Increase customer satisfaction and reduce costs by enabling customers to ‘BOPIS’.
Status Quo
Customer convenience should be the top priority for any business in this increasingly competitive market. If your customers have a good experience, then they are more likely to shop with you again, spend more, and stay loyal. One method of increasing customer satisfaction is by providing flexibility and convenience through BOPIS – Buy Online, Pick-up in Store.
BOPIS is a retail model allowing customers to buy products online and pick them up at a physical store. This allows customers to avoid shipping fees and waiting times. It’s especially attractive for customers who need their items urgently.
Companies can leverage their local presence and inventory to serve customer needs. While it improves customer satisfaction, retailers can use BOPIS to boost in-store traffic, reduce costs, and optimize inventory management.
Challenges Solved by BOPIS
Shipping and return costs: delivering to and from customers significantly increases costs, especially the packaging. Customers are also less willing to pay for shipping when they’re used to ‘Amazon Prime’ style shopping experiences.
Delivery times: online orders must be shipped from warehouses or other locations, which results in longer wait times. This has a big impact on urgent items.
Customer frustration:
Time wasted trying to find products in-store
Products might be missing in-store due to a lack of inventory
Items can’t be inspected online
Items might arrive damaged from online orders
Operational Infrastructure: Without the proper infrastructure in place, customers won’t have a good buying experience. This can include Order Management, Inventory Management, Store Operations, and Return Management.
The global BOPIS market is expected to reach more than $700 billion by 2027 with a double-digit compound annual growth rate of 19.3%.– Research and Markets
How Does BOPIS Work?
Buy Online, Pick-up in Store is a retail fulfillment model allowing customers to purchase products online and pick them up in person at a physical store. After placing an order online, the customer will receive a notification once the order is ready for pick-up, usually within a few hours, and can then go to the store to retrieve their purchase. Many also provide the option to return items to the store instead of shipping them back. This approach provides customers with a more convenient and flexible shopping experience. They can browse and purchase items online from the comfort of their homes or offices while avoiding shipping fees and waiting for delivery.
BOPIS helps boost in-store shopping, as when customers come to pick up their orders, they may also be more likely to make additional purchases while in-store. Additionally, BOPIS helps retailers optimize inventory management by enabling them to track inventory levels in real time and make more informed decisions about stock replenishment and product availability. This can help retailers reduce overstocking, minimize out-of-stock situations, and ultimately increase sales and profitability.
BOPIS Bridges the gap between the convenience of online shopping experiences and traditional brick-and-mortar. It’s a valuable strategy for companies looking to improve customer convenience, increase sales, and reduce costs.
7 Requirements of Effective BOPIS
In order for your BOPIS strategy to succeed, there are seven key considerations.
Inventory Management
Co-ordination between online and in-store teams
Technical integration (e-commerce platform and in-store POS)
Pick-up procedure and customer experience
Return handling
Sell-side user experience
Business Outcomes of Buy Online, Pick-up in Store
Increased customer satisfaction
Convenience: research and selection online, immediate availability, quick returns and exchanges, saving time and money
Instant gratification
Flexibility to shop online or local
Local inventory visibility before going to store
Increased efficiency and cost reduction
Reduce delivery costs
Improve inventory management, reduce overstocking
Optimize return management
Increased revenue
Boost in-store traffic and encourage additional purchases
Founded over 190 years ago, Globus is a leading family company in the grocery sector with over 46,000 employees. Globus came to Spryker looking for an urgent solution after their Click & Collect service provider went bankrupt. With a 2-week timeframe, the situation was especially dire since this all took place during the covid-19 pandemic. Globus customers heavily relied on the Click & Collect service for their day-to-day shopping.
A pickup service was to be established within the time window of two weeks, which could be continued without interruption or significant loss in service quality. Globus benefited from the fact that much of the required functionality was already available in the standard Spryker Cloud Commerce OS: time slot management and blocking, automated emails, and the basics of a picking app for customers.
Globus created a new Click & Collect solution together with solution partner KPS and the Spryker Cloud Commerce OS in only 2 weeks. The service now inspires the end customers with its uncomplicated operation and allows for increased customer satisfaction through convenience, instant gratification, flexibility and local inventory visibility before going to store. Even more important for Globus is the fact that the new commerce technology enables them to quickly release new solutions in order to gather learnings and further develop their e-food offering in a targeted manner. Globus by the numbers: 13,000+ Items, 4 Locations, 2 Weeks Time-to-market, 50+ Items per order
About Spryker
Spryker is the leading global composable commerce platform for enterprises with sophisticated business models to enable growth, innovation, and differentiation. Designed specifically for sophisticated transactional businesses, Spryker’s easy-to-use, headless, API-first model offers a best-of-breed approach that provides businesses the flexibility to adapt, scale, and quickly go to market while facilitating faster time-to-value throughout their digital transformation journey. As a global platform leader for B2B and B2C Enterprise Marketplaces, IoT Commerce, and Unified Commerce, Spryker has empowered 150+ global enterprise customers worldwide and is trusted by brands such as ALDI, Siemens, ZF Friedrichshafen, and Ricoh. Spryker is a privately held technology company headquartered in Berlin and New York backed by world class investors such as TCV, One Peak, Project A, Cherry Ventures, and Maverick Capital. Learn more at spryker.com.