E-Commerce Insights

Online To Offline Commerce: Definition, Examples, Process and Supporting Technologies

In today’s fast-moving retail landscape, O2O is more than just a trend—it’s a powerful strategy driving customer engagement and boosting sales. This guide’ll break down what online to offline commerce really means, explore real-world examples, walk you through the process, and highlight the cutting-edge technologies that make it all possible. Let’s dive into the future of retail—where clicks lead to foot traffic, and every interaction feels personal.

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What is O2O?

O2O or online-to-offline commerce is a business strategy whose purpose is to lead potential customers from online channels to physical stores to make a purchase. It can bring people from channels like Instagram, email, and digital ads to a brick-and-mortar store to shop.

In an O2O landscape, selling channels complement rather than compete with each other, allowing merchants to showcase the strengths of their channels while also supporting their weaknesses. 

What is online to offline Commerce?

Online to offline commerce (or O2O commerce) is a business strategy that draws potential customers from online channels to make purchases in physical stores. It integrates online marketing with brick-and-mortar techniques to entice customers to leave the online space.

O2O is distinct from omnichannel, where customers move back and forth between online and offline channels. O2O focuses on driving online engagement to in-person purchases

Online to offline commerce examples

Several brands have successfully implemented Online-to-Offline (O2O) commerce strategies, leveraging the integration of online and offline channels to enhance customer engagement and drive sales. Here are some outstanding O2O business examples:

Tommy Hilfiger

This fashion brand has embraced the O2O model by launching digital showrooms. They also created a chatbot through Facebook Messenger in 2016 and launched the Hilfiger Club app in 2017, which includes a loyalty program with personalized offers and event invitations. These initiatives encourage customers to visit their physical stores.

Tommy Hilfiger's digital showroom
Tommy Hilfiger’s digital showroom

Amazon and Whole Foods Market

Amazon’s acquisition of Whole Foods is a prime example of an e-commerce giant moving into the physical space. This purchase added 464 physical stores, which Amazon integrated with its online presence to create click-and-collect opportunities.

Amazon Prime members can also benefit from two-hour delivery services from Whole Foods stores on orders over $355. Moreover, Amazon allows customers to use their Amazon Prime credit card at Whole Foods and earn 5% rewards, the same as if the card was used to pay online.

Amazon Online to Offline Commerce example
Amazon Online to Offline Commerce example

Starbucks

Starbucks uses its mobile app to allow customers to order and pay in advance. This reduces wait times and enhances convenience. The app also provides personalized recommendations and a rewards program that encourages repeat visits.

Starbuck mobile app
Starbuck mobile app

Sephora

Sephora’s O2O strategy includes a mobile app with virtual try-on features using augmented reality, allowing customers to browse, review, and purchase products. Their physical stores also offer digital tools like Color IQ and Skincare IQ to provide personalized product matches. Their Beauty Insider program integrates online and offline purchases, allowing customers to earn and redeem points through any channel.

Virtual try-on feature integrated with Sephora mobile app
Virtual try-on feature integrated with Sephora mobile app

Topshop

Topshop partnered with e-commerce website ShangPin to open retail stores in malls, with giant iPhones decorated in Topshop style. Customers can access “The Mobile Adventure” by scanning a QR code to view and try on virtual fashion products in the store and then share their looks on social media and place an order.

Topshop O2O commerce example

O2O Commerce model benefits

Improve brand reputation and customer reach

One of the biggest challenges for merchants who only focus on brick-and-mortar business is to build brand awareness. It’s hard for them to make people who aren’t in the neighborhood know about their business. 

When retailers shift to using online channels to improve their brand awareness, it opens great opportunities for sales. There are plenty of methods for an owner to reach their potential customers, like advertising, email marketing, SMS, social media, etc. These channels conquer the geographical limitation, and stores can persuade customers to look at their shops’ products.

