Among other things, this new method of fulfillment helps retailers offer faster shipping to customers. Customers who prefer to wait for a few days to receive their purchases can pick them up in the store for free. This option allows retailers to retain customers and reclaim lost loyalty. Let’s examine how this new fulfillment option works starting by defining the terms and benefits of this fulfillment method.
- What is Buy Online and Pick up In-Store (BOPIS)?
- How Does Buy Online and Pick Up In-Store benefits?
- Challenges in implementing BOPIS
- Real-time tracking technology
- Challenges in Implementing BOPIS
- Delays in the adoption of technology
- Marketing issues
- Lack of employees to process BOPIS orders
- Handling logistical issues
- In Short
What is Buy Online and Pick up In-Store (BOPIS)?
This convenience-focused retailing concept allows consumers to purchase online and pick up the items at a local store. The retailer holds the ordered items for pick-up and notifies the customer when the order is ready to be picked up. The customer can easily exchange the items in case of a return or exchange. As long as the merchandise is in stock, the retailer can easily fulfill the order.
With BOPIS or click-and-collect, consumers don’t need to worry about paying for shipping, which can cost as much as half the price of an item. Additionally, consumers don’t have to leave the store to view the item they purchased, removing the potential for return. In addition, BOPIS eliminates the need for shipping, which is a significant deterrent to many shoppers. As a result, 35% of online shoppers are more likely to pick up items than to return them.
BOPIS stands for buy online, pick up in-store. This business model is also known as click-and-collect or reserve online and pick up in-store. It allows consumers to shop online, pick up the products in-store, and return items to the retailer if they don’t like them. In short, BOPIS provides consumers with the ultimate convenience. It also helps retailers increase footfall through online and offline channels.Steffis Blog
With BOPIS, retailers can take advantage of the growing convenience of online shopping and avoid the hassle of a crowded store. With a few clicks of a button, customers can pick up their orders without leaving the store. Retailers can take advantage of BOPIS by creating an online store or by offering BOPIS at an existing location. For small businesses without brick-and-mortar locations, BOPIS may be a great solution. But before implementing BOPIS, be sure to consider the cost of additional staff and how much additional money this will cost.
BOPIS or Click-and-Collect is the ultimate convenience and flexibility for busy shoppers. It merges the speed of online commerce with the personal touch of physical retail to give consumers the convenience of an in-store shopping experience. Many big-box retailers use BOPIS to fulfill their orders, but mid-market and local businesses should look into offering this convenience to customers. Its implementation will greatly benefit both consumers and retailers alike.
How Does Buy Online and Pick Up In-Store benefits?
In today’s digital age, consumers expect more control over their shopping experience. While there are a variety of advantages for customers, most shoppers have experienced shipping delays. That’s where the buy online and pick up in-store option can help. By eliminating the cost of delivery and shipping, customers can buy more, which benefits both the customer and the retailer. But how does it benefit retailers? Here are some reasons why it can benefit both consumers and retailers.
E-commerce retailers have found that a higher percentage of customers will choose to pick up their purchases in-store (like ordering online at Getit.qa and collecting their orders from Getit Mart). This translates into a higher percentage of sales. Additionally, in-store pickup allows consumers to see and feel their purchases before they leave the store. Consumers also prefer to purchase several smaller items instead of just one large item. Furthermore, in-store pickup makes it easier to upsell and resolve returns issues.
With more consumers choosing to click and collect, the demand for this service is increasing. By 2025, the benefits of click-and-collect will account for 10% of all sales. And while the consumer is impatient, retailers are able to provide a faster pick-up solution. In-store pickup is an excellent way to accommodate this trend. It saves money and time for both consumers and retailers.Steffi’s Blog
Higher consumer satisfaction. A recent study by the National Retail Federation found that 83% of consumers consider convenience to be more important today than five years ago. As a result, BOPIS is beneficial for brick-and-mortar retailers. Customers who pick up their orders may browse the store while waiting for their orders, or they may remember a purchase that was made online and so, BOPIS helps brick-and-mortar retailers stay ahead of the eCommerce giants.
In addition to enhancing customer satisfaction, BOPIS is an effective way to promote sales. In fact, 43% of adult Internet shoppers said that they would buy online and pick up their order later in a brick-and-mortar store. And this trend will only continue to increase, as consumers will seek out convenience and the ability to save time. In addition to the convenience, BOPIS also increases foot traffic in brick-and-mortar stores.
Challenges in implementing BOPIS
In-store pick-up is preferred by customers for smaller or medium-sized products, and curbside pickup is a more convenient option for larger products. Curbside pick-up also eliminates the need to ship items back to the store. Likewise, a curbside pick-up can be convenient for customers who prefer to return a purchase for any reason. Nevertheless, a retailer must weigh the pros and cons of BOPIS before implementing it in its stores.
