Customers want convenience when shopping online, but there is still a significant wait time when having items delivered to your home. BOPIS supplies the convenience of online shopping, removes the hassle of in store shopping and saves time from waiting for items to be shipped to your home.
Read on to learn more.
What is BOPIS?
BOPIS stands for buy-online-pickup-in-store.
A few other acronyms you may want to familiarize yourself with:
- BOPAC or curbside pickup: like BOPIS, but allows customers to receive their purchase outside of the store and often without leaving their vehicle
- BORIS: buy-online-return-in-store
- ROPIS: reserve-online-pickup-in-store. This option allows customers to reserve an item for in store pickup, but not pay for it until receiving the item.
Each of these options enable retailers to bridge the offline and online store experience allowing shoppers to flow seamlessly across sales channels.
It should be no surprise that the COVID-19 pandemic has played a key role in the immense growth of buy-online-pickup-in-store usage as customers have turned to ecommerce to avoid large crowds. Recent statistics suggest that BOPIS usage is not a part of a bubble and is likely here to stay. In fact, a report by McKinsey and Co. shows 56% of shoppers plan to continue using BOPIS after the pandemic. Both retailers and customers are seeing the positive benefits that buy-online-pickup-in-store provides which has sped up the acceptance and adoption of BOPIS.
How Does BOPIS Work?
Flexibility and convenience are top priority for shoppers when it comes to having their orders fulfilled. BOPIS allows customers to decide which items they want to buy at once and those that they can wait for.
Customer orders online or using mobile app: The ability of the customer to order online or in mobile app adds to the convenience of using BOPIS. Real-time local inventory visibility enables the customer to choose when and where they pick up their ordered merchandise.
Store fulfills customer order: Once an order is placed by a customer through BOPIS there are two scenarios for the store that received the order. If the item is in stock a store employee can use an app to find the item, pack it and hold the order for the customer to pick up. However, if the item is not in stock the employee must order from a nearby store or warehouse and once it arrives the customer is notified so they can pick up their order at their own convenience.
Shopper picks up order: When a customer picks up their order there are two options that stores use to complete the process. Either the customer goes into the store to a designated pick-up area where a store associate hands over the order, or the store offers curbside pick-up. With BOPAC, customers need only to pull into the designated pick-up parking spot, check in online or call the store and a store associate will load the vehicle with their purchase without the customer needing to get out of the car.
No matter which option is available to the customer they should easily be guided through the process of picking up their order. Features such as receiving a text message, email or push notification with a QR code or receipt of the order as well as information about where to park or pick up the order in store makes the process quick and simple.
What Do You Need to be Able to Offer BOPIS?
At least one physical location: BOPIS does not work for retailers that only have an online presence. For BOPIS to work a retailer needs to have at least one physical location that customers can pick up orders from. This store should be in a place that is conveniently accessible to consumers and offers an increased chance of foot traffic.
A website or app: To connect the online and offline shopping experience and to offer BOPIS a retailer needs to have a branded app or website that customers can order from. Real-time inventory insights should be provided by this mediator creating a reliable and convenient process.
Smartphones have increasingly become the consumers primary device in ecommerce due to the ease of use and convenience of being able to access it anywhere. Consumers expect their smartphone to assist them during the BOPIS process. Push notifications, text messages or emails all sent from the website or app communicating to customers that their order has been received, is being filled and when it is ready to their mobile device creates ease and convenience in the BOPIS process.
Real-time inventory: To give the customer the most correct and up-to-date inventory available retailers need to analyze and choose the best technology for their business. Retailers must connect all aspects of their fulfillment operations to create real-time analytics on order statuses, customer engagement, locations, workflows etcetera. If your business has multiple locations, ensuring that you choose software that connects point-of-sale inventory across all locations is especially important.
Why do customers choose BOPIS?
Item Assuredly in Stock: When using BOPIS it guarantees that the item they have selected is at the store when it’s ready for pick up. Customers do not want to arrive at the store after using the BOPIS option to discover the item they bought is out of stock or has been substituted for something else.
No Shipping Fees: Unless a retailer offers free shipping its typically cheaper for a customer to drive to their local store to pick up an item. Avoiding the $3+ shipping fees to have a single item delivered to their front door is a significant reason consumers will choose BOPIS.
Saves Time: BOPIS provides the benefits of online shopping without all the hassle of in store shopping. Shoppers do not have to waste time searching the aisles, bagging and checking out their items. Instead, they can simply pick up their order when it is ready. It also avoids the two day wait customers must endure if they order an item from a company like Amazon to have it delivered to them. This convenience is what will propel BOPIS forward well after the pandemic.
Top reasons why customers prefer buy-online-pick-up-in-store [invesp, 2021]
- Being able to see the product before taking it home – 77%
- Avoid shipping costs – 65%
- Convenience – 29%
- Being able to return the product instantly – 23%
Why Retailers Embrace BOPIS
Retailers are also coming to realize the benefits that BOPIS provides in the last mile. Brick and mortar stores that have not added the BOPIS option are only alienating themselves from what customers have come to expect in a shopping experience and depriving themselves of more sales.
- Gain edge against Amazon – 12.4%
- Keep up with competitors – 31.6%
- Cater to millennials – 15.6%
- Attract shoppers that make additional purchases – 37.6%
Improved Inventory Management: BOPIS affords retailers the ability to merge their online and in store/warehouse inventories. Orders are then able to be fulfilled from distribution centers or in-store shelves depending on whichever is faster. Combining both systems allows retailers to have real-time insight into their available stock.
Reduces Shipping Costs: The cost of warehouse labor, packaging and shipping is ever rising. BOPIS allows retailers to save money in the last mile by giving consumers a quick and convenient pick-up option while also being able to offer a free shipping option.
Added Purchases from Shoppers: The opportunity to upsell presents itself when customers go into the store to pick up their order. They may have forgotten to add an item to their order that they needed, or they’re simply encouraged to browse the store since they are there. Either way, when a customer enters the store to pick up their order it gives the possibility for additional purchases.
2021 BOPIS Statistics
- 67% of shoppers in the US have used buy-online-pick-up-in-store in the last six months.
- 10% of all sales will be fulfilled by click and collect by 2025.
- 75% of shoppers who have used BOPIS say they are likely to make an additional purchase.
- 49% of shoppers made additional purchases while picking up their items in-store.
- 50% of respondents have decided where to shop online based on whether they could pick up in-store.
- 38% of retailers surveyed said BOPIS was key to bringing shoppers into the store.
Conclusion
Brick and mortar stores are not dead. They are simply evolving to the next stage in the ever-changing world of ecommerce. If you’re an ecommerce retailer with a physical location and not offering BOPIS to your customers there is only one question.
Why Not?
Now is the time to act. Implementing a BOPIS model into your business to provide what customers expect, save money for you and your customers and to stay relevant is vital to your company’s long-term success.
