Since 2014, the online retail sector has experienced exponential growth. By 2019, the global market value reached AUD 5.09 trillion, compared to AUD 19 trillion in 2014. This rapid transformation has led to increased complexity for brands in managing shipping and store fulfillment.
As e-commerce sales surge globally, staying current with delivery demands is a challenge. Dave Hughes, GM e-Commerce at Briscoe Group in New Zealand, highlights that this growth trend is set to continue, particularly in the Australian market. Online shopping is becoming a larger proportion of retail sales, creating challenges for keeping stores relevant while managing the complexities of online fulfillment.
The Future of Retail: What’s Next?
While drone delivery is gaining traction—such as The Iconic’s recent debut in Canberra—retailers are under pressure to find cost-effective solutions for meeting the rising expectations of same-day delivery. One viable solution that’s gaining global traction is Click & Collect.
Although not a new concept, Click & Collect is now being widely adopted by retailers worldwide, offering a streamlined approach to managing customer orders.
Understanding Click & Collect
Click & Collect is an omnichannel strategy that allows customers to make purchases online and pick them up in-store. Retailers have several variations to choose from, including:
- In-Store Click & Collect
- In-Store Lockers
- Remote Pickup
- Ship-to-Store
Successful Implementations
Major retailers like Zara, Bunnings, and Nordstrom have effectively implemented Click & Collect to enhance customer experience and streamline fulfillment.
- Zara offers a Click & Collect locker system that enables customers to collect their orders in-store within seconds.
- Bunnings launched its Click & Collect service in 2019, allowing customers to purchase items online and pick them up in-store, contributing significantly to Wesfarmers’ overall earnings.
- Nordstrom provides both curbside and in-store Click & Collect, giving customers flexible options for receiving their orders.
Pros and Cons of Click & Collect
Before adopting Click & Collect, businesses must weigh the advantages and challenges:
Pros:
- Reduces parcel delivery costs
- Gives customers greater control over delivery
- A cost-effective alternative to free shipping
- Simplifies the handling of bulky items
Cons:
- Order picking may increase operational time
- Potential hidden costs behind the service
- Limited availability of lockers for customer pickup
Key Considerations for Retailers
As Click & Collect becomes a staple of online shopping, retailers need to ensure they are fully prepared:
- Inventory Management: Staff must be trained to handle increased stock and maintain a smooth customer experience.
- Space Allocation: Retailers must allocate sufficient space for Click & Collect operations, possibly including in-store lockers.
- Clear Signage: Proper signage is essential to direct customers to the collection point.
- Staff Training: Employees should be well-versed in the Click & Collect process to provide seamless service.
Conclusion
Click & Collect is rapidly becoming a preferred option for retailers to bridge the gap between rising delivery demands and cost-effective fulfillment. While there are operational challenges, this strategy offers a viable solution for brands looking to stay competitive in a changing retail landscape. If your brand struggles with store fulfillment, implementing Click & Collect could be a strategic move to enhance customer satisfaction and operational efficiency.
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