What Is Curbside Pickup and How Does It Work?

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What Is Curbside Pickup
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During the COVID-19 pandemic, curbside pickup and other click-and-mortar services changed from an occasional perk some stores offered for busy customers to a reliable way to maintain social distancing while continuing to do business. But how are curbside services doing now? 

The Washington Post reported that a third of consumers under age 50 plan to continue picking up groceries and other goods instead of shopping in retail stores. Moreover, the Global Digital Shopping Index 2024 found that nearly 4 in 10 consumers now fit the click-and-mortar shopper profile, with 45% of millennials and 57% of parents being the highest adoptees.

Curbside services offer convenience and benefits for e-commerce businesses and consumers alike. Below we define curbside for e-commerce, comparing it to similar services, list its benefits, and explain how it works. 

What is Curbside Pickup?

Curbside pickup is a click-and-mortar shopping model that allows customers to place orders online and conveniently collect them from a designated location without leaving their vehicles. Upon arrival, customers simply park in an agreed-upon spot and a store employee brings the order directly to their car. 

This service combines the ease of online shopping with the speed and efficiency of in-person pickup, making it ideal for busy customers who want to save time. 

How Does Curbside Pickup Work?

When a customer places a curbside order from an app or website, the delivery works like this:

  1. Notification. Stores notify customers that their order is ready via an app or text message.
  2. Arrival. Customers drive to the store and pull up to a designated area, such as marked parking spaces or curbside.
  3. Delivery. Staff members bring the order to the vehicle.
  4. Placement. The order is placed in the back seat, trunk, or another area as directed by the driver.

Benefits of Using Curbside Pickup for E-commerce Businesses

Curbside pickup offers many benefits for e-commerce businesses. Some of them include:

Increased Sales

According to return management platform data, curbside pickup shows an additional purchase rate of up to 45%. This means that nearly half of customers who come to a store to pick up an online order end up buying extra items that were not included in their original purchase. 

Improved Customer Loyalty

Some retailers stopped offering curbside pickup as the COVID pandemic waned, but others continued their curbside pickup programs. Customers who want to pick up their orders at curbside will be loyal to businesses offering this service.

Improved Efficiency

Order fulfillment is easier and simpler when preparing orders for pickup, allowing staffing and scheduling to be more easily planned and executed.

Better Inventory Management

Curbside options enable businesses to accurately plan and monitor their inventory. And while we may not see it mentioned frequently in news articles, curbside pickup reduces in-store inventory shrinkage because of the way it works. Customers pulled up into a parking space or curbside aren't shopping in-store. As a result, they don't have the opportunity to handle merchandise or damage it.

Benefits of Curbside Pickup for Consumers

Customers began using curbside pickup to reduce the chances of disease transmission, but there are many additional benefits. Some groups of consumers prefer curbside pickup to other options. 

For example, a 2022 Statista survey found that about two-thirds of millennial-aged consumers preferred curbside pickup for online purchases. Some reasons that consumers enjoy curbside pickup include:

  • Convenience. Consumers don't have to park, get out of their vehicle, and walk into a store to locate their order. 
  • Safety and health concerns. The COVID-19 pandemic drew the public's attention to the potential for infectious disease transmission. At least 38 million people in the United States live with diabetes, which is only one chronic illness that may encourage consumers to reduce risk by choosing curbside pickup over in-store shopping. Other medical conditions that require people to avoid the risk of contracting an infectious disease include heart disease, cancer, and immune system compromisations. 
  • Flexibility. Customers can order the items they want and pick them up at their convenience. They can choose same-day or next-day pickup times in a way that fits their schedule.
  • Time-saving and ease of use. Instead of searching for products in a store, customers can select the products they need quickly and efficiently. Re-orders are also easy using curbside services.

Curbside Pickup vs. Other Click-and-Mortar Models

The primary curbside pickup meaning includes customers getting an order delivered to their vehicle either in a designated parking spot or a designated curb spot. Other options for online ordering and pickup can involve entering a store and picking up an order either at a customer service counter or via a locker or storage location. Let's look at specific models and differences:

Curbside Pickup vs. Click-and-Collect

Click and collect involves placing orders online, much like curbside pickup. However, instead of staying in their vehicles and having a staff member deliver the items, customers must park, exit their vehicles, and retrieve their orders from inside the store or an external locker.

