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What is BOPIS (Buy-Online, Pickup In-Store) in Retail?

December 18, 2024 / 10 minute read / By Zoya Naeem

Discover how BOPIS can help you improve sales and customer satisfaction. And how using the right retail tech can help.

Did you know that 85% of shoppers who use BOPIS make extra purchases when they visit the store? For retailers, it’s not just about offering convenience -it’s a golden opportunity to drive sales and increase foot traffic.

As we all know, retail has always been about adapting to customers’ needs. In today’s fast-paced world, customers want flexibility and speed. That’s where BOPIS comes in—short for Buy Online, Pick Up In-Store. It is a sales strategy that offers the best of both worlds—the ease of online shopping and the immediacy of in-store pickup.

Though BOPIS gained traction before the COVID-19 pandemic, this trend is gaining momentum today, especially among millennials who value time and convenience. Research shows that by 2025, the U.S. click-and-collect market (which includes BOPIS) is projected to soar past $150 billion, which makes it vital for retailers to understand BOPIS and how it’s changing the future of retail.

In this guide, we will be talking all about it, including:

What Exactly Is BOPIS In Retail, and How Does It Work?
Benefits of BOPIS For You and Your Customers
3 BOPIS Challenges and How to Overcome Them Using The Retail Technology

What Exactly is BOPIS in Retail, and How Does It Work?

Buy Online, Pay In-Store is an ideal strategy for retailers. It’s exactly what it sounds like a shopping method that lets customers order online and collect their items from a pickup location once they are ready. It’s the perfect blend of e-commerce convenience and the instant gratification of brick-and-mortar shopping.

Here’s how it works:

Order Online
A customer browses your website or mobile app, selects products, and places an order.
Get Notified
Once the order is ready, the customer gets an alert via email, text, or app notification.
Pick Up In-Store
The customer heads to the store, skips the checkout lines, and collects their purchase from a dedicated pickup area.

For retailers, BOPIS isn’t just a customer perk -it’s an absolute game-changer. It bridges the gap between online and in-store shopping, allowing you to cater to tech-savvy shoppers while still driving foot traffic. This means more opportunities for upselling, cross-selling, and connecting with customers face-to-face.

And the best part? It’s a win-win.

Customers save on shipping costs and get their items faster, while retailers save on logistics and gain a chance to increase in-store sales.

Take Nordstrom as a prime example. In 2017, the retailer launched its Nordstrom Local program, specifically designed to cater to BOPIS customers. The results speak for themselves, in the first quarter of 2022, 39% of Nordstrom’s total sales came from digital channels, with BOPIS orders accounting for 10% of Nordstrom.com demand, accounting for a 2% increase over the previous year.

Erik Nordstrom, the company’s CEO, credits BOPIS as a key driver of their digital growth strategy, enhancing customer convenience and streamlining operations.

Pro Tip:

To deliver a seamless BOPIS experience, consider leveraging a robust all-in-one retail POS system like Stratus Enterprise. These advanced systems connect your online store with your in-store operations in real time, ensuring that inventory is always up-to-date, orders are processed efficiently, and customers enjoy a hassle-free experience.

With tools like Stratus Enterprise, you can offer same-day pickup options, allowing customers to buy or reserve online and collect their orders in-store, curbside, or even at pickup lockers, on their schedule. Real-time connectivity ensures accurate notifications and swift service via text or mobile apps.

Benefits of BOPIS For You and Your Customers

Today, consumers are more interested in shopping experiences that offer both convenience and value, saving them time and money without sacrificing quality. As a result, more and more retailers are adopting BOPIS (Buy Online, Pick Up In-Store) to stay competitive and cater to the changing expectations of modern shoppers.

In fact, research shows that 83% of consumers now consider shopping convenience more important than it was just five years ago. Even more compelling, 70% of respondents say BOPIS improves their shopping experience, highlighting how integral this hybrid model has become in shaping modern retail.

