Automated buy online pick up in store (BOPIS) lockers let consumers place orders online and pick up at convenient locations. Use cases include food order pick up, retail order pick up, secure storage, equipment rental and package drop off and pick up.
August 7, 2019 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times
As e-commerce expands at a rapid rate, U.S. consumers are increasingly aware of being able to place orders online and pick them up either at the store or at a designated location.
According to Nielsen data, four out of 10 online U.S. shoppers are using "click-and-collect," a method of shopping that attracts a broader consumer base than online shopping in general. Nielsen further reports "click and collect" skews highest among middle-income families and consumers aged 18-44.
One top challenge to retailers deploying "click and collect," however, is the consumer's need for instant gratification. If the consumer must wait in line at a location to pick up their order, the process is not convenient. According to software provider Orderdynamics, 78 percent of consumers who used click-and-collect at least twice in the past year want to get their order within 24 hours.
Here is where automated pick up lockers — known as buy online pick up in store (BOPIS) lockers — come into play. When the consumer can pick up their order at a conveniently located locker, there is no need to wait in line.
"In-store self-service solutions, like automated smart lockers, are able to effectively bridge the gap between physical and virtual stores," said Melissa Harward, marketing coordinator for Meridian, which introduced its first mBox automated pick up locker five years ago. "By offering solutions like automated smart lockers, brick-and-mortar retailers are able to afford shoppers the ability to browse, select and pay for their items from a computer or mobile device at their own convenience, while still providing an in-store experience during pickup."
"At the time, BOPIS was just beginning to take off, and Meridian CEO Chris Gilder, saw an opportunity to make the overall process more efficient," Harward said. "Rather than waiting in line to pick up an online order once they arrive in the store, mBOX allows shoppers to scan a receipt or enter a pin number to quickly and easily retrieve their order."
Once the retailer receives the customer's order, an employee places the merchandise in the locker and sends a text and/or email to the customer notifying them the order is ready for pick up. The customer, upon arriving at the pick up location, scans a QR code to open the designated locker.
Meridian, partnering with HP, developed its mBOX with a focus on creating a product that can be customized to fit the aesthetic of various settings. The lockers offer optional LED lighting, custom locker panels, multiple locker. The lockers can be placed just inside the store for quick in-and-out pick up, or outside to provide 24-hour accessibility.
For the retailer, Harward cited the following benefits of automated pick up lockers:
Harward noted the following use cases: food order pick up, retail order pick up, secure storage, equipment rental and package drop off and pick up. "mBOX automated smart lockers offer a secure storage solution that allows retailers to utilize them for BOPIS orders of all kinds — from clothing to electronics, hardware and more," she said.
For all of the above reasons, the global market for automated lockers is expected to grow at a compound annual rate of more than 13% over the next several years, according to Research N Reports.
According to a recent collaborative study by IHL Group and Secret Shopper, sponsored by Orderdynamics and Bell Howell, consumers are overwhelmingly satisfied with the BOPIS experience, whether they place their order using a desktop computer or a mobile phone.
Three hundred "secret shoppers" visited the following stores from late October to December of 2018 to rate their satisfaction with BOPIS: Bed Bath and Beyond; Best Buy; The Home Depot; Kohl's: Lowe's Home Improvement; Macy's; Nordstrom; Staple; Taget: and Walmart.
Consumers overall rated the online BOPIS shopping experience 4.36 on a 1-5 scale with 5 being "extremely satisfied" for both the mobile and desktop online shopping experience.
The study found 86% of consumers using a mobile device for BOPIS reported a highly satisfied or satisfactory experience versus the 84% using a desktop computer.
Satisfaction was higher for mobile phone use than desktop computers. Shoppers using a mobile device found it easier to find what they were seeking for online than those using a desktop, 4.42 versus 4.31.
The study further found that shoppers using the BOPIS process were satisfied with items being clearly listed as available for pick up. Shoppers gave the retailers an average 4.41 rating for items clearly labeled for pick up. But once again, the mobile app outperformed desktop websites, 4.51 to 4.34.
The rating for items being clearly listed for pickup had a direct correlation to the likelihood of using the BOPIS service again, the study found.
Consumers also gave BOPIS favorable scores for ease of payment, the study indicated. Shoppers gave retailers an overall 4.62 rating for ease of payment. The ratings were similar for mobile (4.61) and desktop (4.62).
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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.