Buy Online, Pick Up In-Store: The New Way to Shop - eMarketer

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Buy Online, Pick Up In-Store: The New Way to Shop

Retailers cut costs with omnichannel efforts

March 17, 2014

Whether it’s 1-hour delivery, skies buzzing with drones or shipping products before consumers even know they want them, there’s a lot of hype surrounding how packages can and may soon reach customers.

What’s true now is that many retailers are feeling pressure to stay competitive with, and consumer expectations for all things cheaper, faster and flexible are increasing. As the appetite for free shipping grows stronger, the cost is eating away at already-thin retail margins, according to a new eMarketer report, “Delivery and Pickup Trends: Retailers Seek the Path to Fulfillment.”

Consequently, retailers are looking for cost-saving measures, and part of this equation ties into omnichannel efforts. Letting shoppers return online purchases in-store, using the store as a delivery hub or shipping directly to stores instead of homes can all ultimately save money.

Shoppers appreciate flexibility and choice. The ability to buy online and pick up in-store was the second most popular retail offering (36%) that US internet users planned to take advantage of during this past holiday season, according to September 2013 polling by Accenture.

Inventory visibility was even more important to multichannel shoppers surveyed by Forrester Consulting in December 2013: 83% considered knowing when a package would arrive to be the most important service when shopping online, while a variety of permutations—buy online, pick up in-store at a later date; buy online, pick up in-store the same day; and reserve online, pick up and pay in-store—all saw similar levels of interest.

Importance of Services When Shopping Online According to Multichannel Buyers in Select Countries*, Dec 2013 (% of respondents)

Omnichannel efforts are important, but not necessarily a top priority for retailers. In a survey conducted by Forrester Research in Q4 2013, just over one-quarter of respondents considered things like new order management systems and in-store pickup to be leading initiatives for 2014. These capabilities ranked fourth behind mobile (53%), site overhaul (46%) and marketing (36%).

When asked to prioritize omnichannel programs, retailers polled by Forrester Consulting in December 2013 were more focused on cross-channel fulfillment than delivery options. Buy online, pick up in-store; buy in-store, ship to customer; and buy online, ship from store all ranked highly, as did inventory visibility, which enables all of the above.

Omnichannel Programs with the Highest Priority According to Retailers/Manufacturers in Select Countries*, Dec 2013 (% of respondents)

Allowing in-store returns of online orders and ordering through the internet or catalogs in-store were the top two cross-channel activities among retailers worldwide surveyed by Retail Systems Research last year. Buying online, then picking up in-store saw a 21% increase over 2012, however.

The full report, “Delivery and Pickup Trends: Retailers Seek the Path to Fulfillment,” also answers these key questions:

  • What went wrong with deliveries during the 2013 holiday shopping season?
  • Do shoppers care more about free shipping or fast shipping?
  • Which cross-channel solutions are retailers offering? How are mulitchannel retailers rethinking the store for fulfillment?

This report is available to eMarketer corporate subscription clients only. eMarketer clients, log in and view the report now.


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