Top 5 Things Gen Z Expects From Retailers Today

Top 5 Things Gen Z Expects From Retailers Today

What is Generation Z?

Generation Z is an important customer base for retailers. Gen Z is the generation after millennials and includes anyone born after 1997. There are several ways in which Gen Z is different from previous generations.

Gen Z lifestyle and habits artwork
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1. Gen Z are digital natives

Generation Z is more racially and ethnically diverse than previous generations. They are also on track to be the most well-educated generation so far. One of the biggest reasons that Gen Z is unique is because they are digital natives. This means that they have no memory of the world before the existence of smartphones.

As such, Gen Z prefers on-demand communication and entertainment. Members of Gen Z are heavy users of social media. They connect across multiple devices, such as phones, tablets, and laptops. Statistics show that 58% of Gen Z have bought something they found through social media.

Gen Z people using digital devices
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2. Gen Z has embraced social commerce.

It’s not just social media that’s important to Gen Z. Social commerce – the process of selling products on social media – is too. According to a Forrester report, 29% percent of people under 25 said they complete a purchase on a social network without leaving the mobile site or app at least once a week. Compare this with only 12% of people ages 45-54. 

They also experience brands across multiple channels. A Pew Research report shows that 85% use YouTube, 72% use Instagram, and 69% use Snapchat. TikTok has become increasingly popular among Gen Z. A recent survey showed almost 40% of Gen Z say they’re influenced by products they see on TikTok.

Gen Z woman with smartphone and credit card
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3. Gen Z are “always-on” purchasers.

Unlike other generations, those in Gen Z exist in an “always-on” technological environment. This means they are also “always-on” purchasers. A typical path for a Gen Z shopper might be like this:

  • They shop online, whether they are at school or home.
  • They see something they like but they don’t buy it yet.
  • They visit a brick-and-mortar store because they want the experience of browsing in the store.
  • They see an ad for that item on social media.
  • They buy that item through social media.
Gen Z consumer journey
(Source)

What is the value of Gen Z to retailers?

Gen Z means big business for retailers. According to Forbes, Gen Z represents an estimated $143 billion in annual spending power. Gen Z also makes up more than 40% of all US consumers. The digital-first world of Gen Z is a big influence on other consumers. This means that the digital-first world of Gen Z will become the new standard.

Five ways retailers can attract Gen Z consumers

1. Flexible financial payment options

Offering Buy Now Pay Later options is an important way to attract Gen Z consumers. According to NerdWallet, one in five 2021 holiday shoppers used Buy Now Pay Later. Twenty-two percent of those shoppers were members of Gen Z. 

Buy Now Pay Later appeals to Gen Z’s desire to purchase trendy items with easy-to-understand, no interest fee installments. It also appeals to Gen Z’s impulse to get those items immediately while they’re still “cool.” Giving Gen Z those options makes good business sense. In a PayPal and Netfluential study, 42% of merchants said that “buy now pay later” options reduce shopping cart abandonment.

Consider adding PayPal Credit which offers Buy Now Pay Later

2. Personalized experiences

Gen Z wants to feel “known,” not only seen and heard. This is why personalized product recommendations will attract Gen Z consumers.  According to an international study, 75% are more likely to buy a product if they can customize it. 

Care/of's personalized daily vitamin packs
Care/of‘s personalized daily vitamin packets customized for individual customers (source)

Forty-one percent of Gen Z will provide their data to businesses if they receive a personalized experience in return. This is an excellent way for retailers to gather customer data. It also helps businesses target their online sales and marketing tactics to Gen Z consumers. If retailers don’t make sure to capture the Gen Z audience they risk losing that customer base. Forty-one percent of Gen Z consumers will leave a website if it doesn’t predict what they like, want, or need.

3. Entertainment and engagement

The digital natives of Gen Z spend a lot of time on the internet, with 65% seeking entertainment there. Social media apps are one place where Gen Z finds entertainment. According to studies, 20% of Gen Z spends more than 5 hours a day on TikTok. Since Gen Z also loves personalized content, it makes sense that they will look for organic content while they are scrolling online. 

