Understanding BOPIS
BOPIS wasn’t a popular option before. But then the pandemic struck and customers refused to take online deliveries due to the risk of infections. Since then, BOPIS has only expanded in its popularity.
According to Statista, the U.S. click-and-collect market is forecast to surpass $150 billion by 2025, more than doubling from pre-pandemic levels.
Even though many are skeptical about this model, numbers are proof that
customers prefer BOPIS for certain items. In this blog, we will help you
understand behind the scenes of BOPIS, how it works, and what are its
benefits for customers and retailers. Let's get started.
How Does BOPIS Work?
BOPIS is part of a shopping trend that merges both online and in-store
shopping for higher customer satisfaction. Here’s a step-by-step process that
will help you visualize how BOPIS works
A customer scrolls through the online store which is an extension of the offline
store near their location. They check which items are available in real-time, put
them into a shopping cart, and complete the purchase online. However, as
opposed to delivery driving and dropping off the packages, the customer visits
the offline store and collects the items themselves.
Features of BOPIS(Buy Online, Pick Up in Store)
Online Shopping
Customers browse through websites or apps to add products to their cart
In-store Pickup
Customers have to select a nearby store where they can collect purchased items.
Order Tracking
Customers can track their order status easily and get notified when the order is ready for pickup.
Inventory Visibility
Sometimes you go through the hassle of visiting the store only to know that the product is out of stock. BOPIS reduces such cases by providing customers with real-time visibility into store inventory across all the locations.
Returns and Exchanges
in the case of BOPIS, it's easy to return or exchange
items since customers can view the product on the spot and decide whether
it's worth buying. Moreover, in case of faulty products, they can get the same
exchanges since the store is near.
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What Are the Benefits of BOPIS For Retailers?
BOPIS has become a game-changer for retailers, offering multiple
advantages. Here, in this section, we will discuss some strategies retailers can
try to use BOPIS and achieve success.
Reduced Operational Costs
BOPIS helps retailers lower operational costs by allowing them to use existing store inventory for order fulfillment This approach eliminates the need for separate fulfillment centers and reduces expenses associated with shipping and handling. For example, stores prepare orders for pickup instead of shipping from a central warehouse.
This method cuts down on packaging materials and transportation costs and also reduces the labor needed for managing shipments.
Using store inventory for online orders helps maintain stock levels and reduces
the risk of overstocking or understocking. BOPIS also minimizes the chances
of returned items due to delivery issues. Customers verify their purchases at
the time of pickup, ensuring accuracy and satisfaction. This efficiency saves
money.
A chance to bring customers to a physical store
BOPIS brings customers into physical stores. When they come to pick up their orders, they often browse the store. This increases the chance of impulse purchases. Customers may see items they did not plan to buy, leading to additional sales.
In-store visits also create opportunities for promotions as retailers can highlight special offers or new products to attract more sales. Engaging customers in person helps build stronger relationships and also enhances brand loyalty and encourages repeat business.
Moreover, physical interaction with products reassures customers about their
purchases. They can see and touch items before taking them home. This
increases their confidence and reduces the situation of returns. Bringing
customers to the store through BOPIS benefits both retailers and shoppers.
Better customer experience
BOPIS improves the customer experience by providing convenience and speed. Customers can pick up their online purchases quickly, avoiding delivery wait times. This prompt service satisfies customers who need their items immediately. Moreover, BOPIS allows customers to avoid shipping costs, making their purchases more economical.
In-store pickup also ensures that customers receive exactly what they ordered,
as they can inspect items on the spot. This reduces the chance of
dissatisfaction and returns, enhancing overall customer satisfaction. By
offering an efficient and straightforward shopping experience, BOPIS
encourages customer loyalty and repeat business, contributing to long-term
success for retailers.
Inventory Visibility
Sometimes you go through the hassle of visiting the store only to know that the product is out of stock. BOPIS reduces such cases by providing customers with real-time visibility into store inventory across all the locations.
Increased Retail Store Traffic
BOPIS increases foot traffic in retail stores. When customers come to pick up their online orders, they often browse the store. This browsing can lead to additional purchases that customers did not initially plan to make.
Retailers can also use this opportunity to promote special offers and new products. By highlighting these promotions, retailers can drive further sales. Increased store traffic from BOPIS not only boosts sales but also helps retailers engage with customers directly, strengthening relationships and enhancing brand loyalty. This increased engagement encourages customers to come back again. BOPIS offers flexible order fulfillment options for retailers. By allowing customers to choose between picking up their orders in-store or having them delivered, retailers can better manage their inventory and resources. This flexibility helps in balancing stock levels across various locations, ensuring that products are available where they are needed most.
Additionally, BOPIS can reduce the pressure on shipping logistics, especially during peak shopping seasons. Retailers can fulfill online orders from multiple store locations, preventing bottlenecks at central warehouses. This adaptability not only improves efficiency and enhances the overall customer experience.
Secured Order Pick-Up
BOPIS ensures a secure order pickup process. Customers collect their orders directly from the store, which reduces the risk of lost or stolen packages. This method is particularly advantageous in areas where package theft is common.
Retailers can also implement verification processes during pickup to ensure
that the correct person receives the order. This adds an extra layer of security
and builds customer trust. By providing a reliable and secure pickup option,
BOPIS enhances customer confidence in the retailer, leading to higher
satisfaction and repeat business.
