What Is O2O Commerce? Tools and How To Implement (2025)

For many retailers, online-to-offline (O2O) commerce became popular during the 2020 pandemic as consumers sought safer shopping experiences. While the pandemic accelerated online shopping, many customers still wanted some form of in-person interaction, but with minimal risk. 

This led them to innovate with solutions like purchasing online for in-store pickup, virtual try-ons, and pre-scheduled shopping appointments arranged through digital channels. 

These hybrid experiences gave shoppers the convenience and safety of online shopping without sacrificing valuable in-person touchpoints. Today, O2O commerce remains the standard for retailers who want to scale operations and reach customers seeking flexible shopping options.

This guide explains what an O2O commerce strategy looks like, the benefits of turning ecommerce traffic into offline sales, and how retailers can develop their own strategies.

What is O2O commerce?

Online-to-offline commerce is a business strategy designed to bring potential customers from online channels, such as Instagram, email, and digital ads, to a brick-and-mortar store to make a purchase.

It’s not to be confused with omnichannel, in which customers go back and forth between online and offline channels. O2O commerce brings together techniques from online marketing and brick-and-mortar marketing. It turns ecommerce visitors into physical shoppers by:

• Offering in-store pickup of products purchased online
• Facilitating the purchase of products while at a physical store
• Allowing online purchases to be returned to the retailer’s brick-and-mortar location

Shopify delivers growth solutions built on a unified customer data model that enables brands to effectively target their best buyers and activate buyer insights. O2O commerce is not only made possible but also more powerful on Shopify thanks to this model and its ability to drive high-converting, cross-channel personalized shopping journeys.

How does O2O commerce work?

Historically, traditional retailers were concerned that they wouldn’t be able to compete with ecommerce businesses on price and selection. Physical stores have high operating costs such as rent and the higher employee count needed for customer interactions. They also have limited space, so they can’t offer as wide a selection as direct-to-consumer brands fulfilling directly from a warehouse.

The purpose of O2O commerce is to create awareness of products and services online, then connect customers with physical retail locations. Common strategies include letting customers browse and order through your online store for in-store pickup, offering curbside collection, and providing same-day delivery fulfilled directly from local store inventory rather than warehouses.

Shopify provides a single, unified core customer model to enrich and activate first-party data, designed for the next era of commerce. This model is compatible with hundreds of providers, enabling you to make use of the largest partner ecosystem in commerce to expand your tech stack and draw data from everywhere you sell.

O2O commerce business model benefits

Give shoppers the updated IRL experiences they want

Today’s shoppers are savvy. Research shows that 61% of shoppers would rather shop with brands with a physical location versus those that are online only. 

Brick-and-mortar shopping gets millennials in particular to open their wallets, allowing them to chat with sales reps, touch products in person, and try items on or test them out immediately.

Combine that in-store customer experience with an online strategy so shoppers can read detailed product descriptions without talking to a sales rep. They can use a mobile app to redeem points on a customer loyalty program, and redeem social media coupons for discounts in-store. 

Reach more customers

An O2O commerce strategy allows traditional retailers to reach more customers than those who walk in the door. 

Not everyone passing by your brick-and-mortar stores will pop in when they get a chance to do so. The vast majority of shoppers rely on the internet to research new products, turning to search engines, social media platforms, and review aggregators to help them decide what to buy. 

When retailers use these online channels effectively, they can build niche audiences around their physical locations. This drives internet users toward brick-and-mortar stores—resulting in more foot traffic than if they were IRL-only.

BÉIS proved this by running pop-up events coordinated with their online presence, which led to a 30% increase in traffic in those local markets. The seamless connection between their digital and physical presence helped turn these temporary locations into powerful growth drivers.

Ecommerce giant Alibaba also launched an O2O strategy—adding a physical store—in an attempt to capture part of the 80% of China’s $4.9 trillion retail sales that take place offline. 

Using customer data such as brand membership information, purchasing history, and store visiting habits, Alibaba hopes to be able to adjust and personalize product offerings, create tailored marketing campaigns, and streamline supply chains.

Save money on logistics

Ecommerce logistics often become more complex as you scale. However, an O2O commerce strategy—especially the buy online, pick up in-store model—helps merchants cut down on logistical costs. Retailers can regionalize their inventory and dedicate a percentage of their store space to storing products that have been sold online. 

This strategy reduces retailers' reliance on third-party logistics (3PL) partners, cutting out costly middlemen and giving brands more control over their supply chain. They can also confidently offer same- or next-day pickup for customers since the products are already in-store. 

By maintaining local inventory, retailers become less vulnerable to global shipping disruptions that can delay deliveries and disappoint customers.