If applied effectively, not only merchants can attract customers to their stores, they can create a positively integrated shopping experience. Omnichannel strategy is a brilliant way for businesses in this case. For example, customers can contact a shop online about a product, then come to the store to see it. And when they come, the owner can instantly show them the exact product. This is one of the most popular cases of the application of O2O and omnichannel. 

Reduce the time to market for businesses

Advertising tools allow businesses to both reach their customers and collect data quickly and more accurately. From there, owners can analyze and stay ahead of the trend. 

For instance, if it’s close to the summer holiday and a fashion store sees that the demand for specific beach products is increasing, they may prepare more of those products in-store, or roll out promotions. This way, the business actively avoids the out-of-stock status and sells more.

Increase sales

So far it seems like online channels bring more advantages, and stores can also sell online. Then why do they stick with brick-and-mortar shops?
Statistics prove that while e-commerce is growing, physical stores are still enjoying more sales. In a survey, 46% of respondents said they prefer in-store shopping. The reason is that by coming to a store, a customer can see and feel the item to decide if that’s exactly as described and is what they want.

customers use app when in store
Customers search for products online then come to buy them in store

Other than interacting with products, people also claim that they enjoy the overall experience of shopping in person. Another interesting fact is that customers are likely to spend more when they’re in a store. For instance, a person walks in to buy a notebook, then they look around and decide to buy some more pens. If that person looks for a notebook online, they may only purchase that item and finish shopping there. 

Gain customer insights effectively

The collected data from customers helps businesses gain useful insights regarding their shoppers. Even when a customer accesses your store’s website and doesn’t buy anything, the information is still collected and converted into leads. 

For traditional shops that don’t have a website, they’d only see the customer leaving without understanding the reason behind that.

From your database, you can execute marketing campaigns that enhance customer engagement or remarketing to nurture potential leads into conversions.

Improved customer service

The combination of online and offline makes the shopping experience more integrated and enjoyable for customers. 

Online channels let people reach out to businesses easily and instantly. When a customer wants to ask about an item, they can drop you a message over Facebook messenger or the chatbox on your website. And you can answer their questions right away. Based on their information, you may also recommend relevant products online or the next time they go to your store.

Another example is that when your store rolls out a promotion campaign, your customers will be alerted. This way you make sure that the promotion reaches the maximum number of customers, rather than informing the shoppers only when they come to the store.

Ways to implement O2O strategy for your business

Buy online, pick up in-store

Buy online, pickup in-store (BOPIS) isn’t something new. It’s been there for a while and is a popular shopping method. Shops that provide this service can drive online shoppers to their physical stores. 

Customers can browse a business’s website for products, purchase those they like, and receive a notification when it’s ready to collect from their local store. So it’s very convenient for customers as they choose when to pick up their items, and check the quality right at the store.

Not only is it convenient for shoppers, but businesses also benefit from this. Shop owners can use this opportunity to entice customers to purchase other products like mentioned above. 

Buy online pick up in store
BOPIS is becoming more popular with customers

Home delivery

BOPIS is awesome. However, it may not be the best option for every customer. In some cases, people may prefer home delivery over pickup in-store. For instance, if they’re going to a shop in a densely populated area, they need to find a parking lot, then go pick up the items and get back to their car. It doesn’t seem very convenient anymore, isn’t it?

To solve this problem, a store owner can do their own delivery, if their destination is close enough. Otherwise, partnering with couriers like UPS and DHL and having them deliver purchased items to self-service lockers is also a possible solution. 

Pop-up stores

As more than half of the customers still prefer an in-store experience, D2C brands are eyeing the possibility of opening a store as a strategy to boost their presence and familiarize shoppers with their names.

Opening a permanent physical store is a big deal for a business, which involves the shift of the whole distribution system. So not every business is ready to dive headfirst into the idea of a permanent store. Pop-up stores, on the other hand, require less investment and can offer a positive experience for customers.

