How Click and Collect Drives Profits

How “Click and Collect” Premium Deals Drive Profitability,

Reduce Returns, and Foster Customer Loyalty for UK Merchants:
In today’s fast-evolving UK retail environment, small businesses are facing mounting pressure to adapt to a hybrid retail model that integrates both physical and online shopping. As e-commerce expands, UK retailers are grappling with increasing return rates, rising logistics costs, and the environmental impact of online shopping. However, "Click and Collect" Premium Deals, integrated through the Getslocal Club Connect App, offer a cost-effective and practical solution that can turn these challenges into opportunities.

This blog explores how embracing "Click and Collect" can reduce return rates, increase customer loyalty, and boost profitability for UK merchants, particularly small businesses. We’ll also discuss the success of Primark’s "Click and Collect" service, and how businesses can stay connected with customers using Getslocal, enhancing engagement and ensuring repeat purchases. Additionally, we’ll explore how local UK merchants can use the same strategies as Lidl’s famous "Middle of Lidl" and Primark to increase foot traffic and sales while offering a low-cost alternative to larger e-commerce platforms. Importantly, we will highlight how Getslocal empowers smaller UK businesses to overcome common barriers to adopting online retail solutions.

The Digital Divide in UK Small Businesses: Addressing the Gaps:

50% of UK small businesses do not have an online shop. This means they lack e-commerce capabilities for direct online purchases, a significant gap in today’s digital-first economy. Without an online shop, these businesses miss out on sales opportunities and rely heavily on in-store purchases.
70% of UK small businesses do not offer a "Click and Collect" service, often due to logistical or technological barriers. Many small retailers struggle with implementing the technology required to offer this service, which can be a major driver of footfall and sales.
40% of small businesses do not have a website or social media presence, preventing them from engaging with modern consumers who rely on online research and digital platforms for purchasing decisions. This absence can make these businesses nearly invisible in today’s marketplace.
20% of small businesses do not have any online presence at all, including websites, social media, or other digital platforms. This further reduces their ability to attract customers beyond their local vicinity.
25% of UK small businesses do not have a website, which means they rely on traditional methods for customer engagement. This lack of online infrastructure severely limits their reach in a world where consumers increasingly prefer digital interaction.

Getslocal bridges this digital divide by providing a simple, low-cost solution that allows small businesses to compete with larger retailers. With Getslocal Premium Deals and "Click and Collect" functionality, small merchants can attract foot traffic, reduce returns, and build lasting customer loyalty—all without needing an extensive e-commerce platform or a full online store.

The Rising Cost of Online Returns in the UK: A Growing Challenge for Merchants:
The shift to online shopping has resulted in higher return rates, which are expensive for UK retailers to manage:

Increased return rates: Online sales in the UK peaked at 37.8% during the pandemic and have since stabilized at 25%, but high return rates continue to impact profitability.
Rising operational costs: Online return rates reached 17% in 2022, contributing to increased costs for shipping, restocking, and handling, which hurt merchants’ margins.
Introduction of return fees: UK retailers like ASOS, Boohoo, and Zara have started charging return fees to mitigate rising return costs.

Getslocal helps small businesses manage returns more effectively by enabling in-store pickups, which reduce logistical expenses and minimize the likelihood of returns. By integrating Premium Deals, merchants can attract customers to visit their stores, increasing the likelihood of additional sales and decreasing the burden of costly returns.

The Environmental Cost of Online Returns in the UK: Sustainability Concerns:
Online returns not only affect a business's bottom line but also have significant environmental consequences:

Transportation emissions: Each returned product undergoes multiple stages of transport, increasing carbon emissions.
Packaging waste: Many returned products come with packaging that ends up in UK landfills, adding to the waste management problem.
Growing consumer demand for sustainability: UK consumers are becoming increasingly eco-conscious and are demanding greener practices from the businesses they support. "Click and Collect" services help businesses align with these expectations by reducing unnecessary shipping and cutting back on packaging waste.