O2O commerce market size and opportunities

O2O commerce allows you to go after both ecommerce and retail markets at the same time. While brick-and-mortar retailers reach just one type of shopper—those in close proximity to the store—O2O retailers can reach the 2.71 billion digital buyers too.

Retail sales are projected to reach $7.89 trillion by 2026. While US consumers currently shop equal amounts online and offline, ecommerce is set to take the lead on total retail sales. 

O2O commerce trends

Ecommerce giant Amazon already placed its bet on Whole Foods when it purchased the brick-and-mortar grocer for $13.7 billion in 2017. It blends both offline commerce and online sales: Consumers can use their Amazon Prime credit card at Whole Foods and redeem 5% of the total amount on online purchases. 

But if acquiring businesses for billions of dollars isn’t in your budget, there are still ways you can pivot to the O2O business model for your brand. 

BOPIS

Buy online, pick up in-store (BOPIS) services help drive online shoppers back to physical stores. This is also known as click-and-collect shopping: Customers can use a retailer’s ecommerce site to browse products, purchase those they like, and receive a notification when it’s ready to collect from their local store. 

“Make a dedicated space in your retail store for pickup orders to stay organized. Also, use the Shopify POS app to manage and mark orders available for pickup once they’re packed and ready to go. This way, the customer gets a notification that it’s ready,” says Allison Mistakidis, cofounder of Whiskeyjack Boutique.

Being able to order online and pick up an item in-store is not only convenient, but it also helps fulfill our need for instant gratification. In a world where the latest movies are available on demand and personal taxis can be called to our location within minutes, the ability to get things when we want them is now considered the norm.

For online retailers, click and collect is a chance to bring online customers to offline stores—and once you have the customers in-store, you have the opportunity to entice them to purchase more products.

Home delivery

The convenience of click-and-collect shopping has made it one of the retail industry’s biggest trends in the last few years.

But while BOPIS is undoubtedly convenient for some, it’s not always the most popular method of getting products quickly. For consumers located in densely populated areas, driving to the store, navigating traffic, finding a parking spot, and loading cumbersome products into the car can be an unattractive proposition—despite the benefits of instant gratification.

On the flip side, consumers located in sparsely populated areas might find that the time and fuel costs associated with traveling to a retail location outweigh the benefits of click-and-collect shopping.

One option is partnering with couriers like UPS and DHL to deliver purchased items to self-service lockers. Customers can search by zip code to find nearby lockers and stop by when they receive the notification that their order is ready to pick up.

Don’t want to work with a courier? Retailers can also choose to do their own delivery to people within a certain radius of a store. ting Limit your delivery area to specific postal codes to avoid putting too much pressure on your same-day delivery promise. You should also limit the number of delivery orders per date and set preparation time rules. 

Buy online ship to store (BOSS)

Pick up in store is a feature that allows customers to purchase items online and then pick them up at a physical store location. This combines the convenience of online shopping with the immediate availability of in-store pickup. 

For times when an item is out of stock at the pickup location, merchants can set up automatic transfers from other locations to fulfill the order. During checkout, customers can choose between shipping and pickup. If they select pickup, they can choose from available store locations.

Local SEO

Did you know that 50% of people who use Google search before shopping look for details about the store itself, such as locations or proximity? Not only that—79% of holiday shoppers who visit a store turn to online search first.

A great deal of in-store shopping behavior is driven by shoppers first looking online for three things: 

• Help determining what they want to buy
• Help planning the trip to the store (e.g. with directions or nearby parking) 
• Help narrowing down purchase options

Investing in local SEO can help potential customers find your business online during their search. The aim is to show up in local search results for terms like “fashion stores near me,” and provide enough information to convince shoppers to visit your store. 

Create a Google My Business listing for each location where you have a physical store. Optimize each listing to include opening hours, categories, photos, and other details like parking availability. Convincing existing customers to leave a review on your listing could be the deciding factor in whether people visit your brick-and-mortar store via search engines.

QR codes

People arriving at a retailer’s store still consult the web during their visit. Two-thirds of shoppers use their smartphones to find product specifications. 

QR codes blend the O2O shopping experience. Retailers can place them in areas with high foot traffic, such as checkout desks and fitting rooms. Customers can scan these QR codes when they’re shopping at a physical location to:

• Join a virtual queue outside the store
• Retrieve their curbside pickup order 
• Redeem loyalty points on in-store purchases
• Scan a product they’re returning through a mobile app
• Participate in customer feedback surveys 

How to implement O2O

1. Assess your current infrastructure
2. Develop an integrated strategy
3. Invest in technology
4. Train your staff
5. Adapt your supply chain
6. Launch marketing campaigns
7. Gather data and iterate

1. Assess your current infrastructure 

O2O commerce isn’t just adding new channels—it’s a change in the way you think about omnichannel ecommerce. The first step is to assess your enterprise infrastructure. 

