Channel Crossing

Shopatron seeks to help retailers drive online buyers into stores



 

From June 2008

By Fiona Soltes

 Sponsored by
                     

In these days when every second counts, it’s no surprise 
that consumers would want to break up the shopping experience into smaller segments that fit more easily into their overbooked lives.


Consider, for example, being able to shop online during a free moment, and then head to the store to pick up that purchase when it is most convenient. This is a reality offered by Shopatron, which until recently was seen more as a non-competitive way for retailers to be the fulfillment partner for their suppliers. As times have changed, however, the organization now presents itself as the solution for the instant-gratification customer.

“The main driver behind all of this is convenience,” says Shopatron CEO Ed Stevens. “Life is busy, and people want what they want when they want it.”

The way Stevens sees it, Shopatron isn’t merely a good concept; it’s one that’s been proven effective. Surveys, he says, show that in some cases 55 percent of consumers use in-store pick-up when it’s available. In addition, once inside the store, 25 percent of online buyers increase the size of the order.

Such a system “improves foot traffic, and there’s a good likelihood that they’ll see what else that store has to offer,” Stevens says. “That’s a big advantage over just shipping something to that consumer’s front door.”

Steve Doviak, Internet manager for car rack manufacturer Thule, has seen this in action. Until recently, his company’s e-commerce presence was “primarily replacement parts,” and when consumers came to the website they’d be pushed offline to a retailer. Now, however, the company offers its line for direct sale with in-store pick-up through Shopatron; the move has allowed Thule to build better relationships with retailers, as well as save customers an average of $100 to $120 on shipping for luggage boxes, truck racks and other large items.

“The program is really starting to bloom for us,” Doviak says. “The response has been very, very good.” But there’s another part to the story: The Shopatron element allows Thule to promote retailers that offer great levels of service, and it also allows those retailers to better allocate employee resources during seasons “when their time may not be best spent packing boxes,” he says. “It’s good all the way around.”

Pervasive utility
Stevens, who launched Shopatron in 2001, says he can easily see a day when this process will be a “pervasive utility.” At this point, however, it still takes elements of technology and operations, and Shopatron can help with both.

“Companies must have the operational knowledge to manage complex transactions with staff spread out over multiple locations,” he says. “Staff training is a large issue for retailers, but we offer 100 percent operations support.”

Initially, Shopatron worked primarily with manufacturers. But with a greater understanding of the potential consumer benefits, it realized “there were a whole slew of retailers out there that couldn’t provide this solution for themselves.” It doesn’t matter how many stores a retailer has; it’s more important that the retailer have a viable online presence.

And those retailers that don’t view the option of in-store pick-up as another way to care for customers’ needs may well be missing the boat, Stevens says.

“For any retailer that does an elementary analysis of the next few years — anyone that looks at customer behavior — it should be patently obvious that consumers really, really want to order online and pick up in a store,” he says.

“The numbers are huge, especially considering it’s not so pervasive yet. For those with Shopatron in place, conversion rates have improved by double-digit percents [and] we’re seeing 30 to 50 percent participation from consumers.

“Any time something has that kind of consumer interest behind it, it’s strategically essential to put it into process,” Stevens says.

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