If you’ve been keeping up with TAKU blogs we assume you are already offering Buy Online, Pick Up In-Store (BOPIS). If you aren’t, check out how TAKU can help you to easily offer BOPIS with 0 headaches! 85% of shoppers interviewed in this study have admitted to making extra in-store purchases when visiting to pick up their orders. It’s essential to be thinking about how retailers can get shoppers to add more to their store pick up orders since this is the best way to get the most out of your BOPIS offerings.
Let’s go over some strategies YOU can start using today to get more impulse purchases through in-store pick ups.
Start on the online front
Your first opportunity at getting customers to add more to their purchase during a BOPIS order is on the online front. Your customers are already ready to make a purchase when they go onto your website to make an order – this is the perfect time to strike! CNBC mentions that “once you’ve mentally committed to buying an item online, you know you’ll have to go through the required steps such as entering your information… so you may be more open to tossing additional stuff into your cart.” Here are two tactics you can use to upsell online.
The fear of missing out (FOMO) is a very real thing. Finder.com reported that more than half of consumers said they made an impulse purchase because of FOMO. Timed discounts are a perfect way to use this attitude to make more sales. When a consumer is making a pick up order on your website, you can upsell another item to them at a discount. Make sure this discount has a timer on it, so they have to make the decision quick or miss out on the offer forever.
You can upsell products on the checkout screen of your website with ease. You can recommend products that pair well with whatever the customer is buying and have them be easy to add to the customer’s cart right from the checkout screen.
Real-time stock quantities
Showing real-time stock levels for items on your website is a great way to get shoppers to add more to their store pick up order. Shoppers whose purchases are driven by stock availability would be excited to add more to their cart if they know those items are available and can be picked up all at once, in one visit.
On top of that, you can still appeal to a customer’s FOMO with this tactic. If the customer sees that an additional item only has 1 unit left in stock, they will be more likely to reserve the item online so that they do not miss out. Adding a tool such as TAKU’s built-in integration to Google to your own online store makes it easy for you to effortlessly showcase your available store products online.
In-store strategy to upsell
Another opportunity to increase additional sales of a pick up order is within the store itself. As BOPIS’ name suggests, your customers will have to come in-store to pick up their products. This provides another avenue to promote extra purchases. Here are some tactics that will get shoppers to add more to their pick up orders.
Transaction building with expert employees
A transaction building strategy will motivate consumers to add more to orders. For example let’s pretend you are an hardware store. If a customer comes into buy a bath tub for a washroom renovation they may realize there are some other products they will need. These can include things like caulking, shower heads, and maybe even a shower curtain rod. You can train your employees to bring these subjects up when the customer comes into pick up their order, this will ideally lead to more additions to their purchase. Having well-informed employees is a huge advantage for this strategy. Think about a time where an employee’s expertise in a store has helped you make the right purchase.
Price threshold discounts
Another simple way to get shoppers to add more to their store pick up order is to offer discounts based on their transaction price. Let’s say a customer is coming in to pick up a $180.00 order. You could tell them that if they make a $200.00 purchase they will get an additional 10% off. This will get them to look around your store for a $20 item so that they can get the discount. The urgency of the in-store offer is often enough to get them to purchase an extra item or two.
Promotions on receipts
If the customer has already made the pick up without adding anything to their purchase, you can make a last ditch effort through receipt marketing. You can leave messages on the receipts of transactions which communicate in-store promotions and discounts. This way the customer knows that next time they can take advantage of in-store promotions and add to their basket. Companies like Fobi offer products which can help you make the most out of receipt marketing.
Who doesn’t enjoy a good game? Using the reward system that games use can help your customers feel more enticed to make additional purchases. At the pick up center of your store you could add a spin-to-win wheel that will give customers special promotions with the purchase of an additional item. You could also try to upsell a specific item which will enter the customer into a raffle to win something exciting.
Don’t sleep on food
Have you ever been to a hardware store and saw their displays near the cash registers and wondered why? You know, those displays showcasing snacks like chips, candy and nuts. Well there’s a reason to include those items there. Even if you are not in an industry usually related to food, you can easily offer food items as small last minute purchases. When someone is coming in quickly to pick up an item, sometimes the convenience of having a drink or snack be easily grabbable is just what they need. Why would the customer drive to a gas station to buy a water bottle when they can easily grab one right at your store as they are picking up their order?
Make it easy to add more
In order to get the best results with any of these tips, you go to make it easy for the customer and employee. No one is going to want to add to their order if it is made a hassle. Your employees should be easily able to add additional items to the customer’s order with quickness. POS systems like TAKU make this as easy as possible.
TAKU can help your store manage BOPIS and curbside fulfillments efficiently. In addition to running all your in-store and online sales in one system, TAKU’s built-in free Google listings allow you to easily advertise your real stock availability to current customers. Want to get started? Click the button below for a free demo.
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.
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
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
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.
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?