What Are Benefits of BOPIS For Customers?
Easier Return Processes
BOPIS makes returning items easier for customers. When customers pick up
orders in-store, they can immediately address any issues with their purchases.
If an item is not as expected, they can return or exchange it on the spot, saving
time and avoiding the hassle of shipping returns
This quick handling of problems improves the shopping experience by
providing fast and efficient service. Customers appreciate being able to deal
with returns directly with store staff, which often leads to faster refunds or
replacements. This ease of use makes customers happy and makes them
more likely to shop with the retailer again.
Decreases Shopping Time In-Store
BOPIS helps customers save time by reducing the need to shop in-store.
Customers can browse and purchase items online at their convenience. When
they arrive at the store, their order is ready for pickup, eliminating the need to
search for items on shelves.
This process is especially helpful for busy individuals who want to avoid spending a lot of time in the store. They can quickly pick up their purchases and continue with their day. By making the shopping process more efficient, BOPIS provides a quicker and more convenient experience for customers.
Guarantees Customers That The Item They Need Is Available
BOPIS guarantees that the item customers need is available. When customers
place an order online for in-store pickup, they can see which items are in stock
at their chosen location. This eliminates the frustration of going to the store
only to find that the desired product is out of stock.
By verifying an item's availability before visiting the store, customers save time,
avoid disappointment, and enjoy shopping. They can see which items are in
stock, confirm their order is ready, and collect their purchase quickly. This
assurance increases customer satisfaction and builds trust in the retailer.
View And Inspect Purchase
BOPIS allows customers to view and inspect their purchases before taking them home. When picking up their orders in-store, customers can examine the items to ensure they meet their expectations. If there are any issues, they can address them immediately with store staff.
This ability to inspect products provides peace of mind, as customers can
confirm the quality and accuracy of their orders. It reduces the risk of receiving
damaged or incorrect items and eliminates the need for returns. By enabling
customers to verify their purchases on the spot, BOPIS enhances their
shopping experience.
Prevention Of Package Theft Since Deliveries
Over 75% of Americans have had their package stolen once in the past year. BOPIS helps prevent package theft by allowing customers to pick up their orders directly from the store. When customers choose BOPIS, their purchases are secure until they collect them personally, avoiding the risk of packages getting stolen from their doorstep.
This keeps purchases safe until customers collect them. BOPIS also checks IDs to ensure only the right person gets the order. This makes customers feel secure, especially where theft is common. BOPIS makes shopping easier and safer. This benefit makes BOPIS an attractive option for customers, particularly those in areas where package theft is a common concern.
What Are Some Good Examples of BOPIS?
Walmart's BOPIS approach
Walmart’s BOPIS (Buy Online, Pick Up In Store) strategy, known as "Pickup,"
combines online shopping convenience with efficient in-store and curbside
collection options. Customers can select their preferred store, check real-time
inventory, and pick up orders typically within hours. Walmart’s designated pickup
areas and Drive Up service streamline the process, while automated notifications
keep customers updated. Secure payment and verification systems enhance safety.
By offering flexible pickup times, easy returns, and integration with Walmart’s loyalty
programs, this approach boosts store traffic, reduces shipping costs, and enhances
customer satisfaction. Walmart's scale and operational expertise position it as a
BOPIS leader.
Amazon's BOPIS approach
Amazon’s BOPIS strategy is called Amazon Pickup. It integrates an online store with
local collection options. Customers can choose to collect their orders from
Amazon Lockers, Counter locations, or AmazonFresh Pickup points. These
services offer real-time inventory updates, fast processing, and 24/7 access to some
pickup points.
Amazon’s automated notifications keep customers informed about order status and
readiness. The strategy enhances customer flexibility, reduces last-mile delivery costs,
and supports seamless returns. By leveraging its vast logistics network and
technology, Amazon is reinforcing its position as a leader in e-commerce innovation.
Target's BOPIS approach
Target's BOPIS strategy is known as Order Pickup. It seamlessly blends online
shopping with efficient in-store and curbside pickup options. It features user-friendly
platforms with real-time inventory visibility, swift order processing, and multiple
pickup choices, including Drive Up service.
Target employs automated notifications, robust security measures, and dedicated staff to enhance the customer experience. This approach drives store traffic, reduces shipping costs, and integrates with the Target Circle loyalty program.
Enter Buy Online, Pick-up in Locker (BOPIL)
Buy Online, Pick-up in Locker (BOPIL) is a newer version of the traditional Buy Online, Pick-up in Store (BOPIS) strategy. Similar to BOPIS, it involves customers ordering online and collecting items offline. The key difference is that in BOPIS, it was a store, and in BOPIL, there’s a smart locker technology.
Now, what are the benefits of BOPIL over BOPIS? Can’t customers go straight to the store? What’s the need for lockers?
- Increased Efficiency: It reduces the workload on store associates and streamlines the processes for both retailers and customers.
- Improved Customer Experience: BOPIL provides a convenient and quick experience for customers, making them more likely to make additional purchases or return to the store
Conclusion
For retailers operating offline stores, BOPIS is one of the best strategies to drive in-store traffic and purchases. Despite its challenges, BOPIS is something that most retailers should be thinking of, especially since we are seeing rising trends in BOPIS.