KEY POINTS

  • Buy online pickup in-store (BOPIS) is rapidly gaining popularity among retailers. Retailer adoption of BOPIS across big box, department store, fashion, activewear, and specialty retail verticals is estimated to grow at a compound annual growth rate (CAGR) of 8.3% from 44% in 2016 to a resounding 90% by 2024.
  • BOPIS’ growth is partially being driven by the opportunities it gives retailers to reduce costs and boost sales. BOPIS eliminates last-mile delivery costs for retailers, and a staggering 85% of shoppers have made an additional in-store purchase when picking up an order they placed online, according to data from Doddle sent to Business Insider Intelligence.
  • Consumers also can reap benefits from BOPIS, like avoiding shipping fees, speeding fulfillment, and seeing items in person. The No. 1 reason consumers gave for using BOPIS was avoiding delivery charges, cited by 64% of respondents in a survey by the NRF. Customers also often receive their orders faster through BOPIS than they would through at-home delivery. As an added bonus, they get to see items in person before taking them home.
  • Now that customers are becoming more familiar with BOPIS, retailers need to make their offerings stand out from competitors'. As retailer adoption of the service grows, customer awareness and usage are increasing as well. Over half (56%) of shoppers were aware of BOPIS in 2018, and 70% of those customers had tried it. But retailers' BOPIS offerings are beginning to look increasingly similar as more companies adopt the service. Therefore, for BOPIS to be a competitive advantage, retailers must go above and beyond to offer the service in an attractive way.
  • There are a few best practices that can help a retailer’s BOPIS offering stand above the rest:
    • Make orders available same-day whenever possible. Thirty-seven percent of consumers say they use BOPIS because they need an item right away. Fulfilling BOPIS orders same-day — and within a few hours when possible — will cater to these customers.
    • Allow customers to pick up orders in various ways. There are at least four ways to allow customers to pick up BOPIS orders: in the store at a register, curbside pickup, delivery to the trunk of the customer’s car, or at a pickup locker. Although at least 50% of BOPIS customers say they want to try [...]