Kylie Cosmetics TikTok Shop
Kylie Cosmetics’ TikTok page with a built in catalog (source)

This desire for instant gratification means they want an easy, enjoyable shopping experience. Gen Z uses multiple channels for both entertainment and shopping. They also want their shopping experience to be frictionless across all of these channels. Gen Z loves to create so retailers should take advantage of this providing them with customizable content they can create and share.

4. Social responsibility 

Gen Z is more invested in social responsibility than previous generations. Their interest in social responsibility shows in their shopping habits. Seventy-two percent of Gen Z are more likely to buy from a company that contributes to social causes. Gen Z will also pay more for products they think are socially responsible. Sixty-four percent of Gen Z consumers are willing to pay a premium for grocery products that have sustainable packaging. 

There are many ways that retailers can make their businesses more sustainable. They can recycle old goods and source sustainable brands and products. Going paperless is a great way for businesses to reduce waste. Brick-and-mortar retailers can recycle old goods or even use refurbished or recycled materials for in-store displays and decor. Upcycling or donating unsold stock or samples are other ways that businesses can invest in sustainability. 

Retailers can find ways to reduce their carbon footprint in shipping and logistics. They can also give customers the option to choose carbon-neutral shipping options. Above all, retailers should set sustainability goals and stick to them. They should be transparent with their customers about their processes.

5. Authenticity

The nine drivers of authenticity
The 9 drivers of authenticity (source)

For Gen Z, authenticity is more than a buzzword, it’s a way of life. Gen Z wants a quality product with positive online ratings and reviews and good customer service. They also want to feel like they can trust retailers’ advertising practices. Eighty-two percent of Gen Z trusts a company more if the images they use in their ads are of actual customers. You can entice Gen Z customers by emphasizing that your brand stands for something beyond making a profit and seeks to improve the world in some way. Retailers who are transparent and share information about their business processes and how they operate will be able to attract Gen Z customers.


TAKU Retail can help you attract Gen Z customers by providing a seamless shopping experience. You can market your products on social media and meet Gen Z customers where they live without any extra effort – simply use your existing POS data automatically! Our customizable in-store and built-in e-commerce options will offer Gen Z the flexible omnichannel shopping experiences they want. TAKU Retail also offers live chat so that Gen Z can enjoy a more personalized shopping experience.

Easter Retail Marketing 2022

Easter Retail Marketing 2022

Easter falls on April 17th this year. With many COVID-19 restrictions easing everywhere, shoppers are increasingly confident and energized about shopping now. Easter is the first big family holiday of the year. As a retailer, the holidays are a great marketing and sales opportunity. Here are 3 tips for Easter retail marketing this year.

1. Offer ready-to-go promotions and discounts to attract customers

Shoppers today expect convenience and curation when they buy. Make it easy for your customers to grab products without any extra effort. Even if you don’t specialize in chocolate or sell Easter-related products you can still offer a unique angle. Make promotions related to Spring-time activities such as: spring cleaning, spring weather, gardening, etc. Spring is the ideal season for launching new products and exclusives. The season is traditionally seen as a time of renewal and hope, making it the best time to launch new products!

Easter Retail Marketing from Save Loonie
Easter deals from Save Loonie

You can also tempt more shoppers into buying from you by:

  • Discounting your best-selling items with an Easter or Spring theme
  • Getting rid of your winter products through deep discounts on the items
  • Preparing small giveaway goodies that customers can get once their purchase reaches a certain amount of money – or if they purchase a product that’s being promoted

You can also set up a landing page or a section on your website / e-commerce site which will advertise these promotions. This way shoppers can easily browse through sale and seasonal items. TAKU helps you create a free micro-website or landing page. In our builder, you can create a beautiful SEO-optimized web page with custom colors, images, and content. The content can be linked directly to your Instagram Shop, Facebook Shop, Google store listings and even Messenger chat. The process will only take you 5 minutes to set up. Afterwards it runs on autopilot. Learn more here.

