Online to Offline (O2O) is an indispensable commerce strategy that protects all brick-and-mortar retail industries. Traditional retailers are highly worried about the growth of online commerce as it has made physical retail stores obsolete.
The new concept of O2O has given life to all physical retail stores. Many leading eCommerce giants like Amazon and Alibaba are also considering O2O’s strategy to be the future of eCommerce. If these popular brands find this concept to be promising then you can also escalate your business with the new O2O concept.
If you are a retailer struggling to compete in the market with your offline store, then it is time to learn about O2O commerce strategy and you need to implement them for your business. We will guide you to understand O2O and will let you know its benefits and its future in the market.
What is the online-to-offline business model?
The Online to offline business model is a unique commerce strategy that will drive all potential online customers to physical retail stores. This approach assures customers have a seamless digital experience in all stages of their purchase.
Retail stores use all digital platforms like social media channels, search engine optimization, content marketing, email marketing, and many more to identify their customers online. These customers are enticed to their physical stores to make purchases.
The working of Online to Offline business model
The O2O business model is very simple to understand. It will incentivize the customer to make orders through its online platform and will make them collect the same for its physical store. Customers can also return their products to the physical retail store.
In some countries, retail stores uses web-connected Kiosk machines installed with kiosk software that allow customers to have a digital experience to search, order products and to lock devices. This business model combines the benefit of both online and offline shopping and will deliver an excellent shopping experience to customers.
The Growth of the Potential Online to Offline business model – Future Trends
The future of Online to Offline business models has always been a great discussion among many entrepreneurs today. This is mainly because of its promising growth in the future. Customers who were obsessed once to buy online products are now eager to experience both online and offline shopping.
This change in consumers’ buying behavior has led to a clear path to the Online to Offline business model. Some of the interesting and convincing stats, that will prove the Online to Offline business model have a promising future, are listed below.
- 70% of millennials prefer to buy products from physical stores although they have spent time online to know more about the product.
- Buying Online, pickup in-store (BOPIS) service is being used by three-quarters of customers during the last six months.
- In 2021, more than 50% of physical retail stores have supported curbside delivery.
62% of customers have used Google search before reaching the physical store. They have visited the site to know about its location and also to check customer reviews. - 55% of consumers who are in physical retail stores still use their smartphones to search for product specifications before they make their purchase.
- 47% of retailers place QR code machines in their physical stores, offering a convenient way for customers to pay online and leave without waiting in a long queue for paying their bills, thanks to a free online QR code generator. This will seamlessly blend the O2O shopping experience
O2O commerce examples
The most renowned eCommerce company, Amazon has placed its bet on Whole Foods and purchased the brick-and-mortar store for #13 billion in 2017. This shows that the brand has initiated to combine online and offline and started functioning with an online-to-offline business model.
This commerce clearly shows that Amazon is venturing into the physical space market. This trade has been added by purchasing 464 physical stores by the leading brand. This allows Amazon to use those outlets for order collection or order returns.
Another few examples of Online to Offline business model
- The leading retailer Walmart acquired Jet.com for $3 billion in 2016 and has implemented an Online Offline business model.
- Starbucks’ mobile order and pay will allow customers to place their orders from their mobile and collect their orders from nearby outlets.
- Glossier, a leading beauty product, uses Instagram to attract clientele to its physical stores.
The well-known eCommerce retailer Bonobos has launched a physical guide shop.
These examples are more than enough to prove how fast the Online Offline business model is getting into action and making its path in this competitive eCommerce industry.
Business Benefits of the Online to Offline business model
Although there are multiple eCommerce business models available in the market, the Online Offline business model is a newer concept. If you want to implement this model for your retail business then you need to know its business benefits that will help you to make sturdy decisions.