That is how you make sure that "purchase on-line, gather in retailer" (BOPUS) works to your digital model
The BOPUS (buy online, pick up in store) has generated hype among both retailers and customers, and this trend is expected to continue.
With BOPUS, retailers can leverage omnichannel experiences to increase online and in-store profits when done well. However, it requires synergies between online commerce channels and physical retail to be successful.
What are the benefits of buying online, in-store strategy, and how can retailers deliver? Here are a few tips to keep in mind.
What is buy online, pick up in store (BOPUS)?
BOPUS stands for buy online, collect in store. It is sometimes also abbreviated to BOPIS.
True to its name, it offers customers the opportunity to order items online and pick them up in-store.
This is how the process works:
- Customers place the order: Shoppers purchase goods online through the retailer's mobile app or website. On the landing page of the checkout, customers can select the date, time and pick-up location.
- The retailer prepares the order for collection: Retail workers find the items that you ordered and package them. As soon as the packages are ready for collection, buyers can receive a notification via SMS or email.
- The customer picks up the package: Customers can receive their packages in-store or at a special pick-up location. Some retailers may offer roadside pickup options that allow consumers to drive to the store and receive their orders while staying in their vehicles.
This type of shopping is growing in popularity as consumers prefer the speed and convenience of online shopping.
Here are some statistics to show that this model is growing in popularity:
- 68 percent of US consumers have used BOPUS to make purchases.
- 50 percent of consumers have chosen retailers based on whether they offer in-store pickup options.
- 48 percent of consumers have used BOPUS because it offers free shipping, followed by speed (39 percent) and convenience (28 percent).
How can BOPUS benefit your brand?
As you can imagine, the strategy of buying online and in-store pickup can bring many potential benefits to your business. In this section, we take a look at some of the popular benefits it offers.
1. BOPUS increases traffic
Once customers arrive at your store to pick up their goods, they will likely be tempted to visit the store. They may want to review a product they are interested in before buying it, or look for other items in your store.
The main reasons consumers prefer BOPUS include viewing a product before take it out (77 percent), avoiding shipping costs (65 percent), convenience (29 percent), and being able to return the product immediately (23 percent).
BOPUS can also increase traffic to your online website or increase the number of downloads for your mobile app. When consumers subscribe to your online channels, you have more options for sending promotional content or promoting offers through the mobile app.
If customers have an account on your website, they can get information about their browsing habits or purchase history and then create personalized promotions.
2. BOPUS increases sales
It can also increase sales by encouraging more people to buy from the store when they pick up their items.
Invesp reports that 75 percent of shoppers who have previously used BOPUS are likely to make an additional purchase. Additionally, 67 percent of BOPUS users purchase additional items in-store when they pick up their orders.
This means that retailers get one more way to sell products and increase impulse purchases. More importantly, because of its convenience, more customers are flocking to retailers offering this option.
3. BOPUS offers a better customer experience
With BOPUS, consumers can shop online, which means a more comfortable shopping experience.
Instead of waiting for delivery in a week, they can pick up the items on the same day.
When they get to the store to pick up their original orders, they can also check out products that interest them or have queries answered by staff.
Retailers who can provide a streamlined shopping experience can also let customers know if a particular product is in stock before visiting the store.
4. BOPUS offers free shipping
With BOPUS, buyers can enjoy free shipping. You can save a few dollars while enjoying the convenience of online shopping.
Customers also have the option to choose the pick-up date and time. You can control when to drop by the store or choose to have same-day delivery if they urgently need an item.
5. BOPUS enables quick returns
Sometimes customers want to return a product quickly because it didn't meet their expectations.
With BOPUS, consumers can process exchanges and returns upon arrival at the store. This is much better than returning the orders and waiting for the return to be processed.
6. Improve the inventory management system
Buy online, in-store pickup encourages retailers to align their online and in-store inventory management systems.
An order can also be placed in the distribution center, which allows for a faster shipping and fulfillment process. If done correctly, customers can even confirm whether an item is in stock before arriving at the store to check out products.
Customers are notified when an item is ready to be picked up. This means that you are 100 percent guaranteed to receive your complete order when it arrives at the store, unless otherwise stated.
To achieve a successful online purchase, get the business model in store
What do retailers need to make BOPUS a reality in their business? Here are the tips and tricks you need to know.
1. Online site or app for placing orders
Of course, retailers need to have an online website or mobile app that customers can use to order products. Ideally, it should be specified exactly which items are in stock for the customer.
Since many customers shop on their mobile devices, they may prefer retailers who let them shop on a mobile app. Retailers can also use this channel to send push notifications to let them know that the order has been processed or is ready for collection.
2. Physical store or pick-up location
BOPUS requires a physical store or a pick-up location where customers pick up their items.
