Last week I watched a customer at Target stare at checkout for 30 seconds, debating "Ship" or "Pick Up Today." She had three items—socks, a phone charger, and dish soap. Total: $24. Shipping was free over $35, but $5.99 below that. Pickup was free, ready in 2 hours, but she'd have to drive back to the store.
She chose pickup. Got her order that afternoon. And bought $18 more stuff while there.
That's the BOPIS vs delivery decision in action—not just for customers, but for retailers making strategic choices about which fulfillment method to emphasize. Do you steer shoppers toward pickup or delivery? When does each make sense? What's the real cost difference?
Here's what I'll show you: complete cost breakdowns for both fulfillment methods, speed comparisons, customer experience factors, when to push each option, and a calculator to model your own scenarios. Whether you're a retailer optimizing operations or a shopper making smart choices, this guide gives you the data to decide.
For retailers, BOPIS costs $2-4 per order (labor for picking and staging) versus $6-12 for home delivery (packaging, carrier fees, labor). That's 50-70% cost savings. However, BOPIS requires physical store locations and generates fewer impulse purchases from online browsing. Delivery reaches customers anywhere but has higher fulfillment costs and longer timelines. The optimal strategy uses both: pickup for local, urgent orders; delivery for distant customers and convenience-focused shoppers.
Let's break down the actual costs retailers face for each fulfillment method:
Cost Component | Typical Cost | Notes |
---|---|---|
Staff picking time | $1.50-$2.50 | 5-15 minutes at $15-20/hr wages |
Bagging & staging | $0.25-$0.50 | Bags, labels, shelf space |
Pickup handoff | $0.50-$1.00 | 2-5 minutes staff time at counter/curbside |
Technology & overhead | $0.25-$0.50 | POS, notifications, systems |
Total BOPIS Cost | $2.50-$4.50 | Average: $3.50 per order |
Cost Component | Typical Cost | Notes |
---|---|---|
Picking & packing | $2.00-$3.50 | Warehouse or store pick, box, tape, label |
Packaging materials | $0.75-$1.50 | Box, filler, tape, protective materials |
Carrier shipping fees | $4.00-$8.00 | USPS, UPS, FedEx; varies by weight/distance |
Technology & overhead | $0.50-$1.00 | WMS, shipping software, label printing |
Returns processing | $1.00-$2.00 | ~15% return rate × $7-12 reverse logistics |
Total Delivery Cost | $8.25-$16.00 | Average: $11 per order |
According to Shopify's fulfillment research, retailers save an average of $7.50 per order by fulfilling via BOPIS instead of shipping. For a retailer processing 1,000 orders per month, that's $90,000 annual savings by converting just half to pickup.
BOPIS Hidden Benefits:
Delivery Hidden Benefits:
Beyond cost, time-to-customer and convenience shape which option customers choose:
BOPIS wins on speed when: Customer needs item today or tomorrow, and store is within 15 minutes.
Delivery wins on convenience when: Customer values not leaving home over speed, or lives far from stores.
Scenario 1: Urgent Need (Phone Charger, Birthday Gift)
Winner: BOPIS – Ready in 1-2 hours vs 1-2 days minimum for delivery
Scenario 2: Routine Purchase, No Rush (Clothes, Home Goods)
Winner: Delivery – Convenience of home delivery outweighs speed advantage
Scenario 3: Bulk Groceries or Heavy Items
Winner: BOPIS (Curbside) – Avoid shipping costs on heavy items; drive up, staff load your car
Scenario 4: Rural Location (No Stores Within 30 Minutes)
Winner: Delivery – Even with 3-5 day wait, beats driving 60+ minutes round trip
Cost and speed matter, but experience drives repeat business. Here's how each method impacts customers:
Advantages:
Disadvantages:
Advantages:
Disadvantages:
According to retail studies, customer preference splits:
For groceries specifically, studies show 60%+ prefer pickup over delivery—seeing and selecting fresh produce matters.
Our BOPIS Holiday Ops Kit includes cost calculators, staffing models, and decision frameworks to balance pickup and delivery for maximum profit and customer satisfaction.
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BOPIS makes sense in specific situations. Here's when to choose (or promote) pickup:
BOPIS works best when: Proximity + Urgency + Cost Savings > Convenience Value
Translation: If the store is close, customer needs it soon, and pickup saves money, BOPIS wins.