By adopting Getslocal's "Click and Collect", small businesses can reduce their environmental footprint while increasing customer satisfaction, contributing to both sustainability and business success.

Leveraging Brick-and-Mortar Stores in the UK: Reducing Return Rates and Increasing Profitability:
Brick-and-mortar stores remain a vital part of the UK retail ecosystem, providing opportunities for merchants to lower return rates and boost profits:

Boosting in-store foot traffic: When UK customers use "Click and Collect," they are 85% more likely to make additional purchases.
Lower return rates: Customers who pick up products in-store are far less likely to return them, reducing logistical headaches for retailers and improving overall profit margins.
Cost savings: "Click and Collect" reduces shipping and handling costs, allowing UK merchants to operate more efficiently while boosting in-store sales.

For small businesses that lack the resources for a full e-commerce platform, Getslocal offers an ideal solution that allows them to focus on promoting key products through in-store pickups, driving traffic to their stores and enhancing profitability.

Learning from Amazon: Strategies for UK Retailers to Improve Returns:
Amazon’s approach to managing returns provides valuable lessons for UK retailers:

Streamlined return processes: Amazon encourages customers to return items to physical locations like Whole Foods, reducing mail-in returns and logistics costs. UK merchants can adopt a similar strategy by offering in-store returns.
Transparency in product returns: Amazon flags products with high return rates, helping customers make better decisions. UK retailers can implement similar strategies, offering clearer product information and managing customer expectations.
Monetizing returns: Amazon sells return pallets, turning returned items into additional revenue streams. Small UK businesses could similarly package returned or excess inventory for resale, maximizing the value of products that would otherwise contribute to losses.

With Getslocal, local UK merchants can replicate elements of Amazon’s return strategy on a smaller scale, minimizing returns and streamlining their in-store operations.

The Increasing Cost of Returns: Why UK Retailers Are Charging Fees:
With rising costs associated with returns, more UK retailers are introducing return fees:

Higher logistical costs: As return rates increase, so do the costs associated with restocking and handling returned items.
Encouraging thoughtful purchases: By charging fees for returns, UK retailers encourage customers to think carefully before making a purchase, which helps reduce the likelihood of returns.
Balancing customer expectations: While customers expect free returns, increasing logistics and environmental costs mean that UK retailers must adjust their policies to remain competitive.

Getslocal provides an alternative strategy: by encouraging in-store pickups through Premium Deals, small businesses can avoid the need for costly returns, while still meeting customer expectations with convenience and transparency.

The Success of Primark’s Click and Collect Service: A UK Case Study:
Primark has long resisted selling online, but its recent foray into "Click and Collect" has shown that even value-driven brands can benefit from a hybrid model:

Launching "Click and Collect": In 2022, Primark rolled out a "Click and Collect" service in 25 UK stores, focusing initially on children’s products.
Strong results: Primark has reported that 90% of customers using "Click and Collect" make additional in-store purchases, highlighting the potential of this model to boost sales.
Driving footfall: By allowing customers to order online and collect in-store, Primark increases foot traffic while keeping logistics costs low, demonstrating the power of integrating online convenience with in-store shopping.

Small UK merchants can replicate this model through Getslocal, driving traffic and sales without needing the extensive infrastructure of a large retail chain.

Getslocal Premium Deals: Low-Cost Solutions for Local Merchants Using Primark’s Strategy:

Affordable Click and Collect model: Getslocal provides local UK merchants with a low-cost alternative to traditional e-commerce platforms, offering Premium Deals and in-store collection options that mirror Primark’s successful strategy.
Selective inventory listing: Merchants using Getslocal don’t need to list their entire inventory online. Instead, they can showcase their best deals and offers, driving foot traffic while keeping overheads low. This helps smaller businesses stay competitive without the complexities of managing large-scale e-commerce operations.
Enhancing profitability: By encouraging customers to pick up their purchases in-store, merchants can replicate Primark’s strategy, driving additional sales and lowering the likelihood of returns.

