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86 Percent of Online Shoppers Use In-Store Pickup to Save Time and Avoid Shipping FeesThursday, November 13, 2014 > 09:56:50
A new survey from retail technology company POPcodes has found that 86 percent of consumers who order products online and pick them up in store want to avoid shipping fees.
The poll of online shoppers conducted by POPcodes, which offers a cloud-based platform that integrates e-commerce systems and in-store payment terminals through a redemption code tied to a phone number, also discovered that 57 percent of consumers use the “order online, pick up in store” option because they believe it makes returns and exchanges easier. Though the option is not yet widely available, four out of 10 respondents said they have picked up an online order in person.
Gregg Aamoth, CEO and co-founder of POPcodes, said the survey findings show that even in the age of Amazon, consumers are still hesitant to abandon brick-and-mortar retailing.
“This survey reiterates what many of us in the retail world already understand: The Internet has certainly changed the way consumers shop, but they will always have a special place in their hearts – and wallets – for shopping in a store,” Aamoth said. “Retailers simply have to figure out how to better tie the virtual and physical shopping worlds together.”
Three-quarters of consumers admitted online shopping is more convenient, but they cited a number of different reasons why they still shop in store. Eighty-two percent said refunds and exchanges require more time and effort when shopping online, 72 percent said delivery costs too much or takes too long, and 60 percent said they like to see and feel what they are buying.
Retailers also have an incentive for offering a seamless experience for consumers who prefer to buy online and pick up in store. Two out of every three survey respondents said that they would shop for additional items when picking up a product in store, offering brands an opportunity to upsell customers. Consumers would be more likely to pick up online orders in store if they are offered special pricing (79 percent) or items are waiting for them when they arrive (64 percent).
The survey also revealed how receptive shoppers are to using an online payment to in-store pickup model: 97 percent of consumers who have chosen that option said they would do so again.
“What this tells me is that consumers crave a solution that bridges the gap between the virtual and physical shopping experiences,” Aamoth added. “That’s one of the reasons we’re launching POPcodes – to simplify and streamline the process so that consumers have more options and can seamlessly transition from online to in-store shopping.”
Founded by veteran retail executive Aamoth and entrepreneur Glenn Yuen, POPcodes enables omnichannel retailers to deliver a unique customer experience at a critical transition point on the path to purchase – when consumers shop online but desire to pick up their purchases in a local store. POPcodes collects key data on consumers’ online shopping behavior and connects that data to their cell phone number. Once in store, where over 95 percent of purchases occur, consumers can quickly retrieve a proof of promotion or proof of purchase and seamlessly continue their shopping experience.
Through its innovative solution, POPcodes improves the consumer experience, increases online conversions and drives foot traffic to retail locations.