Why is O2O necessary for store owners?

What’s an O2O solution?

O2O solution is often referred to as an online-to-offline solution. This strategy allows companies to expand their customer base by using a wider network of potential customers. Businesses can use the strategy to market to local and international audiences, depending on their sector. Businesses with physical stores or eCommerce interfaces can create audiences on both platforms using O2OCommerce to grow their brand and business.

Online retailers were concerned that eCommerce companies would not be able to offer products at a competitive price and variety. They cannot offer a wide range of products because they have to pay high operating expenses (workers, rent), and also can’t afford to hire staff.

The reality is that 80 customers will visit the store to purchase an item they are interested in right away.

Online-to-offline commerce aims to increase awareness about products and services before customers visit a store to purchase them. There are many options available to clients, including curbside collection, home delivery and the ability to make purchases online for pick-up in-store.

87% of shoppers do their online research before buying (up from 71% last year). This means that directing even a small percentage of the research to your offline store could lead to significant revenue.


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What does it mean?

O2O commerce refers to a business strategy that allows potential clients to shop in physical stores using online channels. O2O is the process of transferring clients from online interactions (via websites, email advertising and mobile apps) to offline interactions (by going to a physical store).

This is a typical model.

The web component allows consumers to search for products and then pay for them (smartphones, computers ). The web component then takes them to the offline world (shops). They shop in shops and stores.

O2O integration allows for you to sync data between online and offline systems, allowing for real-time updates about your sales orders or inventory. You can also attract more potential customers via online channels to purchase in-person.

Online customers are identified by email, SMS, social media and apps. You will then be enticed into leaving the online world with a variety of tools and techniques. This combination of internet marketing strategies and offline marketing strategies is called the “Internet Marketing Strategy”. This is a relatively new, but rapidly growing technology that uses proximity.

It converts eCommerce customers into physical buyers by:

  • Online products can be picked up in-store
  • It is now easier to buy things in a physical store.
  • Customers can return online orders at the retailer’s location.

The benefits of O2O solution

The O2O approach offers three main advantages at a high-level:

  • Reputation theft
  • Customer loyalty and revenue
  • Now is the time to launch your product.

Businesses that adopt an O2O approach often reap the benefits of improved business processes, lower operational costs, and other advantages.

Connect to the consumer experience

Research shows that 61% buyers prefer to buy from businesses with a physical location.

No matter where a customer purchases, they will still be smart and search for the best prices and incentives to help them stretch their dollar further. Customers who shop in-store can take advantage of the same cashback or promotions as customers who shop online, which encourages them to shop at that particular business.

Customers can speak to sales representatives, deal with issues in person and have fun in-store experiences. This is why millennials are more likely to open their wallets in-store when they shop for products. Combining the in-store experience with online shopping allows customers to view full product information online without having to speak with salespeople. Customers can redeem loyalty points and social media coupons through a smartphone app for in-store discounts.

Brand loyalty

Consumer expectations change and consumers want to be rewarded for loyalty to brands and merchants through discounts and promotions. Our New Rules analysis shows that cashback availability has an impact on 49% worldwide shoppers’ willingness to purchase. O2O technology or card-linked incentives may be used by retailers to offer cash back for in-store and online transactions. It promotes brand loyalty, regardless of where the consumer chooses to spend.

Trustworthy Mark

Clients see an online-to-offline business model as more trustworthy than an offline store or brand. By offering quick and easy product delivery, brands can enhance their reputation. Organizations can increase their client base by streamlining the return and exchange process.

Aspect software shows that businesses who use an omnichannel approach to client retention have a 91% higher year-over-year rate than those who don’t. Additionally, merchants that have great Omnichannel customer involvement retain 89% on average, as opposed to 33% for shops with poor or no omnichannel customers engagement.


Affiliate marketing has many advantages. This precision can be applied to in-store transactions. O2O strategies may be able to help retailers do this. O2O evaluates internet marketing campaigns against in-store sales. This allows businesses to report on an overall campaign basis. It creates an excellent user experience and allows retailers to test different incentives based on their objectives.

Unique insights

Many shops view online and in-store sales separately, if they are not rivals. Merchants should instead use the data and insights of both to drive growth. Geolocation data can be used by retailers to create remarketing ads that are based on customer behavior.

Cardlinking allows consumers to link their credit cards to merchant loyalty programs, making the transactional data available. It also allows for audience segmentation which ensures that advertisers reach the correct demographic with the best offering.

This technology allows retailers to access customer data via an API, bypassing any difficulties of going directly to the source. This information allows retailers to better target customers and create enticing promotions and offers.