Convenient Mobile Shopping available for Customers

For brick-and-mortar retailers, BOPIS provides an excellent way to compete with e-commerce giants like Amazon, offering a unique advantage that online-only stores can’t match -the ability to serve customers in person while enhancing their online shopping experience. It’s an essential part of an omnichannel strategy that strengthens customer loyalty and drives more sales.

So, how does BOPIS benefit retailers?

Increased foot traffic and sales
One of the biggest advantages for retailers is the potential to increase sales and store traffic. When your customers visit your store to pick up an online order, it creates an opportunity for them to browse and discover additional items.
Reduces shipping costs
Instead of paying for individual deliveries from your distribution center to each customer, you can ship orders in bulk to your retail locations, cutting down on those costly last-mile delivery fees. This also speeds up fulfillment times for BOPIS orders, as customers can get their items faster without waiting for shipping.
Significantly improves inventory management and fulfills orders
By integrating your online and in-store systems, you can access real-time inventory updates, ensuring that you’re always aware of stock levels, whether the items are in your warehouse or your physical store. This helps you fulfill orders more efficiently, choose the fastest option for customers, and get valuable insights into customer demand.

What does it mean for customers?

Instant gratification
Shoppers can avoid the frustration of waiting for shipping by simply picking up their purchase in-store, often the same day they buy it.
The certainty that the items they want are in stock
With BOPIS, the order is pre-packed and ready for collection, which means no wasted trips or disappointment if the product isn’t available. It’s a far more reliable system than the unpredictability of home delivery, especially when dealing with high-demand items.
Simplifies returns and exchanges
If an item doesn’t fit or isn’t quite what the customer expected, they can process the return or exchange on the spot rather than dealing with the delays of shipping it back. This hands-on service not only resolves issues faster but also strengthens the relationship between the customer and your store.

Extend BOPIS with Curbside Pickup Option

Building on the benefits of BOPIS, many retailers are now incorporating curbside pickup to meet the growing demands for speed, convenience, and flexibility. This option takes the convenience of Buy Online, Pick Up In-Store to the next level by providing a contactless option that ensures shoppers get what they need with minimal effort.

By using tools like buy online pick up in store software, retailers can easily streamline the curbside pickup process and improve overall efficiency. This technology often comes integrated with modern retail systems, enabling real-time updates for customers about when and where their purchases are ready for collection.

With automated text alerts and seamless communication, for retailers, this approach not only boosts customer satisfaction but also provides operational flexibility to stay competitive in today’s retail landscape.

Explore: How Curbside Pick Up Solutions Can Improve Retail Efficiency

BOPIS Challenges and How to Overcome Them Using the Right Retail Technology

While BOPIS offers incredible potential to enhance customer satisfaction and boost sales, it has its challenges. Retailers need to be prepared for the common hurdles that come with this omnichannel strategy, which, if not addressed, can disrupt the smooth, seamless experience shoppers expect.

Whether it’s delays, inventory hiccups, or logistics issues, these obstacles can quickly become barriers if not properly managed.

Let’s take a closer look at the top three challenges you may face with BOPIS and how the right retail technology can help you overcome them, creating an experience that works for both you and your customers:

1. Order fulfillment and in-store space issues

As your BOPIS service takes off, you may quickly find yourself overwhelmed with orders. While it’s a great problem to have, it can lead to congestion in-store, especially if multiple customers are coming in to pick up their orders at the same time. This could cause long wait times or a disorganized experience that frustrates shoppers.

To prevent these bottlenecks, a robust POS system can streamline your operations by helping you assign dedicated staff to fulfill BOPIS orders, freeing up your team from juggling customer service tasks. You can also create a designated area for pickups, keeping things organized and ensuring a smooth flow of customers. Plus, with real-time inventory and order tracking, you can prevent bottlenecks and keep customers moving smoothly through their pickup process.