Implementing Lidl's Voucher Strategy with Getslocal: Creating Urgency with Premium Deals:
Lidl has gained fame for its rotating weekly offers in the "Middle of Lidl", which create a sense of urgency and excitement around limited-time deals:

Time-sensitive Premium Vouchers: Using Lidl’s model as inspiration, Getslocal merchants can offer Premium Vouchers that expire after 36 hours. This urgency drives immediate action, encouraging customers to visit stores quickly and make purchases before the offer disappears.
Rotating exclusive deals: Like Lidl’s rotating selection of discounted products, merchants can frequently change their premium offers, ensuring that customers regularly check in to see what’s new.
In-store spending of Premium Rewards: Getslocal allows customers to activate Premium Vouchers and Rewards that can be redeemed in-store, increasing foot traffic and encouraging repeat purchases, similar to Lidl’s in-store promotions.

By adopting the "Middle of Lidl" model, UK merchants can create urgency and excitement around their premium deals, using time-sensitive offers to increase footfall and drive sales.

Encouraging Repeat Purchases and Customer Loyalty in the UK:
Getslocal makes it easy for merchants to build long-term relationships with their customers:

Coalition Premium Points: The Getslocal loyalty programme allows customers to earn points with every purchase, which can be redeemed for rewards, encouraging repeat business.
Creating long-term loyalty: Customers are more likely to return to stores where they have points to spend, increasing their lifetime value and fostering strong customer relationships.
Strengthening relationships: Offering exclusive deals and loyalty rewards keeps customers engaged, reducing churn and boosting overall sales.

Staying Connected with UK Customers: The Power of the Getslocal Club Connect App:
With Getslocal’s Club Connect App, UK merchants can maintain regular communication with their customers:

Direct communication: Merchants can send personalized offers, updates, and reminders, keeping customers engaged and informed about new deals and promotions.
Building stronger relationships: Regular engagement helps merchants strengthen relationships with customers, increasing loyalty and driving repeat purchases.
Enhancing engagement: By personalizing the shopping experience, merchants can ensure their brand remains top-of-mind for customers, driving both online and in-store sales.

Conclusion: Why "Click and Collect" and Premium Deals Are the Future of UK Retail:
In today’s competitive retail environment, UK merchants must find innovative ways to balance customer convenience with profitability and sustainability. By adopting Getslocal’s Premium Deals and "Click and Collect" model, merchants can:

Adapting to new trends: As the UK retail market continues to evolve, merchants must adapt to changing consumer preferences and the growing importance of sustainability. "Click and Collect" offers a solution that balances the convenience of online shopping with the value of in-store interaction.

Increase footfall and profitability: Boost in-store pickups to drive additional purchases and reduce returns, following the successful strategies of Primark and Lidl.
Boosting profitability: By offering Getslocal Premium Deals and encouraging in-store pickups, UK retailers can reduce return rates, boost sales, and foster long-term customer loyalty.
The success of Primark as a model: Primark’s "Click and Collect" success highlights how UK retailers can benefit from this hybrid model, leveraging both online and offline channels to create a more profitable and sustainable retail experience.
Create urgency with time-sensitive deals: Use rotating premium offers similar to Lidl’s "Middle of Lidl" to build excitement and drive immediate action.
Incorporating Lidl’s urgency strategy: Using time-sensitive Premium Vouchers that expire after 36 hours drives urgency, encouraging immediate footfall and increasing sales for UK merchants.
Enhancing customer loyalty: The Getslocal Club Connect App allows UK merchants to stay connected with their customers, offering personalised rewards, exclusive deals, and a seamless shopping experience that keeps customers coming back.

By embracing Getslocal's affordable platform, local UK merchants can overcome barriers to online retail and build a sustainable, profitable business. Leveraging "Click and Collect" services and premium deals, small businesses can follow the success of Primark and Lidl, increasing customer engagement, profitability, and long-term growth in the fast-evolving retail landscape.