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BOPIS Market

BOPIS Market Size, Share & Trends Analysis Report

BOPIS Market Size, Share & Trends Analysis Report By Type Of Product (Electronic Devices, Apparel, Footwear, Accessories, Books, Others), By Platform (Website, Mobile App) Based On Region, And Segment Forecasts, 2022-2029

Published
Report ID : BMRC 1169
Number of pages : 300
Published Date : Jul 2023
Category : Food And Beverage
Delivery Timeline : 48 hrs

The BOPIS market was worth USD 290.63 Billion in 2020 and is expected to reach USD 1011.38 Billion in 2027, growing at a CAGR of 19.50% from 2021 to 2027.

Scope of Global BOPIS Market:

BOPIS full form is Buy Online, Pick Up in Store. It enables retailers to combine the online and in-store experience to do business with customers while providing a more convenient way of shopping. In this process, first, the customer completes purchase online and simultaneously chooses time and store location to pick up purchased product. Then the store picks up the order and pack it for customer, customer goes to nearby store to pick up his/her order which only takes maximum few hours compared to traditional online shopping.

Global BOPIS market report is segmented based on type of product, platform and end-user and by regional & country level. Based on component, global BOPIS market is classified as electronic devices, apparel, footwear, accessories, books and others. Based upon platform, global BOPIS market is classified into website, mobile app. Based upon end user, global BOPIS market is classified into men, women and others.

Key players of BOPIS Market

  • Walmart
  • Zara
  • Home Depot
  • Michael’s
  • Macy’s
  • Kohl’s
  • Target
  • Petco
  • Shopgate

Market Segmentation BOPIS Market

By Type of Product 

  • Electronic devices
  • Apparel
  • Footwear
  • Accessories
  • Books
  • Others

By Platform

  • Website
  • Mobile App

By End-user

  • Men
  • Women
  • Others 

By Regional & Country Analysis

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

Asia-Pacific

  • South Korea
  • Japan
  • China
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Colombia
  • Brazil
  • Argentina
  • Peru
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Global BOPIS Market Dynamics

Increasing popularity of BOPIS due to the convenience of shopping, all round benefits resulting from BOPIS to retailers, stores & customers and new technological development in tracking and digitization are the major factors driving the growth of BOPIS market. For instance, all aspect of supply chain, order information, fulfillment and inventory are automatically synced across online and offline properties through IoT & other innovative processes which enhances the effectiveness of this market. E-commerce business is growing with an annual growth rate of 10-12 percent which also strengthens the market of BOPIS. This system also is changing the way the retailers do business, as retailers are merging their in-store and online inventory tracking system which provides retailers the opportunity to increase their digital business at the time of driving in-store traffic and incrementing sales in the process. Economically, a BOPIS model provides commercial advantages such as retailers save last mile shipping costs and online shoppers visit physical store and may purchase additional products which helps the store to promote their business. For example, out of 37 million grocery and retail user sessions in US, France and UK, in-store pickup customers convert six time more with higher cart average and spend on average 6 percent more than traditional route shoppers. Another statistic says that about 69% of customers purchase additional items while browsing in store. Additionally, BOPIS decreases return costs as customers can see their purchase and return it on the premise instead of shipping back the item which also increases the demand of the model. However, presence of number of alternatives, intense competition and inventory tracking challenge are going to restrain the market.

BOPISs are usually utilized as actuators and sensors, and their associated ""stimulus"" and ""response"" is depicted in (Table 1). Major advantages of BOPIS actuators and sensors include high energy density, fast response, compact size, and fewer moving parts. BOPISs are usually utilized as actuators and sensors, and their associated ""stimulus"" and ""response"" is depicted in (Table 1). Major advantages of BOPIS actuators and sensors include high energy density, fast response, compact size, and fewer moving parts. BOPISs are usually utilized as actuators and sensors, and their associated ""stimulus"" and ""response"" is depicted in (Table 1). Major advantages of BOPIS actuators and sensors include high energy density, fast response, compact size, and fewer moving parts. BOPISs are usually utilized as actuators and sensors, and their associated ""stimulus"" and ""response"" is depicted in (Table 1). Major advantages of BOPIS actuators and sensors include high energy density, fast response, compact size, and fewer moving parts.