Begin with your customer data ecosystem. A unified view of the customer is essential for successful O2O implementation. Evaluate how your data is structured:

• Are customer profiles fragmented across different systems?
• Can you track a customer's journey seamlessly from online browsing to in-store purchases?
• Do you have the necessary data points to enable truly personalized experiences?

This assessment may reveal gaps in your data collection or integration that need to be addressed. It's not uncommon to find siloed data across different departments or channels. Identifying these issues now will save significant time and resources down the line. Shopify’s first-party data customer model can help with your unification efforts.

Next, turn your attention to your technology stack. Examine your enterprise ecommerce platform, in-store POS systems, mobile apps, and any other customer-facing technology. The key question here is interoperability: How well do these systems communicate with each other? O2O success hinges on smooth data flow between online and offline touchpoints.

Your checkout process, both online and offline, deserves special scrutiny. Consider:

• How flexible is your current checkout system?
• Can it be easily customized to meet specific O2O scenarios?
• Does it support accelerated checkout options that customers increasingly expect?

Personalization capabilities are another critical area to assess. Today's consumers expect tailored experiences across all channels. Evaluate your current ability to:

• Create personalized storefronts
• Segment customers effectively
• Deliver targeted marketing campaigns across channels

Don't overlook the back-end operations that make O2O possible. Thoroughly examine your inventory management and supply chain systems: Can you provide real-time inventory visibility across all channels? How efficiently can you fulfill an order placed online for in-store pickup? These operational capabilities are crucial for delivering a seamless O2O experience. It’s not just about having access to each of these things, it’s about integrating them cross-channel.

2. Develop an integrated strategy

With a clear understanding of your current infrastructure, it's time to craft a comprehensive O2O strategy. Align your O2O objectives with your overall business goals. 

Ask yourself:

• What are we trying to achieve with O2O integration?
• How will O2O impact our revenue, customer satisfaction, and market position?
• What key performance indicators (KPIs) will we use to measure success?

Next, focus on mapping out the customer journey across all touchpoints. This is where your unified customer data model becomes important. Consider how a customer might move between online and offline channels:

1. Researching products on your website
2. Checking in-store availability
3. Visiting a physical location for a hands-on experience
4. Making a purchase via mobile app
5. Picking up the item in store

Your strategy should address how to make each transition as smooth as possible.

Personalization should be at the core of your strategy. Leverage your customer data to create tailored experiences at every touchpoint. This might include:

• Personalized product recommendations online and in store
• Targeted marketing campaigns based on browsing and purchase history
• Customized loyalty programs that work across all channels

Finally, create a roadmap for implementation. Break down your strategy into manageable phases, each with clear objectives and timelines. This might look like:

• Phase 1 (3-6 months): Unify customer data and upgrade ecommerce platform
• Phase 2 (6-12 months): Implement BOPIS and real-time inventory tracking
• Phase 3 (12-18 months): Launch personalized mobile app and in-store digital experiences

Remember, your O2O strategy isn't set in stone. Schedule regular review points when you can assess progress, gather feedback, and make necessary adjustments.

3. Invest in technology 

With your strategy in place, it's time to make the technological investments that will power your O2O transformation. Prioritize your technology needs based on infrastructure assessment:

• Customer data platform (CDP): A centralized system that consolidates customer data from all touchpoints, providing a single comprehensive view of each customer.
• Extensible ecommerce platform: Your online storefront needs to be more than just a website—it should be a flexible, extensible system that can support personalized product recommendations, integrate with inventory systems, and offer flexible fulfillment options. 
• Point-of-sale (POS) system: Syncs with your online platforms in real-time. It also provides staff with access to customer profiles and purchase history.
• Inventory management system: Provides a unified view of inventory across all locations and channels.
• Mobile app: A well-designed app can bridge the gap between online and offline experiences, offering features like in-store navigation, mobile payments, and digital loyalty cards.
• Analytics and business intelligence: To truly understand your O2O performance, you need advanced analytics capabilities.

When evaluating technology vendors, consider more than just features. Look for partners who understand O2O commerce and can provide ongoing support and innovation, like Shopify. 

Shopify provides a core customer model that brings together all browsing, purchasing, and order data across channels. Our platform is designed for flexibility, allowing retailers to customize their setup and integrate with a wide range of third-party tools.

Shopify provides robust segmentation and personalization capabilities, enabling retailers to create tailored experiences across online and offline touchpoints. Shopify Analytics provides deeper insights into customer behavior across channels, helping retailers optimize their O2O marketing strategies.

