For retailers, omni-channel sales is the new business imperative. Brands are now required to be anywhere and everywhere just to keep up with the competition and the line between digital and physical shopping is becoming increasingly blurred. From leading global luxury retailers such as Burberry and FarFetch, to large American retail chains such as Macy’s and Kohl’s – everyone is turning to new business flows to meet the demands of consumers.

One of the most popular omni-channel flow is allowing shoppers to buy online and pick up items in the store, commonly known as “Buy Online, Pick Up In-Store,” or “Click and Collect”. This flow holds a lot of potential for brick & mortar retailers. For starters, it’s in high demand. A recent study showed that nearly half of US consumers (44%) want the option to collect their purchase at a physical store immediately after purchasing online. But this shopping flow is also advantageous for retailers; it gets customers into physical store locations where they are likely to make additional purchases.

However, making customers happy requires not only offering the shopping flows they expect, but also great execution, and there are a couple of major challenges retailers need to overcome in order to successfully pull off in-store pickup. The first challenge is risk – this shopping flow exposes retailers to a myriad of fraud-related vulnerabilities. The second challenge is operational – retailers need to make sure the merchandise is ready to be picked up when the customer arrives in the store.

In this post, we will discuss the fraud-related challenges associated with in-store pickup, and explain how retailers can overcome them.

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