Hopebox’s Easter bundle (source)

2. Inspirational giveaways and contests

“Especially during COVID right now, we know that the shopper has been looking for different ways to be inspired — whether that be through recipes or activities or ways just to make ordinary moments more special…”

Lauren Foltz, senior manager of holistic shopper insights at Hershey. (source)
IKEA’s creative assemble-yourself chocolate bunny promotion (source)

Make YOUR consumer feel special by considering giveaways and / or social media contests. You can have customers sign up for these contests by agreeing to sign up for your mailing list or newsletter; two birds with one stone. This will then direct your followers from the online platform to your physical store. It can also increase your visibility on social media and make your store more recognizable. You could also create a short Easter game like a virtual egg hunt to make your promotions more fun. You can even encourage your customers to vote between products to learn their preferences so you can adjust your communications to match their needs. Then you can encourage the winners to share their prize or experience on social media for some good old word-of-mouth marketing. Remember, the goal with this year’s Easter retail marketing is to make your customers feel special.

Kanudle’s Easter giveaway promotion from 2020 (source)

You can use TAKU’s 360° real-time customer view to see your customers’ sales history in real-time so you can target a specific audience. If your customers are heavy social media users, use our built-in Facebook or Instagram feeds to sell directly to your followers. You can get a pretty clear overview of their total relationship with your business, across all channels, in store and online.

3. Launch remarketing campaigns for Easter retail marketing

How remarketing campaigns work for Easter Retail Marketing
How remarketing campaigns work (source)

Holiday retail marketing is a great opportunity to win back past visitors as well. You can use Facebook “retargeting” ads to attract old visitors back to your website. You will need to set up a Facebook pixel on your website to do this. The retargeting ads can showcase your Easter offers & promotions. You could also show different offers to people who have interacted with your website before. For the best results, retarget past website visitors who added items to their cart but never checked out. After all, nearly 70% of online shopping carts are abandoned without finishing the transaction (source: Baymard Institute). You can also target shoppers who have engaged with you on social media during the previous weeks. In a nutshell, you want to get customers to come back and finish the sales they started.

TAKU can simplify this entire process for you. Our built-in abandoned cart saver will help you recapture those pesky cart abandoners! The entire automated process will leave you worry-free.

Experiential retail continues to grow in importance

The competition in physical retail grows daily. Experiential retail is a way for you to make your business stand out. Create unique and memorable in-store experiences by focusing on community, events, and your potential & existing customers’ interests. This way, instead of only aiming to increase sales revenue, you’ll also deliver enjoyable experiences that build brand affinity.

Hunter’s pop-up experience recreates Scottish countryside weather (source)

Let’s say you sell sustainably made cookware. You could create a community-building opportunity in store by hosting a mix-and-mingle experience with other businesses that create products for a similar audience. For example, you could invite a chef, a tableware brand, a local farmer, and a brand that makes 100% natural sauces or seasoning to participate in the event.

All the brands involved can display their products. So as the shoppers are experiencing the awesome products, they can also make purchases.

Depending on the point of sale (POS) used at your store, you can review your customer profiles to get an overview of purchase history and interests that can help inform your strategy to create the in-store experiences your customers are looking for.

Learn more by clicking above
Sell More With Year-Round Retail Holiday Marketing

Sell More With Year-Round Retail Holiday Marketing

After several years of restrictions, shoppers are increasingly looking for opportunities to celebrate their lives. While many retailers make a significant portion of their sales at the end of the year, there are a lot of other seasonal holidays that can help to spread out sales throughout the year.

If you’re looking for merchandising ideas and sales opportunities, consider adding some of the following celebrations this year to your retail holiday marketing calendar.

Winter Holidays

  • February
    • Black History Month (February)
    • Lunar / Chinese New Year, Asia
      • Note that this holiday follows a lunisolar calendar. Therefore the timing of the holiday changes every year and can start any time from the end of January to mid-February. It is usually a 3 week festive period with the first day being celebrated as the New Year day. For the New Year day in the Gregorian calendar until 2031, you can refer to this website.
    • Super Bowl Sunday (February 13) 
    • Valentine’s Day (February 14)
    • President’s Day (February 21)

