A Novel Discount Mechanism for Buy Online PickUp in Store (BOPS)

Abstract

Buy online pickup in store (BOPS) is one of the omnichannel fulfillment strategies which is gaining lots of popularity among omnichannel stakeholders. For this purpose, few large retailers have adopted BOPS strategy while many more are in queue to adopt for BOPS’s benefits to expand their business. To attract the customer to use BOPS environment, retailers often offer various discounts on products and services. In this paper, a novel discount strategy is proposed under BOPS environment to benefit both consumers and retailers. In this mechanism, the customer would be delighted through different discount categories which are based on travel distance to pick their order. To get depth insight into this strategy, a numerical illustration is enumerated. This strategy would be useful to the new market entrant in this area for expanding their business through leveraging such BOPS schemes.