United States BOPIS Market Analysis
The Buy Online, Pick Up in Store (BOPIS) market in the United States is on a robust growth trajectory, projected to expand at a CAGR of 16.45% from 2024 to 2032, climbing from US$ 111.84 billion in 2023 to an impressive US$ 440.39 billion by 2032.United States BOPIS MarketThis innovative retail approach allows consumers to purchase products online and conveniently collect them at a physical store, blending the best of both online shopping and traditional retail.
What is BOPIS?
BOPIS is a retail strategy designed to enhance customer convenience by eliminating shipping costs and reducing wait times for online orders. This method not only offers consumers the comfort of online shopping but also boosts foot traffic to physical retail locations. As the largest global economy, the United States is experiencing significant growth in the BOPIS market, driven by increasing consumer preference for digital platforms and e-commerce.
Key Growth Drivers
The BOPIS market is flourishing due to several factors:
- E-commerce Adoption: The rise of e-commerce and digital platforms has made online shopping more accessible and convenient. Consumers increasingly seek the ability to physically interact with products before making a purchase decision.
- Demand for Instant Gratification: Busy lifestyles and the desire for immediate access to products drive consumers toward BOPIS as a preferred alternative to traditional shipping methods.
- Enhanced Retailer Offerings: Retailers are leveraging BOPIS to enhance customer service and provide tailored experiences, including curbside pickup options. According to the March 2023 Global Digital Shopping Index, over 16.4 million U.S. consumers, or more than one-third of all shoppers, opted for in-store or curbside pickup of online purchases, marking a 37% increase from the previous year.
Insights from the United States BOPIS Survey
Recent data highlights the rapid adoption of BOPIS among U.S. consumers:
- Nearly two-thirds of U.S. retailers now offer BOPIS.
- In 2022, there were more than 268 million online shoppers in the U.S., accounting for over 80% of the population.
- 8% of online shoppers chose curbside pickup, reflecting a 66% growth from the previous year.
- 14% of online shoppers picked up their purchases in-store in 2022.
- 72% of U.S. consumers expressed a preference for buying online and picking up in-store, with more than 20% considering BOPIS and curbside pickup important.
Since its inception, BOPIS has gained traction, with over 65% of American consumers utilizing it by 2019. Estimates suggest that 10% of all transactions will occur through BOPIS by 2025. Retailers have recognized BOPIS's potential to compete with giants like Amazon, attract millennials, retain market share, and acquire new customers.
Payment Methods Driving BOPIS
As BOPIS continues to gain momentum, various payment methods have emerged:
- Digital Wallets
- Credit Cards
- Debit Cards
- Account-to-Account (A2A) Payments
- Buy Now, Pay Later (BNPL) Options
- Cash on Delivery
- Prepaid Cards
- Other (including cryptocurrency)
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Major Players in the BOPIS Market
The U.S. BOPIS market is competitive, with significant players including:
- Walmart
- Home Depot Inc.
- Kroger Co.
- Macy’s
- Kohl’s
- Costco Wholesale Corporation
- Best Buy Co. Inc.
- Nordstrom, Inc.
Recent Company Developments
- Best Buy launched a new app called Best Buy Envision in April 2024, specifically for Apple Vision Pro users to help plan their home technology setups.
- Kohl's introduced BOPIS Self-Pickup services across all 1,100 U.S. locations, allowing consumers to collect their online orders after receiving confirmation via email, typically within two hours. This enhancement aligns with the upcoming Holiday 2022 season.
- As of August 2023, Best Buy’s BOPIS strategy accounted for over 40% of the company's online revenue, showcasing the effectiveness of this retail approach.
Product Categories in the BOPIS Market
The BOPIS market in the United States encompasses various product categories, including:
- Auto and Parts
- Food and Beverage
- Apparel and Accessories
- Health, Personal Care, and Beauty
- Computers and Consumer Electronics
- Office Equipment and Supplies
- Toys and Hobbies
- Furniture and Home Furnishing
- Books, Music, and Video
- Other
Conclusion
The BOPIS market in the United States is poised for significant growth, driven by consumer demand for convenience, instant gratification, and the evolving retail landscape. As more retailers adopt BOPIS strategies and enhance their offerings, consumers can expect a seamless shopping experience that bridges the gap between online and in-store retail.
With an ever-expanding array of payment methods and product categories, the future of BOPIS looks promising, presenting ample opportunities for both retailers and consumers. As we move forward, businesses that leverage BOPIS effectively will likely gain a competitive edge in the rapidly changing retail environment.
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