The front door has become the new point of sale. E-commerce has experienced unwavering growth over the last few years with delivery expanding beyond traditional packages to groceries, furniture and just about everything else. Multifamily communities face an unprecedented challenge. The once-simple task of receiving a package has transformed into a complex logistical operation that can overwhelm onsite teams and diminish the resident experience.
The Convenience Conundrum
The $6 trillion global e-commerce market currently makes up a little over 16% of retail sales in the United States with that figure expected to jump to almost 21% by 2027. However, it's not the amount of sales that matters as much as who's making those purchases. The 18-24 age group makes up 46.9% of e-commerce shoppers, and 16% have reported making 10 or more online purchases in the last three months. Another one-third of e-commerce transactions are made by the 25-34 age group.
People who live in multifamily communities receive most of the deliveries, and that's only going to increase.
E-commerce is living up to its promise of convenience, however, this convenience often brings challenges to multifamily properties. The "last mile" can morph a seamless shopping experience into a frustrating ordeal for residents. Imagine a resident eagerly awaiting a time-sensitive package, only to find that it's trapped in an overcrowded package room or worse, turned away due to lack of space. This scenario plays out frequently, undermining the very convenience that e-commerce promises.
Property management teams find themselves at the epicenter of this package tsunami. What was once a minor part of their responsibilities has evolved into a full-time job for some. This shift not only strains budgets but also diverts valuable time and resources from other essential, revenue-generating property management tasks. The result is a lose-lose situation where both teams and residents feel the pinch of inefficiency.
E-commerce's popularity and use aren't things that anyone in a multifamily can influence, but the part of the equation owners can control is how they handle the packages.
Package Solutions to Soothe the Chaos
The growth in e-commerce has produced a correlating increase in packages for multifamily communities at an average of 150 packages per week, according to a survey by the National Multifamily Housing Council/Kingsley Associates. That figure jumps to 270 per week during the holidays. The survey also showed that 77% of communities have a dedicated package space and it's becoming an overwhelming challenge for some. One of the best ways to bring order to package chaos is by using third-party package management solutions. Not only do these services offer a seamless experience for residents, but they're also a lifeline to overwhelmed property teams, providing benefits across the board:
At its core, effective package management is about more than logistics. In a competitive rental market, the ease of receiving packages can be a significant differentiator for properties. Consider the peace of mind residents have with knowing a valuable delivery is secure. Those little touches across all amenities transform an apartment into a home and a property into a community.
Sustainability and Flexibility for a Package-Filled Future
Forward-thinking and successful owners and operators continually look beyond short-term fixes. Third-party package management is not just sustainable, it's a scalable system that adjusts easily to seasonal and long-term changes in the e-commerce ecosystem. Onsite teams no longer need to shift on the fly when a rush of seasonal packages hits a property.
Package management partners possess the data and infrastructure to handle increasing package volumes without compromising on efficiency or resident satisfaction, and predict when those fluctuations will occur.
In the race to provide superior living experiences, package management has emerged as an unexpected frontrunner. Properties that embrace innovative, third-party solutions are not just solving a logistical problem, they're investing in resident satisfaction, operational efficiency and long-term community well-being.
As the e-commerce tide continues to rise, multifamily communities have a choice: sink under the weight of packages or ride the wave of innovation to new heights of resident service and operational excellence.