Many big-box stores and smaller merchants with an online presence are increasingly giving “buy online, pick up in store” alternatives. Indeed, in-store pickup has transformed the face of modern retail in many ways. But have you ever wondered which types of business are the most suitable for in-store pickup? In this blog, we will provide the answer.
What is in-store pickup?
When a customer orders a product online and then picks it up in the shop, this is known as click and collect. This technique, also referred to as buy online, pick up in-store (BOPIS), enables a speedy and convenient shopping experience. This will ensure that the consumer receives their item as soon as possible from a local retail location.
The pickup site is typically a local retail store, although it might also be a post office, a purpose-built locker, or even another retailer’s location.
Benefits of in-store pickup
Customers benefit from the pick-up model’s speed, cheap cost, and convenience. With the added health and safety issues coming from the COVID-19 pandemic, it now even provides a means to avoid shopping in overcrowded places while still taking advantage of local retail outlets.
While click and collect is not a new concept, its popularity skyrocketed nowadays, making it one of the hottest retail trends. According to research, buy online pick up in-store has increased by more than 500% during the COVID-19 pandemic.
Moreover, for retailers wanting to improve their customer relationships, the in-store experience is still an essential contact point. Click and collect allows customers to explore more and purchase additional products while picking up their online shopping orders. It can also minimize return rate, as customers have a chance to directly receive the products in-store, unlike online shopping.
Now that you know what in-store pickup is, here’s an overview of the business types that can be suitable for this model.
Which types of business should apply in-store pickup?
To leverage the shopping experience, fashion stores can make use of in-store pickup. Click and collect began as a fantastic compromise between the simplicity of online shopping and the ability to browse for products during free time. This is ideal for consumers who do not want to wait at home for deliveries or pay delivery rates for little items (such as accessories). Moreover, fashion boutiques can also significantly reduce the return/exchange rates, as customers can have a chance to check the products at the pick-up location before leaving the store.
Click and collect services, which were first popularized by high-street stores, have become so popular that they’ve even been offered by online-only companies like ASOS. ASOS has collaborated with Collect+ to offer a “Click and Collect” service that allows users to pick up their purchases at one of 4,500 participating retailers, including Spar. Customers who use the Click and Collect option at check-out will have 10 days to pick up their order from the local store where it was delivered.
Beverage shops, such as coffee stores, are the next type of business that should implement in-store pickup. When planning to buy a drink as a takeaway, for example, customers often expect to receive it right away. By enabling click and collect, coffee shop owners can make the takeaway service faster, as customers don’t have to wait in lines to order drinks. During the COVID-19 pandemic, click and collect is even a way for beverage shops to survive after lockdown restrictions.
Starbucks is a prime example when it comes to this type of click and collect business. Customers can order from the Starbucks menu beforehand using the app. Following confirmation, orders are instantly delivered to the client’s preferred Starbucks location, where baristas begin making the order and an estimated collection time is communicated to the customer. This process allows customers to pick up their order straight from their barista and avoid the waiting line.
The days of strolling through grocery aisles, watching people go over their handwritten shopping lists and fill their carts to the full with groceries are gone. Some consumers, especially those with busy schedules, are no longer scanning items inside the supermarket for the ideal cooking ingredients. For this reason, supermarkets can benefit from click and collect. In-store pickup can be the future of grocery shopping.
Many readers nowadays know what to buy before coming to the physical bookstore. Therefore, letting them place their orders to pick up can be a good choice. Moreover, during the COVID-19 social distancing measures stretching before us, a lot of libraries remain closed. However, with click and collect, bookstores and libraries can still survive while providing customers with an enjoyable shopping experience. In reality, plenty of bookstores are doing delivery and click-and-collect to keep us going through the next month or so.
In the United States, for example, hypermarkets such as Walmart and Target sell almost anything. Customers can come back multiple times to purchase different products. With in-store pickup, they may save shipping expenses by picking up their products at the store.
Hypermarkets also profit from the speed with which their orders are fulfilled. Customers who need an item right away may frequently pick it up in-store the same day. This is particularly true in the case of groceries and fast-moving consumer goods like toilet paper.
An outstanding example of click and collect in hypermarkets is Walmart. This retail giant was indicated by 42% of click-and-collect customers as the pickup location for their most recent order, which is three times the amount coming in second cited by Target. Walmart has placed Cleveron 401 pack robots (also known as Pickup Tower) at checkout at the front of stores. Customers can choose from millions of products on Walmart’s website and select “Pickup” as an option during checkout.
When the item arrives at the store, an employee places it in the Pickup Tower, which stores up to 300 small to medium-sized parcels for Walmart. The consumer will be notified through email or the Walmart smartphone app. When the consumer enters the store, they go to the Pickup Tower and scan the barcode that was provided to their smartphone. In a moment, they can pick up their purchase.
Our final note is that the list above is not exhaustive, and there are many ways a business can design its strategy for an effective click and collect service.
Now that you know which types of business can greatly benefit from in-store pickup, it’s time to plan your own strategy. We are ConnectPOS, a leading point of sale provider that specializes in running a seamless click and collect shopping experience. If you have any questions about eCommerce or want to know more about our system, don’t hesitate to contact us!