Case Study:
Perry Ellis & BOPA Integration
Perry Ellis & BOPA Integration
2-7%
increase in sales across all six brands
10% to 16%
of customers opted for BOPA instead of traditional home delivery
$3.5
savings per package compared to home delivery
2-7%
increase in sales across all six brands
10% to 16%
of customers opted for BOPA instead of traditional home delivery
$3.5
savings per package compared to home delivery
2-7%
increase in sales across all six brands
10% to 16%
of customers opted for BOPA instead of traditional home delivery
$3.5
savings per package compared to home delivery
Setting
Perry Ellis International, a well-known fashion retailer, has acknowledged the changing landscape of e-commerce and shifting consumer preferences. They manage six distinct brands: Perry Ellis, Original Penguin, Rafaella, Cubavera, Golf Apparel, and Callaway. To stay ahead in the competitive market, the company sought innovative fulfillment strategies that would align with consumer demands and enhance the efficiency of their operations.
Challenge
The primary challenge for Perry Ellis was to address the growing consumer need for convenience and security in online shopping. With issues like porch piracy on the rise and a demand for more flexible delivery options, Perry Ellis Int needed a solution that would not only cater to these consumer concerns but also boost their sales and operational efficiency.
Solution
Perry Ellis Int partnered with Via.Delivery to integrate the Buy Online, Pickup Anywhere (BOPA) model into their fulfillment portfolio. The adoption of BOPA brought several key benefits:
Consumer Preference:
Despite the availability of free home delivery, 10% to 16% of customers chose the BOPA shipping option, indicating a strong consumer preference for local pickup.
Revenue Boost:
Via.Delivery’s A/B testing revealed that incorporating BOPA led to a sales increase of 2 to 3%, with some brands experiencing gains of up to 7%. Jay Nigrelli, Senior Vice President of E-commerce at Perry Ellis, acknowledged BOPA as the most profitable fulfillment channel, enhancing customer experience and conversion rates.
Operational Efficiency:
BOPA has significantly assisted Perry Ellis in reducing operational costs by rerouting deliveries to commercial locations, effectively mitigating residential parcel surcharges, particularly during peak seasons. This strategy has resulted in an overall savings of approximately $3.5 per package.
This also allowed carriers to optimize their delivery routes, leading to increased cost efficiencies.
This also allowed carriers to optimize their delivery routes, leading to increased cost efficiencies.
Industry Perspective:
The adoption of BOPA by Perry Ellis mirrors the broader e-commerce trend towards flexible, customer-centric solutions, as noted in industry analyses. This shift represents a strategic response to changing consumer expectations in the digital shopping domain.
When we conducted an A/B test, we observed no significant change in the average value of the shopping cart. However, a notable increase in the number of orders was evident after implementing BOPA, leading to a marked improvement in the conversion rates.
In summary, the BOPA approach successfully bridged cost efficiency and customer-centricity, creating a mutually beneficial scenario for Perry Ellis, their customers, and carriers. This case study exemplifies how adapting to consumer preferences and innovative solutions like BOPA can significantly enhance a company's e-commerce strategy.