While the upfront cost of these technological investments may be significant, they're essential for long-term O2O success. These systems will enable you to deliver the personalized, seamless experiences that customers expect, while also providing the data and insights you need to continually refine your strategy. Shopify’s total cost of ownership is up to 36% better than its competitors’.

4. Train your staff

Your team needs to be equipped to handle an integrated retail environment. Assess your team’s current skills and identify gaps. Develop a comprehensive training program that covers both technical aspects like using new systems, and soft skills like providing seamless customer service across channels.

Focus on cross-training employees to handle both online and offline interactions. Ensure they understand how to access and utilize customer data to personalize experiences. Use role-playing exercises to practice scenarios like handling online orders in-store or assisting customers with mobile app features during their visit.

5. Adapt your supply chain

In O2O commerce, an efficient supply chain is key to delivering seamless experiences. Reassess your inventory management, focusing on real-time visibility across all channels. Implement systems allowing accurate stock levels, helping prevent stockouts and overstock situations.

Consider adopting a distributed fulfillment model to enable faster deliveries and support options like buy online, pick up in-store (BOPIS). This is where Shopify Fulfillment Network (SFN) can be a game-changer. SFN offers a network of fulfillment centers, intelligent inventory allocation, and fast shipping options, all integrated with your Shopify store. It can help you meet customer expectations for quick delivery while maintaining cost efficiency.

6. Launch marketing campaigns specifically targeting O2O

Effective O2O marketing campaigns bridge the gap between digital and physical touchpoints, creating a cohesive brand experience. Start by leveraging your unified customer data to create targeted, personalized campaigns that resonate across channels.

Utilize tools like Shopify Audiences to identify and reach high-intent buyers similar to your best customers. Implement retargeting strategies to reengage online browsers in store and vice versa. Consider location-based marketing to send timely, relevant offers to customers near your physical stores.

7. Gather data and iterate

Track campaign performance across channels, using Shopify Analytics to measure the impact on both online and in-store metrics. Continuously refine your approach based on these insights to maximize ROI and customer engagement.

O2O commerce examples

Frank and Oak

Frank and Oak's transition to Shopify POS exemplifies O2O commerce by seamlessly integrating their online and in-store experiences. 

They unified their inventory management, allowing customers to easily check stock across channels and offering flexible options like buy online, pick up in store. The company implemented true omnichannel promotions, using a single set of promotional codes that work both online and in store. 

By synchronizing customer data and order fulfillment across all touchpoints, Frank and Oak created a cohesive customer journey that bridges the digital and physical realms. This integrated approach not only enhanced the customer experience but also improved operational efficiency, resulting in: 

• Reduced operating expenses associated with POS by 47%
• Reduced transaction fees by nearly 3%
• Eliminated multiple hours of monthly POS outages

The Cambridge Satchel Company

From its humble beginnings at Julie Deane's kitchen table with just £600 in capital, The Cambridge Satchel Company grew into an iconic British brand that caught the attention of major fashion houses like Vivienne Westwood and Comme des Garçons. Their brick-and-mortar presence attracted fashion-forward customers and celebrity endorsements, including Taylor Swift.

To bridge the gap between online and offline shopping experiences, Cambridge Satchel Company partnered with Shopify's AR team to revolutionize their digital strategy. Now, online shoppers can virtually place 3D images of bags in their environment via smartphone, mimicking the in-store "try-on" experience.

"The fact that we can offer this kind of AR experience with our budget puts us on a level playing field with people who have much greater resources than we do," says Deane. "I've no doubt that if big luxury brands create this kind of AR experience [in-house], they would be paying ten times what we are."

Beauty Heroes

Prior to working on their O2O commerce strategy, Beauty Heroes’ ecommerce sales were soaring—so much so, they decided to break into the offline market and open their first brick-and-mortar store in Novato, California.

Beauty Heroes used Shopify POS to aggregate sales data across both online and offline channels. They also encouraged existing customers to shop in store by delivering targeted promotions based on purchase history. 

Allbirds

Shoe retailer Allbirds’ journey to blending ecommerce and brick-and-mortar was fast. They went from experimenting with pop-ups to opening locations all over the world, including in San Francisco, London, and Seoul.

A key part of Allbirds’ O2O strategy is ensuring that anyone visiting one of their more than 20 physical stores doesn’t have to leave empty-handed if a product isn’t in stock. Allbirds uses Shopify’s POS to process the transaction then and there, taking payment for the product and shipping it to the customer as soon as it’s available.

"[Buy in-store, ship to customer] allows for a much higher conversion than if we tell them to go back to their home and order it when they get back."