E-Commerce sales in the parking industry have been relatively small since 2006 when they first hit the industry. In 2020, the pandemic created the perfect environment for E-Commerce transactions to begin growing exponentially. When people searched for ways to reduce their contact with others to avoid exposure, parking reservation platforms offered them a solution.  

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These transactions, which are generated off-site for a designated amount of time, have many different names: E-Commerce transactions, pre-paid reservations, third-party reservations, aggregators, etc. A potential parker can prepay and “reserve” a parking space, in real time or in advance, from an external source that has no direct relationship to the garage's owners. We have also seen an influx in drive-up transient traffic that is being prompted to pay through an app after the parker is already onsite. This is similar to a Pay On Foot (POF) style approach. However, it is outside of the PARCS equipment, unlike a POF station, and instead acts as an E-Commerce payment platform and TPN treats it as such.  

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At TPN, our team examines all kinds of E-Commerce transactions and their effect on the garage through our Performance Monitoring, Focus Analytics, and Financial and Operational Review programs. Through our work, we have had the unique opportunity to watch these transactions evolve. We have observed the positive and negative impacts E-Commerce transactions have on customers, parking operators, and property owners. Our analyses and observations have led our team to conclude that it is time for the parking industry to establish criteria for E-Commerce transactions. 

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As these types of transactions continue to increase, TPN reviews them at a granular level. We analyze everything from the frequency with which parkers use these services to the fees those parkers and the property owners pay to have these services at their sites. TPN also questions who handles the customer service for these parkers when something goes awry and how property owners manage the reservation sites.   

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TPN encourages facilities that host these aggregator sales to monitor revenue loss closely. Often, parking spaces are sold for considerably less than the posted rates. How much input do the property owner, and the on-site operator have in how these third-party companies operate in their garage? How closely do the sale rates match the posted rates in your facility? How does the reservation site provide valuable marketing? How does the property owner benefit from the partnership? 

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Our team spends a lot of time discussing E-Commerce transactions in the parking industry. We fully believe E-Commerce sales are the future of parking; however, we know that this type of transaction is still new and in its development period. The E-Commerce market is evolving rapidly as these types of purchases increase and become more accessible. It is essential to analyze E-Commerce sales carefully - it is a topic that our team comes back to repeatedly! For more information on this topic you can check out our podcast episode all about E-Commerce by listening here!

 

If your facility could use some support or answers to your E-Commerce questions, our Performance Monitoring, Focus Analytics, or Financial Review products may be what you are looking for! 

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Don't forget to listen to the Our Parking Industry Podcast episode 

Click, Buy, Park: Navigating the E-Commerce Evolution in Parking! ​​​​​