Delivery is the right choice in other scenarios:
Delivery works best when: Convenience + Geographic Necessity > Speed + Cost
Translation: If customer values convenience or lives far away, delivery wins despite higher costs and slower timeline.
The smartest retailers don't choose one or the other—they optimize both and guide customers to the right option.
Tier 1: Default to Customer Proximity
Tier 2: Consider Order Value
Tier 3: Factor Urgency Signals
How you present options at checkout massively impacts selection:
To support both fulfillment methods:
Advanced retailers use hybrid approaches:
For complete implementation guidance, see our BOPIS & Curbside Holiday Playbook.
Yes, BOPIS is typically much faster—orders are ready in 1-4 hours vs 1-7 days for delivery. Target and Walmart offer 2-hour pickup, Best Buy promises 1 hour. Even Amazon Prime (1-2 days) can't match same-day pickup speed for urgent needs.
For customers, BOPIS is often free while shipping costs $5-10 for orders under free shipping thresholds. For retailers, BOPIS costs $2-4 per order vs $8-16 for delivery fulfillment—a 50-70% savings.
BOPIS requires customers to travel to a store, works only during store hours, and is limited to areas near physical locations. Customers must invest 10-30 minutes for the trip. It also doesn't work for gifts being shipped to others or for customers with mobility issues.
Preference is split: about 45% prefer delivery for convenience, 35% prefer BOPIS when nearby for speed and cost savings, and 20% use both depending on urgency. For groceries specifically, 60%+ prefer pickup to inspect freshness.
Yes, most retailers allow you to inspect and return/exchange items immediately at pickup. This is actually an advantage over delivery, where you must repackage and ship returns back (taking 7-14 days for refund).
It depends. BOPIS consolidates shopping trips (one trip gets multiple items), while delivery means individual packaging and truck routes per order. However, if you make a dedicated trip just for pickup, environmental impact is similar. Curbside pickup on your regular route is most efficient.
Both serve different needs. BOPIS is better for: local customers, same-day orders, cost savings, and driving add-on purchases in-store. Delivery is better for: distant customers, reaching new markets, convenience-focused shoppers, and high-value orders where experience matters most.
You'd save on fulfillment costs but lose significant market reach—customers beyond 20 miles won't buy if pickup is the only option. Best strategy: offer both and guide local customers toward pickup while serving distant customers via delivery.
Start with BOPIS if you have a physical store—it's cheaper and easier to implement. Add delivery later as volume grows. Use calculated shipping (customer pays actual cost) or free shipping thresholds to protect margins until you have volume to negotiate carrier discounts.
Use this framework: If customer is within 15 miles and order is under free shipping threshold, promote pickup. If customer is 25+ miles or order is high-value, promote delivery. For 15-25 miles, present both equally and let urgency dictate.
Yes, significantly. Research shows 30-40% of BOPIS customers purchase additional items when picking up orders, with average add-on purchases of $15-25. This "basket building" effect makes BOPIS customers more valuable than pure online shoppers.
Yes, many retailers do this via services like Instacart, DoorDash, or Uber Direct. Store staff pick orders (same as BOPIS), but a courier delivers within 2-4 hours instead of customer pickup. This combines BOPIS cost efficiency with delivery convenience, though courier fees apply.
The BOPIS vs delivery debate isn't about which is "better"—it's about which serves your specific situation. Both fulfillment methods have clear roles in modern retail.
Here's what you need to remember:
For shoppers: Choose BOPIS when you need speed, want cost savings, or prefer certainty. Choose delivery when convenience matters more or stores aren't nearby.
For retailers: Optimize both options, make the decision easy at checkout, and use smart defaults based on customer proximity and order characteristics. Track metrics (fulfillment cost, pickup rate, add-on purchases) and refine your strategy over time.
The future of retail is omnichannel—customers expect flexibility to choose the fulfillment method that fits their current needs. Winners will be retailers who make both options work seamlessly.
Continue Learning:
Get our BOPIS Holiday Ops Kit with cost analysis spreadsheets, decision frameworks, staffing calculators, and implementation guides to balance pickup and delivery for maximum profitability.
Get the Complete BOPIS Ops Kit – $29Includes: Cost calculator, SLA modeling tool, policy templates, signage pack, staff training slides.
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