In a move to increase customer service and multi-channel sales, REI Inc. is leveraging its in-store online kiosks with a free ship-to-store delivery option. It’s also planning a free ship-to-store policy on web sales.
Under the kiosk program, which began in Q4 last year, if a store doesn`t have what a customer is looking for, the customer can ask an employee to order through a web-based kiosk and have it shipped to the store at no extra charge. The system works particularly well for stores with smaller footprints and limited space for extensive SKUs or large items like canoes, REI says.
REI doesn`t charge customers for shipping for in-store pickup because it figures it can just add special orders to shipments already scheduled for stores. Moreover, REI says the in-store pickup presents an ideal opportunity for cross-selling. "If a customer comes to our store to pick up a canoe, we can sell them the roof rack to take it home," adds John Strother, director of inventory and logistics for merchandising operations.
REI also plans to eventually offer the same ship-to-store through REI.com. Although consumers see the same prices online as they do in the store, many of them might avoid making an online purchase due to the cost of shipping a product to their home address. The ship-to-store option should overcome that problem while helping to support profit margins, says Ernie Hughes, director of technical services. "Shipping cost could be the reason someone doesn`t buy online, so it`s better to let them order online and pick up at the store," he adds. "That allows us to not have to mark down products."
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