Curbside pickup and its application in logistics

Curbside pickup is a solution that bridges the gap between shopping at a brick-and-mortar store and ecommerce with home delivery.

What is curbside pickup?

Related to in-store pickup where customers go inside the store, curbside pickup is a delivery option where customers purchase products online and then drive to the store to pick them up. They can collect them at the company’s physical location, another retail establishment, a parcel agency, or a designated locker. Born from the growth of ecommerce, this system follows an omnichannel strategy and offers multiple benefits for the businesses and customers who choose it.

How does curbside pickup work?

Typically, a curbside pickup purchase process involves these steps:

1. Online purchase. The customer selects the items they wish to buy from an online store and adds them to their virtual shopping cart.
2. Pickup point selection. Before proceeding to payment, the buyer chooses where to collect their products. The available options may vary depending on the retailer, and the pickup point can include company-owned stores, third-party locations, or lockers in public spaces.
3. Fulfillment and/or shipping. Once payment is confirmed, staff at a warehouse, distribution center, or store fills the order.
4. Notification. The customer is informed (typically via email or SMS) when the order is ready for pickup or has reached its destination.
5. Collection. The customer visits the agreed pickup point and receives the order in their car. Alternatively, the process can be completed without third-party involvement } — e.g., by entering a code to open a locker — or by presenting the order confirmation to an employee. After verifying the buyer’s identity, the staff hands over the product.

How does curbside pickup benefit businesses?

New shopping habits have highlighted the unique advantages of curbside pickup over other methods:

• Expanded customer base. Allowing consumers to collect their purchases via curbside pickup attracts those who prefer online shopping but avoid traditional home delivery for different reasons. This option provides them with the flexibility they seek while eliminating the need to schedule specific delivery times.
• Lower shipping costs. Curbside pickup streamlines last-mile delivery by consolidating multiple orders at a single location or even processing them directly at the point of sale. This eliminates door-to-door delivery, reducing costs. Additionally, it often shortens lead times for end consumers.
• Increased customer interaction. Visiting the store to pick up purchases creates an additional sales opportunity. It strengthens the customer relationship with the brand and can drive impulse purchases. Moreover, it provides valuable insights into the user experience.
• Fewer returns. Since customers often collect their orders at a brand store, they can inspect the products on-site. This helps avoid the need for reverse logistics processes to handle returns.

What companies are implementing curbside pickup?

Many businesses have embraced this model, enabling buyers to choose where they wish to receive their purchases — whether at home, in-store, or by picking it up themselves. Here are some examples:

• IKEA. The furniture and home decor chain promises to fill orders within three hours, allowing customers to load their purchases directly into their car. Shoppers can select the date and time slot for their store visit. Additionally, IKEA provides 24-hour locker service at some locations and collaborates with third-party pickup points and post offices to better serve its customers. Its website also displays real-time stock availability for various items across its stores.
• Decathlon. Similarly, the sportswear company Decathlon has adapted its logistics operations to omnichannel, committing to have online purchases ready for curbside pickup in under an hour. This is made possible by its highly efficient warehouses. For instance, its Northampton (UK) facility processes 3,000 orders daily, while its distribution center in Barueri, Brazil, supplies a portion of the business’s 42 stores in the country.

How do curbside pickup logistic operations work?

To perform curbside pickup effectively, it must be planned with the company’s characteristics and user needs in mind. These are some aspects to consider:

• Monitor the order cycle and meet established deadlines.
• Allocate sufficient resources to stores and pickup points.
• Verify the identity of the person collecting the goods to prevent potential fraud.
• Coordinate with warehouses using a distributed order management system like Easy DOM.
• Leverage the most efficient delivery routes.

Implement curbside pickup with Interlake Mecalux

Looking to fine-tune order assignments and gain full visibility of your inventory across warehouses, stores, and hubs? Interlake Mecalux can help you automate your omnichannel distribution, enabling your users to take full advantage of curbside pickup. With our Easy DOM software, you can segment deliveries by customer type and create specific prioritization rules. It’s an ideal solution for organizations with multiple warehouses, stores, or 3PL providers. Contact us for more information about this and other logistics and storage solutions — no obligation.