Ideally, the area should be easily accessible and allow higher pedestrian traffic.
Retailers offering roadside pickup may need to reserve parking space for customers on the roadside. They may also need clear signage so they know exactly where to pick up their items.
3. Real-time inventory functions
It can be frustrating when customers visit the store or pick up their orders only to find that one of the items is out of stock. Therefore, retailers need real-time inventory capabilities so customers can easily see if an item is in stock through the mobile app or website.
A robust fulfillment system for retailers should also consider order status and workflows.
If your company has multiple locations, choose a system with multi-location inventory management capabilities. In this way, customers can determine the visibility of items and choose the most convenient place to purchase their desired products.
4. Train staff
Whether customers order online or in-store, employees need to be trained in best practices for high quality customer service.
Think of the problems that can arise when customers pick up their items and train staff to respond accordingly.
If customers receive damaged goods, they should offer product return assistance. Likewise, customers with product inquiries for in-store items should be able to speak to employees who can help them make informed decisions.
Support staff for the online channels should also be trained to ensure a consistent and seamless shopping experience.
Since you need to improve the customer experience often, retrain employees every six to 12 months.
5. Investment in employees to manage BOPUS
The online purchase and collection model requires an initial investment to hire dedicated staff.
Their role includes the ability to identify online orders, collect them in-store, and pack them into a neat package. You may also need staff to review and execute orders.
6. Buy market online, pick up in store
Investing in BOPUS is not worthwhile if customers don't even know it's there.
Therefore, invest in marketing campaigns and promotional materials to increase customer awareness. Place signage in your retail stores with instructions on how customers can use this option. Consider creating social media posts and emails to announce the launch of BOPUS.
7. Use augmented reality apps
Retailers looking to ensure a smoother online shopping experience can use augmented reality apps. This allows customers to test or view products before making a purchase.
Take the IKEA Place app, for example, which allows customers to preview their furniture in their home before they buy. With your smartphone, you can instantly see if the sofas, cabinets or armchairs you want to buy match the aesthetics of your room.
Not only can this lower the return on investment, but customers can also get a realistic expectation of the items they will purchase in the store.
8. Increase personalization
Stores that want to offer more personalization can also opt for online Customize In-Store Pickup (COPUS).
The business model is very similar to the online purchase and collection model, but the difference is that customers can customize the items they order online.
Yankee Candle offers consumers the option to choose a fragrance, attach a photo, and a personalized message for $ 5. This makes their products ideal for giving away.
Not all retailers are able to offer personalized products, and that's perfectly fine.
Thanks to the latest advanced technologies, you can use customer data platforms to get real-time profiles of customers. A profile can contain wishlist, purchase history, birthdays, or product recommendations.
With this information, employees and marketing teams can make personalized recommendations and guide customers on their way to purchase.
BOPUS brand examples
Which brands or small businesses are successful with this business model? Here are a few examples that could inspire your own.
TC is running
TC Running is a brand that offers running shoes and sportswear. The online shop has been expanded so that customers can send orders or choose to pick them up at the roadside. As a result, the brand's sales have grown at least 110 percent every month since it was launched.
Ackroyd's Scottish Bakery
Ackroyd & # 39; s in Detroit is a popular bakery that offers savory cakes, tea cakes, puddings, and meats. In 2020, the company closed its retail stores in favor of roadside pickups and nationwide shipping. According to their website, the move to e-commerce and the online pick-up model has given them the opportunity to expand their national reach and improve their production and inventory levels.
dress up
Fashion brand DressUp used BOPUS to turn their retail stores into pickup locations.
The website allows buyers to choose their preferred pick-up location. The software then checks that the items are in stock before the customer can buy them on the order page.
In the shipping area, customers who choose BOPUS receive the Google Map location, contact details and retail store operating hours. The clear instructions allow customers to easily collect their orders.
Precycle
Precycle is a package-free shop that offers organic products and sustainable food.
For contactless delivery, they have been switched to a pick-up option at the roadside. According to their FAQ page, customers can place orders online and their stock availability is updated daily. After purchase, they will receive pickup instructions and will click on a link to view specific instructions.
Conclusion
The online purchase and in-store pickup business model enables e-commerce companies and retailers to provide a seamless online shopping experience.
At the same time, customers can be invited to drop by the store to make additional purchases or check out products of interest.
Other notable benefits of buying online and having the in-store pickup strategy include the option to save on shipping costs. In addition, buyers can conveniently pick up their order on the same day or at their preferred time or date.
Although BOPUS can offer many benefits to your online shopping experience, you will also need appropriate resources to get it started successfully. You need a physical pickup location, an online shopping experience, and a real-time inventory management system.
While it may take some time for your logistics to come together, the benefits you get will be worth it in the end.
How will you use BOPUS for your digital brand?
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