The e-commerce landscape has undergone a variety of changes over recent years. We have seen a wave of online companies that have introduced innovative business models. BOPIS is an example of such a change. This model is allowing brick-and-mortar stores to compete with online outlets that specialize in online-only shopping experiences.
The most apparent innovator in the e-commerce space is Amazon. While Amazon began as an online bookstore, it has grown into the most prominent online retailer in the world. The vast product offerings and speedy delivery have impacted the sales of many brick-and-mortar retail giants.
Those that adapt to the changing state of retail affairs by engaging consumers online will flourish in the future. During the 2018 Christmas shopping season, a survey conducted by Doddle showed that nearly three-quarters of the 2000 shoppers polled (68%) indicated that they have made multiple online purchases that were later picked up in the store. Here we will explore the BOPIS business model and how it can benefit your real-world establishment.
What Is BOPIS?
Also referred to as click-and-collect, BOPIS (buy online and pick up in store) is a sales model that marries the convenience of ordering online with the convenience of being able to pick up your purchases locally rather than waiting for them to be delivered.
Seeing the ever-present threat posed by Amazon to big-box retailers, major brands like Wal-Mart have answered the call of consumers by creating an online presence that is like that of Amazon. They have added the BOPIS model to their online offerings to give shoppers an additional incentive to shop with the company, both online and in-person at their local store.
Reasons to Use BOPIS
The competitive advantage of incorporating BOPIS into your sales model may seem obvious, but there are some notable upsides to BOPIS that we do not want to overlook. Let’s take a closer look at the reasons to use BOPIS with your business.
We exist in an era where convenience dominates almost every other factor when making purchase decisions. For instance, convenience stores charge more for their products, because they know that you are more likely to pay more for the items you need if the situation is convenient.
Convenience stores charge more for their products, because they know that you are more likely to pay more for the items you need if the situation is convenient.
A survey conducted by JDA Software Group shows that 32 percent of the consumers that choose to use BOPIS do so because the store is nearby and convenient to pick up from. This same survey reported that 30 percent of consumers select BOPIS because they need the order that same day.
This concept also holds true for BOPIS, being able to make purchases in the comfort of your own home while going to pick them up at your leisure is an extremely convenient model.
Customers Buy Online
As we previously mentioned, sites like Amazon have exposed consumers to the ease of purchasing items online. This has created a consumer culture based on buying goods online. BOPIS has emerged as a critical player in this type of shopping.
Home Depot, an early adopter of BOPIS, reported that 48 percent of their online orders were completed using click-and-collect ordering. This means that close to half of their business conducted online resulted in pickups from their brick-and-mortar locations.
According to CNBC, nearly half of America’s small businesses have no website. This means that while consumers love online shopping and the benefits of shopping in the comfort of their own homes, many companies have no way of meeting their potential consumers in the digital marketplace.
Consumers love online shopping and the benefits of shopping in the comfort of their own homes
Such a shortage of websites for small businesses means that there is a massive opportunity for companies to incorporate e-commerce sites that use online ordering and POS (point of sale) software to initiate click-and-collect websites.
Speeds Up Sales
When a customer shops at a store, it is often necessary for them to seek assistance from sales associates. Once the goods are gathered by the shopper, they must stand in line and wait for the cashier to complete the sale at the POS.
With the use of BOPIS, the consumer can shop online and merely visit the store to pick up their purchased items without the need to consult with sales associates or wait in long checkout lines.
When placing orders from typical e-commerce sites, the cost of shipping adds to the overall purchase price. BOPIS eliminates this additional cost for both the consumer and the retailer.
How Does BOPIS Work?
In order for you to successfully implement BOPIS into your operations, you need to sync your online store with a point of sale system. Here’s how it works:
1) A customer finds your online store via the internet or your marketing efforts, which entices them to place an order online.
2) The customer browses your product catalog and selects the products they would like to purchase. .
3) The customer directly pays online with a credit card or you can optionally give them the option to place the order online and pay later at the store.
4) Your business receives a notification that an order was placed online and prepares the products for pickup.
5) The customer walks into the store, identifies their order, and picks it up.
The first thing that must be done to begin incorporating BOPIS into your business model is to establish an online store.
BOPIS is the future of both e-commerce and brick-and-mortar businesses. This model not only gives brands an online presence that will bring customers into their brick-and-mortar establishments, but BOPIS patrons also tend to purchase additional items when picking up the items they bought online.
Regardless of the type of retail store you have, there is a way to include the BOPIS model into your business. Now is the time to take advantage of this relatively new way of engaging with clients online, while also getting them into your store to potentially purchase additional goods from your location.