Click and Collect

Definition

Click and collect is an omnichannel service, generally used in fashion retailing and groceries, which unites online shopping with physical collection. The service is a merge of e-commerce and physical retail, and offers a personal customer experience, combining comfort in purchases and convenience of place and time in the pick-up process. 

Since the decline of malls in the last 20 years, e-commerce is experiencing an upward trend (in orders and delivery) that COVID-19 only accelerated. In the face of a generalized system, where purchased goods are delivered to a personal address (home, work, neighbour, etc.), there has been an increasing demand for carriers and transport systems – whose price have also seen a marked increase. This situation evidenced the necessity for alternative options that could reduce both the energy consumption and overall costs. Thus, customers started being encouraged to pick up their purchases at stores rather than have the products delivered, ultimately leading to the click and collect system.   

Click and collect can be considered an omnichannel service due to the integration and the synergy of all the sale channels (offline, online, mobile app). It is defined by the comparison with the concept of multichannel: the sale process uses numerous, isolated channels without any further interaction between them. 

The main characteristic of click and collect is the costumers’ option to arrange a personal way to retrieve their orders. Instead of being delivered to personal homes or other chosen address (like work), the sales can be picked up in different ways: 

a) In-store click & collect: there is a previous and paid online purchase. 

b) In-store reserve & collect: the retailer holds the order but the payment is done at the time of collection. 

c) Third-party click & collect: once the purchase has been completed and paid for online, the customer selects the collection point from a parcel-locker network or parcel-point network such as supermarkets, retail outlets, convenience stores, petrol stations, etc. 

According to the Interactive Media in Retail Group (IMGR) from the UK Commerce Association, the best practices for in-store click & collect require specific click & collect locations for easy customer access. In fashion and footwear stores, costumers need retail dressing rooms and try-out spaces. Also trained staff on hand to help if required. 

The click and collect formula can be an alternative to the increasing trend in the number of vehicles for the delivery of online purchases, helping to reduce the consumption of energy. The closer the handling point to the client, the more money will be saved in the final process of e-commerce.      

Click and collect can be a first step to endorse environmental sustainability, especially in urban areas. Besides, the so-called “third-party click & collect” allows supermarkets and convenience stores to act as a final point in the delivery chain for e-commerce.  

One of the benefits of the click and collect formula is that the customer experience is the most important factor creating value for consumers, regardless of the internet grocery-shopping model in question (Jara, Vyt, Mevel, Morvan, and Morvan, 2018). 

This omnichannel formula is also a driver of proximity sales. Retailers have found that click & collect has contributed to incremental spending, due to the additional purchases that take place as customers personally collect their goods. 

Case Study Marina Home Center:  Parcel locker contributes to the reduction of both last-mile carbon emissions and traffic in busy urban areas. Calculate reducing cost/buyer.  https://www.parcelpending.com/case-studies/marine-home-center/ 

a) Academic: 

Alexander, B., & Kent, A. (2021). Tracking technology diffusion in-store: a fashion retail perspective. International Journal of Retail and Distribution Management, 49(10), 1369–1390. https://doi.org/10.1108/IJRDM-05-2020-0191 

Bell, B.D.R., Gallino, S. and Moreno, A. (2014), “How to win in an omnichannel world”, MIT Sloan Management Review, Vol. 56 No. 1, pp. 45-54  https://sloanreview.mit.edu/article/how-to-win-in-an-omnichannel-world/ 

Jara, M., Vyt, D., Mevel, O., Morvan, T., & Morvan, N. (2018). Measuring customers benefits of click and collect. Journal of Services Marketing, 32(4), 430–442. https://doi.org/10.1108/JSM-05-2017-0158 

Vidushi, V., & Kashyap, R. (2021). Reconfigure the apparel retail stores with interactive technologies. Research Journal of Textile and Apparel. https://doi.org/10.1108/RJTA-07-2021-0085 

b) Other: 

Accenture. Thinking local.  Acting local. Retail omnichannel fulfilment gets closer to home https://www.accenture.com/_acnmedia/PDF-155/Accenture-Retail-Local-Fulfillment.pdf 

Fashion Business Case Study on the German Click & Collect Situation: comparative analysis of Decathlon, Massimo Dutti, Hunkemöller and Galeria Kaufhof. 

Gabor Shoes and Magento Order Management. IMRG UK Click & Collect Review 2020, p. 28. 

IMRG UK Click & Collect Review 2020. https://www.imrg.org/insight/imrg-uk-click-collect-review-2020/