Click and Collect 2023: Meaning, Best Practices, Pros and Cons

1/2/2023

Click and Collect 2023: Meaning, Best Practices, Pros and Cons

Despite the shift towards eCommerce caused by the COVID-19 Pandemic, it is apparent that many people still enjoy the option to visit physical stores. 

Therefore, if given the choice, nearly 50% of customers would prefer going to physical store for shopping.

Digital shopping experience also has a flavour of going to physical shop, also known as, click and collect. In fact, as per a report, Click and Collect grew over 500% during the Pandemic.

Even before the Pandemic, there was a steady rise in Click and Collect orders. And the Coronavirus Pandemic has only accelerated the popularity of Cick and Collect. 

According to a report, eCommerce sales increased by 16.8% in Australia during 2020 and further rose by 13.4% next year, reaching $46.7 billion in 2021.

Because of this, eCommerce businesses would need streamlined fulfilment to cope the increased number of orders. 

And that’s why, click and collect emerges as a viable option to receive purchased orders. 

For starters, Click and Collect helps eCommerce businesses with order management by tackling congestion and ensuring a fast turnaround for pickup, making the entire fulfilment process efficient.

The best part is that even if you don’t have a physical store of your own, you can still leverage Click and Collect Pickup in your eCommerce store. 

In this article, we’ll dive deep into the Click and Collect and discuss everything about it in detail.

What is Click and Collect?

Click and Collect Pickup is an effective retail fulfilment strategy that allows consumers to buy online and pick up their orders from a physical store nearest to their location. 

This hybrid eCommerce model has many names - Curbside Pickup, BOPIS (buy online, pickup in-store), and BPAC (buy online, pickup at curbside). 

For eCommerce retailers, offering Click and Collect can increase their sales, customer satisfaction, and convenience while saving on delivery time & shipping costs associated with home delivery. 

And the good news is that eCommerce businesses of all sizes can use the Click and Collect Pickup model.

All you need to do is learn how Click and Collect works. And that’s exactly what we’re about to discuss next!

How Does Click and Collect Work?

The Click and Collect Pickup model is quite simple. It was designed to offer convenience, which is why it works in an extremely straightforward way. 

In the Click and Collect model, the customers place their orders via the eCommerce website or mobile app, choosing the Click and Collect method at the checkout page.

Click-and-Collect-Process

After their payment is processed and the order is initiated, store employees gather the order items from the inventory, prepare the order for pickup, and notify the customers once their order is ready.

Upon receiving the order notification, the customer visits the physical store or pickup point and shows order confirmation to the store employees. The purchased items are then given to the customer, completing the transaction.

Now that you know exactly how Click and Collect works, let’s check out the pros and cons of offering the Click and Collect model to your customers.

Pros of Click and Collect Pickup

Lots of eCommerce brands are confused about whether to offer Click and Collect or not. If your eCommerce business is one of them, let us help you find the answer to that question with pros and cons. 

Pros-of-Click-and-Collect-Pickup

Consumers Love Options!

We live in the “age of consumers” where it’s all about offering consumers the options to buy products however they want, whenever they want, and wherever they want them. 

After all, how can more options be worse for your customers? 

Bunnings, an Australian home improvement retailer adopted Click and Collect in August 2019 and within twelve months, Bunnings’ sales increased by 5% and surpassed $13.2 billion, despite the downturn in the Australian housing market. 

The lesson here is that offering the Click and Collect option is indeed one of the best ways to remain competitive in your market. 

No Shipping Delays

Shipping times can significantly increase during the busy Christmas season and other promo sale periods. Moreover, home delivery can do more harm than good for last-minute shoppers who need an item delivered on a specific day like Christmas, Birthday, or Anniversary.

For those last-minute customers and customers with urgent needs, Click and Collect is the perfect alternate solution to home delivery. 

The Click and Collect model has an element of instant gratification that the home delivery option doesn’t. This is why it appeals to those customers who want something urgently and doesn’t want to wait for the shipping. 

Click and Collect also gives the customer a great deal of certainty and control, knowing they can collect their purchase at a time that suits them, without the typical uncertainty of waiting for an order to be delivered.  

Upsell Opportunities

Another benefit of the Click and Collect model is that it helps to bring customers into your brick-and-mortar stores. 

And even though the customers are only there to pick up the products they’ve already purchased from your eCommerce store, you still have a good chance to upsell when they arrive to pick up their orders.

A report from IMRG also found that eCommerce brands with Click and Collect option have witnessed their customers spending more at the time of pick up.

