The Benefits of Click and Collect to Retailers and Customers

How many times have you gone online shopping only to discover that the shipping costs were comparable to the cost of one of your purchases?

You probably thought to yourself:
➔ Is it worth making bigger online purchases to earn free shipping?
➔ Should I use the post office or courier service?
➔ Better yet, is there a location close to me where I may pick up the order myself, and avoid delivery costs?

As the title suggests, we will discuss how Click and Collect strategies might help with various issues in the retail industry, as well as highlight some of the benefits.

But what is ‘Click and Collect’ exactly? How does click and collect work? Before delving into the benefits of click and collect for each party involved in the process, let's answer a few questions.

If you own a retail business, this information can help you decide whether or not to implement this strategy. If you already use it, keep reading to learn how to get the most out of it!

What is Click and Collect?

It is a 'buy online, pick up in store' service that allows customers to pick up their online purchases at a physical store or another location specified by the retailer.

In other words, it offers clients a mix of online and traditional shopping, as well as the option to shop by appointment.

In recent years, retailers have focused on digitising their services in order to meet the needs of an increasing number of online shoppers, including the ability to shop by appointment or collect orders in a similar fashion.

How Does Click and Collect Work?

There are several ways of implementing this strategy, depending on resources and demands.

First of all, the purchased items can be picked up at the store itself, in a locker, at a collection point, or in a parking lot (also known as ‘curbside pickup’).

Another thing to consider is the automated communication with the client. If you use software to enable shopping by appointment, you have some of the work cut out for you because you will be able to offer shoppers the option to schedule collection times through the booking platform.

How does click and collect work, in a nutshell?
(based on FitSmallBusiness.com)

Do I Need ID for Click and Collect?

When picking up the ‘click and collect’ order, the customer must carry some kind of identification with them, such as:

• A debit or credit card with the name of the person who placed the order
• Photographic ID
• The booking confirmation

If someone else picks up the order for them, they would also need ID and the booking confirmation.

How Long Does Click and Collect Take?

As with any online shopping experience, processing and delivery can take one or several working days. If the items are already in stock, then the shop just has to get the order ready for the customer, usually on the same day.

What is more important, however, is how long does click and collect take in your shop. That depends on your business model, resources, and policies. For example, if you don't own a brick-and-mortar store, then you would have to set up lockers or pop-up shops—which would take longer than delivering the order to the store’s parking lot. You must also decide how long you will keep unclaimed orders and share your policy with your customers so they know what to expect.

In the past few years, an increasing number of Australian retailers have realised that Click and Collect is not just a nice-to-have delivery option, but a necessity for increased customer experience.

There are many benefits of click and collect for retailers, including the following:

1. You can provide a broader product selection online;
2. Customers can afford to buy more if they don’t have to pay for delivery—some even make more in-store purchases;
3. It’s faster and less expensive than managing home delivery;
4. You can avoid some delivery concerns because you’re not relying on a third-party transportation service;
5. You cut carbon emissions;
6. You keep up with your competitors who invest in various digital business tools such as shopping appointment software.

Target, a well-known American department store chain, is an excellent case study. In 2021, they published a report about their holiday sales, claiming a combined 193 per cent increase in drive-up and order pick-up sales. Essentially, their click and collect strategies had become critical services throughout the holiday season.

There are a few important benefits of click and collect that customers enjoy:

Source: 2019 Global Shopper Trend Report, iVend Retail

1. It’s Cost-Effective

You don’t have to pay for shipping, and you also don’t have to buy more things to avoid delivery costs. Besides, each extra item that you don’t urgently need can feel like you’ve lost a battle with consumerism—at least from the perspective of a mindful consumer.

2. It Saves Time

Click and collect combines the best of both worlds: you can browse a store from the comfort of your own home, and then go for a quick walk in your neighbourhood to pick up your order at your earliest convenience. Not having to wait in line thanks to shopping by appointment is one of the most important benefits of click and collect.

3. It’s Convenient

Convenience can encompass certain aspects like:
✔ You can take your time to compare products and decide what to buy;
✔ You don’t rely on the courier’s availability;
✔ You check if the items are in stock before going out to buy them;
✔ You can use it to make free and easy returns.

4. It’s More Eco-Friendly

Not needing special transportation from the warehouse to the customer’s door—especially if the pick-up location is within walking distance of their home—is one of the benefits of click and collect for the conscious consumer. In fact, according to a 2018 Nielsen report, “The majority (73%) would definitely or probably change their consumption habits to reduce their impact on the environment.”

As with any technology used for the first time, one can expect some logistical and marketing challenges:

We hope we were able to answer your burning questions, such as ‘what is click and collect?’ and ‘how does click and collect work?’. It may also give you ideas for how to implement a strategy if customers inquire, ‘do I need ID for click and collect?’ or whether they can use your shopping appointment platform for this service.

Most importantly, the article has explained the benefits of click and collect from the standpoints of retail business owners and different types of customers.

We at SocialQ enjoy a good challenge, so book a call with us if you need to streamline your click and collect booking procedure.