Spring Holidays

  • March
    • Mardi Gras/Shrove Tuesday (March 1)
    • St. Patrick’s Day (March 17)
    • International Women’s Day (March 8)
    • Daylight Savings Time begins (March 13)
    • Spring Break/March Break (March 14 – 18)
    • White Day, Asia (March 14)
    • Holi Festival (March 18)
    • First Day of Spring (March 20)
  • April
    • April Fool’s Day (April 1)
    • Ramadan begins (April 2)
      • Note, this holiday is also dependent on a lunar calendar
    • National Pet Day (April 11)
    • Tax Season (April 15)
    • Good Friday (April 15)
    • Easter (April 17)
    • Passover (April 15 – 23)
    • Earth Day (April 22)
  • May
    • Wedding Season (May)
    • Graduation Day (May)
    • Ramadan ends (May 2)
      • Note, this holiday is also dependent on a lunar calendar
    • Eid al-Fitr (May 3)
      • Note, this holiday is also dependent on a lunar calendar
    • Cinco de Mayo (May 5)
    • Victoria Day, Canada (May 23)
    • Mother’s Day (May 8)
    • Memorial Day, US (May 30)

Summer Celebrations

Back to school retail holiday marketing
  • June
    • Pride Month (June 1- 30)
    • World Environment Day (June 5)
    • Father’s Day (June 19)
    • Juneteenth, US (June 19)
    • Summer Solstice (June 21)
  • July
    • Canada Day (July 1)
    • US Independence Day (July 4)
    • Islamic New Year (July 29 – 30)
  • August
    • Back to School season begins

Autumn Festivities

Halloween retail holiday marketing
  • September
    • Back to School season ends
    • Labor Day (September 5)
    • Grandparents’ Day (September 11)
    • National Hispanic Heritage Month (September 15 – October 15)
    • Autumn Equinox (September 22)
    • Oktoberfest (September 17 – October 3)
    • Rosh Hashanah (September 25 – 27))
  • October
    • Yom Kippur (October 4 – 5)
    • Canadian Thanksgiving (October 10)
    • Diwali (October 24)
    • Halloween (October 31)
  • November
    • Daylight Savings Time ends (November 6)
    • Singles’ Day, China (November 11)
    • Veterans Day, US (November 11)
    • Remembrance Day, Canada (November 11)
    • American Thanksgiving (November 24)
    • Black Friday (November 25)
    • Small Business Saturday (November 26)
    • Cyber Monday (November 28)
    • Giving Tuesday (November 29)
TAKU Google integration for retail holiday marketing
What Is Omnichannel Retail?

What Is Omnichannel Retail?

Although the word omnichannel is often used in retail, it is a term that is often misunderstood. Here is an explanation of what omnichannel means, how it works, and how it can help you increase your profits.

1. What is a retail sales channel?

Sales channels refer to every different method used by retailers to sell their products to customers. Sales channels go beyond brick & mortar stores. Other sales channels could be events, trade shows, resellers, dealers, curbside pickup, and on-the-go pickup. Additionally, sales channels can also include social media (Facebook, Instagram, Twitter, TikTok), SMS, instant messaging, and even Google Ads.

Most retailers start off selling on a single channel. This can be a physical brick and mortar store or an online only webstore. Prior to the pandemic, an increasing number of retailers have started to add new sales channels to their businesses as shoppers now expect to be able to shop and pre-shop in more than one place.

2. What is omnichannel?

Omnichannel is a fully-integrated retail experience for shoppers. So when omnichannel works, it means customers will have the same experience no matter which sales channel they use. A customer who buys products from a brick & mortar store should have the same experience as one who uses social media channels to buy products. This is the ideal outcome for a successful omnichannel retail business.

Buy online, pickup in store diagram for omnichannel retail

What many retailers aren’t as familiar with, is that retailers must use a system that can share sales, inventory, and customer information (data) across all sales channels to be able to offer omnichannel retail. This means handling all store sales and fulfillment of online orders under a single login. In particular, omnichannel systems make store-managed e-commerce such as “buy online pickup in-store” a lot more efficient.

A successful system handles data for sales, inventory and customer information across all brick & mortar stores, online storefronts, ecommerce marketplaces, mobile channels/apps (WhatsApp), and social media commerce (Facebook or Instagram Shop). You should be able to sell to your customers no matter where they shop. In the past, omnichannel systems were expensive and only available to very large retailers. However, today’s modern cloud systems have made it possible for small-to-mid-sized retailers to take advantage of the cost-savings and sales boosting benefits of omnichannel retail.

