In-Store pickup is one of those popular new online additions retailers have added to the web, and shoppers love it.  However, Forrester Research recently released an article regarding findings that a high level of efficiency is required to keep store pickups operationally and logistically feasible.  Forrester Analyst Brendan Witcher wrote a new report, “Nailing In-Store Pickup” discussing how customer expectations are on the rise when it comes to in-store pickups.  From a survey of 3,000 online U.S. adults, over 53% of them expect notification in two hours or less that orders are ready for pickup.

This means customers are sensitive when it comes to their time, which is why they’ve opted to select in-store pick up.  Those expectations are likely to have some retailers’ setting aggressive promises over their heads. An example the article mentions is Best Buy Canada, which guarantees orders placed online will be ready for in-store pickup within 20 minutes.  This is impressive if they can consistently deliver this level of efficiency.  Other retailers may not be able to have accurate inventory and the staffing to pull this off.

Forrester also states 70% of shoppers say they use in-store pickup services to primarily avoid shipping costs.  They also select it for other popular reasons such as its’ level of convenience, to ensure the product is available and reserved for the shopper, to get the product the same day, and to avoid taking the time to find a product in the store.  Convenience is valuable, as shoppers could be visiting that retail store anyway, so it makes sense to order online and pick it up.

Retailers have implemented same-day delivery to meet the shopper demand for items the same day.  Google, Amazon, Wal-Mart, and others have made huge investments into this online delivery option.  Amazon launched its’ service in 8 more major US cities late last year, including Atlanta.  Surprising newcomer Macy’s rolled out same-day delivery in Seattle, San Jose, Houston, Los Angeles, San Francisco, Chicago, Washington DC, and New Jersey.  Sister company Bloomingdale’s launched the service in select cities also.  Web-based and physical store retailers are partnering with a same-day courier like 1-800 Courier to perform deliveries.  The Houston courier can be an option for store returns also.

Inventory is key with in-store pickups and the communication of those available products.  Witcher also stated real-time inventory information should be within the product description or product listing pages on the retailer’s online store.  Nationwide brick-and-mortar stores have much more volume than a smaller retail store or e-retailer.  It makes it more imperative to meet customer expectations or pull back participating stores that don’t meet the efficiencies.  Loyalty is valuable for retailers and they don’t want to give good reason to turn to another retailer for the same product because it wasn’t there when they were told it would be.

In-store pickups will rise in the future, as online retail is projected to increase to over $500 million by 2018.  Shoppers even have mobile devices creating convenient and easy online ordering.  As technology innovates more logistical solutions to enable retailers to meet the challenges and put all the pieces together.

Reference:  1.13.15, Internet Retailer, Allison Enright, While shoppers like in-store pickup, it is tough for retailers to do well