Dive Brief:

• Half (50%) of the shoppers opting to buy goods online and pick up in-store experienced a problem, according to recent survey from JDA Software Group, Inc.
• More than one-third (35%) of the 1,000 consumers surveyed have tried buy online, pickup in-store services in the last year. 
• Among respondents, 60% said they opted for in-store pickup to avoid delivery fees, and half said that cost is a key factor when ordering online for delivery.

Dive Insight:

Buy online, pickup in-store (a.k.a. “BOPIS”) service may not be the answer to customer satisfaction and reduced shipping fees that many retailers had hoped. According to a new survey from JDA Software, of the 35% of people who have tried such a service in the past year, half encountered problems.

While such services remove the high shipping charges that may present a barrier to conversion and allow customers to pick up their goods at their convenience, retailers often struggle to fulfill orders from e-commerce sales while running busy stores. Bar-coded, warehoused goods are just easier to pick and pack.

With online sales growing fast, the survey indicates, retailers face a choice: Charge the fees necessary to profit from delivery, invest in expensive inventory control systems that help turn brick-and-mortar stores into fulfillment centers, or risk alienating the customer for good.