HotWax Commerce Blog

4 Reasons Why Brands Offer Pick-Up In-Store Options

Posted by Divesh Dutta on Mar 16, 2020 8:41:24 PM

Let’s cut to the chase: if you’re not already offering a pick-up in-store option, you should be. Premium retailers provide a variety of purchase, pick-up, and return options because, frankly, consumers are demanding unprecedented convenience and flexibility from their shopping experience. 

With so many options available on every street corner and social media channel, consumers are no longer willing to settle for week-long delivery timelines or out-of-stock waitlists; they can just move on to the next brand. To stay ahead of the competition, you’re going to have to keep up with the newest omnichannel trends. In this article, we’ll walk you through 4 reasons why you should adopt in-store pick-up this year (even if your brick-and-mortar stores don’t play a big role in your retail strategy).

 

Minimize Shipping Costs (For Everyone Involved)

 

Picture this retailer’s nightmare: your customer is about to check out on your website but abandons the cart altogether when they see the costs associated with fast delivery. Shipping costs are an unexpectedly common deterrent for online shoppers, with 95% of eCommerce shoppers admitting that delivery fees impact their purchase decision and 36% abandoning their carts. In-store pick-up allows you to reduce or eliminate these shipping costs for your consumers and, by extension, maximize online sales. Customers can choose to pick-up at a nearby store (either one of your brick-and-mortar locations or a wholesaler) to reap the benefits of quick delivery without the dreaded shipping costs.

 

But wait! The cost benefits of in-store pick-up don’t stop with the consumer. You can save millions by leveraging in-store inventory or routing orders from nearby stores instead of shipping from faraway warehouses.

 

Increase Foot Traffic

 

Every retailer in the world has heard of the “retail apocalypse,” and is doing everything possible to avoid it for their own brand by incentivizing in-store visits. BOPIS increases foot traffic at your brick-and-mortar locations by converting eCommerce-only transactions into in-person interactions. Your store associates can meet and converse with your clients, instilling brand loyalty and improving the overall shopping experience. Even if you don’t have physical stores and rely instead on wholesalers, such as Nordstrom or Saks, BOPIS serves to demonstrate the value of a continued partnership. Flexible pick-up and return options ensure your store is never empty, and your customers can interact with your brand across both online and offline channels. Not to mention the increase in sales you’re almost guaranteed to experience when you implement a click and collect order management system.

 

Maximize Average Order Value

 

Once your customers have entered your store to pick up their order, it’s time to upsell. Some of this occurs naturally; as the customers walk through racks of clothing or aisles of product to approach the checkout counter, they can’t help but browse the other options available. Maybe they pick up something new and add it to their basket on their way out the door. Maybe they make a mental note to come back or buy online if they're in a rush. Either way, the in-store visit has increased the customer’s AOV (average order value) with no added work on your plate.

 

We highly recommend educating your store associates on the importance of upselling BOPIS customers. Comprehensive and consistent incentive programs are a must to ensure store associates participate in the omnichannel buying journey. For example, many companies compensate store associates for upselling eCommerce clients when they pick-up orders in-store, either directly through commissions or by considering them for upcoming promotions. Whichever compensation structure you choose, make sure every member of your organization is united behind a common omnichannel vision.

 

Buy Now, Pick-Up Later

 

We’ve saved the best for last. The number one reason you should offer an in-store pick-up option is simple: customers love it. Instead of waiting around for deliveries or missing them altogether, customers can choose to buy now and pick-up at their earliest convenience. This is especially true for high-ticket items that require a signature upon delivery, which is why top luxury retailers like Louis Vuitton have been early adopters of click and collect. But it’s not only the luxury shops that are embracing this trend; studies show that 63% of brands worldwide are considering offering some form of BOPIS in the upcoming year. Even traditional brick-and-mortar retailers are recognizing the value in omnichannel service and fulfillment.

 

BOPIS can also be an ideal option for customers that are unable to pick up their purchase themselves or are buying a gift for someone else. You can allow friends or family to pick up online orders as long as they have the confirmation email and a photo ID. Modern consumers want the fastest and easiest path to checkout, and they expect retailers to be flexible and nimble enough to offer a great shopping experience across online and offline channels. If you want to stand out against your competition, there’s no better way than by offering a variety of convenient pick-up options.

 

 

Now that you know what the benefits are, you're probably wondering how to get started on this complex omnichannel journey. Unfortunately for retailers, click-and-collect is only easy for the customer. If your infrastructure isn’t built to accept and fulfill omnichannel orders, you’re better off giving up on BOPIS altogether. So, step #1 is to evaluate your current systems. Does your retail platform or partner support unified commerce? Are your store associates prepared to handle online orders and upsell eCommerce customers? Is your logistics team prepared for the order management and supply chain complexities associated with omnichannel fulfillment? It’s critically important to work with an omnichannel solution provider that can achieve your desired shopping experience.

 

Request a consultation with the HotWax Commerce team to discover our best-in-class click and collect solutions.

 

 

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Topics: pick-up in-store