Shopify Ecosystem

Omnichannel Retail Challenges In The Click-And-Collect Era

omnichannel-retail-challenges-in-the-click-and-collect-era

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The retail industry was hit hard by COVID-19. Some retailers, particularly those with robust ecommerce solutions already in place, adapted and served their customers through digital channels and click-and-collect options like BOPIS (buy online pickup in store) and curbside pickup. 

Retailers who responded to the shift with speed-to-market were rewarded for their agility. Though many faced difficult layoffs and closures. Roughly 9.6 million Americans lost their jobs in 2020, and the unemployment rate increased from 3.8% in 2019, to 8.6% in 2020. As well, 12,200 stores closed their doors for good. 

On the other hand, ecommerce sales surged. Online retailers enjoyed an increase of $244.2 billion or 43% in 2020, rising from $571.2 billion in 2019 to $815.4 billion in 2020. But even digital brands were challenged with supply chain interruptions and inventory issues. One survey revealed only 2% of brands felt completely ready for the pandemic, where 57% of companies said they had serious interruptions, and 72% reported a negative effect. 

Omnichannel challenges

Omnichannel brands were faced with the task of turning around effective BOPIS and curbside pickup solutions, practically overnight in some cases. Learn how Staples Canada implemented a curbside pickup solution in just 72 hours. 

Some challenges retailers faced in implementing click-and-collect solutions included:

  • Technological – Implementing the technology stack necessary to support a seamless click-and-collect offering. 
  • Marketing – Effectively communicating the solution to customers and achieving customer uptake. 
  • Training – Getting employees up-to-speed within the click-and-collect ecosystem with limited resources. 

Despite these challenges, BOPIS boasted a 106.9% increase in 2020, with the expectation it would continue to increase over 15% annually. Reports also indicate more than 50% of consumers plan on using BOPIS frequently in the future, even with eased restrictions. According to one survey 56% of shoppers have used click-and-collect services six or more times in recent months, with 8.2% using them 20+ times. 

Among reasons shoppers continue to choose click-and-collect options, Fit Small Business cites convenience as the leading reason (50%), avoiding going to a store (47%) and saving time (46%) as the top reasons, with safety only accounting for (35%). 

These numbers suggest regardless of COVID-19, click-and-collect could be here to stay—that people find options like BOPIS and curbside pickup convenient alternatives to traditional brick-and-mortar retail. 

Disrupted revenue streams

Even for retailers who have made the shift to click-and collect, new challenges have arisen within this model. One significant revenue stream that has been affected for brick-and-mortar retailers is impulse purchasing, both in-store and at the checkout.  

One scenario involves a customer entering a store with a purchase in mind, but as they browse, other items pique their interest and they end up filling a larger cart. Then, while waiting in the checkout line, they are presented with an assortment of high-margin items geared towards impulse purchasing — from drinks and candy bars, to magazines and batteries. 

Over 87% of US shoppers make impulse buys, and more than 50% of all grocery is sold because of impulsiveness. Concurrently, More than half of US shoppers admit to spending more than $100 on an impulse buy, and 8/10 impulse purchases are at brick and mortar stores. 

This has created a new challenge for retailers: How can they create valuable impulse purchase opportunities, and provide added customer convenience, for customers who aren’t even leaving their vehicle to come into the store? 

We have a solution. 

Accelerate incremental revenue 

Bold Commerce and Knit agency have teamed up to create a solution for retailers to drive impulse purchases before and during the checkout phase of curb-side pickup orders. 

Curb-Up enables retailers to show upsell and cross-sell offers to customers during the pick-up phase of their order — a drink, a snack, a pack of batteries or other accessory. Once the customer accepts the offer, it is delivered to them along with their initial purchase. 

Recapture the high-margin impulse purchases lost with the growth of curbside checkout while adding customer convenience.  

Ready to drive more incremental revenue with impulse purchases? 

EARN MORE

This originally appeared on Bold Commerce and is made available here to cast a wider net of discovery.
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