Click & Collect: Giving Your Customers More Options

In this article, you’ll find out everything there is to know about click-and-collect, what the advantages for both customers and sellers are, and how to offer it in your online shop (even if you don't run a local shop!).

Nowadays, online and offline shopping aren’t two different things anymore. Due to the coronavirus pandemic, this somewhat symbiotic relationship has deepened even more.

Offering click and collect simply means “buy online and pick it up in-store”. This service allows sellers not only to facilitate logistics, but also to reach more new consumers, many of whom are increasingly inclined to try out new purchasing technologies while shopping.

What is click & collect?

Click-and-collect is a hybrid online and offline purchasing method that allows customers to select and purchase items online and then collect them in a store or at another access point.

Since the outbreak of the coronavirus, click-and-collect has become one of the most popular delivery methods to use across Europe.

With a huge increase in online purchases in 2020, the share of click-and-collect spending has also doubled.

How does click & collect work?

The beauty of online shopping is that users have the possibility to browse through your online shop’s products anywhere and at any time.

Once a product has been added to their cart, users can choose to personally pick up their purchase at a local shop. They can choose the shop closest to their home by finding it on a virtual map on the website or by entering the respective postcode, depending on the options offered by the online shop.

Many shops will offer customers the option to choose a time slot for when they want to collect it (especially since the pandemic). If, on the other hand, the product isn’t available at a local shop, the customer will receive an email with a confirmation at the time the product is back in stock, so that the customer can then go to the shop to pick it up.

Usually, the local shop keeps the ordered product for a few days, so that customers have a bit more flexibility when it comes to collecting their purchases..

Here is an example of this service from John Lewis:

John Lewis offers different options for Click and Collect.

What payment methods to use when offering click-and-collect

There are two options when it comes to click-and-collect payment methods.

The first allows your customers to pay online, while the product is shipped from the warehouse to the nearest point of sale. This way customers don't have to pay at the local shop and can pick up their purchases faster.

The second requires customers to book a product online and pay at the local shop. With this option, products that are already in store can be picked up quicker as these products usually don’t need to be shipped.

The benefits of click & collect

Did you know that as many as 21% of online purchases get cancelled due to delivery problems?

The idea behind the click-and-collect service is to simplify the purchase and logistics process. That is why this option offers several advantages for both buyers and sellers. Let's take a closer look at them:

The advantages of click & collect for shoppers

Click & Collect offers several benefits for your customers. Some of the biggest ones are:

• Less or no shipping costs
• Waiting time is less than for home delivery (with possible delays)
• Orders may be ready to be collected right away or within the same day
• Customers can choose when and where to collect their order
• Customers can see every single product in the online catalogue (and check the local availability)
• Product catalogue is available 24 hours a day, 7 days a week
• Queues and crowds in shops can be avoided (particularly important due to the Coronavirus)
• Possibility to replace/return the product immediately
• No danger of receiving a damaged product
• Customers can set the time slot for pick-up according to their own time schedule

The advantages of click & collect for sellers

Implementing click-and-collect in your online shop is essential to meet the wishes of your (potential) customers, as well as to adapt to the new shopping behaviours of buyers.

Shutterstock/everydayplus

Many online stores have seen delays in deliveries since the outbreak of the Coronavirus because on the one hand, orders have increased and on the other hand, staff has decreased (e.g. many businesses have divided employee shifts to limit contagion). Click-and-collect can help your e-commerce in several ways:

• Release from organisational tensions between logistics and purchasing due to the boom in online purchases
• Reduced shipping costs
• Customers have a wider range of shipping methods to choose from (and offering more choices helps keep more customers in the long-term)
• Possible problems with the delivery (e.g. delays in deliveries that you cannot influence, damage during transport, etc.) are virtually erased if you keep such products in stock
• There is the possibility of upselling at the time of check-out or when customers collect their purchase in-store
• Negative reviews that criticise deliveries can be avoided
• Shoppers will choose your shop over the competition, even if they offer shorter delivery times
• You only need a skeleton crew to work in your local shop
• Crowds and queues can be avoided in your shop

The downsides of click & collect

Click and Collect can significantly help your e-commerce, but if not implemented correctly, it can lead to several downsides.

The drawbacks of click & collect for buyers

• There might be long waits at the pick-up point
• Online and Offline sales channels are not consistent (lack of omni-channel system)
• There might not be a pick-up point close to the customer’s home

Recommended reading:
What is Omni-channel? The Advantages, Disadvantages, and Pitfalls

The drawbacks of click & collect for sellers

• If it’s not possible to manage the products that are in stock at your warehouse in real-time, there is a danger that customers' expectations are not met, or that it takes longer to actually receive the product than announced.
  
  
• Your business might not be able to manage all of the incoming orders. This could lead to a situation where your staff has less time to handle online purchases that include regular home deliveries.

How to offer click & collect without having a local shop

Not all businesses that run an online shop also have a physical shop. In this case, you may ask "How can I implement click-and-collect without having my own local shop?".

Don’t worry, we have a couple of suggestions for you:

• Reach out and rely on a partner shop (e.g. supermarkets for food products)
• Collection location (such as tobacco shops or kiosks)
• Post offices
• Parcel lockers

In particular, the lockers, also called parcel lockers, represent a strategic solution because they leave total independence to the customer as to where and when to collect their purchases: the lockers are in fact accessible 24/7.

This is a solution that is already very widespread and established in Europe. Especially in the UK, Germany and France.

5 tips for an impeccable click & collect service

There are a couple of things that are required or that you may need to improve in order to be able to offer the service:

1. Omni-channel

We've already mentioned it and we'll do it again: making sure that there is a certain balance in all online and offline sales channels allows you to improve the shopping experience for your customers, especially in terms of the click-and-collect service.

This way there are no differences in prices, availability, etc.

2. Customer Service

Make sure you improve your customer care on your website. This can be done through the presence of online “shop assistants” who will be ready to answer customers’ questions and help them. You can either provide this service via chat windows (or chatbots) or by making your phone number visible so that customers can talk directly to your customer service.

By the way, offering assistance and personal contacts on your website will make (potential) customers trust your brand and your shop more.

3. Order status

Even if the customer has selected their preferred time slot to collect their order at your local shop, give them the opportunity to always have a look at the order status (for example via a tracking code).

This aspect is particularly important because:

• it's something customers are already used to
• if the customer has selected the option to collect the order at a locker or at the post office, knowing if the package has already arrived there is also essential.

4. Real-time management

Managing inventory in stock and in-store sales in real time is necessary to avoid orders for products that are no longer available.

5. Organising the process of collecting orders

Make sure there is a designated location in your shop for customers that want to use the click-and-collect service.

Finally, offer the option to pay online instead of in-store. This will allow customers to save time with queues, waiting times, and exchanging cash.

Conclusion

Nowadays, some of the biggest obstacles in online shopping are caused by high delivery costs and long or inconvenient delivery times. This makes the click-and-collect service a valuable ally for online retailers since it’s been proven to be very appealing to customers.

Implementing the click-and-collect service allows you to give more freedom and options to your consumers, which means more conversions for sellers.

It’s also (and above all) important to break down the boundaries between online and offline, adopting an effective and solid omni-channel strategy.

This article was originally published and adapted from our Italian blog: Clicca e ritira: ecco come gestire il picco degli ordini online