Click and collect vs ship-from-store: what retailers need to plan

Your online orders can be fulfilled from the same place: your store shelves. Customers can collect their orders in store, or an assistant can pack them for delivery. Click and collect and ship-from-store both make your stores part of your omnichannel fulfilment network, drawing on the same staff, space and stock.

But each model puts different demands on a store. With click and collect, staff prepare an order and hold it until the customer arrives. With ship-from-store, the store also needs to pack parcels, print carrier labels and meet the carrier's collection deadline. The model you choose shapes the promise you make at checkout, the space and stock you need, and the costs you take on.

What is the difference between click and collect and ship-from-store?

With click and collect, the customer collects the order from a store and the retailer's work ends at handover. With ship-from-store, the store picks and packs the order, then hands the parcel to a carrier, and the retailer's work continues until despatch.

Both models start with retail order picking in a store. After that, the steps change.

How click and collect works

1. At checkout, the customer chooses a store and sees an estimated collection time.

2. The order is sent to the store. The retailer's system reserves the stock for that order.

3. A store assistant picks the items and labels them with the order details.

4. The order is placed in a collection area, such as a shelf, counter or locker.

5. The customer is notified when the order is ready.

6. The customer collects the order from the store. This completes the collection process.

How ship-from-store works

1. At checkout, the customer chooses delivery and sees an estimated date or time window.

2. The order-routing system assigns the order to a store with the required stock. 

3. A store assistant picks the items. Any unavailable items are reported so the order can be updated.

4. The order is packed and labelled for the carrier.

5. The parcel is placed in a despatch area until the carrier collects it.

6. The carrier collects the parcel, and tracking updates follow its delivery.

In both models, the retailer's system may reserve stock when the order is placed. When the stock count is reduced depends on how that system is set up.

Related fulfilment terms

A few related terms are easy to confuse with these models:

• Ship-to-store sends stock from a distribution centre or another store to the collection store before the customer picks it up. It adds a stock-transfer step to click and collect.

• Reserve and collect lets a customer reserve an item online, often to pay for it in store. Payment timing and the risk of uncollected orders can differ.

• BOPIS means "buy online, pick up in store." It's the US term for click and collect.

Which option works best depends on the store's stock, staff, space and delivery arrangements. The next sections look at those factors.

Can one store support both click and collect and ship-from-store?

Yes. A store can offer both, as long as it has clear rules for sharing staff time, setting priorities and limiting the number of orders it accepts.

Both models rely on store staff to pick orders. If the store plans how to handle that work, it can offer customers both options. Without a plan, urgent orders can compete for the same people and lead to missed collection or delivery promises.

What affects a store's capacity?

Five things help determine how much each store can handle:

• Space: Click-and-collect orders need somewhere to wait until customers collect them. Ship-from-store orders need a packing area and space for parcels waiting for the carrier.

• Staffing: Too few people picking orders during busy periods can affect both services.

• Carrier collection times: An early collection means orders need to be picked and packed earlier. A later collection gives the store more time.

• Stock levels: Stores with several units of popular items are better placed to handle stock discrepancies. If there's only one unit, a mismatch between the stock record and the shelf can leave an order unfulfilled.

• Collection point: A collection point that's easy for customers to reach may help orders move through more smoothly. A less convenient location may need a different setup.

Ways to share the work

Stores can use different rules, depending on their size and staffing:

1. Use one pick queue: A shared list lets staff see both types of orders in one place. Separate queues may work better if different teams handle each service.

2. Set a priority rule: Consider both the customer's promised collection or delivery time and the store's staffing and packing time.

3. Set order limits: Decide how many orders of each type a store can manage per hour or day, based on the staff available.

4. Set cut-off times: The latest time customers can place an order should reflect the store's picking hours and carrier collection time.

5. Let managers pause a service: A manager may need to pause one option during a stocktake or staff shortage while keeping the other available.

Example: two stores, two different mixes

Imagine a retailer with two stores. A compact city-centre store has little back-room space and a carrier that arrives after the main shift ends. It may suit click and collect, with a short hold window and a collection shelf near the till.

A larger retail-park store has more space, a daytime carrier collection and several units of popular items. It may be able to ship orders during the day while also handling collections.

The right mix can vary from store to store, even when the retailer uses the same systems and stock records. That's why it helps to set capacity rules for each location.

How is stock reserved?

A reservation sets an item aside for an order. The item is still physically in the store, but the system should no longer promise it to another customer.

A stock deduction changes the recorded stock quantity after the retailer's system records a sale or another agreed event. The exact timing depends on how the system is configured.

