Spotlight on collections

Why we are rethinking the first mile

 

Collection models move goods from multiple origins into the delivery network, and it’s becoming one of the most critical parts of modern logistics.

As seller-led marketplaces continue to grow, fulfilment chains no longer start from a single warehouse. It starts across multiple origins: sellers, stores and distributed inventory.

That shift is already well underway. In the UK, 64% of ecommerce sales now come from 3rd party marketplaces, and globally, marketplace sales are projected to exceed $600bn by 2027. At the same time, social commerce is accelerating, with 1.46 billion shoppers worldwide, and growing.

More sellers. More locations. More entry points to the network.

And more pressure on collections to keep everything moving – fast.

The shift: What this means for fulfilment

Fulfilment chains used to begin in a controlled, central environment, a warehouse or distribution centre.

That’s where processes were standardised, volume was consolidated and operations were predictable.
That’s no longer the case.

The first mile has fundamentally changed.

Collections are no longer a simple pickup function. It’s the point where fragmented supply needs to be organised, consolidated and prepared for the rest of the journey.

Without a model designed for that reality, complexity builds quickly:

  • More routes, but less efficiency

  • More volume, but slower movement

  • More sellers, but less consistency

The challenge isn’t just scale, it’s coordination.

The problem: Collections haven’t kept up

Most collection models were built for a different starting point. They assume:

  • Fewer origins

  • Predictable volumes

  • Centralised control

The outdated approach is stopping you from maximising the trillion-dollar opportunity.

Collections are often handled in silos – planned locally, executed reactively and disconnected from the wider network. That creates three issues:

  1. Cost increases early: Routes are duplicated, and vehicles run underutilised as volume isn’t consolidated before it moves.

  2. Time is lost before delivery even begins: Lead times increase because delays happen at the point of collection, pushing back everything downstream.

  3. Performance becomes inconsistent: Different sellers, locations and processes lead to variable service levels.

The result is simple: inefficiency is built in at the first mile.

And once it’s there, it’s hard to recover.

The solution: A network-first approach to collections

Improving collections requires a full overhaul of the previous process.

A network-first model treats collections as part of a connected system, not a standalone task.

That changes the process end-to-end:

  • Aggregation: Dispersed collection points are consolidated into a single flow. Volume is managed as a coordinated network, not as individual jobs.

  • Proactive routes: Hyperlocal routes paired with aggregation groups, nearby collections into efficient routes, reducing cost and improving utilisation from the start

  • Standardised operations: One model is applied across all collection points, removing variability and enabling scale.

  • Direct injection: Consolidated volume is injected into downstream networks without delay. There’s no disconnect between collection and delivery.

 

The outcome: Measurable commercial impact

When collections are structured in this way, the impact is immediate:

  • Up to 40% reduction in collection costs through route aggregation

  • 1.2 days faster click-to-doorstep lead times

  • 98% collection accuracy across multi-origin networks

These gains don’t come from optimising the edges. They come from shifting the fundamental approach.

Final thought

Collections are the foundation that determines cost, speed and reliability across the entire network.

As logistics continues to decentralise, the pressure on the first mile will only increase.

The businesses that perform best won’t be the ones that move faster only at the end of the journey. They’ll be the ones who start it right.

Applied consistently, the right collections model can support multi-seller networks, store-based fulfilment and returns, creating a single, connected system from start to finish.

Explore how Zippd collections work →

FAQs

  • What are collections in logistics?

    • Collections is the process of gathering goods from multiple origins, such as sellers, stores or warehouses, and moving them into the delivery network.

  • Why are collections becoming more important?

    • The growth of marketplaces and distributed fulfilment means goods now originate from many locations, increasing the need for coordinated, scalable collection models.

  • What are the limitations of traditional collection models?

    • They are often reactive and fragmented, leading to higher costs, slower delivery times and inconsistent performance across different origins.

  • How does a network-first collections model improve performance?

    • By aggregating volume, optimising routes locally, standardising operations and connecting directly into delivery networks, it reduces cost, improves speed and increases reliability.

  • How does this approach support returns?

    • It applies the same aggregation and coordination principles to reverse logistics, making returns faster, more efficient and easier to manage.