Executive Briefings

Half of Customers Who Opted to Pick Up Online Purchases in Stores Ran Into Hassles, Study Says

"Buy online, pickup in store" has become an increasingly popular strategy for retailers looking to reduce delivery costs. But a new study reveals it isn't working as well as the store owners hope.

A survey of over 1,000 online U.S.-based shoppers by JDA Software Group Inc. shows that, of 35 percent who opted to buy online and pick up goods in a store in the past year, 50 percent encountered problems getting their purchases. This is a surprisingly high failure rate of a strategy meant to offset the high costs of conducting e-commerce, said Wayne Usie, senior vice president of retail at JDA.

It also suggests that retailers will face a tough time expanding their e-commerce sales while preserving their profit margins. Offering products online may be easy, but getting the goods to consumers can be a burden on the bottom line. Some believe that having customers pick up purchases at the stores can cost less than packing and delivering goods to homes.

Read Full Article

A survey of over 1,000 online U.S.-based shoppers by JDA Software Group Inc. shows that, of 35 percent who opted to buy online and pick up goods in a store in the past year, 50 percent encountered problems getting their purchases. This is a surprisingly high failure rate of a strategy meant to offset the high costs of conducting e-commerce, said Wayne Usie, senior vice president of retail at JDA.

It also suggests that retailers will face a tough time expanding their e-commerce sales while preserving their profit margins. Offering products online may be easy, but getting the goods to consumers can be a burden on the bottom line. Some believe that having customers pick up purchases at the stores can cost less than packing and delivering goods to homes.

Read Full Article