2. Inventory synchronization

One of the biggest risks with BOPIS is the possibility of inventory discrepancies. If your in-store stock isn’t properly synced with your online platform, customers may place orders for products that are currently out of stock, leading to poor customer experiences and a lot of wasted time. You don’t want to be that retailer sending out email apologies and offering out-of-stock items as substitutes.

To avoid this, you should use an all-in-one retail POS solution that ensures real-time synchronization between your physical store and online channels. With up-to-the-minute stock updates across all platforms, you can fulfill orders, guaranteeing product availability and a seamless experience for your customers. This real-time data access reduces costly mistakes and helps you always deliver on your promises.

3. Lack of customer awareness

Launching BOPIS is only half the battle. If customers don’t know they can shop online and pick up in-store, you won’t see the benefits of this omnichannel strategy. You’ll need to get the word out so shoppers understand and take advantage of your BOPIS offering.

You can create awareness with a targeted marketing campaign through email, social media, and in-store signage. Use your website and mobile apps to promote BOPIS and consider offering exclusive deals to customers who use the service. When customers see how easy and convenient it is to pick up their purchases, they’ll be more likely to adopt the model, driving both foot traffic and online orders.

Leveraging email marketing has proven to be one of the most effective ways to communicate the value of BOPIS. By crafting personalized messages, you can build a stronger connection with your customers and drive engagement (Download the FREE eBook to learn how)

Ready to Embrace the Future of Retail with BOPIS? Start with Celerant.

If you want to stay competitive in today’s retail landscape, embracing BOPIS is wise. Not only does it improve customer satisfaction and increase foot traffic, but it also appeals directly to millennials, who crave convenience and instant gratification. Now is the perfect time to adopt this strategy and set your business up for long-term success.

At Celerant, with our all-in-one retail POS system, you can streamline your BOPIS operations, providing a hiccup-free shopping experience that integrates in-store and online orders. Our retail system helps you manage inventory, fulfill orders, and keep customers happy, all while reducing costs and improving operational efficiency.

Interested in seeing our retail system in action?

Request a Demo

What is BOPIS (Buy-Online, Pickup In-Store) in Retail?

Discover how BOPIS can help you improve sales and customer satisfaction. And how using the right retail tech can help.

What Exactly is BOPIS in Retail, and How Does It Work?

Pro Tip:

Benefits of BOPIS For You and Your Customers

So, how does BOPIS benefit retailers?

Increased foot traffic and sales

Reduces shipping costs

Significantly improves inventory management and fulfills orders

What does it mean for customers?

Instant gratification

The certainty that the items they want are in stock

Simplifies returns and exchanges

Extend BOPIS with Curbside Pickup Option

BOPIS Challenges and How to Overcome Them Using the Right Retail Technology

1. Order fulfillment and in-store space issues

2. Inventory synchronization

3. Lack of customer awareness

Ready to Embrace the Future of Retail with BOPIS? Start with Celerant.

Retail Resources You May Be Interested In…

5 Tips For Retailers For A Successful Black Friday & Cyber Monday

Top 5 POS Systems for Small Businesses

How Retailers Can Navigate Through An Endless Sea of Customer Types

About Celerant

Learning Center

Partners

What is BOPIS (Buy-Online, Pickup In-Store) in Retail?

Discover how BOPIS can help you improve sales and customer satisfaction. And how using the right retail tech can help.

What Exactly is BOPIS in Retail, and How Does It Work?

Benefits of BOPIS For You and Your Customers

So, how does BOPIS benefit retailers?

What does it mean for customers?

Extend BOPIS with Curbside Pickup Option

BOPIS Challenges and How to Overcome Them Using the Right Retail Technology

1. Order fulfillment and in-store space issues

2. Inventory synchronization

3. Lack of customer awareness

Ready to Embrace the Future of Retail with BOPIS? Start with Celerant.

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Retail Resources You May Be Interested In…

5 Tips For Retailers For A Successful Black Friday & Cyber Monday

Top 5 POS Systems for Small Businesses

How Retailers Can Navigate Through An Endless Sea of Customer Types

About Celerant

Learning Center

Partners