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.

Prevalence

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.

Purchasing Preferences

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

What do grocery shoppers like about click and collect?

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.

Service Tags: 
Marketing Strategy
Multi-Channel Campaign