Global BOPIS Market Regional Analysis

North America is dominating the global BOPIS market with highest market share due to high awareness among customers, high rate of using smart phones, presence of e-commerce and retailers such as Walmart etc. for instance, in 2019, more than 65% of shoppers of USA have used BOPIS and it is estimated that about 10 percent of all sales are going to be done through click and collect by 2025. Additionally, 49% of all US shoppers who used BOPIS also made an unintended purchase while picking their items in store. It is estimated that 90% of retailers are going to implement BOPIS by 2021 due to advantages such as consumer preference, reduced shipping cost, and convenience to the customers. Many retailers are adopting BOPIS model for business reasons such as to gain edge against Amazon, to cater to millennials, to keep up with competitors and to attract shoppers to the store. Europe is the second largest market of BOPIS due to the dense population compared to US, having strong tradition od good retail logistics and due to high awareness on BOPIS method of shopping. For instance, In the UK, 64% of retailers provide a click-and-collect option, according to Order Dynamics. 50% of French retailers provide the option and 43% of the retailers in Germany and Austria combined permit consumers to buy online and pick up in store. Asia-pacific is expected to witness high growth rate in BOPIS market due to rapid increase of e-commerce industry, growing adoption of internet and smart phones as well as rapid economic development.

North America and Europe's BOPIS markets are expected to grow at a significant growth rate due to a number of driving factors.

In addition, the increasing popularity of online shopping by shoppers is another factor significantly booming the growth of the BOPIS market in North America and Europe in the future. According to the International Council of Shopping Centers (ICSC), over 50% of adult shoppers use BOPIS and 67% of those people add additional items to their carts when they know and can pick them up instantly. During COVID-19, people are more aware of BOPIS services, used to order groceries online to avoid the risks of coronavirus. These BOPIS services widely growing during COVID-19, which has speeded up BOPIS market growth. Hence, the increasing popularity of online shopping is also supplementing the BOPIS market growth across North America and Europe over the forecast period.

BOPIS Market Trends

Buy online, pick up in store (BOPIS), also known as click-and-collect, is the method of ordering an item online and picking it up in store later. It is often recognized as combination of the convenience of online shopping along with the efficiency of same-day delivery. Along with sturdy convenience, seamless interaction in an offline setting and many other things, BOPIS is highly trending across North American and European region. Following are some trending factors which are boosting the BOPIS market growth in North America and Europe region.

A) Reduction in shopping trips is set to become new normal post Covid:-

During the Covid-19 period, a serious atmosphere was created among the citizens. In almost every country, the government imposed a curfew. As a result, consumers had to deal with a wide range of issues to purchase their necessities. Therefore, in the same period, many retailers have made available the facility of buy online, pick up in-store (BOPIS) for the customers. While many retailers already offer online shopping, pick-in-store (BOPIS) from the store is a convenient option for online shopping, although items can be picked up quickly from the store. This has led to a huge increase in consumer adoption of buy online, pick up in-store (BOPIS) methods. Demand for BOPIS has grown exponentially as the current crisis unfolds. To reduce the risk of epidemics, many consumers have increased their use buy online, pick up in-store (BOPIS) services during Covid-19. there are several immediate benefits to using BOPIS capabilities. For example, completing a BOPIS order quickly and accurately helps customers limit how much time they need to be in the store and reduces the need for customers to return to the store to return the wrong items. Also, with smart mobility solutions, store associates are notified immediately when an online order arrives, so they have the time and information needed to place an order and prepare for pickup in the store. When implemented effectively, this service saves customers time and hassle. Due to this, buy online, pick up in-store (BOPIS) method is being widely adopted in the market at present. For example, Companies such as Petco and Dollar General have seen an increase in their overall sales figures due to the introduction of a BOPIS option. In 2020, US based Target.com added 750 fresh and frozen grocery items to its order pickup and drive-up services across the country. Also, Target achieved 275% ecommerce sales as well as 500% growth in BOPIS sales during 2019. And, at Nordstrom; in the third quarter 2019 one half of the department store’s digital sales growth came from order pickup and in Los Angeles, where the company is most advanced in its market strategy, two thirds of digital sales growth came from in-store or pickup.

