Adrian Wee O2O Commerce – Online To Offline – Offline To Online

Retailers once fretted that they would not be able to compete with e-commerce companies that sold goods online, especially in terms of price and selection.

Physical stores required high fixed costs (rent), expenses and many employees to run the stores and, because of limited space, they were unable to offer as wide a selection of goods/ display units/ products.

Online retailers could offer a vast selection without having to pay for as many employees and only needed access to shipping companies in order to sell their goods.

Employers may use digital marketing and o2o commerce to achieve the o2o commerce strategy Some companies that have both an online presence and an offline presence (physical stores) treat the two different channels as complements rather than competitors.

The goal of online-to-offline commerce is to create product and service awareness online, allowing potential customers to research different offerings and then visit the local brick-and-mortar store to make a purchase.

Techniques that O2O commerce companies may employ include in-store pick-up of items purchased online, allowing items purchased online to be returned at a physical store, and allowing customers to place orders online while at a physical store. The rise of online-to-offline commerce has not eliminated the advantages that e-commerce companies enjoy.

Companies with brick-and-mortar stores will still have customers that visit physical stores in order to see how an item fits or looks, or to compare pricing, only to ultimately make the purchase online (referred to as “showrooming”).

The goal, therefore, is to attract a certain type of customer who is open to walking or driving to a local store rather than waiting for a package to arrive in the mail.