Eliminates the Last Mile Expenses for Both

Shipping products to customers’ doorstep is one of the costliest aspects of an eCommerce business. On the other hand, Click and Collect is a lot less expensive compared to the traditional shipping method because it entirely eliminates the last mile expenses for both. 

The best part is that you can pass on these savings to your customers in the form of potential discounts, or reinvest them in your business.

Helps you Reduce Product Returns

A further benefit of Click and Collect is that it drastically reduces the instances and associated costs of product returns for an eCommerce business. 

For example, when customers choose Click and Collect over home delivery, they get a chance to try the product. Besides, if the item is the wrong colour or size, they could easily swap it with the right item at the time of pick up. 

Improved Shopping Experience

Consumers love the Click and Collect option because it’s convenient. They don’t necessarily have to wait for their orders to arrive. Instead, they know that their orders will be available at their nearest pickup location at a time convenient to them. 

As per Digital Commerce 360’s report, convenience is the number #1 reason over 50% of consumers prefer Click and Collect pickup, while the other 46% prefer it to save time. 

The lesson here is that the Click and Collect model improves the shopping experience significantly for online shoppers, leading to higher customer satisfaction and more sales!

Cons of Click and Collect Pickup

Cons-of-Click-and-Collect-Pickup

The Click and Collect Pickup has its own cons. And we suggest measuring them against the pros to determine if it’s the right fit for your eCommerce business.

Click and Collect Pickup Area

If you’ve brick-and-mortar stores that aren’t built for Click and Collect pickup, where are your customers going to wait? 

Having them wait at the normal checkout queue can sometimes become annoying for your Click and Collect customers, ruining the entire shopping experience. 

To avoid this, you can always create a dedicated Click and Collect pickup area. But you should be aware of the fact that it’s going to be a bit expensive and will affect the bottom line of your business. 

Requires Strong Technological Infrastructure

Implementing Click and Collect isn’t a child’s play. It requires a solid technological infrastructure that can manage account creation, order management, inventory tracking, and the point of sale. 

And you cannot manage everything using just a single piece of software. You need a powerful website, ERP, checkout, and warehouse systems that work in harmony with each other. 

Mandatory to Formulate In-Store Processes

In the traditional home delivery model, the order is usually delivered by a third-party eCommerce fulfilment service provider. But if you’re planning to offer the Click and Collect option, you’re going to have to bring that portion of the job in-house. 

To be specific, you’re going to need dedicated staff to man the POS stations. In addition, you’ll also need suitable warehouse processes for which you’ll have to train your staff. 

Most importantly, you’ll need to appoint a manager who will handle all of these in your eCommerce business.

How to Implement Click and Collect Pickup in your eCommerce Store

If, by now, you’ve finally decided to take the leap and implement Click and Collect Pickup in your eCommerce store, then congratulations! You have most certainly made the right choice.

Here’s a complete, step-by-step process you need to follow to implement Click and Collect Pickup in your eCommerce store.

step-by-step-process-for-implementing-click-and-collect-pickup-for-your-ecommerce-store

Step 1 - Develop Your eCommerce Website

In order to start offering Click and Collect Pickup, first, you’ll need to have a way to collect orders. 

Ideally, having your own eCommerce website is the most efficient and reliable way to accept Click and Collect orders.  

Alternatively, if you already have an eCommerce website, you just need to equip it with the ability to accept Click and Collect orders from your existing customers.

Step 2 - Enable Click and Collect at Checkout Page

Once your eCommerce website is up and running, the next step is to ensure that it is ready to accept Click and Collect orders.

Click-and-collect-checkout

To offer Click and Collect Pickup as one of the delivery methods, you need to enable it at the checkout page of your eCommerce website and mention the collection point address options for customers to choose their nearest location. 

Step 3 - Set Clear Expectations at Checkout

After enabling the Click and Collect delivery method at the checkout page, you should set clear expectations at the checkout. 

For this, you need to find out if your eCommerce platform lets you display custom information on the checkout page or not. If it does, you must leverage that opportunity to set clear expectations around the Click and Collect delivery method at your eCommerce website. 

Ideally, you should consider sharing details like:

  • When the order will be ready (ready in 2 hours, next business day, etc.)
  • How customers will receive notification that their order is ready to be picked up (Text, phone call, email)
  • Where the customers need to go for picking up their purchases (address of the pickup location)

Step 4 - Set Up an Internal Process

Once you have set clear expectations about the Click and Collect delivery method on your eCommerce website, the next step is to set up an internal process for managing the orders and how your customers pick up their purchases. 

