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[Important: O2O is related to, but not the same as, the concepts of
"clicks-to-bricks" or "click and mortar" models.]
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.
Key Takeaways
Online-to-offline (O2O) commerce is a business model that draws
potential customers from online channels to make purchases in physical
stores.
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.
Amazon's 2017 purchase of Whole Foods Markets is a prime example
of O2O.