BOPIS: Retail's Next Frontier of Competitive Advantage
In contrast, retailers in the U.K. are more able to offer BOPIS as part of the omnichannel shopping experience because of the country's condensed geography. One major retailer, John Lewis, increased BOPIS by 61.8 percent and e-commerce sales by 22.7 percent. Another example is House of Fraser, which offers visibility of in-store stock on its website and in its apps. Thirty-five percent of House of Fraser's online orders are picked up in-store, despite the fact the retailer has only 60 stores in the U.K.
The Cognizant UK Shopper Study 2013 found in a span of three months that over 60 percent of shoppers had used BOPIS — a quarter of them more than once a month — and more than 80 percent had shopped in-store, then purchased online at least once.
Omnichannel fulfillment represents a strategic advantage in that retailers can leverage inventory across multiple locations and streamline fulfillment processes, reducing operational costs and enhancing the customer experience.
There's now plenty of evidence to suggest BOPIS is a good investment. It helps shoppers overcome traditional objections to shopping online and converts them to omnichannel shoppers, who are nearly 21 percent more profitable than single-channel shoppers. Retailers have observed as much as a 33 percent lift in sales from in-store pick-up of online orders. BOPIS allows retailers to better connect online and offline sales, leading to improved ability to personalize marketing messages. As more shoppers adopt BOPIS, retailers will see additional benefits including inventory optimization and fewer returns.
BOPIS offers a competitive advantage for brick-and-mortar retailers and has delivered meaningful benefits in its inaugural run. Retailers will continue to invest in enhancing the customer experience around BOPIS. Perhaps 24-hour pickup, faster pickup, expanded assortments, improved in-store service, better personalized experiences or enhanced cross-sell/upsell will be next on the docket.