B) Increasing expectancy for same day delivery will create a trend of BOPIS:-

While a large portion of the world is cautiously re-opening, many consumers still find themselves working from home, social distancing, and hesitant to re-enter the world of in-store shopping. According to Digital Commerce 360, online sales are continuing to grow year-over-year (YOY), proving that consumers are still seeking convenient, yet safe, alternatives to traditional shopping, spurring increased demand for the buy online, pick up in-store (BOPIS) model. Furthermore, while BOPIS was experiencing success prior to the pandemic, the e-commerce model has reached new heights in the past several months, becoming the saving grace for many major retailers. The main reason behind this increase in demand is the fast facilities being provided to the customers. Buy online, pick up in-store (BOPIS) provides convenience to the customer at a very fast pace, for example, if the customer made a purchase before 2 pm on the day the customer made the purchase, the customer can place his order on the same day. Otherwise, the order becomes available to customers the next day. This feature is very popular with other online shopping methods and is being widely used by consumers in the North America and Europe.

C) Engaging Online Customers through Store:-

The in-store experience is still considered as a fundamental touch point for retail chains looking to augment the relationship with their customers. BOPIS gives retailer many more profits to look for their profits. Unlike curbside pickup (an otherwise similar fulfillment model), pick up in locker, and many other methods, BOPIS offers a remarkable prospect for shoppers to browse more and buy other supplementary items during picking up their online shopping order. While picking up their already ordered online item, most of the customer purchases additional or unplanned things or products from the store. It is stated that, almost 50% of the consumers purchase additional stuff while picking up delivery. This enhances the trust as well as the habit to go to the same stores which ultimately increase the trust of retailers. As a result, it correspondingly increases the relation between the buyer and seller through BOPIS model. Also, customers appreciate the several ways BOPIS saves them time, money, and hassle. Overall, BOPIS significantly help to engage customers though such store and this beneficial to retailers as well as customers. For example, Companies such as Petco and Dollar General have seen an increase in their overall sales figures due to the introduction of a BOPIS option. In 2020, U.S. based Target.com added 750 fresh and frozen grocery items to its order pickup and drive-up services across the country. And, in October 2020, Walmart hit another Grocery Pickup milestone customers in 2,000 locations in 29 states, can use the service for alcoholic beverage purchases. Also, Target, achieved 275% ecommerce sales as well as 500% growth in BOPIS sales during 2019.

D) Flexibility:-

Flexibility is another major factor that is making the BOPIS model more trending than ever before. This can be a big differentiator according to the customers that ease their overall shopping experience. BOPIS not only gives flexible fulfillment, control over the pickup schedule but also brings lots of security. When a customer plans a delivery window, it’s problematic for them to change that time and date. They may have a choice, but it will need orders to be redirected, which necessitates precise delivery organization capabilities. With BOPIS or click & collect, retailers can propose customers open-ended pickup, where they can collect their order according to their time within a huge time window (for instance, one week), and inform the store the morning that they plan to pick up the order. Along with this, customers also have flexible payment options that offer shoppers interest-free methods of paying. As a result, flexibility is highly maintained within the BOPIS model which makes the click and collects method more interesting to customers. For example, as per a survey; about 59% of consumers are interested in BOPIS-type shopping options. As well, almost 70% of respondents from the U.S. use BOPIS. Similarly, approximately 75.4% of respondents have used BOPIS at least once in both regions.

