The Advantages of Click & Collect
Cost Reduction:
Reducing the final bill for the customer: in 99% of cases, there are no delivery fees when a customer chooses this pickup method. Since shipping costs can represent up to 25% of product costs, this is a significant saving. It is a clear competitive advantage when your stores are near the final customer.
Opportunities for Additional Sales:
Many retailers offer parcel pickup services for carriers because the customer’s visit to your stores raises brand awareness and promotes your products. When the customer comes to pick up their order, your sales staff can recommend related or new products, thus generating additional sales.
Attraction for Proximity Shopping Enthusiasts:
Known as “ROPO” (Research Online, Purchase Offline), this shopping habit involves researching online to make the purchase in-store. Proponents justify this approach by its quick purchase process, reassurance from an unfamiliar brand, or the need to see/touch the product. Although ROPO differs from Click & Collect, its prerequisites are the same: highlighting stores on your website, displaying stock, showing hours, etc.
Environmental Benefits:
In the distribution chain, the last mile is the most energy-intensive and polluting. Not to mention that packaging is likely to be reduced due to final handling by the buyer. Click & Collect can thus be seen as a virtuous and ecological approach.
The Disadvantages of Click & Collect
The main disadvantage of Click & Collect lies in the need for suitable IT tools and processes. A solid technological infrastructure is essential to efficiently manage this distribution method.
The Necessary IT Tools for Click & Collect
As mentioned earlier, the real challenge in offering Click & Collect is the capacity of your IT tools to manage this process. To implement a successful Click & Collect service, several IT tools are essential:
E-commerce Site (CMS):
- Display in-store stock: not mandatory but providing this information reassures the customer and may even prompt a direct visit to the store instead of ordering online.
- Offer in-store pickup as an option in the cart in addition to traditional delivery methods. If you have multiple stores, the buyer should be able to select the closest one.
Order Management System (OMS):
The order management tool, when importing orders from your CMS, must assign the order to the store for processing.
An alternative option is to prepare the order in your main warehouse and then send it to the store. In this case, the delivery address is changed to the store while retaining the final customer’s name.
Warehouse Management System (WMS):
If you choose final order consolidation in-store, your WMS tool must ensure that all products are available in-store.
If not, it must execute transfer orders from the central warehouse to the store, or from another store.
Point of Sale System (POS):
The POS system must be the unique IT tool in your stores, used daily by your teams, playing two key roles:
- Alerting you when a Click & Collect order involves products in stock in your store so you can set them aside quickly to prevent another customer from buying the product.
- Providing the list of Click & Collect orders so you can validate their pickup when the customer arrives.