Since 2014, online retail has experienced significant growth. By 2019, the market reached AUD 5.09 trillion, compared to AUD 19 trillion in 2014, reflecting a major transformation in just five years.
With the rise in global e-commerce sales, brands are finding it increasingly challenging to keep up with shipping and store fulfillment demands. Dave Hughes, GM e-Commerce at Briscoe Group in New Zealand, observes that this growth trend is expected to continue in Australia, mirroring global patterns. As retail growth slows to single digits, online shopping is set to occupy a larger share of the market. This shift creates a new challenge: how to keep stores relevant while managing the complexities of online fulfillment.
The Next Big Trend in Retail
While drone delivery, like The Iconic’s recent debut in Canberra, is generating buzz, it will take time before it becomes mainstream. Meanwhile, retailers need faster, cost-effective ways to deliver goods to customers. With same-day delivery becoming the norm, the strain on retailers is increasingly evident.
A practical solution gaining traction is Click & Collect. While not a new concept, it is now being widely adopted by retailers worldwide as a means of providing fast, flexible delivery without the high costs of home delivery.
What is Click & Collect?
Click & Collect is an omnichannel approach where customers shop online but collect their purchases in-store. Retailers can choose from several options, including:
- In-Store Click & Collect
- In-Store Lockers
- Remote Pickup
- Ship-to-Store
Retailers Leading the Way
Several retailers are successfully implementing Click & Collect to enhance customer convenience:
- Zara, the Spanish fast-fashion retailer, has introduced Click & Collect lockers in its Hamburg flagship store, allowing customers to collect online orders in just 15 seconds by scanning barcodes. The store’s lockers hold up to 700 parcels, but access is limited to store hours.
- Bunnings, an Australian home improvement retailer, launched its Click & Collect service in 2019. It enables customers to order online and pick up their items from Victorian warehouses, contributing significantly to the company’s earnings.
- Nordstrom offers both curbside and in-store Click & Collect options. Curbside service allows customers to have their purchases delivered directly to their car, while in-store collection follows the traditional model of retrieving items inside the store.
The Pros and Cons of Click & Collect
Before adopting Click & Collect, businesses must assess both the benefits and potential challenges:
Pros:
- Reduces delivery costs
- Offers customers more control over how they receive orders
- Provides a cost-effective alternative to free shipping
- Simplifies handling of bulky items
Cons:
- Picking and preparing orders may increase operational time
- Hidden costs may arise with service implementation
- Limited locker space restricts customer pickup times
Key Considerations for Retailers
Click & Collect is becoming a standard offering in online retail. In fact, research shows that four in ten customers prefer this method of delivery, and in 2018, over 80% of online shoppers chose to pick up their purchases in-store. However, retailers should take several factors into account before integrating this strategy:
- Inventory Management: Staff must be trained to handle the increased stock load efficiently while maintaining a positive customer experience.
- Space Allocation: Adequate space must be designated for Click & Collect operations, whether that involves lockers or dedicated areas within the store.
- Clear Signage: Customers should be guided seamlessly to collection points to avoid confusion and frustration.
- Staff Training: Employees must fully understand the Click & Collect process to ensure smooth operations and positive customer interactions.
Conclusion
Click & Collect is becoming an essential solution for bridging the gap between rising customer expectations for fast delivery and the high costs of traditional shipping. While there are challenges to implementing this strategy, it offers a viable way for retailers to stay competitive in the evolving retail landscape. For brands struggling with fulfillment, Click & Collect may be the next step in enhancing customer satisfaction and operational efficiency.
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