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3 Reasons Retail Needs Click-and-Collect

by Simon Eskow
Consumers continue to drive retailers to become multichannel sellers. To that end, click-and-collect may be the smartest service big retailers have put into practice. After all, what choice did they have? Shoppers love the option and retailers build sales, reduce returns and increase brand loyalty.

While click-and-collect gave early retail adopters an advantage, analysts see it becoming a must-have.

According to one quarterly survey, click-and-collect represented 8.8% of all orders multichannel businesses took in 2011. By 2015, that figure reached nearly 23%.

Click-and-Collect Helps Retail Meet Customer Expectation

Consumers like products delivered to their door. That convenience (and price) translates to a growing share of retail sales pie for eCommerce. Back in 2010, 4.2% of all US retail sales were through eCommerce. By 2017, it reached 8.5%.  Yet, despite the very real pressure eCommerce that shift has put on retail, people split their spending between channels.

And consumers want options. They may not want to take a particular delivery home, or they may want a product sooner than later. According to an annual survey of 1,000 US consumers, 50% used click-and-collect for those reasons in the last 12 months, up 44% from the previous year.

It Saves Money on Last-Mile Delivery

Multichannel retailers sell across multiple platforms. If one channel is an eCommerce website, the cost to ship a customer will drive up overall costs. In fact, that last mile represents up to 28% of total transportation costs. Obviously, click-and-collect significantly reduces the cost. However, there’s a catch. Consumers do expect an incentive to use click-and-collect, such as a discount on prices. This is exactly what Walmart started to do earlier this year.

It Increases Your Chances to Sell More

Giving customers the click-and-collect options helps solidify the retail space as a destination. In other words, it increases foot traffic. When customers come into a retail location, they will see many other potential reasons to spend money with you. It may not lead to a lot of additional sales, but any additional sale is good. According to the annual consumer survey cited above, 40% of the click-and-collect customers sometimes made additional purchases in-store.