A key aspect of BOPIS implementation is the technology behind the process. A BOPIS system allows consumers to order online and pick up their orders in-store, but there are several challenges that retailers face when implementing it. Firstly, the technology used in the backend needs to be scalable and future-proof. The latter also requires integration with existing systems in the store. Brightpearl provides a solution for BOPIS.
The real value of BOPIS lies in its ability to drive shoppers into stores. Increased foot traffic generates higher sales in-store and provides an opportunity for retailers to cross-sell, upsell, and motivate impulse purchases. Retailers should also consider their existing point of sale systems and mobile POS capabilities. Further, they should ensure their payment methods are PCI-compliant, so that customer credit card numbers are protected and secure.
Another important challenge in implementing Buy Online and Pick Up In-Store is the cost of last-mile fulfillment. This process accounts for 53% of the cost of omnichannel order management and is the most expensive part. Additionally, recent price increases from both UPS and FedEx have increased merchants’ shipping costs. Because BOPIS eliminates the need to ship items, retailers can maximize their margins per order.
Regardless of the benefits of BOPIS, retailers should consider its disadvantages and drawbacks. BOPIS is often accompanied by long lines and, while BOPIS can be detrimental to retailers if implemented improperly, it can improve the overall buying experience and customer satisfaction. In fact, according to the latest Nielsen study, 31.6 percent of consumers say that their shopping experience is smoother after having purchased a product online.
Real-time tracking technology
The buy online, pick up in-store model is becoming increasingly relevant, as more shoppers demand convenient options for picking up their purchases. A real-time feed of the inventory available at each location, with availability notifications triggered when a specific product is in stock, is a must for enabling this service and this type of software enables retailers to provide customers with a seamless experience from ordering online to picking up the product in-store.
The benefits of real-time tracking are numerous for both consumers and retailers. Aside from enabling shoppers to pick up their orders faster, consumers will enjoy the convenience of avoiding shipping charges and benefit from in-store expertise. It is estimated that over 40 percent of online purchases are followed by additional purchases in the physical store. Ultimately, real-time tracking of buying online and picking up in-store will improve the shopping experience for both consumers and retailers alike.
BOPIS is an innovative way for retailers to increase foot traffic. By enabling customers to buy online and pick it up in-store, BOPIS can bridge the gap between the convenience of eCommerce and the profitability of in-store shopping. BOPIS allows customers to inspect their purchases before leaving the store and is guaranteed to be delivered safely. Additionally, consumers will be able to return their purchases without incurring any delivery charges or wasting time.
BOPIS also requires retailers to merge their in-store inventory tracking system with their online inventory tracking system. This integration will affect the fulfillment of all orders and enhance customer searchability. Retailers must make sure that BOPIS is the right technology for them to succeed. But like any other strategy, this too has its challenges
Challenges in Implementing BOPIS
The key to effective BOPIS is intelligent execution. The costs associated with this must be kept under control through intelligent execution and integrated purchasing, replenishment, and reverse logistics processes require advanced analytics and smart dashboards. These can help minimize supply chain costs, out-of-stocks, and markdowns. Some of the common challenges are
- Delays in the adoption of technology
- Issues with proper marketing
- Lack of employees to process BOPIS orders
- Logistical issues
Let’s go through each in detail,
Delays in the adoption of technology
While there are many reasons why retailers have delayed the adoption of BOPIS technology, one of the most compelling is the complexity of the system. In general, BOPIS solutions are not yet robust enough to handle 40% of transactions. In addition, robust deployments must account for the store’s operations, staffing logistics, and product inventory systems. However, new technologies such as Waze technology, which allows customers to interact with retailers, can make this a painless experience for consumers.
The advantages of Buy Online Pickup In-Store technology extend beyond convenience. It bridges the gap between eCommerce and physical retail, as more consumers increasingly prefer the ease of online shopping with the tactile experience that brick-and-mortar stores provide. In addition, retailers that implement this technology can ensure that their supply chains stay running smoothly. As consumers become increasingly accustomed to online grocery shopping, delays in the adoption of BOPIS technology will only further impede the development of the industry.
With the increase in online shopping, retailers are addressing customer concerns and expectations by implementing BOPIS. It makes sense in the long term, as consumers expect a frictionless consumer journey. With BOPIS, customers are able to view and purchase items in-store, so the business can see incremental in-store traffic and increase sales. It also increases inventory accuracy. Here are some issues retailers should consider:
The initial challenges of implementing BOPIS include a huge amount of process change. While the new technology is great for improving store operations, implementing BOPIS can be a nightmare for brick-and-mortar retailers. Customers are frustrated, which can cause your business to suffer. Moreover, the new system may force loyal customers to switch to competitors. Several staff members need to learn the new processes and technology. Employees also must be ready to handle the handover process, whether it’s in-store or curbside.