E) Optimize the middle mile:-

Buy online and click in-store is also an approach for retailers to optimize their delivery network. Since retailers formerly require transporting items to their stores for replenishment, they can use current vehicles more effectively and decrease transportation costs by transporting items for in-store fulfillment at a similar time. In addition, a custom middle mile optimization solution will avoid paying for features that customer don’t use or require. This way, the customers help to prevent needless fees and expenditures. Optimizing the middle mile helps the customers as well as retailers in a different way and eventually upsurges the more courtesy towards the BOPIS model among the people. For instance, on September 17th, 2020, European mall operator Citycon started working on BOPIS services while Citycon ran 40 shopping centers in Estonia. Also, Inditex, one of the world's largest fashion retailers with various brands such as Zara is also selling its product using BOPIS. Similarly, Tesco, one of the largest retailers in the U.K. is also offering its product through the BOPIS approach to enhance its customer base all over the various regions.

F) Digitalization and Ecommerce: -

Augmenting adoption of smartphones, tablets, laptops as well as web traffic across the various developed regions is most energetically boosting the ecommerce industry than ever before. With highly expanded software across the market existing on smartphones & laptops, customers prefer to go through reviews, experience, and satisfaction which help them to choose the item and process of delivery accordingly. North America and Europe are extremely developed regions where digitalization is widely spread owing to the high internet penetration rate and that’s why on this days BOPIS becoming one of the leading trends in the market.  Furthermore, as ecommerce is considered a prime part of click and collect approach because ordering the item, tracking, and many more things until pick up of delivery can only be possible with the internet, smartphones, tablets, computer, laptop, and other. With the widespread adoption of these things, buying online and picking up in-store approaches has become more effortless. More efficiently, ecommerce made BOPIS model easy to use among the people from the North American and European regions. According to the 2019 Canada E-Commerce Benchmark Report, Canadian consumers are getting more comfortable and confident making online purchases, leading to a 58% increase in online spending from 2016 to 2018. And, in the second quarter of 2021, e-commerce sales have accounted for nearly 13.3% of total sales. In March 2020, approximately 40% of UK shoppers had been selling goods online. By February 2021, this number increased to roughly 75%.

G) Cost:-

Customers are sensitive to the cost of transport or delivery. The largest differentiator between managing third-party fleets and delivery to both customers and retailers is cost. It’s no wonder that cost is by far the important driver for people selecting to pick up orders in-store; with about 76% of BOPIS shoppers are saving on shipping costs was the most imperative factor for them. The BOPIS model also has fewer overhead costs than delivery, with prevailing locations and staff being used to accomplish both regular in-store orders and orders bought online. Moreover, while matching both models with and without customer fees, BOPIS demonstrates devastatingly to have bigger margins. It is deliberated as safe that offering in-store pickup throughout checkout with free or little payment will decrease cart abandonment rates for retailers. As such, cost is a factor that is currently trending for BOPIS in the market in North America and Europe. Thus, these are some of the major trends of the North America and Europe BOPIS market.

Report Analysis Details
Historical data 2016 - 2021
Forecast Period 2022 - 2029
Market Size in 2021: USD 290.63 Billion
Base year considered 2020
Forecast Period CAGR %: 19.50%
Market Size Expected in 2027: USD 101.38 Billion
Tables, Charts & Figures: 175
Pages 200
Key Players/Companies Walmart, Zara, Home Depot, Michael’s, Macy’s, Kohl’s, Target, Petco, Shopgate
Segments Covered By Type of Product, By Platform, By End-user
Regional Analysis North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
SUMMARY
VishalSawant
Vishal Sawant
Business Development
vishal@brandessenceresearch.com
+91 8830 254 358
Segmentation
Segments

By Type of Product

  • Electronic devices
  • Apparel
  • Footwear
  • Accessories
  • Books
  • Others

By Platform

  • Website
  • Mobile app.

By End-user

  • Men
  • Women
  • Others
Country
Regions and Country

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherlands
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

Asia-Pacific

  • South Korea
  • Japan
  • China
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest of APAC

Latin America

  • Mexico
  • Colombia
  • Brazil
  • Argentina
  • Peru
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of MEA
Company
Key Players
  • Walmart
  • Zara
  • Home Depot
  • Michael’s
  • Macy’s
  • Kohl’s
  • Target
  • Petco
  • Shopgate

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