1. Current situation of Click & Collect
The Click & Collect service has been running for years. However, since 2020 due to the global pandemic, this service has grown dramatically.
In the last two years, it has established itself as a regular service, and it seems that it has not yet reached its highest peak.
These are the most purchased products online, and their delivery method
2. How do consumers behave?
49% of US consumers used the Click & Collect service in 2016 for the first time.
The current situation of Click & Collect shows that 71% of consumers have used this service in the last 12 months.
3. Success story: Target
- Target experienced very rapid growth thanks to its Click & Collect strategy
- In-store pickup increased by more than 60%.
- Drive-Up grew more than 700%.
- They implemented it in 2015, and since then it has been a success
At Christmas 2020, sales multiplied by five.
How Target uses click-and-collect strategies to increase retention
Managing inventory with demand is difficult.
- If an item is out of stock, Target offers the earliest possible pickup date. They emphasize that it is a free service and that they will do their best to have the article available as soon as possible.
4. Advantages of the service
FOR THE CONSUMER
- TIME-SAVING.
Users see it as a time-saving alternative. On many occasions, within 24 hours, your order is available to pick up at the store.
- SPEED.
Faster online purchases, since you don’t have to go to the physical store and you don’t have to look for the product through the aisles.
- SHIPPING COSTS.
Less or no shipping cost.
- IMMEDIATE.
Orders can be ready for pickup immediately or on the same day.
- VERSATILITY.
Customers can choose when and where to pick up their orders.
- CATALOG.
Customers can see all the products in the online catalog and purchase them more easily.
- AVAILABILITY.
The product catalog is available 24 hours a day, 7 days a week.
- AGGLOMERATIONS.
Avoid queues and crowds in shops.
- RETURNS.
Possibility of returning the item at the same time of collection.
- COLLECTION.
Customers can choose the pick-up time slot.
FOR RETAILERS
- HIGHER AVERAGE TICKET.
On average, customers who opted for “Click & Collect” have an average ticket, 11% higher than other home delivery buyers.
- SAVINGS ON SHIPPING.
At least 28% of total transportation costs are saved by eliminating last-mile delivery.
- FEWER RETURNS.
Reduce your return rate by ensuring customers are satisfied with their order before they leave the store.
- MORE SHOPPING.
82% of shoppers will be encouraged to buy if they can return in-store.
- LAST MILE.
The most expensive part of the delivery chain, the last mile, is eliminated. These are substantially lower transportation costs than if they had to be delivered to consumers’ homes.
- MORE OPTIONS.
A wider range of consumer shipping options
- BEST EXPERIENCE.
The shopping experience is left in the hands of consumers, as they minimize delays, which can reflect negatively on the brand.
- UPSELLING.
When consumers pick up their orders in-store, it’s a great opportunity for additional sales. 85% of these consumers buy additional items in the store.
4. Disadvantages of the service
FOR THE CONSUMER
- EXTRA EXPENSES.
Extra expenses for displacement. Some customers don’t like the idea of adding extra costs to their purchases.
- TAILS.
Sometimes there may be queues to pick up.
- CONTRADICTIONS.
Online and offline channels are not fully merged, and not the entire product catalog is available online.
- DIFFICULTY.
There may not be a collection point near the customer.
FOR RETAILERS
- FAILED DELIVERIES.
Failed delivery attempts to generate costs for the company and a poor experience for the customer.
- ARCHITECTURAL DIFFICULTIES.
Deliveries to high floors without elevator.
- CITY DIFFICULTIES.
Lack of parking.
- OMNICHANNEL.
Omnichannel management: it is necessary to have all the company’s sales channels and management systems connected to have up-to-date and accurate information for the buyer on stock, availability, and pick-up times.
- INVENTORY.
Inventory monitoring: It is important to have the stock updated in real-time to coordinate the products requested with the store or Click & Collect collection point.
- TEMPLATE.
More staff and space are dedicated to Click & Collect.
- CAPACITY.
A physical store’s inventory must absorb the additional demand of online orders. This may require more storage space or more efficient use of space.
- TRAINING.
Adequate staffing is needed to manage both in-store foot traffic and Click & Collect order fulfillment.
- VISIBILITY OF THE SUPPLY CHAIN.
Retailers must have complete supply chain visibility. Click & Collect puts pressure on in-store inventory levels as they have to fulfill store and online orders.
- PICKING COSTS.
For many retailers, in-store picking is much more expensive than in distribution centers. In-store it usually costs between 1.5 and 2 times more.
- PUT INTO PRACTICE.
Difficulties exist because physical stores were not initially designed to absorb this service. Especially during peak hours, it is difficult for most stores to manage exceptions, ensure accurate selections, and tightly control cycle times for consumers.
- TECHNOLOGY.
Stores must have accurate, real-time inventory technology that reports product availability and potential backlogs. Technology-enabled platforms can enable retailers to optimize store fulfillment, manage inventory during times of peak demand, and communicate status updates to consumers.
- EXPECTATIONS.
Customers expect their pickup orders to be ready as soon as they arrive. A wait of more than 5 minutes can ruin the shopping experience.
- LOCATION CONFUSIONS.
If the consumer gets the location wrong, this can create great frustration.
THE FUTURE OF CLICK & COLLECT
There is no doubt about the possibilities that this service still has ahead of it. Due to the current situation of Click & Collect, experts predict that in the UK in 2025 the use of this benefit will have doubled the current figures. However, other experts assure us that this growth will slow down.
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