<p>Digitalization has improved the living status of human beings and a major portion of consumers are now intending to do online shopping. So, it is difficult for the retailer to continue business solely with the offline channel. This paper introduces a new Buy-online-and-pick-up-in-store (BOPS) selling channel at the retail store besides the online and traditional offline channels. Also, it investigates consumers’ optimal channel selection and pricing decisions in a multi-channel supply chain (SC) system. Here, the manufacturer has the direct online channel and the indirect channels through the retailer. The retailer sells the product in the offline channel as well as in the BOPS channel. The BOPS and casual consumers are clustered based on distance from the retail store. First, we have defined the BOPS structure and consumers’ perspectives on channel selection. Then the consumers’ demand is measured from the utility function based on the product’s price, shipping charge, and distance from the retail store. The entire problem is modeled under cooperation, non-cooperation, and coordination scenarios and the optimal decisions are derived using the game theory approach. Also, we have established five particular models. The analyses of the results revealed that consumers are more intending to purchase the products from the BOPS channel regardless of the presence of the offline channel. Also, the whole SC system profit is enhanced for SC members’ cooperation whereas individual profits are gained for the SC members’ coordination under a revenue-sharing contract.</p>