Click-and-collect parcel lockers are the new innovative tool giving retailers a leg-up in customer experience strategy
Retailers today are increasingly engaging consumers outside of traditional shopping channels, especially to meet the needs of shoppers who want convenience and flexibility. Buy Online, Pick-Up In-Store (BOPIS) has been recognized as the industry’s latest value proposition when creating a seamless shopping journey. Unfortunately, U.S. merchants remain a step behind their global counterparts when it comes to rolling out this service. According to an OrderDynamics survey, 37.6% of retailers across seven countries offered click-and-collect BOPIS services in 2018, while only 27.5% offered BOPIS in the US.
With BOPIS, instead of choosing home delivery at checkout, shoppers can opt to pick up their purchases at the nearest brick-and-mortar store. This allows customers the convenience of online shopping while bypassing the frustration of pricey shipping costs, long lead times, missed deliveries and stolen packages. Purchases can be available as soon as an hour after clicking “buy.” Overall, this service is part of a larger omni-channel shopping trend where retailers offer in-store, online and mobile channels to make a purchase.
While the U.S. has lagged behind many countries in BOPIS adoption, the number of retailers making concerted catch-up efforts has climbed 5.7 percentage points since 2017. Many companies today offer a click-and-collect strategy but are searching for an even higher level of convenience. As the next wave of intelligent innovations, parcel lockers are an automated electronic locker system that securely stores packages for easy consumer retrieval. Retailers who install parcel lockers adjacent to or within a brick-and-mortar store not only benefit from enabling customers to pick up their e-commerce deliveries on their own schedule, but also from increased foot traffic as customers go into the store to make additional purchases.
Retailers are also using smart lockers as a way to differentiate their brand while creating a positive customer experience. In a recent Kibo Commerce survey, 67% of US internet users said they had used BOPIS in the past six months. Not surprisingly, the leading reason why was to avoid shipping costs, cited by 86% of respondents. But 85% said the ability to pick up the product when convenient was nearly as important. For the consumer, parcel lockers are an answer to the preferences of the modern, convenience-driven consumer. For the retailer, lockers help their growing e-commerce business and create a new way to manage and streamline their click-and-collect process.
In an instant-everything world, subscription-based retailers like Amazon Prime continue to set the bar with 2-day “free” shipping. Roughly three-quarters of U.S. consumers say that the choice of free shipping greatly impacts their purchasing decisions when shopping online. Moreover, about 1 in 4 shoppers will buy from a retailer that offers free shipping even if it means making a purchase at a slightly higher price. With parcel lockers, retailers can significantly cut down on shipping time and costs, and customers don’t have to compromise on their buying experience. Convenience is key, and with lockers, customers experience no lines, easy package retrieval and easy returns.
Decathlon, a leading sporting goods retailer with a network of more than 300 stores in France and over 1,100 stores worldwide, recently deployed Packcity Parcel Lockers to 20 of their stores. The results thus far are staggering, including a 50% reduction in freight costs and 25% of customers buying additional products after pick-up. Decathlon can now offer free in-store pick-up while eliminating time consuming tasks for both customers and employees. With lockers, they are able to create a new shopper experience while saving time, labor and money.
As the demand for online shopping continues to accelerate, so do customer expectations. Customers want to receive their order on the day they expect it, making delivery a critical element of the total e-commerce experience. Retailers investing in cutting-edge BOPIS solutions like Packcity Intelligent Parcel Lockers ensure their relevance while making the shopping experience easier for customers. The parcel locker trend will continue to help retailers differentiate themselves from an increasingly saturated market while optimizing customer satisfaction. See how Packcity Parcel Lockers can set your brand apart, save valuable time, labor and money and launch you ahead of the competition.
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