These stores allow D2C businesses to test the water before deciding that whether a permanent store would help improve their bottom line. During the process, brands can gather feedback regarding their service and make suitable adjustments. If the results are positive and the brand finally opens a brick-and-mortar store, then they have a competitive edge over competitors who are restricted to selling online.

Muji's pop-up store
Muji’s pop-up store before the business enters a new market (Source: Muji.com)

Improve local SEO

This approach is crucial in getting more customers to your store. Research shows that over 50% of shoppers look online for a store’s location/ proximity before making their trip there. So you’d want to be present online and at the top of the search result pages if possible.

For the best result, make sure all your store’s information is there: location, contact number, website, store photos, and any promotion that’s happening. The more information a person can see about your store online, the more reliable you are to them, and your chance of converting them into a customer.

Last but not least, don’t forget to ask them for an online review of your store. Customer review is a key factor when a person looks at a store’s information. Businesses with 5-star reviews are more likely to welcome more customers than those with 3 or 4-star reviews.

Platforms and technologies supporting online to offline commerce

To make the O2O strategy successful, companies use various technologies and platforms to create smooth, integrated experiences. Let’s dive into the key tools:

eCommerce Platform

  • Shopify: Shopify is a flexible platform that centralizes customer data, helping businesses engage their best buyers both online and in-store. It’s easy to customize, integrates with third-party tools, and offers segmentation and personalization to enhance customer experiences. In addition, Shopify Analytics provides insights into customer behavior, allowing retailers to refine their marketing strategies.
  • Shopify Plus: Shopify Plus is built for large or fast-growing businesses, offering advanced features like multi-store management and ERP/CRM integration. The platform supports headless e-commerce for greater customization and streamlines B2B operations with bulk order tools and payment systems. Plus, Shopify Plus users get free access to POS Pro for seamless multi-channel sales.
  • Magento: The platform is a powerful, customizable platform ideal for B2B e-commerce. Magento handles product, order, payment, and customer management while integrating with ERP, CRM, and PIM systems. Its open-source nature allows for scalability and tailored solutions to fit business needs.

>>> See more: 11 Best B2B eCommerce Platforms in 2025

Technology

  • Customer Data Platforms (CDP): A CDP is a centralized system that consolidates customer data from all touchpoints, providing a comprehensive view of each customer. This is essential for O2O implementation to ensure a seamless experience and personalized interactions.
  • Point of Sale (POS) Systems: These systems are critical for Online-to-offline commerce because they sync with online platforms in real time, and they provide staff with access to customer profiles and purchase history. POS systems are also used to process transactions in physical stores and offer options like in-store purchases with shipping to the customer.
  • Inventory Management Systems: These systems provide a unified view of inventory across all locations and channels, which is vital for efficient order fulfillment and avoiding stockouts. They also enable real-time tracking of stock levels.
  • Mobile Applications: A good app doesn’t just live on your customer’s phone—it enhances their in-store experience. With features like mobile payments, in-store navigation, and digital loyalty cards, your app can blur the line between digital and physical shopping.
  • Buy Now, Pay Later (BNPL) Providers: BNPL payment methods have become a global trend that make it easier for consumers to shop without paying the full amount upfront. They facilitate purchases both online and offline.
  • Application Programming Interfaces (APIs): APIs enable communication and data exchange between different systems, such as e-commerce platforms, CRM systems, and POS systems. They ensure seamless data flow and operational efficiency.
  • QR Codes: These codes can be placed in physical locations to allow customers to join virtual queues, retrieve orders, redeem loyalty points, or complete other tasks.

Final thoughts

Online to offline commerce is going to be the next big move in the industry. And the fact that big brands like Amazon and Alibaba are using O2O signifies its values and great potential.

The model changes how businesses look at a customer experience. Rather than focusing on product quality, it’s important to make the customer journey as integrated and cohesive as possible. By simultaneously using both online and offline channels, your business can keep people satisfied, lead them to your store and increase profits.