UI Study: “Crowdshipping” Could Help Small Iowa Businesses Compete
Small Iowa businesses looking for ways to compete with online retail giants like Amazon may soon be turning to a new strategy called crowdshipping. The idea asks regular customers — not store employees — to deliver online orders in exchange for a small reward.
University of Iowa business analytics professor Jeff Ohlmann has been studying the concept. He admits it may sound unusual to have a customer make a delivery, but says it could be a practical option for some people.
“People are always looking for side hustles, and if you can make a little extra money with very minimal effort, that’s who this is aimed at,” Ohlmann says. “Of course, others with a carload of kids might say, ‘No way — I need a crowdshipper myself.’”
Those who participate wouldn’t just be random shoppers. Ohlmann says they’d need to be enrolled and vetted much like a store’s loyalty program.
“The store needs to know who the person is,” he explains. “It can’t just be anybody who walks in and says, ‘Hey, I’ll deliver a package.’”
A recent UI study examined how much crowdshipping participation it would take to make the idea cost-effective. The findings show that if even five percent of shoppers agreed to deliver packages — adding up to 30 minutes to their trip home — stores could reduce delivery costs and potentially speed up delivery times.
The idea might feel unfamiliar, but Ohlmann notes that consumer habits have already shifted.
“We already have DoorDash, Uber Eats and other drivers delivering food who aren’t in uniform,” he says. “In many cases, a crowdshipper could simply drop a package on a porch without any interaction.”
Crowdshipping isn’t limited to small retailers, either. Corporations like Walmart, Target and Home Depot are already testing similar programs as they look for ways to cut costs and improve convenience.
