Why Aren’t Mid-Market Retailers Offering BOPIS?
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.
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.