Buy Online, Pickup In Store for Retailers

BOPIS retail, or Buy Online, Pickup In Store, is transforming how businesses serve customers. This strategy allows shoppers to place orders online and collect them at a nearby store, offering the convenience of eCommerce without the wait or shipping costs. It’s a powerful way for retailers to boost online sales and in-store traffic.

The numbers speak volumes about its popularity. The global BOPIS market was valued at $345.38 billion in 2022 and is projected to hit $666.2 billion by 2028, growing at a CAGR of 11.57%.

Keep reading as we walk you through the benefits of BOPIS, potential challenges, and actionable steps to implement this strategy in your store.

Let’s get started on how to transform your retail approach.

What Is Buy Online, Pickup In Store

Buy Online, Pickup In Store (BOPIS) retail, also known as “click and collect,” “curbside pickup,” and “in-store pickup,” is a shopping method that allows customers to purchase items online and pick them up at a physical store.

This hybrid model allows shoppers to browse and order from home while avoiding shipping fees and waiting for delivery. BOPIS is especially popular for non-grocery items, with 25% of shoppers choosing this method for their purchases.

It’s a win-win for retailers, too, as it drives foot traffic to stores and can boost in-store sales. Around 42% of retailers currently offer BOPIS options, though only 9% of orders are fulfilled this way, indicating room for growth in consumer adoption. 

By saving on last-mile delivery costs, retailers also enjoy significant savings, helping them provide a more cost-effective and customer-friendly shopping experience.

Benefits of Buy Online, Pickup In Store

BOPIS in eCommerce is beneficial for both customers and retailers. As more and more retailers adopt this strategy, here are some key benefits you can expect:

For Retailers

• Additional sales opportunities: 85% of U.S. shoppers using BOPIS make an extra purchase when picking up their order.
• Reduced shipping costs: Last-mile delivery makes up more than 53% of total shipping costs, and these expenses can quickly grow as you fulfill more orders.
• Simplified fulfillment management: Reducing transportation between your distribution center, store, and customers while integrating inventory systems streamlines operations and efficiently fulfills online orders.
• Increased foot traffic: BOPIS drives customers to your physical store, increasing opportunities for upsells and potentially introducing new customers, as shoppers often bring friends and family along.

For Customers

• Selection and availability: Customers can reserve a wider range of products online for pickup, including items that may not be available in-store or are exclusively available online.
• Immediate availability: 35% of consumers choose BOPIS because they can receive their items on the same day they make a purchase.
• No shipping costs: 48% of consumers who pick up their items in store are motivated by avoiding shipping fees.
• Product validation: BOPIS lets shoppers check and test items before taking them home, resulting in an 8.89% product return rate — much lower than the 30% return rate for purely online orders.

Common Challenges and Solutions

While BOPIS has numerous benefits, implementing it can pose challenges for retailers. Here are some common challenges identified through NAPCO research, along with key statistics and strategies to overcome them:

Inventory Synchronization

Keeping your inventory in sync is crucial for a successful BOPIS experience. If your online and in-store stock isn’t updated in real-time, customers might show up to find their reserved item is unavailable, wasting their time and frustrating them. In fact, 36% of retailers encounter issues syncing online and in-store inventory, which damages customer trust and creates additional challenges for your staff.

Solution: Integrate Your Systems

Invest in a robust inventory management system that allows online and in-store inventory updates in real-time. This way, customers can see accurate stock levels while making their purchases, reducing the chances of disappointment upon pickup.

Staff Coordination

BOPIS can be challenging for employees, with 31% saying it’s difficult to train in-store staff to handle online orders while also helping in-store customers. Handling high volumes of online orders requires coordination and flexibility, and if not managed efficiently, it can lead to long wait times, decreased productivity, and a poor shopping experience.

Solution: Dedicate Staff and Training

Dedicate specific staff to BOPIS operations, ensuring they are well-trained in managing online and in-store orders. Consider cross-training employees for various roles to increase efficiency and provide backup if needed.

Space Constraints

A total of 44% of retailers struggle with in-store space for picking up online orders, so designating a pickup area that doesn’t disrupt regular shopping traffic or the return process is essential. Curbside pickup zones should be clearly marked and placed where they won’t block other customers. Planning these spaces carefully is crucial to maintaining efficiency and ensuring smooth store operations.

Solution: Optimize Store Layout

Consider your current store layout and identify areas that can be repurposed for BOPIS operations. Designate specific parking spots or work with local authorities to create designated zones outside your store for curbside pickup.

Customer Experience

Providing a smooth, hassle-free pickup experience is key to keeping customers happy, but 49% of retailers face challenges with the speed of having orders ready for in-store pickup. Delays, confusion, or mistakes during BOPIS fulfillment can frustrate customers and damage their trust and loyalty.

