The Rise of Order Online, Pick Up In Store (BOPIS): Convenience, Cost Savings, and Customer Engagement

Introduction

Picture this: it’s a busy Friday afternoon in Sydney, and Jane, a local boutique owner, is juggling the usual end-of-week rush. She’s got customers trying on clothes, a queue at the register, and an unexpected shipment arriving at the back. Amidst all this, she receives an online order from a regular customer, Sarah, who’s looking to pick up a dress she’s seen on the boutique’s website. With the click of a button, Sarah secures her purchase and plans to pick it up on her way home from work. This is the beauty of Order Online, Pick Up In Store (BOPIS) – a service transforming the retail landscape for businesses like Jane’s.

For many small businesses in Australia, the shift towards digital solutions is not just a trend; it’s a necessity. BOPIS’s convenience and immediacy perfectly cater to the modern consumer’s desire for flexibility and control. But it’s about more than just meeting customer expectations. BOPIS also presents many benefits for business owners, from reducing shipping costs to driving additional foot traffic into stores. In this article, we’ll explore how BOPIS can be a game-changer for local retailers, enhancing customer satisfaction and business efficiency.

Convenience for Customers

Offering BOPIS: A Win-Win for Customers and Businesses

Let’s explore BOPIS’s heart and why it’s becoming an indispensable tool for retailers. At its core, BOPIS combines the best of both worlds: the ease of online shopping with the immediate gratification of in-store pickup. This means no more waiting around for deliveries or worrying about missed packages for customers.

Imagine Sarah’s scenario: she can browse Jane’s boutique collection online, make her purchase, and collect her dress at a time that suits her busy schedule. This flexibility is a huge draw for customers. Studies have shown that many consumers prefer BOPIS because it allows them to get their hands on their purchases faster and without the hassle of shipping.

Immediate Gratification

In our fast-paced society, people crave instant results. Waiting days for a package to arrive can feel like an eternity. BOPIS satisfies this desire for immediacy. Depending on the store’s processes, customers can place an order and pick it up within hours, sometimes even minutes. This quick turnaround delights customers and sets your business apart from competitors who offer only traditional delivery options.

Flexibility in Pickup Times

BOPIS also offers unparalleled flexibility. Customers can choose a pickup time that fits into their day, whether during their lunch break, after work, or even over the weekend. This flexibility particularly appeals to working professionals and busy parents who might need help to be at home for a delivery. Allowing them to decide when they collect their orders makes their shopping experience much more convenient.

Reduced Shipping Anxiety

We’ve all been there: the dreaded “missed delivery” slip or the anxiety of a package left unattended on the doorstep. BOPIS eliminates these concerns. Customers have the peace of mind of knowing their items are safely held in-store until they’re ready to collect them. This enhances the customer experience and reduces the risk of lost or stolen packages, which can be a significant headache for both customers and businesses alike.

Incorporating BOPIS into your business model is more than just a convenience feature; it’s a strategic move to enhance customer satisfaction and loyalty. By offering this service, you’re telling your customers that you value their time and convenience, which can significantly strengthen their connection to your brand.

Minimal Cost to Business

Implementing BOPIS: A Cost-Effective Solution for Retailers

Let’s focus on how BOPIS can seamlessly integrate into your existing operations without breaking the bank. For many small business owners, adding new services can seem daunting, especially considering potential costs. However, BOPIS is a cost-effective solution that leverages your current resources, making it an accessible and practical addition for most retailers.

Leveraging Existing Infrastructure

One of BOPIS’s primary advantages is that it uses your physical storefront as a distribution point. This means you don’t need to invest heavily in new infrastructure or technology to get started. Your store already has the space and the staff; it’s simply a matter of integrating an online ordering system that can communicate with your in-store operations.

Think about Jane’s boutique. She already has a dedicated space for holding stock and a team of employees who manage inventory and customer service. By incorporating an online ordering system, Jane can begin offering BOPIS without significant changes to her current setup. This makes the transition smooth and keeps costs low.

Reduced Shipping Costs

Shipping can be one of the most significant expenses for online retailers. The logistics of packing, shipping, and delivering items can quickly add up, especially for small businesses that need the scale to negotiate lower rates with carriers. BOPIS eliminates these shipping costs by having customers pick up their orders directly from the store.

Consider the savings Jane could achieve. By encouraging local customers to use BOPIS, she could save on the costs associated with shipping packages across the city or country. These savings could then be reinvested into other areas of the business, such as marketing or enhancing the in-store experience.

Efficient Resource Utilisation

Another benefit of BOPIS is the efficient use of your existing resources. During slower periods, store staff can be assigned to manage online orders, prepare pickups, and handle inventory. This keeps your employees productive and ensures that your business operations are running smoothly at all times.

For instance, Jane’s boutique might experience a lull in foot traffic during weekday mornings. Instead of having employees stand idle, she can allocate tasks related to BOPIS orders, ensuring that staff always contribute to the business’s success. This approach maximises productivity and maintains a high level of online and in-store service.

BOPIS Boosts Foot Traffic

Driving In-Store Sales Through BOPIS

Beyond the convenience and cost savings, BOPIS offers an additional, often overlooked, benefit: increased foot traffic. When customers come to pick up their orders, they’ll likely browse and make further purchases. This incidental foot traffic can significantly boost your in-store sales, creating a win-win scenario for you and your customers.

