento Community eCommerce platform - in progress, expected completion March 2015
• Create and launch the consumer website - Completed January 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
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 such as Open Cart (nearly 7,500 on-line shops), Zen Cart (more than 5,000 eCommerce stores), WooCommerce (close to 4,000 on-line stores) and osCommerce (nearly 3,500 eCommerce shops).
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.
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’. 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.
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 as far as we are aware no ‘generic’ Click and Collect service available to them to compete.
The main focus of the marketing strategy is ‘Everything Different’. 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:
o 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.
o Uniquely, we believe, we will also enable consumers to recruit their local shops via our community-based, crowd-sourced marketing initiatives.
• Recruiting retailers: we will focus on targeting Magento eCommerce platform retailers initially. As soon as the plug-in is available we hope to get 2-3 retailers on board to create a proof of concept. We aim to recruit other retailers via the Magento partner program and targeted lead generation.
• Driving consumer awareness: We will drive consumer awareness through PR, social, digital and affiliate marketing. We also expect to increase consumer awareness by promoting viral ‘refer a friend’ behaviours. Additionally, we will engage with our 'partners’ customers (retailers and collection points) by executing co-marketing activities that targets their databases.
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 small 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.
No technology onsite - This means that CornerDrop recruitment is not restricted to the capital outlays required by competitors.
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 consumers hands.