EXPRESS: The Double-Edged Offline Touchpoint: How Self-Pickup Stations Reshape Pure-Play E-Commerce Transactions

Click-and-collect services through self-pickup stations have gained popularity as an alternative to traditional home delivery in e-commerce. This fulfillment option can increase customer purchases by enhancing post-purchase convenience and reducing transaction costs. However, increased hassle costs for customers and exposure to offline competition make the net impact uncertain. This study utilizes a Synthetic Difference-in-Differences (SDID) approach to analyze individual-level transaction data from an online shopping platform in Asia. Self-pickup station openings are found to have a positive net effect on customer spending and shopping frequency on the platform, without cannibalizing home delivery. A closer examination of customer dynamics reveals that station openings stabilize the platform’s user base by reducing customer churn and deepening engagement among existing shoppers, rather than driving new user acquisition. Furthermore, these positive effects are moderated by: station accessibility, level of nearby offline competition, and product attributes. Specifically, this paper provides the first empirical evidence that the positive effect of pickup stations can be reduced, if platforms locate them close to major offline retail alternatives. These findings provide important implications for e-commerce platforms regarding self-pickup station benefits, product suitability, and location strategy to reduce the risk of customer loss to offline retailers.