Only $5 differential to shopping Amazon versus in-store
According to a new survey, 63 percent of consumers would buy from Amazon if a $50 item in stores were $45 on Amazon — a $5.00 difference. At the same time, 82 percent of shoppers would consider BOPIS (buy online, pickup in-store) to receive a $10 rebate on a $50 item.
The conductor of the survey, Parago, an incentives and engagement company, said the research shows that while online retailers aggressively tap free shipping and cheap pricing, brick & mortars are missing opportunities to persuade consumers to shop in-store, particularly through BOPIS.
Key findings of the study, "BOPIS and BISBO Will Propel Retail into Orbit," include:
BOPIS not common: A total of 64 percent of shoppers BOPIS sometime. But only three percent do it weekly and seven percent do it monthly. Fifty-four percent do it a few times a year.
Convenience and price are driving customers online: With offline stores improving their price strategies, convenience has become the main reason consumers shop online, cited by 77 percent. That’s still followed closely by price, 67 percent; and then selection, 53 percent.
Openness for BOPIS: Among categories, 58 percent would consider BOPIS for electronics, the highest rate among categories. Other categories ranking high as far as willingness to BOPIS include: small appliances, 51 percent; large appliances, 45 percent; entertainment and apparel, both 38 percent; and furniture, 34 percent.
Motivated shoppers shop more: About half prefer a prepaid card reward as an incentive for both in-store and online purchases. About a quarter preferred a gift card.
Showrooming is still on a steep trajectory: Of smartphone owners, over 70 percent of all adults regularly compare prices and make purchases on their smartphones while standing in stores. Amazon and Google are the primary ways they compare prices.
While much of the study focused on the promise of BOPIS, Parago also said the results show brick & mortars are missing opportunities around BISBO (buy in-store, buy online), or incentivizing in-store shoppers to order online for out-of-stocks or online-only products.
"The good news for retailers is that shoppers are willing to change their behaviors in ways that are more advantageous to the industry," said Rodney Mason, CMO of Parago. "Shoppers just need (and in most cases are not being offered) the right incentives to do so."
- BOPIS & BISBO will propel retail into orbit – Parago
- Study finds BOPIS will boost holiday for slumping retail – Parago
- Target offers incentives to buy online/pick up in stores – RetailWire
Should retailers offer more incentives for online shoppers to pick up merchandise or shop in-store? Do you see an equal or bigger opportunity to encourage in-store shoppers to shop online?