Carside vs. Curbside Pickup

Carside pickup can be considered a direct subtype of curbside pickup, with the distinction that it is specifically associated with restaurants or eateries, whereas the latter model applies to any merchandise. Similar to curbside pickup, carside pickup customers place orders online and have them delivered directly to their car upon arrival, often utilizing designated drive-through lanes. The only difference here is that carside pickup typically involves ordering and receiving food or drinks.

Curbside Pickup vs. BOPIS

BOPIS, which stands for "Buy Online, Pick Up In Store", is also used for online ordering and pickup systems. In this model, customers do not wait in their cars for their orders, as they do with curbside pickup. Instead, they need to enter the store to collect their purchases. Unlike click-and-collect, where items can be retrieved from external lockers, BOPIS requires customers to interact with store staff inside the store. This might be less convenient and potentially riskier for those with health concerns.

Feature

Curbside Pickup

Click and Collect

Carside Pickup

BOPIS

Ship to Store

Locker Pickup

Order Placement

Online

Online

Online

Online

Online

Online

Pickup Location

Designated parking spot

Inside store or external locker

Drive-through lanes

Inside store at a specific counter

Inside store

Secure external locker

Customer Action

Park and stay in vehicle

Park and enter store or go to locker

Stay in vehicle

Park and enter store

Park and enter store

Enter locker code to retrieve items

Interaction Level

Minimal (staff delivers to car)

Minimal (self-service lockers)

Minimal

Moderate (staff interaction)

Moderate (staff interaction)

None (self-service)

Convenience Level

High

Moderate

High

Moderate

Moderate

High

Ideal For

Quick, contactless pickup

Flexibility on pickup points within store

Quick pickup in eateries

Personalized service, in-store offers

Items not immediately in-stock

Quick, contactless, and flexible time

Curbside Pickup vs. Ship to Store

With Ship to Store, customers place their orders online, but instead of picking them up immediately, the items are shipped from a warehouse to the store. Customers then need to park, go inside the store, and collect their orders from a designated area, typically with assistance from store staff. In contrast, curbside pickup allows customers to receive their orders without leaving their vehicles.

Curbside Pickup vs. Locker Pickup

For Locker Pickup, customers also place their orders online and pick them up without entering the main store area. However, instead of remaining in their cars, customers park and go to a secure locker location. They use a code to unlock the locker and retrieve their items. This method offers contactless and flexible pickup times but requires customers to exit their vehicles.

Who Offers Curbside Pickup?

Many grocers and big-box stores offer curbside pickup. Home Depot, for example provides curbside pickup spots and will schedule and deliver orders to your vehicle at times you choose during their stores' hours of normal operation. Retailers like Dillards, Macy's, and Sephora offer curbside options for orders.

Kroger, Winn-Dixie, Whole Foods, and Target all offer curbside pickup through their apps. The apps let customers know that their order has been packed and is ready for pickup, and staff members bring the items to their car at their designated time. 

Walmart, the world's largest retailer, offers curbside and in-store pickup for no added charge. If you've used online ordering and home delivery services, you know that item prices and delivery charges can significantly increase the cost of groceries and household goods.

Using curbside pickup reduces the costs for consumers, and may be one reason why some customers prefer curbside pickup to home delivery.

Should You Offer Curbside Pickup At Your Store?

Curbside services can be a win for your store as well as your customers. You could have customers who may no longer shop in your store because they've discovered a more convenient option for curbside pickup elsewhere. Some of your customers may have lifestyle changes or health concerns that mean they want and need this shopping option. 

If the advantages of curbside services for your business and customers make sense to you, then you should provide the option at your retail store. You can also improve your sales by includingstore location services in your e-commerce storefront. 

Frequently asked questions

Delivering orders curbside enables customers to order items online, pay for them, and pick them up in their vehicle at a designated time and curbside pickup spot.

Businesses can save time and money and manage their inventory more easily, while customers gain convenience, save time, and shop safely.

Curbside services mean that customers will pick their order up in their vehicle. Click-and-collect and BOPIS are order online, pick up in-store options.

Some retailers have discovered that delivering orders curbside can increase additional buy-rates of up to 45%. Curbside pickup reaches customers who may select home delivery options from other stores if your store doesn't have it available.

July 22, 2024
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