This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.Walmart is offering discounts on eligible online purchases picked up in-store, according to Fortune.The promotion will begin next week covering 10,000 items, and will be extended to 1 million products by the end of June.The discounts are aimed at reducing the cost of last-mile delivery, which will rise as Walmart increases its e-commerce efforts. Walmart is looking to encourage shoppers to opt for the discounts over the convenience of home delivery. The last mile of delivery ' the final leg of delivering a package to a customer's doorstep ' is the most expensive part of delivering goods because it involves shipping a large number of low volume orders to numerous locations. As Walmart pushes its e-commerce initiatives, it will face steep increases in shipping costs, and eliminating last-mile expenses is one way to create considerablesavings.This move is an about-face from the retail giant's latest effort to compete with Amazon on shipping. Walmart recently reduced its free shipping threshold to $35, offering free two-day shipping on orders over that amount. This policy replaced its subscription service, ShippingPass, with the hope of undercutting Amazon's Prime subscription. However, this may have threatened skyrocketing, and possibly unsustainable, shipping costs for the company. Walmart now appears to be pulling back from this strategy by encouraging shoppers to bypass delivery altogether. Moreover, the company could be planning to pass on some of its savings from lower shipping costs to shoppers in the form of additional discounts, staying true to its core offering ' low prices.Walmart might also be able to boost to in-store purchases through more click-and-collect orders. DSW reports that 15-20% of customers picking up an online order in-store end up buying an additional item. Walmart could encourage such purchases by moving convenience items ' such as toothpaste or grab-and-go food items ' to where customers pick up their orders.Click and collect ' a fulfillment option that lets shoppers place an online order and pick it up at a store ' is thriving in the UK.Over half of UK shoppers report having used this method in the past year,according toa surveyfrom JDA & Centiro conducted in April 2016.However, the US is far behind on the click and collect trend, with just 27% of consumers using the service.This is largely due to slower growth in mobile commerce, and specifically,the hesitancy shoppers feel about using mobile retail apps.Retailers in the US can look to the growth drivers in the UK to help drive up their own click and collect sales. Most notably, mobile commerce and adoption by grocery chains are driving shoppers in the UK to use click and collect.Nancee Halpin, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on click and collect that breaks down the growth factors behind click and collect in the UK. It alsodiscusses the retailers successfully implementingthe fulfillment method, examines theof impact consumer behavior, and outlines some key steps that US retailers can take to replicate the UK's performance.Here are some key takeaways from the report:The UK's click and collect market is expected to grow 78% by 2020, to 8.2 billion ($10.6 billion). Meanwhile, it is expected to reach5.3 billion ($6.8 billion) by the end of 2016.Click and collect is benefiting from consumer adoption of mobile commerce in the UK.Mobile is a fundamental driver because it affords consumers more flexibility in the purchasing process. As a result, many UK consumers are purchasing goods on their mobile phones, and then picking them up on the way home from work, the gym, appointments, etc.The service is particularly popular among grocery chains, with many of the UK's largest supermarkets offering click and collect.Since trips to the grocery store are made frequently and regularly, click and collect is a perfect fit for shoppers who want to avoid recurring issues like long checkout lines and crowded stores.To grow click and collect in the US, retailers need to invest in their mobile presence and dedicate in-store resources to click and collect shoppers.Merchants should do more than just recreate the desktop browser experience on a mobile app ' this includes employing tools like mobile loyalty programs, digital coupons, and social media integration.In full, the report:Sizes the market for click and collect in both the UK and the US.Identifies the key growth factors that are making click and collect successful in the UK.Discusses key players in the UK that are seeing success with click and collect.Presents some of the challenges the US faces in spurringadoption.Outlines future opportunities for US retailers to grow sales via click and collect.To get your copy of this invaluable guide, choose one of these options:Subscribe to anAll-Accesspass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensureyou stay ahead of the curve and benefit personally and professionally. >> START A MEMBERSHIPPurchase & download the full report fromour research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, you've given yourself a powerful advantage in your understanding of new e-commerce strategies.Join the conversation about this story
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