Smart Lockers: The Best Package Insurance for Your Residents

The rise of e-commerce created an unintended consequence: a surge in package theft. With online shopping now acting as consumers’ preferred way of getting most goods, porch pirates are capitalizing on vulnerable delivery methods and creating a growing problem nationwide. The statistics paint a stark picture of this escalating issue:

• More than 58 million Americans have had packages stolen in the past year; that’s $12 billion in packages.¹
• One in four Americans have been victimized by porch pirates at some point in their lives.²
• Apartment residents experience package theft at double the rate of those who live in single-family homes.³

Innovative and Outrageous Solutions to Combat Porch Piracy

Consumers are frustrated with porch piracy and are resorting to increasingly expensive solutions to protect themselves, including doorbell cameras and security systems. However, if those solutions fail, a notable pattern emerges. A 2024 Security.org survey revealed package theft victims are more likely to report pricier items as stolen. The median value of lost packages reported to law enforcement was $195, compared to just $50 for unreported thefts.⁴ This is due in part to the fact that getting replacement items isn’t a guarantee and getting reimbursed for losses is difficult at best.

Most credit card companies don’t cover losses due to package theft. American Express, for example, states that its purchase protection doesn’t cover items that aren’t “’reasonably safeguarded’, for example, leaving it in an unlocked vehicle or at an unoccupied site.”⁵ And, while homeowners’ insurance typically covers such losses, the standard $500 deductible often makes filing a claim financially impractical. Enter package insurance providers like PorchPals. Launched at the height of 2024’s holiday shopping season, the company covers up to three package thefts for an annual fee of $120.00 and a maximum claim of $2,000.00.

Porch piracy struggles haven’t gone unnoticed by big box retailers either. For example, Best Buy has rolled out a two-hour delivery window in select states, allowing consumers to schedule delivery at their convenience. It also introduced a live tracking feature for in-home delivery and installation of large items like big-screen TVs and refrigerators. “Not only is this a great experience for customers, it is already starting to lower cost by reducing calls to our customer service teams,” said CEO Corie Barry.⁶

The cumulative effect of these piecemeal efforts is that the burden and cost of protecting packages is often passed on to the consumer.

Smart Lockers: The Most Effective Protection from Porch Pirates

As previously stated, apartment residents are twice as likely to experience package theft as those who live in single-family homes. This puts multifamily operators under additional pressure to provide a secure community experience. If residents can’t reliably receive deliveries, properties risk declining resident satisfaction and lease renewal rates.

Rather than passing the responsibility along to residents, instead consider the best package insurance money can buy: smart lockers. Smart lockers deliver residents security and peace of mind without incurring the inconvenience of creating their own safe delivery method. Parcel Pending by Quadient lockers, for instance, have automatic photo capture with optional video monitoring and are virtually indestructible. Residents can retrieve parcels anytime via unique access codes or our free mobile app, eliminating the need for a scheduled delivery window.

Lockers are rapidly becoming a critical amenity in multifamily communities. The National Apartment Association reports “secure package receiving options” as residents’ top priority, and recent National Business Research Institute studies elevated parcel lockers to the second most crucial amenity in a community, just after secure parking.^7,8

Further, smart lockers significantly boost resident satisfaction by simplifying package retrieval and enhancing the overall property experience, encouraging positive referrals. Properties implementing these lockers have seen lease renewal rates increase by up to 40%, demonstrating their strategic value as a convenient and secure package solution.

How FirstService Residential Addressed Theft with Parcel Pending

FirstService Residential, one of North America’s leading property management companies, partners with over 8,500 communities in the U.S. and Canada. To address persistent porch pirates at a Kansas City property, it installed a Parcel Pending locker system. By implementing two outdoor towers near the community’s USPS mail kiosk, FirstService resolved its theft issues, improved resident satisfaction, and eliminated significant property damage expenses.

“[Installing lockers] was a very meaningful success for us, being able to solve such a significant package theft issue,” says Marissa Greene, Property and Portfolio Manager at FirstService Residential. “And the experience with Parcel Pending has been great. … Everyone wins…except the thieves.”

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Package theft has become a critical issue with the rise of e-commerce.   Smart lockers emerge as the most effective solution, offering secure, 24/7 package retrieval, thereby increasing resident satisfaction and lease renewal rates.

Make your community more secure for residents with smart locker solutions from Parcel Pending. Speak to a representative today to lock in your solution!

Sources:

1. Reuter, Dominick. Insuring deliveries against porch pirates requires some surprisingly tricky math, but one founder says he’s figured it out. www.businessinsider.com. December 7, 2024. https://www.businessinsider.com/insuring-deliveries-against-porch-pirates-takes-tricky-math-ceo-says-2024-12
2. Ibid.
3. Ibid.
4. Adkins, Matthew. 2024 Package Theft Annual Report and Statistics. www.security.org. November 12, 2024. https://www.security.org/package-theft/annual-report/
5. American Express. Purchase Protection. www.americanexpress.com. n.d. https://www.americanexpress.com/us/credit-cards/features-benefits/policies/purchase-protection-terms.html
6. Garland, Max. Best Buy launches scheduled parcel delivery. www.retaildive.com. December 9, 2024. https://www.retaildive.com/news/best-buy-scheduled-small-product-delivery/734960/
7. National Apartment Association. 5 Key Consumer Preferences of Renters. naahq.org. April 26, 2023. https://naahq.org/5-key-consumer-preferences-renters
8. Parcel Pending by Quadient. 2024 Resident Preferences Report. www.parcelpending.com. August 2, 2024. https://www.parcelpending.com/en-us/resources/2024-resident-preferences-report/