3. What is the difference between multichannel & omnichannel?

It’s important not to confuse omnichannel with multichannel, despite their similarities. Like omnichannel, multichannel refers to retailers selling to customers through different sales channels. Yet, in a multichannel setup, these channels are not integrated. 

Unlike omnichannel, multichannel does not unify the customer experience. And more importantly, multichannel retail costs merchants a lot more money because they need to log into separate tools or channels to manage inventory separately, or see sales and customer history. This is a time-consuming process that can lead to lost sales and errors. It also increases the complexity of your sales and tax management. Additionally, multichannel increases the cost of managing inventory if sales are being fulfilled from the store or the same place.

Multichannel retail costs a lot more money to run because a retailer needs to manage her or his business in separate tools or channels.

4. Why is omnichannel retail important?

Omnichannel selling offers a data-driven approach to retail. As stock levels change, you will want to know the product levels in every channel. A good omnichannel system will do this automatically. This means you will never have to manually manage stockouts. A good omnichannel system will also increase sales by highlighting your best customers across all sales channels. It will focus on faster fulfill of every sale, no matter where the sale originates.

Omnichannel systems are increasingly effective at attracting people to brick & mortar locations. They do this by linking to Google to drive foot traffic to stores based on how close nearby shoppers are to available stock. This increases overall profits by increasing in-store and sales conversion rates.

The goal is a memorable and positive experience for your customers. Omnichannel can make this happen.

TAKU Retail can provide you with a comprehensive and integrated omnichannel strategy that will remove friction between channels. Because TAKU is cloud-based, it can function on any device since it’s not tied to any specific type of hardware. This enables you to use any existing web-enabled devices from desktop computers or tablets to smartphones.

TAKU can not only help you increase sales and reduce operational costs, but it can also help you get in front of shoppers before they even leave their homes. Click below to find out about other ways TAKU Retail can help you achieve a successful omnichannel system for your business.

Omnichannel retail with TAKU Retail
Why It’s Important To Offer BOPIS With An Omnichannel System

Why It’s Important To Offer BOPIS With An Omnichannel System

Shoppers now expect the perk of Buy Online Pick Up In-Store to be a given. However, you need to consider the operations of your retail business before you can offer BOPIS. Without support from modern retail software, BOPIS runs the risk of decreasing customer satisfaction.

Being able to find exactly what they want at the price point they need will undoubtedly thrill shoppers. However, if the second half of the process falls short of expectations, it will drive customers to search elsewhere and put the business lower on their list of trusted retailers.

1. Accurate inventory information without extra staff

Omnichannel inventory management

Retail expert Suzanne Sears notes that more and more consumers are feeling confident about returning to in-person shopping. She says “Pent-up savings among consumers, who have greater access to products than services, are making purchases. This has created a demand for work in warehousing, shipping, supply chain, buying, stores, e-commerce, and right on through the entire operation.” This has significantly impacted the search for qualified new hires. Staffing shortages have become a widespread problem. Businesses across North America are not only struggling to find employees but also struggling to keep them around.


Reduced staff means there are fewer employees available to manually track inventory across multiple systems. Understaffed stores cannot handle these challenges, resulting in inventory accuracy as low as 70%. This means that at any given time, nearly a third of inventory stock can be inaccurate. This is especially true with high-traffic or high-inventory stores, many of which are understaffed today. In order to offer BOPIS successfully, retailers will have to invest in a system with real-time inventory across all sales channels. This will let them provide the type of inventory availability accuracy that today’s shoppers expect.

2. Automatically attract more local customers

The best omnichannel systems today will not only help retailers effectively offer Buy Online Pick Up In-Store, they will help them automatically attract more nearby shoppers. Because real-time omnichannel solutions such as TAKU are able to provide reliable, accurate inventory information and real-time stock availability, they are able to connect to local marketing tools to automatically drive more foot traffic in store.

Omnichannel systems such as TAKU help retailers manage all of their inventory across all sales channels with a single, smart product feed . The feed can then be connected to Google Merchant Center and Google My Business. This integration is a built-in feature of TAKU that automatically helps retailers can be found more easily on Google. By plugging their store inventory into a free product showcase called ‘See What’s In Store’, retailers can easily show real-time stock availability in store. Where before large retailers would need to hire agencies or staff to upload products into Google manually, modern omnichannel systems are able to do this without any data entry and stock levels update instantly as you sell in-store or online.