Specifically, you need to set clear expectations around order turnaround times, order pickup deadlines, and instructions for customers to follow. 

Step 5 - Create Space in your Physical Store to Stock Orders

After setting up the internal process, it’s time to create space for Click and Collect orders in your physical store until they’re picked up by the customers. 

The most important thing to keep in mind here is to pick a space that’s both—easily accessible to your store staff and protected. This space could either be behind the checkout counter or designated space in the inventory room. 

If you decide to go with the inventory room option, make sure that your staff doesn’t leave the in-store shoppers unattended. Otherwise, it will increase the amount of time to help each customer, resulting in a poor Click and Collect shopping experience. 

Step 6 - Define the Click and Collect Procedure

Now that you’ve established how you’ll accept and fulfil Click and Collect orders, the next step is to determine how your customers will collect them. 

Ideally, you should have a separate line at the checkout counter in your store dedicated to Click and Collect orders. 

On the flip side, if you have a small store or employed a limited staff, integrating Click and Collect Pickup at your regular checkout counter can work equally well. Just have your staff keep the Click and Collect orders behind the checkout counter.

Whatever you decide between the two options, just make sure to put up clear signage to inform Click and Collect customers where to go and what to do for picking up their orders. 

Step 7 - Train Your Staff for Managing Order Distribution

Once you’ve set up the internal process and defined the Click and Collect procedure, the next step is to train your staff. 

Remember, training is a key element for making this omnichannel experience a success. This is why it’s absolutely necessary to train all your staff on the various processes and procedures. 

So, hold a few training sessions with your staff until you’re sure that they have sufficient knowledge of all the processes. 

Moreover, since your store staff will be interacting directly with the customers, they’ll be able to provide valuable insights on how to make the Click and Collect Pickup experience faster, smoother, and more efficient.

Step 8 - Gather Feedback & Take Action on it

After you’ve successfully implemented and fulfilled a certain amount of Click and Collect orders, we highly recommend gathering feedback from both, your customers and employees to further optimise the process.

While collecting feedback from in-store staff members is an easy feat. Collecting feedback from customers is a whole different game. If you’re not sure how to collect feedback from your customers, we recommend sending post-purchase email surveys.

They’re known to be the best way to collect feedback from customers mainly because they’re more likely to provide honest feedback if you ask within a few days of picking up the order.

This is, in fact, one of the best Click and Collect practices you need to adopt, which brings us to the next section of this post.

Click and Collect Best Practices for 2022

Click-and-Collect-Best-Practices

Click and Collect offers a supreme level of convenience to online shoppers. They can purchase an item from the online store and go to their nearest store location when it’s convenient for them to collect.

Because of this, plenty of eCommerce brands have started offering Click and Collect as a delivery method. However, we’ve noticed first-hand that there are still several things they could be doing to improve this delivery method. 

After all, it’s not enough to just offer it. The aim should be to offer it better than the rest. 

Here are the best Click and Collect practices we recommend for improving the Click and Collect process at your eCommerce store.

Offer Click and Collect as a Free Option

Most online shoppers prefer the Click and Collect delivery method not only because it’s convenient but also because it saves them money on shipping costs. 

Unfortunately, there are still many eCommerce retailers who charge their customers for collecting their orders in-store. But doing so only hurts their bottom line.

After all, high shipping costs are one of the primary reasons why online shoppers abandon the shopping cart at the checkout process. 

So, if you’re going to offer Click and Collect as one of the delivery methods in your eCommerce store, it’s best to offer it as a free option. 

Elevate Mobile Experience

According to a report by Ericsson & The Radicati Group, there are 6.64 billion smartphone users in the world as of today. More importantly, that number is forecasted to reach 7.33 billion by the year 2025.

Looking at this number, it’s clear that eCommerce retailers must up their game in terms of mobile experience in their online stores. Moreover, consumers nowadays expect the online and physical worlds to blend with one another seamlessly. 

So, make sure that the smartphone and even the tablet compatibility is a key priority in your eCommerce store’s customer experience. Additionally, Click and Collect must offer a seamless mobile user experience.

Communicate Relevant Information Clearly

While enabling Click and Collect in your eCommerce store is one thing. It’s more crucial to make this option clear for your customers. 

Put another way, make sure that message about Click and Collect Pickup is loud & clear when your customers arrive at the checkout page.

fleet-farm-click-and-collect-example

In addition to displaying custom information post-checkout page, make sure to send order update emails and SMS with relevant information to your customers.