Delivery Time

A customer will quickly switch shops if they don’t find an easy and quick way to purchase. Online shopping is not as fast as it used to be.

This significant time gap can be bridged by online-to-offline commerce businesses that offer convenient store pickup and the fastest delivery. This will result in a better shopping experience for customers.

McKinsey’s research found that 23% consumers are willing to pay more for same-day delivery. Customers’ perceptions about delivery reliability and timeliness play a significant role in determining if a company is performing well in O2O commerce.

Orders Quickly Completed

A product view experience on-screen cannot satisfy the needs of the hardcore shopper. It takes extra effort to place an order online. You will need to look at different ratings and evaluations about the construction quality, material, lifespan, and other factors.

Delivery and return processes, if applicable, can be lengthy and time-consuming. Customers can complete their orders faster and without anxiety by switching from online to offline, as they don’t have to worry about long returns.

Savings on Time and Money

An online to offline business strategy has the greatest advantage: it saves time and money. Customers may be able to save significant money by ordering online and receiving the goods quickly via store pickup.

Acquire Easy Customer

Social media and influencer marketing are becoming increasingly popular. To attract large numbers of customers, retailers may turn to digital marketing services. This is the best way to increase the number of customers in your retail shop.

People who pass by your physical location may not stop in if they have an opportunity. The overwhelming majority of shoppers (87%) use internet search engines and social media platforms to research new products. They also use review aggregators to help them make purchasing decisions.

These internet platforms can be used by retailers to create niche markets around their physical stores. This draws internet users to physical stores and leads to higher foot traffic than if they were only available in person.

Alibaba, the Ecommerce giant, launched an O2O solution – a physical store – to try and capture 88%of China’s $4.9 Trillion retail sales which are done offline. Alibaba hopes to be able modify and personalize product offerings, create targeted marketing campaigns and simplify supply chains. By using customer data, such as brand membership details and purchase history, and patterns of shop visiting.

Examples of O2O Business Model Success


Allbirds, a shoe shop that started online, quickly moved to brick-and mortar. From pop-ups, to opening locations around the world, including San Francisco and London, Allbirds has been able to do so.

Allbirds’ 20+ physical locations do not require that visitors leave empty handed if they don’t have a product in stock. This is an important aspect of the company’s O2O solution.

Allbirds uses Shopify’s POS for quick and easy transactions.

“The entrepreneurs, who had no previous footwear experience, managed to achieve that $ 100,000,000 feat in a turbulent time for fashion. Allbirds is different from other companies that have failed or vanished, says Katie Bell, Footwear News Reporter.

Beauty Heroes

Before implementing their O2O commerce strategy, Beauty Heroes’ eCommerce sales soared. It was so successful, it decided to expand into the offline market by opening its first physical store in Novato (California).

Shopify POS was used by Beauty Heroes to collect data via online and offline channels. The program also sent personalized incentives to existing customers based on previous purchases. This encouraged them to shop in-store.

Magnolia Market

Magnolia Market is a DTC furniture company that Chip and Joanna Gaines founded. The Magnolia Market’s Texas first store is much more than a shop. It’s a pilgrimage for some with more visits annually than the Alamo.

Magnolia Market wanted to offer customers who could not visit its main location a way to have a similar experience. The store joined forces with Shopify’s AR team to launch its O2O commerce strategy.

Customers can now view the product in person using its app. Better yet, they can see how the product would look in their home. A satisfied customer is more likely to return to the company and purchase.

Bonobos Clothing

Bonobos, a retailer of men’s clothing, opened retail stores in 2011 to cater to this market. The entire concept and implementation was handled by Harry, Warby Parker and Modcloth. Bonobos opened a customer service shop that was a huge success. With their O2O function, customers could order online and try on the items they liked.

As a result, Bonobos was forced to open 20shops at various locations. The success of the implementation led to plans to expand to 100outlets in 2021.


O2O commerce allows you to target both retail and eCommerce segments simultaneously. Instead of targeting only one customer (those in close proximity to the store), brick-and-mortar companies may also attract the $2.14 trillion internet purchasers.

Retail sales are expected to surpass $5.94 Trillion by 2024. In 2021, the United States had equal shopping online and offline. However, eCommerce is expected take the lead in total retail sales.

Just over ten years ago, 5.1% US retail sales were accounted for by ecommerce. Ecommerce currently accounts for 21.3% total revenues.

Retailers must be aware of all the latest innovations in the retail sector, which is constantly changing and evolving. The current most preferred method in the retail sector is business-to-consumer (B2C). It is impossible to stay behind.

source : https://www.beehexa.com/blog/benefits-of-o2o-solution

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