If you’ve come across the notion that BOPIS (Buy Online, Pick Up in-store) is an unpopular fulfillment model, one that customers generally don’t prefer, the statistics might challenge that perception.
As per Statista’s forecast, the U.S. click-and-collect market is expected to exceed $150 billion by 2025, more than doubling from pre-pandemic levels.
The convenience and flexibility inherent in BOPIS seem to have a lasting appeal. Buy online and pick up in-store provide an optimal solution for both shoppers and retailers, combining the advantages of online and physical retail.
In this simple guide, we will dive into the essential elements of a successful BOPIS strategy, examining its merits and addressing the challenges it poses. Furthermore, we’ll highlight instances of businesses that have effectively embraced this model.
What is BOPIS?
BOPIS is a retail strategy that facilitates customers placing orders online and then picking up their purchases from a designated store location.
BOPIS, delivering convenience, speed, and cost savings, establishes itself as a win-win multichannel strategy seamlessly connecting ecommerce and physical retail.
BOPIS enables customers to combine the simplicity and convenience of online shopping with the overall speed, security, and convenience of picking up their orders in-store.
It also enables businesses to rethink their customer experience and adapt it to the contemporary digital and mobile environment, enticing customers to their physical stores and creating opportunities to enhance sales, strengthen customer engagement, and boost brand loyalty.
This is increasingly crucial as internet retailers acquire market domination, driving customers and sales away from traditional brick-and-mortar stores.
How does BOPIS work for retail?
BOPIS fulfillment serves as a convenient and flexible option for customers desiring to shop online and retrieve their orders in-store. The entire process unfolds as follows:
- Browse the seller’s website: Customers explore the retailer’s website or app, perusing products and their availability.
- Check inventory in real-time: Buyers verify the real-time availability of products at their preferred store locations to ensure the desired items are in stock.
- Finalize the online purchase: Customers complete the online purchase by making payments for the selected items. They subsequently receive a confirmation email or SMS containing order details and the designated pickup location.
- Fulfill the BOPIS order: Upon order placement. The retailer prepares the items for pickup. These products are retrieved from the shelves, inventory, or warehouse, packaged, and brought to the designated BOPIS pickup area.
- Retrieve the order in-store: Customers conveniently visit the physical store to collect their orders. Some retailers even provide the added convenience of curbside pickup.
Why is BOPIS effective for ecommerce businesses?
Now that you’ve learned how BOPIS works, you may be wondering why you should bother. Let’s look at the benefits of buy-online-pickup-in-store services and why they’re an excellent chance for merchants.
- Increasing Customer Satisfaction
BOPUS combines the convenience of internet purchasing with the immediate delight of picking up their products in-store. This improves the shopping experience for many people who prefer not to wait.
Is it suitable for all customers? Of course not, which is why BOPUS is always an option but never required.
- Cutting Shipping Costs
The buyer always pays for shipping, whether it is added at checkout or included in the purchase price.
If the shipping fee is an additional charge, the consumer can avoid it by retrieving the things themself.
For example, shipping prices for furniture businesses can quickly reach the triple digits due to item size. Picking up the item can save hundreds, if not thousands, of dollars.
If the shipping fee is included in the price, the store keeps the excess fraction even if the item is not shipped. This merely increases the margin.
Customers will also benefit significantly from this. This is the main reason why people like BOPIS.
- Driving In-Store Traffic
BOPUS encourages clients to your physical business to pick up their orders. This provides a possibility for more sales. Increased foot traffic equals more sales, as retailers can capitalize on impulse purchases and cross-selling opportunities.
- Enhancing Customer Relationships
When customers pick up their orders in-store, businesses have the opportunity to interact with them in person, enhancing the brand-customer relationship.
These individualized encounters promote trust and loyalty, resulting in long-term customer relationships and increased buyer satisfaction.
- Encourage Returns and Exchanges
BOPUS streamlines the returns and exchanges process by allowing customers to do it in person, even if they made the purchase online.
This provides a convenient alternative for issue resolution, lowers the business’s return shipping expenses, and reduces the time and resources needed for return processing.
How does BOPIS work for customers?
The ascendancy of BOPIS (Buy Online, Pick Up in-store) in retail marketing is propelled by customers who value its convenience and flexibility.