Omnichannel data integrated to Google to drive local traffic to store.
TAKU Retail helps you automatically showcase your products on Google

The retail market is increasingly competitive, retailers need proper inventory management to compete. A system that automatically updates all stock quantity info right away (no matter where or when the sale takes place) is essential. That is why retailers will need to make investments in modern inventory systems. It will allow them to ensure they have properly implemented BOPIS.

See How TAKU Can Help With Seamless BOPIS

TAKU is a single retail platform that will put you in the driver’s seat. It enables you to manage all of your in-store and online operations in a single place. Whether you have 5,000 or 100,000 SKUs, TAKU lets you quickly import customer and inventory data from your current POS, feed file, or e-commerce platform. Unlike other retail cloud platforms, TAKU is customizable and crazy fast in-store and online. With an easy-to-use design and built-in training tools, set-up is faster than many other systems. Never manage products or stock levels in different systems again.

Learn more about how TAKU works by clicking below.

A graphic depicting a woman picking up local products through BOPIS. Link to a webpage of TAKU Retail's features.
What is Buy Online Pick Up In-Store?

What is Buy Online Pick Up In-Store?

BOPIS, also known as “Buy Online Pick Up In-Store,” is an important feature that today’s shoppers expect when shopping with their favorite retailers. Sometimes referred to as “Click and Collect,” Buy Online Pick Up In-Store is exactly what the name describes. Your customers shop for and purchase your products online and then pick them up in person at one of your physical locations.

Curbside Pickup is a form of Buy Online Pick Up In-Store that increased in popularity in 2020 when the COVID-19 pandemic restricted many retail stores from offering in-person shopping. BOPIS and online shopping continues to grow as customers find it convenient to “pre-shop.” 

Buy Online Pick Up In-Store should be an essential feature for any retail business, but especially for merchants running physical stores that target local shoppers. According to an Invesp survey, a whopping 50% of people surveyed said that they decided where to shop online based on whether or not they could pick up in-store. 

Here are 6 reasons why more and more shoppers are choosing to use BOPIS and why retailers need to offer the option.

1. Increase profitability with BOPIS

When customers purchase items online and pick them up at one of your retail locations, it significantly decreases the cost of fulfillment. According to John Mulligan, Target’s COO, Buy Online Pick Up In-Store purchases are 90% cheaper to fulfill than orders shipped from a warehouse.

Benefits of BOPIS infographic with TAKU Retail
The benefits of BOPIS.

That’s not the only way that Buy Online Pick Up In-Store reduces costs and increases profitability. It also cuts down the cost of packing materials and requires a lot less labor because the order only needs to be picked instead of being picked and packed up for ship out. As a result, there is no need to offer free shipping or cover the cost of shipping fees with Buy Online Pick Up In-Store. This will not only save you money, but it will also save your customers money. 

2. Avoid shipping costs & shipping delays

Shipping costs stock image

Shoppers increasingly expect free shipping. But a recent study conducted by Hanover Research and LaserShip, the largest regional e-commerce parcel carrier in the U.S., reveals that shipping rates are rising faster than they have in a decade. Not only have there been general rate increases but 64% of top online retailers are struggling with an off-schedule price increase. The study indicates “nearly half (49%) of these increases are price hikes between 10% and 19% and another quarter (27%) fall between 5% and 9% increases.”

At the same time, the pandemic has significantly increased the demand for shipping, overwhelming many shipping companies. An earlier study indicated that the U.S domestic package market was on track to reach 100 million packages per day by 2026. That number is now expected to be reached in 2022, with e-commerce responsible for 86% of that growth. This greater overall demand has driven up the cost for retailers to ship out online orders that often require free or subsidized shipping, and increased delivery delays.

Besides shipping costs themselves, BOPIS is also more environmentally friendly for small to medium physical retailers that target mainly local shoppers or carry products that are costly to ship (e.g. bulky or fragile products). If you don’t have the ability to ship from a warehouse or a dark store, using a lot of single-use packaging material or shipping out products that were already shipped once to the store or already merchandised on shelves is wasteful and causes unnecessary emissions. BOPIS encourages shoppers to buy from local, nearby stores instead of having something shipped from much further away or packaged with a lot of disposable packaging materials.

