Click & Collect has gone mainstream. By 2027, it’s expected to make up nearly 20% of all ecommerce spending. This huge shift shows how shopping is becoming a blend of online and in-person experiences, writes Adam Castleton, CEO, Startle.
This ‘omnichannel’ retail style is a win-win for both businesses and shoppers. It gives everyone the freedom to decide when, where, and how they want to shop. Plus, it opens up a world of new opportunities for retailers, blending the convenience of digital with the personal touch of physical stores.
Seizing the new middle ground
The retail landscape is constantly being transformed by technology. And while the competition is fiercer than ever (thanks, Amazon!), Click & Collect bridges the gap between shopping online and visiting stores.
Click & Collect – or if you want to get all technical, “buy online, pick up in-store” (BOPIS) – lets you shop from your sofa and pick up goods from a store. Its take up skyrocketed during the pandemic, but its appeal didn’t fade when lockdowns ended. In fact, people love the option so much that it’s only growing, with more stores pushing ‘Return-in-Store’ services too.
This hybrid experience lets shoppers enjoy the best of both worlds: browse online, grab deals, avoid checkout lines, and pick up their purchases when it’s convenient. Plus, there’s the bonus of being able to return unwanted items in-store straight away – no hassle, no shipping fees.
The benefits of blended retail for shoppers
There are many pros for the consumer of the blended retail model, combining shopping online and picking up or returning an order in-store. It’s pretty simple: it’s all about making life easier.
It allows customers to browse and purchase products whenever and wherever this is convenient for them, avoiding the hassles of long checkout lines and crowded stores, as well as opening hours.
It’s more cost effective. Shoppers can make use of online discounts and avoid shipping costs on orders (or smaller value ones) and expensive next-day services.
It’s also time efficient. Consumers can add items to their favourites and subsequently their basket when it suits them, and pick up their order when they want it, rather than having to be at home for a delivery. They can also check or try on their purchases in-store there and then and return anything that’s unwanted.
They also get faster access to their purchases. Consumers can enjoy instant gratification without waiting for deliveries, sometimes being able to collect the same day.
Click & Collect also removes friction from the purchasing process. The inventory online is much larger than in-store, meaning customers are more likely to find a style or size in stock. There are also never any queues online.
Finally, it’s a more sustainable option for the eco-conscious shopper. Combining collection with other errands or walking to the store means less vehicle emissions and local traffic.
How it’s changing the game for retailers
For retailers, Click & Collect offers some big perks:
1. Curated brand experiences
Click & Collect empowers consumers by giving them greater control over their shopping experience. But it also gives retailers more control over the experience too. Everything from the visual design, music and scent to the interactions with staff and the store layout all influence people’s opinion of the brand and their long-term loyalty to it.
2. Impulsive in-store purchases
Interestingly, while Click & Collect starts with an online purchase, it often results in impulsive in-store purchases. This presents an opportunity for retailers to promote in-store offers and cross-sell other products with customer service on the shop floor – all increasing spend-per-head.
3. Reduced cart abandonment
For many ecommerce retailers, cart abandonment is a significant issue. High shipping costs, long delivery times, or general indecisiveness can lead customers to abandon their online shopping baskets.
Click & Collect solves these problems by offering an immediate solution. Customers who are on the fence about online purchases can complete their transaction with the knowledge that they’ll receive their items quickly and without shipping fees. This reduces cart abandonment and increases conversion rates
4. Broader product awareness
When consumers opt for Click & Collect services, it draws them into a physical store environment where they are exposed to more products and promotions. This can heighten awareness of the retailer’s full product range, which customers might not have explored fully online. It creates an opportunity for retailers to deepen their relationship with customers by presenting new products or services during the collection process.
5. Keeping up with expectations…and the competition
Click & Collect has also shaped consumer expectations. Many customers now expect fast turnaround times for both online and in-store shopping. The ability to collect an item the same day after purchasing it online has shifted consumer expectations of retail speed and service. Retailers who fail to meet these new demands may see their competitiveness drop.
6. Reduced pressure on delivery networks
For retailers, home delivery comes with significant logistical challenges and costs, especially during peak periods like holidays. Click & Collect alleviates some of this pressure, as it shifts the last-mile delivery burden from the retailer to the consumer. This reduces shipping costs and allows for more efficient inventory management in physical stores.
But it doesn’t come without its challenges…
While Click & Collect offers numerous benefits, it also introduces new challenges and complexities for retailers.
Stores must integrate their e-commerce and in-store inventory systems to ensure that online purchases can be fulfilled accurately and quickly. This requires investment in technology and staff training. Additionally, stores need dedicated space and resources to manage online orders, which can strain existing operations.
Increased demand for these services, including online returns, can present staffing challenges. Employees need to be trained to manage both online and in-person customers simultaneously, ensuring that online orders are processed quickly without neglecting in-store shoppers. This dual responsibility can stretch staff, particularly during peak periods, and lead to a subpar customer experience if not managed effectively.
Finally, the rise of out-of-store collections points away from physical stores can limit the value of Click & Collect. Consumers get the convenience without the opportunity for retailers to cross-sell or benefit from impulsive purchases or the curated physical experience found in-store.
It’s all about striking the right balance between convenience and keeping foot traffic in stores.
Adam Castleton, CEO, Startle
Stay informed
Our editor carefully curates a daily newsletter filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis?