According to Shopify data, 59% of consumers express interest in BOPIS-type shopping options. Here’s a detailed exploration of how and why BOPIS works effectively for consumers:
1. Convenience
Customers can engage in online shopping at their convenience, from any location, and subsequently retrieve their purchased items at a nearby store. This eliminates the need to endure lines or navigate in-store for products.
2. Immediate Product Availability
Real-time inventory visibility empowers customers to confirm the availability of desired items before visiting the store. This ensures time-saving and minimizes the chances of disappointment or delays.
3. No Shipping Costs
Opting for BOPIS enables customers to bypass shipping or delivery fees, as they directly pick up their items in-store.
4. Flexible Pickup Times
BOPIS affords customers the flexibility to select a pickup time that aligns with their schedule. Retailers often allocate specific time frames for order collection.
5. Contactless Experience
With reduced in-store time via BOPIS, customers lessen their exposure to other individuals and potential health risks.
Advantages of Providing BOPIS for Retail Businesses
Offering a Buy Online, Pick Up in Store (BOPIS) option yields numerous benefits for both retailers and customers.
- How the Retailers Benefit From BOPIS
Let’s delve into what retailers can anticipate gaining from the increased adoption of BOPIS:
1. Increased Sales
Encouraging shoppers to visit brick-and-mortar stores enhances cross-selling opportunities. Reportedly, 80% of BOPIS users shop for additional items while picking up their orders, presenting a significant source of additional revenue.
Moreover, businesses are likely to witness a decrease in cart abandonment rates, addressing a common challenge associated with unexpected shipping costs.
2. Lower Shipping Expenses
BOPIS reduces overall local shipping costs and logistical demands, allowing retailers to focus on competitive international shipping options and broaden their market reach.
3. Integrated Inventory Management
Successful BOPIS implementation requires a robust inventory management system. Merging in-store and online inventory into a unified system provides enhanced control, efficient stock movement, and perfect synchronization between physical shelves and distribution centers.
- How the Retailers Benefit From BOPIS
However, the advantages extend beyond retailers; let’s explore the ways in which customers benefit from BOPIS:
1. No Shipping Costs:
The elimination of shipping costs, particularly for smaller purchases, addresses a significant barrier to online shopping. Shipping fees often deter customers, making the option to pick up items in-store a more appealing and cost-effective choice.
2. Faster Service:
Despite the availability of express shipping, BOPIS offers a level of speed and convenience unmatched by shipping companies. The immediacy of heading to the pick-up point for near-instant receipt of products aligns with customers’ desire for prompt order fulfillment.
3. Better Customer Experiences:
BOPIS provides customers with the ease of online shopping without the extended wait, cost implications, and uncertainties associated with shipping. The ability to pick up items at a chosen time, avoiding crowds and queues, enhances the overall shopping experience. Additionally, customers can inspect and test their products before taking them home, facilitating hassle-free returns.
BOPIS Challenges for Retailers
While BOPIS offers significant advantages, implementing an effective BOPIS ecommerce strategy poses challenges for retailers:
1. Operational Challenges
Maintaining real-time inventory accuracy across all channels is crucial to prevent stock-outs or overstocking. Streamlining the order fulfillment process is essential to reduce the time between online order placement and in-store pickup.
2. Infrastructure Costs
Adopting new technologies, such as ecommerce platforms and inventory management software, involves initial investments. These costs can act as a barrier for some retailers.
3. Customer Experience
Consistent and high-quality service levels during the pickup process are essential. Any delays or errors during pickup can negatively impact customer satisfaction and loyalty.
4. Security Concerns
Robust cybersecurity measures are important to protect customer data and online transactions. Verification of the identity of BOPIS customers is also crucial to prevent theft or loss.
5. Communication and Returns
Timely communication regarding order status and readiness for pickup is critical. Additionally, clear and flexible policies for managing returns and exchanges are essential components of a successful BOPIS strategy.
Examples of BOPIS
Wondering which companies are excelling in the implementation of BOPIS (Buy Online, Pick Up in Store)? Here are noteworthy examples of businesses leading the way in this rapidly expanding retail strategy:
1. Lululemon
Lululemon seamlessly integrates BOPIS into its website app, enabling customers to retrieve their orders at a local store within two hours. The inclusion of a curbside service facilitates fast and contactless pickups.
