Though e-commerce websites are on top and have won the majority in shopping space yet there is a space for online to offline business model retailers to take an upper hand, with the rise of online to offline business model. The credibility and reliability play a major role. Online shopping is skyrocketing in recent years, but a saying prevails, there is an end for every good thing, well said. People’s aren’t bored with shopping on online but what they love is, if they can see or feel what they are going to buy then that can assure them a good experience.

online to offline business model Online to Offline[O2O] Business Model Simplified

The growth of O2O e-commerce model

This term first came into existence in 2010, when the e-commerce websites were exploding on all ranges. It seemed that this term is not going to cause any damage to the success of an online store. But down the lane, it stayed to prove a point, that at some point all e-commerce giants are to follow this model.

The main consideration for any business is to fulfill the needs of the customers by providing what they prefer and like. In that case, yet online shopping is providing an easy and hassle-free way for shopping, it is only able to convert the least percent for sales. Because peoples are somewhere feeling good and satisfied when they go shopping on the physical market.

In near future, don’t get surprised to see a store on the roadside, that may have the tagline as “order from wherever you are and collect it on the go from here”

Benefits for retailers and customers

Bricks and mortars were very concerned when the access of internet boomed and online e-commerce stores came in plenty for use. Many offline stores once had the good number of loyal customers frequently visiting them for purchase, but then it experienced drought in the number of customers when online shopping came to use.

online to offline retail

Advantages [O2O] Business Model

Though online to offline business model websites are having an easy way yet it isn’t effective, to back it up the numbers suggest it has got only 11% sales. Which won’t encourage many. So where this idea failing is, gaining the belief of customers.


11 easy ways to gain loyal customers for online shopping websites


  1. Provide multiple varieties on numerous categories and be easy on eye
  2. High-quality images and images covering nook and corner of the product
  3. Give the right specs and brief description also about how it could help them.
  4. Provide multiple payment options for payments
  5. Prove your credibility with secure cash transactions and secure user details.
  6. Be crisp and clear on return policies.

online shopping

Customer loyalty tips online shop business

  1. Lure users with some reward points on every purchase.
  2. E-wallets on your website with cashback on the purchase at the particular time will surely attract users.
  3. Provide instant notification about the order status until it gets delivered.
  4. Provide hassle free experience with personals to assist on call at any time, for any queries.
  5. If requested for refund or return, process it politely and without many questions to the requesting users. It can win you more customers.

Online shop system emerged with single vendors making an individual website for themselves and selling their products to consumers. Then now it has hugely evolved to become a multi-vendor marketplace which is a common platform where multiple individual vendors can take place and sell their products to consumers. So this recent system is benefitting both the seller community and the buyer community.

advantages and disadvantages of shopping in stores

Advantage and Disadvantages of online to offline business model store as well as retail store [infographic]

Advantages of the online store

  • This provides an easy way of shopping to the users. Where they can view and order their needful products from various categories just by relaxing sitting on their living room couch or anywhere.
  • For sellers, it relieves them from their cost spendings for rent in setting up a physical store.
  • Every shopping website normally has good traffic, so it is a huge benefit for sellers which can provide instant reach for their products.
  • The customers can custom search according to their needs and can also compare prices from vendor to other vendors.
  • Users will don’t have the pressure for shopping so they can take their own time, can scroll up and down to find their best and can place orders at any time.
  • The main hassle of shopping is, peeking through the rush and standing on queues for a long time. These all are completely eradicated on online shopping.
  • Recently shopping websites have added many new features with which users can schedule their delivery date and time, and much more.

Disadvantages of the online store

All advantage of an online store can be brought down with a single disadvantage. Those are

Physical stores don’t need much introduction as it will get marketed through words once the users come to the store. Online stores will surely need an introduction and marketing for their brand to make people know that they are present in the market and providing these services.

Many, even some leading players are mentioning in their websites as images posted for the listed product may not exactly describe the product and may change. So this reduces the credibility and arouses a strong doubt in the user’s mind, which makes them think it will be better to buy from the physical store.

Though users are provided with the option of COD in their orders, for larger prices COD may not available, so users are pushed to pay for it through their credit/debit cards. Although they feel secured for enrolling their card details still somewhere the doubts prevail for the security.

In recent time there were many complaints regarding the online to offline business model websites have sent a false box to their customers. If not for the mistake of that brand the parcel and packers should be liable for that.

Anyway, the sufferers are the consumers. Waiting for long/some time to receive a product and getting some other thing out of imagination may make the users feel shopping on physical stores are way better than online.

Take the dual route

Offline and online aren’t competing with each other. It’s all about with which system the retailers can provide users the best UX.

Each system is having its own merits and demerits. So why not combine both systems to combat its demerits and make it as the win-win situation in all cases.

Sounds like a good idea right?

The o2o e-commerce model suggests the same, many call it a trillion dollar opportunity. So down here let’s see why it is said so…

Online to Offline Business Model

This may well be the best solution to move forward into the future. So it is very essential for you to know how it will work to chalk your strategy.

online to offline store benefits

The business model of Online to Offline system

It works as the name suggests, the purchase will take place in two ways. Where users can surf the website for their needful products under the right category. Then they can select their preferred one and place the order.

This is as similar to all online shopping websites, but what’s the difference here is once the order is placed that respective user can drive to the physical store and he can collect his product.

This may sound like reserving a product to buy.

In the store, sellers can rack up all their products which may lure the user’s to buy other products. Here the other big thing is the buyer in real time can view how will be the product and will get a feel for it and can exactly know how well it suits him/her.

So here two major things have got accomplished,

Users once placed their order on the online website they don’t have to wait to get it delivered.

So bringing customers to the physical stores was thought to be a tough task, but this system can easily do that.

Once the customers are in the store, they will surely like something they shouldn’t miss that day and will additionally buy another product. This is the point of sale and the reliable revenue is assured.

So this decodes both complexity and reliability factor in shopping and combining it in the single system could be the way to combat the future challenges in the e-commerce business.

The evolving technologies like AI, AR might enhance the shopping experience in the websites’ but they may not guarantee for sale. Leading online shopping websites may have a trick or two to garner the attention of peoples and to turn them into their users.

But traditional retailers only don’t have the luxury of doorstep delivery and virtual assistance on their stores. And mainly they have the advantage of reliability.

Once the traditional retailers/brick and mortars add some technology to their business plan then that might huge blow for online stores. So for online stores, it is wise to opt for O2O model sooner than later.

So voice your thoughts and opinions about the fast-evolving online to offline business model in the below comments section.

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