BOPIS – Spicy Filipino dish or eCommerce business strategy? YES!
In a prior blog post entitled Your eCommerce store customers want this!, I pointed out the fact that in today’s world of online commerce customers expect both convenience and choice when it comes to paying for the items they buy online. But what about convenience and choices in other aspects of the online purchase? When actually receiving those online purchased items, not so long ago a consumer had two choices – buy online and have them delivered OR go to a store to buy them and take them home from the store. For what is sometimes termed a pure online retailer, the choices for their consumers remain the same, buy online and get it delivered. But for those merchants who have an eCommerce website and physical store location(s), their consumers often have another option called BOPIS, also sometimes shown as BOPUS or click-and-collect. This hybrid shopping and delivery choice can present a real competitive advantage over the pure online retail experience.
BOPIS. WHAT IS THAT?
BOPIS (buy online, pick up in-store) is an increasingly utilized tactic for consumers to shop and place orders online and then pick up their purchases at brick-and-mortar stores, sometimes even the same day. BOPIS is a part of the larger multi-channel shopping trend that has been emerging since around 2013 when retailers like WalMart, Target and others began to adopt the tactic. It allows retailers and consumers to merge the online, in-store and mobile experiences when selling products and making a purchase respectively.
CONSUMER SEE TANGIBLE BENEFITS
A customer’s BOPIS purchases will be stored in any number of locations at a retailer’s store - the customer service desk, a storage locker or in a designated BOPIS location for convenient in/at-store pickup. At times, that pickup can occur on a 24/7 basis for extra consumer convenience. To help incentivize BOPIS activity, some retailers offer discounts on BOPIS orders. And the consumer knows for certain that the item is available in advance of a store visit, which in the past could result in out-of-stock disappointments. One additional benefit of BOPIS is the local effect. Consumers get the chance to buy local and pick up from a retailer in their local community which helps to support the local economy and at times local manufacturers as well.
RETAILERS GET BOPIS BENEFITS AS WELL
For retailers, it allows them another path to shape the customer experience by encouraging shoppers to visit their brick-and-mortar stores, while still doing the shopping online. This can provide a number of additional retailer and consumer benefits like providing an avenue for additional sales to occur in-store during pickup, a mechanism for strengthening customer engagement and affording the potential for increased brand loyalty. BOPIS can also reduce retailer delivery and fulfillment costs.
BOPIS CAN PRESENT RETAILER CHALLENGES
Yet BOPIS is not without its challenges for the retailer and their eCommerce systems. The retailer must be able to show inventory visibility in real-time at its store locations so customers know what's currently available and where it is available. With the trend towards greater online shopping continuing and the desire to be as contact-less as possible in retail transactions as part of the COVID response, stores are looking to rethink their layouts to better handle the volume of online orders and to accommodate things like curbside pickup services. They have to also examine their product ordering and inventory processes to ensure that they can fulfill orders quickly and without excessive out-of-stock occurrences. Plus there is the ever-present risk of a greater degree of fraud.
IS BOPIS BEING USED?
According to retail trend information published by Offers.com (2020 Retail Trends), 64% of U.S. adults will use BOPIS in 2020. It seems to be a particularly popular option among busy parents in the 35+ demographic.
Again referencing research published by Offers.com, consumers like not having to pay shipping and not having to wait for an item to ship as key reasons. There are others factors as well like avoiding possible package theft risks when an item is delivered and being able to instantly check their order and return it immediately is there is something wrong.
Not all items are ideal for being included in the BOPIS model, but plenty of today’s most popular product categories work well in this shopping and pickup model such as consumer electronics, apparel and even groceries.
HOW DOES KADRO FIT IN?
For the online retailer, whether you choose to offer BOPIS or not, it’s essential that you choose the right technology partner to help you create and support your ongoing ecommerce business. Kadro offers a broad spectrum of eCommerce services including B2B and B2C eCommerce website development, Marketplace solutions, analysis and optimization services, ERP/OMS/PIM/CRM integrations and more. With a team of knowledgeable, certified Magento 2 developers and as an Adobe Gold Solution Partner, we have been successfully delivering eCommerce solutions for our clients in a wide array of industries since 2001. When you are ready to make your vision for selling online a reality, we are here to help. Give us a call at 877-435-3453 and be sure to spend some time on the website for more information about Kadro and all of our services.
Oh and for those of you curious about the spicy Filipino version of BOPIS, Bopis is a spicy Filipino delicacy made of minced pork lung and heart cooked in onions, garlic, and chili peppers. Popular as an appetizer, it is also commonly served as a main entree. Like adobo, afritada, and other Filipino classics, there are many regional interpretations of this dish. Happy eating!