Is Click & Collect the Future of Retail?November 11, 2019
Buy online, pick up in-store. This hybrid shopping method blends the best of both the ecommerce and brick and mortar shopping experiences for many consumers.
But is the buy online, pick up in-store (BOPIS) shopping model the future of retail? We will examine its prevalence, consumers’ purchasing preferences and the retailer’s perspective on click and collect services in this article.
Four out of 10 online shoppers in the U.S. shop using the click and collect method. The average BOPIS shopper makes a pickup trip once every 6 months spending an average of $58 per trip. Middle-income families and consumers ages 18-44 are the most likely demographics to shop online, pickup in-store.
67% of U.S. shoppers have used BOPIS in the past 6 months. An estimated10% of all sales will be fulfilled by Click and Collect by 2025.
Once a shopper has entered a store to collect their online order, 85% purchase additional items.
Half of U.S. consumers make their decision where to shop based on whether or not the store offers click and collect.
What kind of goods do people shop for online? Apparel is the #1 category for click and collect, followed by electronics and groceries. About 6 in 10 shoppers use a PC and the remaining 4 in 10 use a mobile device to place their BOPIS orders.
Unsurprisingly, most consumers have strong preferences for how they want to collect their orders from the store. 63% of US consumers prefer curbside pickup. 56% would like their orders to be delivered to the trunks of their cars and about half are open to collecting their orders from a locker.
Why do shoppers prefer to pick up in-store?
• 77% See the product before taking it home
• 65% Avoid shipping costs
• 29% Convenience
• 23% Able to return the product instantly
• 69% Direct delivery
• 65% Specifying delivery date and time
• 53% Same-day delivery
• 50% Delivery within a few hours after ordering
• 33% Pick up inside a local store
• 31% Curbside pickup
The 67% of consumers who have ordered via click and collect have 4 expectations for their BOPIS experience:
1) Zero shipping fees
2) Get their orders when they want it
3) See the product before taking it home
4) Save time
Are shoppers happy with their in store-online shopping experience? There is a correlation between the time of notification and the rating of the overall experience. Orders that take more than 4 hours to fulfill from the time the order was placed are less likely to use the service again and less likely to recommend the click and collect service to others. Designating a section of the store for BOPIS order collection increases the likelihood of repeat click and collect customers.
The Retailer Reality
How many retailers offer BOPIS and what are their biggest challenges?
More than half of retailers provide click and collect services. 36% of retailers have offered BOPIS since 2016 or earlier and 7% of retailers have offered BOPIS since 2017. Almost a quarter planned to add it in last year. Just 22% of retailers have no plans to offer BOPIS.
Why do businesses offer BOPIS?
• 38% Attract shoppers who will make additional purchases
• 32% Keep up with competitors
• 16% Cater to Millennials
• 12% Gain an edge against Amazon
Interestingly, the number of retailers who provide buy online, return in-store (BORIS) is higher than those who offer BOPIS. Six in 10 have offered BORIS since 2016 or earlier; 4% added it in 2017 and 16% planned to add it in 2018. Just 9% had no plans for BORIS.
Their biggest challenges offering BOPIS include:
• 46% Logistics/inventory tracking
• 22% Managing/training staff
• 16% Keeping customer information secure
• 6% Return on investment
The Future of Retail
So, is BOPIS the future of retail? Although the majority of shoppers (60%) do not use BOPIS regularly, the growing number of retailers offering click and collect is a solid indicator that it is.