Both models reserve stock. They differ in where the item waits and how long it stays reserved. This section focuses on the rules each fulfilment model needs.

The main risk is different in each model. With click and collect, an item may sit in the collection area while it could otherwise be sold. With ship-from-store, the item may sell in-store or prove unavailable before staff pick it. Prompt picking after allocation can help reduce that risk.

Set hold and release rules

For click and collect, the hold window determines how long the store keeps an order for the customer. A longer window gives the customer more time, but keeps the item out of available stock for longer. A shorter window releases stock sooner but gives the customer less time to collect.

Decide what happens when the window ends. For example, the store may return the item to sellable stock and handle the order under its uncollected-order policy.

For ship-from-store, set a limit on the time between an order being assigned to a store and being picked. An alert can help staff spot orders that are waiting too long.

Handling missing items

A short pick happens when the shelf has fewer items than the stock record shows. Staff need a way to report the problem and give a reason. The system can then send the order to another store or a warehouse.

Short-pick reports also show where stock records differ from what is on the shelf. Those locations and products can then be checked.

Reserve and collect

Reserve and collect is another option. The customer reserves an item online and often pays in store. Because payment may still be due at collection, the chance of an uncollected order can rise.

Retailers that offer this option can set a shorter hold window or consider taking a card authorisation at the time of reservation.

Which operational costs should retailers compare?

Compare the same costs for each model, store by store. Picking is a shared cost. Carrier fees usually apply to ship-from-store, while collection space and customer handover time are more relevant to click and collect.

Calculate cost per completed order

Add the fulfilment costs for each model and divide the total by the number of completed orders:

Cost per order = total fulfilment costs ÷ completed orders

Use the cost lines above to see what's driving the result. For example, ship-from-store may cost more at one location because of carrier fees, packing materials or short picks.

Record each cost by store throughout the pilot. Ask staff to track picking and handover time. Use carrier invoices for delivery fees, and estimate space costs based on how much room orders use and how long they stay there.

Keep these measures separate

Two effects are useful to track, but don't include them in the fulfilment-cost calculation:

• Extra purchases during collection visits: Track basket value on collection days to see whether customers make additional purchases.

• Customer travel: Track collection rates by store to understand whether location affects take-up. Travel affects the customer's experience, but it isn't a fulfilment cost paid by the retailer.

Customer and legal points

Customer rights and store policies are different things. Explain them separately in checkout information and staff training.

Cancellation rights

For a qualifying distance sale of goods, the cancellation period generally ends 14 days after the customer, or someone they have nominated, takes physical possession of the goods. Different timing applies to orders delivered in separate parts. For shipped orders, possession usually begins at delivery; for collected orders, it usually begins when the customer takes the goods from the store. (Consumer Contracts Regulations 2013, regulation 30)

Whether an online order collected in store qualifies as a distance sale can depend on when and how the contract is formed, the contract terms and any exceptions. Regulation 35 also covers who must collect or return goods after cancellation and who pays the direct return cost. (Consumer Contracts Regulations 2013, regulation 35)

Legal review note: Have a legal reviewer confirm this section and check the current wording of regulations 30 and 35 before publication.

Store policies

Retailers set their own processes for things such as:

• ID checks or collection codes

• How long an order is held

• What happens to uncollected orders, including refunds

• Whether customers can return online orders in store

Tell customers about relevant policies in the checkout and order confirmation. Give store staff the same guidance so they can answer questions consistently.

Plan a store pilot

A small pilot can show how each model works in your stores before you roll it out more widely.

1. Choose stores with different layouts: Include, for example, a compact city store and a larger store with more back-room space. Choose locations with experienced teams and reliable stock records.

2. Choose a starting model for each store: Base the choice on space, staffing and carrier collection times. Add a second model where the store has enough capacity.

3. Set the operating rules: Decide how orders will be queued, prioritised and limited. Set cut-off times and let store managers pause a service when needed.

4. Set customer promises: Agree collection-ready times, hold windows and delivery windows. Show them at checkout and in order confirmations.

5. Agree store policies: Set rules for ID checks, collection codes, returns and uncollected orders, then brief staff.

6. Track costs from the start: Record each cost in the table so results can be compared across stores.

7. Review results at set times: Compare performance by store and model, then adjust which services each location offers.

Measures to track

Look at these measures together. A fast pick time, for example, may not tell the whole story if the store also has many short picks.

Manage store fulfilment with Fynd OMS

Fynd OMS brings orders from your online store, marketplaces and retail outlets into one dashboard. It can route orders to a store, warehouse or fulfilment partner based on available stock, so your team can manage orders across channels in one place.

See how Fynd OMS could work for your stores.

Book a free demo