Lack of employees to process BOPIS orders
Businesses often struggle to find staff to process BOPIS orders. Their existing staff may not be able to handle the volume. Customers also expect fast turnaround times, which is often a problem. In order to solve this problem, businesses should consider implementing a more efficient BOPIS system.
Consider introducing BOPIS today! One American home improvement retailer has rolled out Ombori Grid BOPIS. It has helped the company improve customer experience and increase sales. The company is investing $11 billion in improving its omnichannel strategy and launching BOPIS. The technology has already improved the retail experience at Home Depot. BOPIS increases sales by 3.5%. In addition to increasing sales, BOPIS also increases store revenue.Steffi’s Blog
Handling logistical issues
Handling logistical issues in implementing BPOPIS can be challenging, especially when you aren’t used to handling such issues. There are many moving parts to this implementation, and merchants should consider all of these factors before going live. For instance, a customer may change one element of their order, or a store associate may forget to place an item on an order. Without a system for redress, this implementation can quickly become a challenge.
While BOPIS is not yet a mature concept, it has gained ground in the past few years. According to Adobe Analytics, the use of BOPIS grew by 50 percent during the holiday season of 2018. Further, a recent ICSC survey found that over 50 percent of U.S. adults use click-and-collect on a regular basis. Moreover, 47 percent say they use this method more than a year ago. However, despite the popularity of BOPIS, businesses still have to overcome logistical issues.
The Hub and Spoke Distribution Model for logistics
Why the Hub and Spoke distribution model? Some of the benefits of this model are
- reduces overall shipping costs
- allows your delivery partners to plan their routes around a central hub, and to complete deliveries in one region
- provides better security throughout the supply chain
- improves the productivity of the workforce
Simplifies shipment processes
The hub and spoke distribution model is a simple yet effective way to streamline your shipping processes. This distribution model is named after the bicycle wheel, which features a strong central hub and multiple connecting spokes. There are many benefits of this model, including centralized control, easier communication between the hub and spoke managers, and a lower risk of error. Listed below are some of the benefits of this distribution model.
Improves workforce productivity
A hub-and-spoke distribution model makes it easier for a business to scale up and maintain productivity without increasing overhead. The model was adopted by companies like Fujitsu, Google, Getit.qa, Virgin Money, and others to accommodate the growing demands of a dynamic workforce.
Today, more employees are demanding flexibility and want to be in charge of their own schedules. The new model may help organizations retain top talent, show commitment to sustainability, and become industry leaders.
Optimizes route planning and faster deliveries
The Hub and Spoke distribution model helps improve efficiency, reduce driver stress, and maximize deliveries. Its centralized approach makes delivery partners plan their routes around a central hub, and finish the delivery in one region. Because all deliveries are picked up from the hub, it’s easier to manage fleet operations, ensure consistent pricing, and improve transit dependability. A key benefit is that it is easier to manage drivers’ workloads.
Onfleet helps businesses improve route planning. With a single dashboard, managers can see KPIs for their drivers, and drivers can see how they stack up against each other and determine bottlenecks. Route optimization reduces driver mileage, resulting in less fuel consumption and wear on delivery vehicles. With real-time updates, customers can also chat with a driver directly. And, better deliveries mean more profits for you.
Brings down logistical costs
The hub and spoke distribution model has many advantages over traditional methods. Its single-center helps e-commerce businesses streamline the shipment process, reducing the amount of stress on a manager. With a single center, inventory management is easier and drivers can focus on delivering the products, rather than having to coordinate multiple delivery routes.
The hub and spoke distribution model allows for mixed variables to be considered in decision-making. The objectives may include minimization of distances between spokes and hubs, maximization of airlift, and maintenance of bases to sustain costs in inclement weather. It is also possible to increase human resources through the efficient use of hubs. In this way, the hub and spoke model is a useful tool for determining the most effective distribution of goods.Steffi’s Blog
The hub and spoke distribution model is often used by big box stores to manage a variety of products. This model enables them to process a large number of packages while still maintaining control over costs. Additionally, hub and spoke distribution is ideal for eCommerce businesses and brick-and-mortar retailers. It also helps reduce the time a product spends in transit and offsets freight costs. In addition to reducing logistical costs, this system enables centralized handoffs and continuous load movement.
As new normal sets in, retail stores must adapt to changing customer expectations and demand. To maintain and increase sales, retailers must adopt intelligent tech solutions to enhance their customer experience and improve their results. For example, as mentioned above, using real-time tracking technology for buying online and picking up in-store can improve the customer experience while reducing costs. By providing customers with an optimal shopping experience, retailers can create brand loyalty and boost customer satisfaction.