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What is Click & Collect and how to leverage it?

iStock-1307512096Click & Collect demand continues to grow faster than the rest of online orders and remains a key growth strategy for online. Click & Collect also can be known as a local pickup or BOPIS (Buy Online; Pick up In-Store). Click & Collect remains a key differentiator retailers have over the pureplay competitors.

We are seeing Click & Collect sales average 30% to 40% of online sales, with the best in class now pushing upwards of 60%. Reports suggest anywhere from 25% to 50% of customers when collecting will make additional purchases as well. According to the latest data published by Australia Post, Click & Collect accounts for only 13.6%  of online purchases in Australia (Australia Post: 2022 Inside Australian Online Shopping – eCommerce Industry Report), compared to some of the performances we are seeing shows that for many retailers there is an opportunity for growth from supercharging Click & Collect.

What is Click & Collect?

Click & Collect allows the customer to buy products online and pick them up in-store. This service gives the customer the option of picking up their items elsewhere if they don’t want the item delivered directly to their home quickly and conveniently. This also enables the customer to go to the store knowing the items they want are waiting for them. Click & Collect is fast becoming a preferred online delivery method for customers.

Why do customers choose Click & Collect?

The reasons customers choose Click & Collect vary by the customer but include convenience, speed, avoidance of shipping fees, saving time, guaranteeing an item is at the store before they go, easy returns, securing the promotional price and so many more. It also eliminates the risk and costs of missed deliveries and provides more certainty and security for the customer. Ultimately Click & Collect is a service that customers have come to expect, it allows them to take advantage of the best of online shopping and bricks & mortar stores, allowing them to purchase products online quickly and conveniently while still allowing them to touch and feel the product live in the store.

Customers have also noticed that shipping costs are getting higher and delivery times are getting longer. This has supported the strong growth of Click & Collect and will likely continue to fuel Click & Collect over the coming years.

Growing your click & collect sales

Not all customers select Click & Collect for speed, many retailers have focused their Click & Collect offers based on what stock is at the store the customer has chosen to collect from. Some retailers have not given the customer the speed option, as they don’t tell customers if they want it today then they can only order these items, potentially missing out on the Click & Collect orders of customers who need it quickly.

The best retailers are giving the customers the choice and making it really clear what their options are. You can allow the customer to collect the order in multiple collections if that suits the customer, collect what we have today and the rest of the order when it arrives. Customers value when they are made aware of the options and can make the choice of what best suits their needs.

The question is no longer whether to enable Click and Collect, but what will set your service apart. With online sales growth being harder to achieve, retailers need to focus on scaling up and optimizing their Click & Collect operations for speed (same day/next day option), convenience (choice of stores), and trust (accuracy of offered locations, delivery times, and a good overall experience).

As a fulfilment model, Click & Collect is a win-win for retailers and customers. Click & Collect should be part of all retailer's growth strategies, even if you are already offering it. That’s why we support retailers with our modern Order Management System which is flexible and allows retailers to test features and processes to continue to improve their Click & Collect offers. Get in touch today to find out more about how to master Click & Collect.

 

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