The most successful Walmart suppliers have products that are compliant with IOPD. This acronym simply means that a product is available to customers In-store as well as Online. If a customer wants the product without entering a Walmart store, the product must also be available for store-side Pickup or home Delivery.
The pickup part of this acronym has seen the most growth and evolution over the last few years. It started as separate fulfillment centers and pickup destinations for Walmart shoppers. Today, Walmart stores fulfill the online orders and have designated areas of the parking lot for customer pickup.
For those who still want to go to Walmart for items but want someone else to grab them and load their car, Walmart began with its OGP program that has since seen successful results and change over the years.
What Is OGP at Walmart?
OGP at Walmart means online grocery pickup. OGP began as a service at Walmart that allowed customers to order their items online and then drive to their local Walmart store to pick up their orders without having to leave their car.
The service still exists today, but it has expanded. Today, the original OGP has been updated to Walmart OPD (Online Pickup and Delivery). While Walmart’s pickup and delivery options are most convenient for large grocery orders, the products available for these services go well beyond grocery items.
Although some general merchandise items were qualified to be ordered via Walmart OGP, some customers were unaware they could take advantage of this option when adding items to their online cart. To make this more evident to the Walmart shopper, the company rebranded the service and changed the design and functionality of the app.
Walmart customers can now order a combination of grocery and general merchandise items and have them delivered to their homes or available for pickup at their local store.
OGP Benefits for Consumers
Part of Walmart’s on-going strategy is looking for ways to serve the consumer better: better than it has before and better than its competitors! The original OGP program (and now the OPD expansion) provided many benefits for the Walmart customer:
Walmart pickup services allow the consumer to fill their cart on their mobile device without having to walk the aisles of a Walmart store. An online search is much easier than a search in a brick-and-mortar store! Plus, no matter how many times Walmart moves your favorite chips after a modular reset, they’ll always be in the same place for your online order.
The time savings of using the pickup services is self-evident. If a customer is going to Walmart to stock up on groceries for the week, 30 minutes to an hour can easily be spent on parking, shopping, and checkout. The customer can be parked and the car loaded in a fraction of the time.
Communication to Meet Expectations
Walmart has improved its customer communication significantly in recent years. Once placing an order, customers are given a precise window of time to pick up their order. If an item on the order is not available, the customer is immediately notified with substitution options so there are no surprises or unwanted items in the order.
Online Ordering Compromise
More and more shoppers enjoy ordering and paying for items online. However, many factors deter some customers from wanting products delivered to their homes. Whether it’s not knowing when deliveries will arrive, theft, or perishables that need to be accepted immediately, home delivery can have drawbacks. The pickup option is a convenient compromise of the ease of online ordering with the security of picking the order up at the local store.
OGP Benefits for Suppliers
The Walmart customer was not the only one that stood to benefit from OGP when it first launched. Walmart suppliers found advantages to this service as well:
Growth Through Convenience
Walmart OGP eliminated two things that can kill a sale: physical limitations and delivery charges. For example, if a customer wants to purchase a 40-pound bag of dog food, they may be physically unable to carry it out of a Walmart store and load it in their car. At the same time, if free delivery is not offered, fees to deliver larger items ordered online can be expensive. OGP allowed the customer to purchase larger items without having to haul them out of a store or pay high delivery charges. This can draw more consumers to a supplier’s items.
It is much easier to track consumer data through the information they provide in online orders. Suppliers can understand who is using Walmart online purchase options, how their market baskets can differ from an in-store shopper and their shopping/pickup preferences. This data can be used to help suppliers plan for future product designs and case pack alterations to align with the shopper habits.
Because the pickup customer is ordering online, how they place their order is key. MediaVision2020 did a study of the original OGP orders placed over weekend peak times. Cross-device activity rose to over 60%. That means orders were being placed not just on mobile phones, but also tablets and laptops. That research can help suppliers understand where to advertise at times when their customer is online using a given device. As MediaVision suggests, “Mobile-only shopping campaigns and campaigns built around app usage will miss a significant opportunity during these stock-up sessions.”
Continued Growth of Pickup and Delivery
Walmart is strategically keeping up with new consumer demands through a combination of technology and customer service. Though online grocery and general merchandise sales were slow to catch on (as with all new innovations!), their upward trend continues as Walmart Pickup and Delivery services have grown.
As discussed above, OGP brought many advantages for consumers and suppliers that have only gotten better with OPD. It also brings a great advantage for Walmart’s future growth. As recorded by ForceBrands, the flexibility and convenience of Walmart OGP in the beginning brought Walmart new customers.
As Walmart collects data on consumers, the company has noted that 60% of original OGP sales came from first-time customers. Interestingly, these new customers were largely from a new demographic: the affluent. Higher-income shoppers that would avoid a crowded Walmart store were drawn to OGP’s convenience and low prices.
A more affluent shopper also brings a higher register ring. ForceBrands went on to report that “the average spend per Walmart trip for store pickup was $125 vs $50 in a store.” As Walmart plans for ecommerce to drive growth in its overall business, store pickup will certainly be a large part of its strategy.
The Bottom Line
From OGP to OPD, this convenience is still a huge area of growth for Walmart, which makes it a growth opportunity for Walmart suppliers. With changing consumer demand on how and when they want their items, it’s never been more important to resolve issues in the supply chain to ensure items are in the Walmart store and available to be added to physical or online carts.
As you look to improve your supply chain and connect better with Walmart, 8th & Walton is here to help. To learn more about our services, request a free 15-minute consultation with one of our Walmart advisors.