3. BOPIS leads to lower rates of return

In addition, items picked up in-store result in significantly lower rates of return. This is because merchants are more likely to check purchases when they are picking up items so returns are avoided before products leave the store. And returning in store is something that the majority of shoppers want. An Inmar Intelligence survey from July 2020 found 58% would prefer to return purchases in a store.

And lowering return rates is key to ecommerce margins as it is becoming increasingly costly for retailers to handle the return process. Although some retailers do offer to cover return shipping costs, this is becoming less possible as the overall cost of shipping increases. Bloomberg reports that return costs for retailers rose 59% in 2021 and added that it now costs $33 dollars for a retailer to process the return of a $50 item. Forcing customers to mail returns adds to their frustration, making it less likely that they will want to repeat the experience. By allowing them to return items in-store, they don’t have to deal with the inconvenience and expense of mailing orders back.

Again, the shipping cost of returns is only part of the story. Oftentimes retailers will need to spend extra money to cover the cost of offering return-friendly boxes otherwise they risk the chance of receiving returned goods that are unsellable due to damage during the return trip. With e-commerce return rates almost 3x higher than with in-store shopping, this means a 3x higher chance that returned goods are unsellable at their original price. The waste of damaged goods along with 2x the amount of disposable packaging materials just adds to the true environmental cost of shipping out online orders vs. BOPIS for local retailers.

4. Reduces merchant processing costs

With so many retailers starting to sell online since the pandemic started, many merchants now know that e-commerce sales generally require higher merchant processing fees to accept payments online versus payments taken in person in store. But once you take into account that return rates can be 3x higher with online orders, this means that retailers pay significantly higher merchant processing fees in general with online orders because any fees that are paid during any sale is lost during a return. Returned sales do not refund transaction fees. Some processors even charge additional return fees. This is why it’s important to consider features such as BOPIS to reduce returns and/or even take more payments in store.

5. Increase shopper basket size

Increase customer basket size with TAKU Retail
Increase your consumers’ basket sizes.

One of the biggest reasons why Buy Online Pick Up In-Store is often more profitable for retailers is that it increases the opportunity for bigger orders and for impulse buys. Research indicates that 75% of shoppers who’ve used BOPIS will make an additional purchase and 49% of shoppers go on to make additional purchases while picking up their items in store. Not only does this result in a more satisfied customer, but it also means more profit or higher margin sales for retailers with minimal effort.

Creating a separate section for BOPIS pickups means that shoppers don’t have to wait in long lines. And placing items strategically in the BOPIS section will also benefit retailers since having a positive experience makes customers more likely to purchase other items while they’re in-store. In-store retail management systems such as TAKU are great for upselling during the BOPIS pickup process as they have the ability to handle all orders and take payment for add-ons, all under a single login. So the same staff member helping a customer pull his pickup order can also accept payment from him for those extra high-margin impulse buys he wants to add.

6. Increases customer satisfaction and loyalty

Buy Online Pick Up In-Store gives businesses that have both an online and brick-and-mortar presence a competitive advantage over those retailers that only offer online shopping. Customers can choose between shopping online, in–person, or a mixture of both. BOPIS allows customers to shop from anywhere at any time. They are no longer restricted to retail business hours which means they benefit from the convenience, flexibility, and faster service that BOPIS provides, especially to local shoppers.

Satisfied customer and increased customer loyalty

BOPIS also gives customers visibility into which stores have a given product in stock, helping them avoid wasted trips and thus improving their overall shopping experience. Customers can get an accurate view of which items are in stock at a particular retail location, so they don’t have to waste time getting to a physical store only to find out that the item they want isn’t available. 

Michael Ketzenberg, a professor of the Mays Business School at Texas A&M University, feels retailers should embrace and aggressively market BOPIS, stating in Harvard Business Review that “It’s more profitable than other omnichannel services and it gives retailers the opportunity to offer a small discount or other incentives to encourage customers to opt for the BOPIS option, creating a win-win for both the customer and the business.”


Want to learn how to easily integrate BOPIS into your business?