Shoppers can opt for in-store pickup during the order process, select their nearest store, and receive an email detailing available pickup times. A confirmation email or ID presentation is all that’s required for a swift pickup.
2. Petco
Petco, with over 1,500 stores nationwide, embraced BOPIS in 2018, witnessing a surge of over 100,000 BOPIS orders, leading to a more than 5% increase in ecommerce revenue and new customers.
In response to the pandemic, Petco introduced a curbside service with a 25% discount on orders over $50. The curbside pickup process involves receiving an email with a designated number to call, ensuring a swift and discounted pickup experience.
3. Best Buy
Best Buy experienced BOPIS fulfilling 60% of its online orders in the first quarter of 2022, utilizing in-store or curbside pickup, ship-from-store, or delivery by store employees.
To enhance efficiency, Best Buy strategically redesigned store layouts, relocating the in-store warehouse closer to the curbside pickup area and BOPIS lockers.
The company implemented a clear policy, allowing customers five days to collect items or request an extension, contributing to effective inventory management.
4. Nordstrom
Nordstrom, an early adopter of BOPIS, labeled Nordstrom Local, is reaping the rewards. The company attributes half of its digital sales growth in 2019 to order pickup, reaching two-thirds of digital sales growth in advanced regions like Los Angeles.
Leveraging existing store assets and digital capabilities, Nordstrom embraces a shared inventory approach, emphasizing the profitability and convenience of order pickup.
5. Lowe’s
Lowe’s, a home improvement giant, leveraged its BOPIS strategy by providing 88,000 smart mobile devices to all its stores. This investment enabled the efficient processing of BOPIS orders with just two digital scans on average.
The introduction of pickup lockers in all stores enhances safety and expediency. Shoppers access their orders through a one-time barcode received via email confirmation. With over 60% of online orders picked up in stores, Lowe’s prioritizes safety, convenience, and flexibility for its customers.
In the contemporary retail landscape, the adoption of a BOPIS (Buy Online, Pick Up In-Store) strategy is not just advantageous; it’s imperative for retailers aiming to stay competitive and drive sales growth.
The buy online, pick up in-store model not only aligns with evolving customer expectations but also provides unparalleled convenience, flexibility, and the immediacy that modern consumers increasingly demand.
Summarizing Buy Online, Pick Up In Store (BOPIS)
BOPIS (Buy Online, Pick Up In-Store) has evolved as an effective multichannel strategy that combines the overall ease of online shopping with the speed of in-store pickup. The US click-and-collect market is predicted to top $150 billion by 2025, demonstrating the model’s expanding popularity.
BOPIS not only improves consumer satisfaction by providing flexible, rapid, and cost-effective order fulfillment, but it also increases in-store traffic and revenue for merchants.
While it does provide some operational problems, such as inventory management and infrastructure expenditures, the overall benefits—ranging from increased sales to improved customer relationships—make it a worthwhile approach for enterprises.
Suggested read: Multichannel Ecommerce: Why Does It Matter?
Common FAQs on Buy Online, Pick Up In Store (BOPIS)
What is BOPIS, and how does it work?
BOPIS stands for Buy Online, Pick Up In-Store. It allows customers to initiate purchases online and subsequently retrieve their orders at a physical store location, combining the ease of online shopping with the immediacy of in-store pickup.
Why is implementing a BOPIS strategy crucial for retailers?
Implementing a BOPIS strategy is crucial as it keeps retailers competitive in the modern market, meeting customer expectations for convenience and immediacy. It not only drives sales growth but also enhances the overall shopping experience.
What benefits does BOPIS offer to customers?
BOPIS provides customers with the overall convenience of shopping online without the wait for delivery. It allows them to pick up their orders at a nearby store, offering flexibility and immediacy in the fulfillment of their purchases.
What challenges might retailers face with BOPIS implementation?
Retailers may encounter challenges related to inventory management, ensuring timely order fulfillment, and managing associated costs. However, these challenges can be mitigated with strategic planning and technology integration.
How can retailers overcome potential inventory challenges with BOPIS?
Retailers can overcome inventory challenges by implementing robust inventory management systems, utilizing real-time tracking, and synchronizing online and in-store inventory. This ensures accurate stock levels and minimizes discrepancies.