Impulse Buys

Imagine a scenario: Sarah, a tech enthusiast, orders a new set of headphones from her local electronics store in Melbourne. When she arrives to pick up her purchase, she notices a display of the latest smart home devices. Intrigued, she buys an intelligent light bulb she hadn’t planned on. This is the power of impulse buys, and BOPIS creates numerous opportunities for these unplanned purchases.

Impulse buys are a significant contributor to retail sales. Customers who visit your store to collect their online orders are already in a purchasing mindset. You can encourage these additional sales by strategically placing attractive and complementary products near the pickup area.

Cross-Selling Opportunities

BOPIS also opens the door to effective cross-selling. Cross-selling involves suggesting additional products that complement the original purchase. For example, suppose a customer orders a new laptop. In that case, accessories like a laptop bag or an external mouse should be recommended at the pickup point.

Think of Jane’s boutique again. When a customer picks up a dress, Jane could display matching accessories such as jewellery or handbags nearby. This approach enhances the customer’s shopping experience and increases the average transaction value.

Enhanced Customer Engagement

BOPIS provides a unique opportunity for face-to-face customer engagement. While customers might shop online for convenience, many still value personal interaction. When customers come into your store to pick up their orders, your staff can offer personalised service, answer questions, and build relationships.

For instance, Jane’s staff could use this opportunity to inform customers about upcoming sales, loyalty programmes, or new arrivals. This personal touch can foster customer loyalty and encourage repeat business. Moreover, customers with a positive in-store experience are more likely to leave favourable reviews, further boosting your business’s reputation.

The Growing Popularity of BOPIS

The retail landscape continuously evolves, and BOPIS is at the forefront of this transformation. As consumers increasingly seek convenience and immediacy, BOPIS is becoming integral to retail strategies worldwide. This trend is particularly evident in countries like Australia, where digital adoption and online shopping are rapidly growing.

Current Market Statistics

In the US, BOPIS accounted for $115.5 billion in sales in 2023, representing 10.1% of all e-commerce sales. This figure highlights the substantial impact BOPIS has had on the retail market, demonstrating its popularity among consumers. The trend mirrors this growth in Australia, with many retailers adopting BOPIS to meet customer demands.

• US Market: According to the National Retail Federation (NRF), BOPIS accounted for approximately $114 billion in sales in 2022, representing about 11.5% of total e-commerce sales. This highlights the significant impact BOPIS has had on the retail market.
• Australian Market: A study by Australia Post indicated that 32% of Australian online shoppers used BOPIS services in 2022, a significant increase from previous years. This trend is expected to continue as more retailers adopt this model to meet consumer demand.

Future Projections

The global outlook for BOPIS is auspicious. Market analysts forecast that BOPIS services will reach a valuation of $703.2 billion by 2027. This growth is driven by technological advancements, changing consumer behaviours, and the ongoing need for flexible shopping solutions. This presents a golden opportunity for Australian retailers to capitalise on a rapidly expanding market trend.

• Global Outlook: Research by Statista forecasts that the global BOPIS market will grow from $243.9 billion in 2021 to $703.2 billion by 2027. This projection underscores the increasing adoption and importance of BOPIS in the retail sector worldwide.
• Technological Advancements: According to a report by Forrester, advancements in mobile technology, AI, and logistics are driving the growth of BOPIS, making it easier for retailers to implement and for consumers to use.

Global and Local Trends

While BOPIS is gaining traction globally, it is particularly relevant for local Australian businesses. The COVID-19 pandemic accelerated the adoption of BOPIS as consumers sought safer, contactless shopping options. Even as the world moves beyond the pandemic, the convenience and efficiency of BOPIS have ensured its continued popularity.

• Impact of COVID-19: The COVID-19 pandemic significantly accelerated the adoption of BOPIS. A report by McKinsey & Company found that 60% of global consumers have tried a new shopping behaviour, including BOPIS, since the pandemic began, and many plan to continue using it post-pandemic.
• Australian Trends: According to the 2023 Inside Australian Online Shopping Report by Australia Post, the use of BOPIS (Buy Online, Pickup In-Store) continued to grow in popularity, with a 21% year-on-year increase in BOPIS orders in 2022. This growth is expected to continue as consumers increasingly value the convenience and flexibility offered by this service [Source: Australia Post].

Conclusion

Order Online, Pick Up In Store (BOPIS) is more than just a convenient shopping option—it’s a strategic tool that can drive significant benefits for both consumers and retailers. By offering BOPIS, businesses can cater to modern consumer demands, reduce shipping costs, increase foot traffic, and boost sales. The market trends indicate that BOPIS is here to stay, with its popularity and adoption continuing to grow globally and locally in Australia.

For small and local retailers, now is the time to embrace BOPIS. By integrating this service into your business model, you can enhance the shopping experience, build stronger customer relationships, and stay ahead in the competitive retail landscape. Don’t miss out on the opportunity to transform your business and meet the evolving needs of your customers. Start leveraging the power of BOPIS today and watch your business thrive.