Solution: Define Clear Processes and Communicate Effectively

Set clear guidelines for BOPIS orders, including fulfillment times, customer notification for pickup, and pickup locations. Share this information across channels such as your website and emails to keep customers informed. Make sure your staff is trained on these processes and equipped with the tools to handle BOPIS orders smoothly.

Technology Infrastructure

A robust and integrated technology infrastructure is the backbone of a successful BOPIS experience. Here are some technological components to consider:

• Inventory management system: As mentioned earlier, an inventory management system is crucial for keeping your stock levels in check and ensuring updates in real-time. The average monthly cost for an inventory management system is $175 per user license.
• Order management system (OMS): An OMS helps process online orders, track their status, and communicate with customers about pickup information. The average cost for an OMS is between $280 and $780 per month.
• Point of sale (POS) system: Your POS system should be integrated with your OMS to help track store inventory levels accurately. A POS system can range from $750 to $1,700 for a complete set of hardware.
• Customer communication tools: Set up a system to inform customers about their orders and pickup instructions through email, SMS, or apps like WhatsApp. CRM tools for managing these communications usually cost between $67 and $300 per user per month, depending on the features included.
• Security systems: Reliable security measures, including identity verification through QR codes or barcodes at pickup points, help ensure a smooth and secure transaction process for customers collecting orders. Depending on the level of security you require, there are free and paid options.
• eCommerce platform: A robust eCommerce platform is crucial for facilitating online transactions. It should support BOPIS capabilities, including a user-friendly interface and a smooth checkout process that prominently features the BOPIS option.

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Physical Store Requirements

In addition to the technology infrastructure, you’ll need to make physical changes to your store to accommodate BOPIS. Here are some key requirements:

• Designated pickup area: A designated pickup area keeps things running smoothly and reduces disruptions for in-store customers. While there’s no optimal size for the pickup area, you should place it near the store entrance and use clear signs to guide customers.
• Curbside pickup zone: If offering curbside pickup, designate specific parking spots or work with local authorities to create designated zones outside your store.
• Packaging supplies: Ensure you have enough packaging materials, such as boxes, bags, and labels, to fulfill BOPIS orders efficiently.
• Signage requirements: Clear signage throughout your store and designated pickup areas help customers find their way around easily.
• Staffing: Allocate specific staff to handle BOPIS operations and train them on tasks such as order processing, packaging, and customer communication.

Small Business Implementation Strategies

For small businesses with limited resources, implementing BOPIS may seem daunting. However, here are a few strategies to help you successfully integrate this service into your operations:

• Start small: Offer BOPIS only for popular or high-demand products and gradually expand the service as needed.
• Partner with local delivery services: If you don’t have the resources to offer curbside pickup, consider partnering with local delivery services to fulfill orders on your behalf.
• Leverage social media: Utilize social media platforms to promote your BOPIS service and engage with customers. You can also use these channels to communicate order status updates or pickup changes.
• Scale technology infrastructure gradually: Start with a basic technology infrastructure that can handle your current BOPIS needs and gradually scale up as your business grows.

Small businesses can leverage InMotion Hosting’s optimized hosting solutions to support their BOPIS implementation without enterprise-level budgets.

Best Practices for Buy Online, Pickup In Store Success

To ensure successful BOPIS implementation, here are some best practices to consider:

Personalize the BOPIS Experience

Modern customers want convenience and personalization, so make it easy for them to choose their preferred pickup location. Geolocation makes things easier by automatically suggesting the nearest store, saving shoppers time and effort.

Set Clear Expectations with a BOPIS Landing Page

Create a simple, user-friendly BOPIS landing page with clear steps for placing an order and picking it up in store. Highlight any exclusive promotions or benefits of using BOPIS and include dynamic content tailored to the selected store.

Optimize Local Store Pages

Ensure local store landing pages feature essential BOPIS details, like operating hours and directions, while linking back to the main BOPIS page. Use proper schema markup to improve visibility in search engines and provide a seamless experience for local customers.

Reduce Errors on Product Pages

On product and category pages, make it crystal clear which locations offer BOPIS services. Customers can easily change their selected store without disrupting the checkout process, reducing the risk of order errors.

Ensure Technology Runs Smoothly

A smooth BOPIS experience relies on having a mobile-friendly website or app that works without any bugs. Integrate your inventory tracking system to display stock availability in real time, ensuring customers can trust the information they see.

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Designate an Efficient Pickup Location

Create a well-marked, accessible pickup area near the store entrance or service desk. Clear signage and trained staff will help customers collect their orders quickly and keep the process hassle-free.

Communicate with Customers Regularly

Keep customers informed at every stage of the BOPIS process, from order confirmation to readiness for pickup. Send timely notifications with clear instructions to minimize confusion and ensure a smooth handoff.

