Online to Offline Commerce- Everything one needs to know

The e-commerce industry since inception has experienced an advantage over the offline stores. People prefer browsing things of their liking while sitting back at home with a cup of coffee in their hands. The convenience to shop online compels customers to search for things on the web before taking the final leap. Visiting stores offline not only requires effort and money but is also tiring. With the growth of the e-commerce industry, the brick and mortar stores feared extinction. This has widened the gap between the online and offline stores. 

In an era where the gap between the two was flaring, a new concept was visualized. This is where the Online to Offline commerce (O2O) came into the picture. The goal of this business model was to bridge the two industries and create a strategy which would link the two channels. O2O considers the two platforms as complements of each other instead of contenders.

Online to Offline (O2O) Commerce: The concept

An idea to bring the two worlds closer, the O2O commerce companies have enhanced the shopping experience of customers tremendously. Alibaba, in China, depicted a classic example of the implementation of this business model. Earlier, Alibaba was strictly an online store. It has now has expanded into creating offline stores. The products purchased on these stores can be bought online while the user is still in store. They can get their groceries delivered directly to their homes without having to worry about the hassle of standing in queues. 

Not only this, but Alibaba has also targeted malls and shopping complexes where the footfall had declined due to a rapid increase in the e-commerce industry. People visiting malls can now select the product they like on the screens provided in malls. They can then get it delivered straight to their homes. This works even when the size required by the consumer isn’t unavailable at that particular instant. This successful implementation of O2O commerce has helped in overcoming the gap between the industries online and offline. 

Another example to highlight the relevance of this business model is that of Amazon purchasing the grocery chain of Whole Foods in 2017. This has modified the Whole Foods chain drastically.

As this strategy is gaining momentum, retailers are using the online platform to give them an insight into the products and services offered. It acts as a stimulus to bring consumers to offline, brick and mortar stores to make the desired purchase.

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Key points targeted by O2O commerce companies

A few perks enjoyed by the O2O commerce companies are:

• It draws customers to offline stores to purchase the desired product
• It does not require customers to stand in queues for the purpose of billing. The store ensures to deliver the products at their doorstep. 
• Customers can return products bought online to a nearby store. 
• It allows in-store pick-up for their purchased items.

While O2O commerce is a new idea which has the potential to eliminate the existing gap between online and offline stores, it is still in its nascent stages. Only a few companies have implemented it. Time, effort and effective problem solving will be necessary inputs to revolutionize the commerce industry entirely. The benefits that Online to Offline commerce brings must be pictured well. Thus, India should look forward to successfully implement this idea in the country. “The new retail” as Alibaba rightly calls it, is the next step that’ll disrupt the e-commerce industry.

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3. The rise and rise of e-commerce during corona
4. Retail & Distribution Industry Report 2020-21