By Derek O’Carroll, Brightpearl
If you Google “buy online
pick up in store” (BOPIS), you’ll be struck by how popular in-store pickup has
become with consumers — but only with the big box retailers like Macy’s, Old
Navy, Kohl’s, JCPenney, Target and Walmart.
A recent report published by
Global Data estimates that the BOPIS market will be worth an estimated $10
billion by 2022, and account for an estimated 13.9% of total retail spend
within the next four years.
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That’s all great news, but
the question remains: where are all the mid-market guys? Why are they standing
on the sidelines? BOPIS is happening now, and they need to get in the game.
While it might be tempting to
look at online and offline shopping trends individually, doing so limits the
ability to see synergies across the different channels. Omnichannel is key, and
click-and-collect shopping has increased 30% in the past two years, according to Nielsen.
A Main Street presence is
essential for specific retail categories, where visiting a local store to see,
touch and feel is an important part of the customer journey and buying
experience. For example, if you’re buying a fridge, you’ll likely want to
compare different products side-by-side and discuss features with a sales
associate.
BOPIS: Buy Online Now, Enjoy Today
Mobile, of course, is where
the majority of retail customer journeys start — but not necessarily where they
end. About 25% of people that start their shopping journey on the web or mobile
app finish up by visiting a store. If you’re a retailer with a storefront
presence, there are several compelling reasons to integrate BOPIS into your
online checkout options.
BOPIS combines the efficiency
and convenience of online shopping with the immediacy and instant gratification
of in-store. Done right, it eliminates the risk of visiting a store and finding
out a product is not available; it also facilitates easy pickup (either via
curbside or a designated pickup area close to reserved parking).
Cost savings are
another key driver — the BOPIS retail model presents cost saving opportunities
for both the retailer and the consumer. More and more consumers are choosing to
pick up in-store to save money and avoid the high shipping costs of next-day
delivery. In fact, high shipping costs can be an active deterrent during online
checkout, causing some shoppers to abandon their cart. BOPIS can convert those
shoppers into a sale and help a retailer
avoid shipping charges (if free delivery is provided).
Even better, customers who pick up an
item in-store usually go on to make an additional purchase once there.
According to a recent BizRate study, this amounted to as
many as 79% of people making an additional
purchase when picking up an item in-store — presenting a retailer with
huge opportunity to drive additional revenue via BOPIS.
Assess Your BOPIS Technical Competence
It’s never been truer: to
compete, gain and retain customers, it’s crucial that retailers give shoppers
the flexibility to buy and shop how they want. However, to execute flawless
BOPIS, you’ll need underlying technologies that enable a smooth transaction.
Here are five essential ingredients:
1. Integrate
BOPIS options early in the checkout
cycle as part of the range of buying options.
2. Implement
accurate/real-time inventory management.
You’ll need an accurate picture of which stores have what inventory so that
shoppers can select the most convenient location. For businesses that have more than one store, you’ll need
effective multi-location inventory management so that you can offer a range of
pickup store options and locations to service a wider network of customers.
3. Communicate
with customers to keep them updated
and provide clear instructions on where to pick-up their merchandise.
4. Facilitate
an easy and memorable pickup.
Retailers that can offer designated parking with a special in-store welcome can
really impress and build customer loyalty.
5. Simplified
returns processes. The ability to
return an item locally (and for free) provides convenience and the chance to
elevate the customer service experience. To execute well, however, requires
in-store staff to have access to full customer transaction history, as well as
a streamlined returns process in place that can quickly process the return and integrate the returned merchandise into inventory.
BOPIS is a competitive weapon
for middle-market retailers; one that in our view is currently under-utilized.
The good news for these retailers is that the technology to confidently offer BOPIS is now within reach. What are they
waiting for?
Derek O’Carroll is CEO of Brightpearl, responsible for the overall company
strategy. Recognized as a leading retail expert, his mantra is to deliver on
Brightpearl’s mission to automate the back office for today’s merchants. During the 1990’s
O’Carroll founded two IT companies, including Ireland’s first online
advertising agency building database driven web sites and offering SEO
services. Most recently, he served
as Senior Vice President of field sales and marketing for Norton, responsible
for $1.7bn of revenue globally. Since he became CEO of Brightpearl in spring 2016, the company has seen
significant growth in its core customer base, cementing
its position as an invaluable asset for mid-sized merchants seeking a
competitive edge.