Leverage BOPIS in Your Marketing

Incorporate BOPIS into your marketing campaigns to boost awareness and usage. Promote it in social media ads, emails, and even cart abandonment messages to showcase its convenience as an alternative to delivery.

Measure Success and Make Improvements

Collect data and establish KPIs, such as customer satisfaction ratings, order accuracy, order fulfillment time, and order metrics, to track the success of your BOPIS implementation. Use this information to streamline the process and enhance customer satisfaction.

BOPIS Step-by-Step Implementation Guide

Implementing BOPIS requires careful planning and execution. Here is a step-by-step guide to help you get started:

Step 1: Understand Customer Preferences

The first step to successfully implementing BOPIS is understanding how your customers shop. Analyze data, conduct surveys, and gather feedback to learn why they choose BOPIS and which challenges they encounter. You can adapt your service to boost adoption and satisfaction by identifying their preferences and pain points.

Step 2: Integrate Inventory Systems

To create a smooth BOPIS experience, start by syncing your online and in-store inventory. Ensure both systems are connected for tracking in real-time to avoid errors that could disappoint customers. Use accurate demand forecasting and keep enough stock of popular items to manage BOPIS orders efficiently.

Step 3: Utilize the Right Technology

Using the right technology can improve your BOPIS operations. Look for an eCommerce platform with BOPIS features that work seamlessly with your inventory and fulfillment systems. A strong order management system and mobile apps or notifications can keep customers updated and ensure BOPIS orders run smoothly from start to finish.

Step 4: Streamline the Pickup Process

The in-store pickup experience is the heart of your BOPIS service, so it needs to be efficient. Set up a clear, easy-to-find pickup area for customers. Ensure your staff is well-trained to handle BOPIS orders accurately and provide clear instructions and great customer service for a smooth hassle-free process.

Step 5: Continuously Improve the Customer Experience

Improve your BOPIS service by offering incentives and personalized recommendations to keep customers returning. Gather feedback regularly, and use it to improve the process, ensuring your service stays up-to-date with customer needs. Consistently refining your approach will help you stay competitive and provide an excellent experience every time.

Trends in Buy Online, Pickup In Store

As eCommerce continues to grow and evolve, BOPIS is becoming an increasingly popular option for customers. Here are some trends to keep in mind as you implement and optimize your BOPIS service:

Integration of Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML are revolutionizing the BOPIS experience in various ways. Automated inventory tracking, personalized recommendations, and improved customer service through chatbots are just a few examples of how these technologies enhance BOPIS operations. A report shows that AI in the retail market was worth $7.14 billion in 2023 and could grow to $85 billion by 2032.

Leveraging Robotics and Automation for In-Store Fulfillment

Retailers can use these technologies to make their in-store pick-and-pack processes more efficient, reducing customer wait times and improving operations. Robotics automation in retail is expected to grow to $144.93 billion by 2026, with a CAGR of 28.96% from 2019 to 2026.

Incorporating Augmented Reality (AR) for Enhanced Product Visualization

AR technology lets customers try products virtually or see how they’d look at home before buying, boosting confidence and satisfaction. There are around 1.4 billion active AR devices, and shoppers use them to visualize furniture, decor, paint colors, makeup, hairstyles, and clothing. Retailers can leverage AR to promote products, drive sales, create engaging marketing campaigns, and collect valuable consumer data.

Expansion Beyond Traditional Retailers

BOPIS is not limited to traditional brick-and-mortar retailers. Restaurants, coffee shops, and even health clinics can offer customers BOPIS options as a convenient alternative. As this trend continues, it will be important for these businesses to optimize their BOPIS processes to stay competitive in the market.

Getting Started with Buy Online, Pickup In Store

BOPIS offers businesses a powerful way to improve customer convenience, streamline operations, and increase sales. Implementing effective strategies and leveraging the right technology helps meet evolving customer expectations and stay competitive in a fast-changing market. As BOPIS grows in popularity, addressing consumer needs and staying ahead of trends will be key to long-term success.

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FAQs

What Does “BOPIS” Stand For?

“BOPIS” stands for “Buy Online, Pickup In Store,” which refers to the service that allows customers to purchase items online and pick them up at a physical store location.

Does BOPIS Increase Sales? 

Yes, BOPIS can help boost sales by giving customers more ways to receive their orders. While it accounts for less than 10% of total eCommerce sales, it still serves a growing niche audience.

What Is the BOPIS Retail Strategy?

“BOPIS” stands for “Buy Online, Pickup In Store.” It’s an omnichannel method that involves customers ordering online and picking up their purchases at a store. It’s also called “click-and-collect,” “curbside pickup,” or “Reserve Online, Pickup In Store (ROPIS).”

How Does Buy Online, Pickup In Store Work?

Buy Online, Pickup In Store allows customers to browse and purchase items online and then choose to pick up their order in store. The customer will receive a notification when their order is ready for pickup and can collect it at the designated location in the store.