Maximise Your eCommerce Strategy: The Benefits of Offering Click and Collect
The convenience of delivery to your door has always been seen as one of the most persuasive benefits of shopping online. However, in recent years eCommerce customers are increasingly becoming aware of the limitations this delivery option presents and are looking for alternative solutions.
Read on as we examine the rise of Click and Collect and explore the benefits it can offer your business and its customers.
Limitations of Doorstep Delivery
As the volume and scope of online purchases rise year on year, customers are regularly finding themselves stuck at home, anxiously waiting for time-sensitive deliveries. Despite our best efforts, the reality of busy lives means customers can often be out when a delivery is attempted.
At best, this will result in packages being delayed and a repeated attempt made the next day. At worst, packages left in insecure delivery locations are at risk of ‘porch piracy’ or weather damage – causing financial losses and frustration for both businesses and customers.
Even when delivery companies do manage to deliver to a ‘safe place’ as an alternative, today’s customers are looking for ways to avoid the awkward conversations with dressing-gowned neighbours and the ‘Does anyone recognise this front door?’ posts on community groups.
The Rise of Click and Collect
A recent report by Statista shows the value of Click and Collect orders in the UK is expected to increase from £23.3 billion in 2023 to £30 billion in 2024. This increase has seen the expansion of parcel shops, in-store collection points and locker schemes operated by major delivery companies.
Fueled by customer demand, these locker schemes offer eCommerce companies and businesses:
Cheaper shipping costs – by consolidating shipments to central locations the cost of delivery is reduced.
Competitive Advantage – increase sales by providing delivery options that competitors cannot.
Reduces Losses – lockers provide a safe, secure way to retrieve packages, helping to reduce the risk of theft, weather damage or missed deliveries.
Reduces Customer Service Burden – reduction in delayed or lost shipments results in less customer queries.
24/7 Accessibility – many lockers are accessible round-the-clock, making them a flexible and convenient option for customers.
Sustainable Shipping Option – Click and Collect can help reduce the carbon footprint by cutting down on delivery routes.
Integrating Click and Collect into your Delivery Options
In our 2023 study into basket abandonment with Retail Economics, 71% of customers said they stopped an online order due to “inconvenient delivery times”. This shows that customers are considering the limitations of doorstop delivery at checkout, resulting in a negative impact on eCommerce conversion rates. – highlighting the need for Click and Collect options to be properly integrated into the checkout process.
Basket conversion rates have been shown to be over 16% higher than the global average when companies implement GFS Checkout – a powerful rules-based engine that offers customers maximum delivery choice and convenience by dynamically tailoring delivery options according to their location/order.
By offering a smooth, uninterrupted customer experience with a range of delivery options including Click and Collect, basket abandonment rates are reduced and first-time delivery success rates improve.
Diversify your Carrier Network and Expand Location Access
The distribution of Click and Collect locations depends on the individual delivery company/carrier’s strategy, with some operators focusing on central urban areas and others on out-of-town retail parks or more rural/suburban areas.
Limiting delivery options to a single carrier reduces the number of Click and Collect locations available to customers. In order to take advantage of the entire network and provide customers with location options that suit their preferences, carrier diversification should form a central part of your carrier management strategy. With GFS’ managed multi-carrier services, businesses have access to the widest network of delivery services across domestic, international and specialist carrier partners, giving customers the flexibility of over 75,000+ Click and Collect locations across the world.
From Frustration to First-time Delivery Success
If you are an eCommerce company looking to secure that first-time delivery success, the benefits of offering customers the choice of Click and Collect are clear. To maximise customer satisfaction and increase your conversion rates contact our team today.
