In-store pick up option could be successful
A new study from Jupiter Research indicates that only nine percent of Internet users have picked up an item from a physical store after ordering it online (Nov 20, 2002).
Low-adoption of in-store pickup is due to the fact that the service is not yet widely available, says the research firm.
However, more online retailers are currently evaluating the costs and benefits of deploying a ?last mile? policy for some orders.
According to Jupiter analysts, consumers would be interested in an in-store pickup service because it eliminates shipping and handling costs and provides instant gratification by eliminating the lag time of shipping.
A recent Jupiter study found that three times as many consumers would prefer to pick up an order in a local store than spend even slightly more than they had planned to meet a retailer?s minimum order threshold for free shipping.
However, successful implementation of last mile policies by online retailers is dependent on a number of factors. These include accountability of store employees, speed and accuracy of fulfilment, strategic location of pickup area, and flexible payment options.