Here are some of the transactional emails/SMS your customers should receive:

  • Order confirmation email
  • Welcome email (if customer subscribed to your newsletter)
  • Order updates
  • Ready for Pickup email (and SMS) with the pickup location address
  • Order pickup reminder email/SMS
  • Leave a review email

Leverage Local Pickup Points & Locker Services

As we mentioned earlier, Click and Collect is not only for eCommerce retailers with brick-and-mortar stores. eCommerce brands without physical stores can leverage local pickup points & locker services to offer Click and Collect among the standard delivery options. 

Collect Accurate Customer Data

Last but not least, make sure you collect important customer data (phone, email, etc.) during the checkout process. Otherwise, how else will you let your customers know that their order is ready to collect?

Initially, this may seem like not a big deal. But it can make a big difference when it comes to improving the Click and Collect process in your eCommerce store.

All in all, collecting accurate customer data allows you to keep your shoppers up to date, and enhances overall CX & customer satisfaction, giving a boost to your Click and Collect sales.

With that said, let’s also check out a few other ways you can boost Click and Collect sales in your eCommerce store.

Bonus: How to Boost Click and Collect Sales in Your eCommerce Store

The Click and Collect model is itself an effective way to boost eCommerce sales because it enhances convenience by saving on the delivery time and shipping expenses that are usually associated with eCommerce shopping.

But if you’re already offering the Click and Collect Pickup option, there are various ways you can leverage it to boost your sales even further.

Below are the 5 powerful ways to increase Click and Collect sales in your eCommerce store.

Promote it on the Checkout Page

To boost your Click and Collect sales, you need to ensure that you’re promoting it aggressively. One of the best ways to promote Click and Collect in your eCommerce store is the checkout page.

Ideally, you should highlight the Click and Collect as a free delivery option. It will most certainly increase customers’ appeal and confidence who do not want to either wait for home delivery or pay the shipping fees on their order.

Add it to the Storefront

The checkout page isn’t the only place you should promote the Click and Collect delivery option on your eCommerce store. 

Adding an eye-catching website popup can help to grab passerby’s attention and inform them about the fact that your store now offers the Click and Collect Pickup option.

click-and-collect-example-by-linkedin

Additionally, make sure to put up information or a link to a video that shows how to place a Click and Collect order in your eCommerce store.

Add it to the Services Section of your Store

If your eCommerce store has a ‘Services’ section, you should most definitely include Click and Collect listed among your services. 

On this page, you can consider describing how Click and Collect works with a dedicated FAQ section to answer the most common questions to promote it among your customers.

Promote it on Social Media

If your eCommerce brand is active on social media platforms and your customers regularly engage with your posts, you must promote Click and Collect by scheduling promotional & reminder posts about it regularly.

Promote it in Email Newsletters

Email newsletters are a highly underestimated yet profoundly effective promotional channel in the world of online marketing. 

If you regularly send email newsletters to your existing customers, it might be a good idea to inform your email subscribers about Click and Collect in one of your newsletters.

Alternatively, you can even run a dedicated email campaign that focuses on promoting Click and Collect in your eCommerce store. 

Conclusion

The trend of Click and Collect is growing at a rapid pace. It’s a great option for retailers to give their customers what they want when they want it. 

In other words, it offers customers an effective way to shop online without having to wait for days to have their purchased products in their hands. They can simply drive to the nearest pickup location and save a lot of time and shipping expenses.

For eCommerce retailers, it’s an incredible opportunity to increase foot traffic at their physical stores and cross-sell and up-sell as customers are more likely to add items to the shopping basket in this case. 

Frequently Asked Questions (FAQs)

What is Click and Collect?

Click and Collect is a hybrid eCommerce model in which customers purchase products online and pick them up in-store or at a pickup point.

How does Click and Collect work?

In Click and Collect, a customer places an order online but travels in person to the selected pickup location to collect the purchased products. The pickup location could be either a retail store, popup shops, warehouses, etc.

Why is Click and Collect popular?

Click and Collect is popular because it is convenient for customers who want to either receive their orders quickly or simply avoid paying shipping expenses altogether. 

Is Click and Collect Reliable?

Click and Collect is most certainly reliable and a more convenient method for both customers as well as Ecommerce brands. Customers can save time and money on shipping charges, while it helps Ecommerce brands to drive more people into their physical stores and leverage impulse purchases during the pickup process.

How to set up Click and Collect?

To set up Click and Collect in your Ecommerce store, you’ll need to integrate a designated ordering system, define clear procedures, create space in your physical store, and train your employees about the procedures.

 

Image Source: collectplus.yodel.co.uk,  FleetFarm.com,  LinkedIn

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