What is o2o? How to build o2o for physical retail merchants

O2O e-commerce that Online online store Offline offline consumption, merchants through the opening of the online store will be merchant information, commodity information, etc. to show consumers, consumers online screening services, and payment, offline consumption verification and consumption experience. This can greatly meet the consumer's personalized needs, but also saves consumers due to online payment and did not go to the cost of consumption. Merchants spread information faster, farther and wider through the online store, which can instantly gather strong consumer power. The main feature of this model is that both merchants and consumers meet the needs of both parties through O2O e-commerce.

Entity retail merchants to build o2o basic methods:

Establish community supermarkets, the establishment of APP online platform, invite the community nearby merchants stationed in APP, customers to the stationed merchants to consume or buy online goods to earn points, and with the points can be used in the community supermarkets to enjoy the affordable membership price. Partner system to enhance the shopping experience, APP fragmented shopping to change the way of consumption, points are the means, cost reduction and experience enhancement is the core competitiveness, and ultimately promote most of the consumer shopping needs and service needs through APP and community supermarkets to complete.

The first step: the establishment of community supermarkets

The establishment of supermarkets in densely populated communities, roughly 2,000-4,000 single products, 100-200 square meters, and operating common fresh goods. The reason for the operation of fresh goods is to strengthen the attractiveness of fresh goods, fresh goods at low prices to attract customers, and fresh is a hard demand, only to solve the demand for fresh, in order to completely stick to the customer, to change the customer to go to the market or the habit of hypermarket.

Each commodity price tag has 2 prices, one is the sales price, the second is the member price, the member price is displayed in large letters, the sales price is presented in small letters. For example, Coca-Cola, the sales price is 2.5$/bottle, the member price is equal to 1.9$+6 points/bottle. Each point is worth 0.1 yuan, as long as the customer downloads and installs the APP and registers with a cell phone number authentication will be given 1,000 points, which is worth about 100 yuan.

Not all commodities will consume points, generally the more sensitive commodities consume more points, while non-sensitive commodities may give points, such as quilt, the sales price of 109 yuan / bed, member price of 99 yuan to send 50 points / bed. This means that when the customer checks out and swipes the APP not only the price is only 99 yuan, but also sends 50 points.

The reason for this price setting is that sensitive commodities have low gross margins and non-sensitive commodities have high gross margins. Sensitive commodities are sold at low prices, which is conducive to the establishment of a low-priced impression in the customer's mind, and non-sensitive commodities have high gross margins, and the delivery of points attracts the customer to buy. Customers can only remember the sensitive goods market price, with non-sensitive goods gross profit subsidies sensitive goods losses, which makes sensitive goods more price competitive

Second step: online platform fragmentation shopping

Supermarkets are established, there is enough attraction to allow customers to download and install the use of APP, but how to make a profit, if the customers are using the APP in the store shopping, then the supermarket profits are very low.

This is the first time a supermarket has been set up in the United States.

The project entity supermarkets and traditional supermarkets are different, is not a self-financing entity, but a guide tool to guide consumers to shop online, to the surrounding merchants to spend to points. Once customers are accustomed to using APP to buy online goods, accustomed to using APP to enjoy the surrounding community services. The project's profitability includes online sales profits, resident merchant fees, capital market support, strong customer attraction to increase sales scale, etc., which theoretically supports the operation of physical supermarkets at below-market prices.

Customers can shop on the APP, which contains 2,000-4,000 products displayed in stores and tens of thousands of products in warehouses. Store display space is limited, the store does not have the goods, customers can buy online platform, the warehouse of goods generally to give points, sensitive goods are basically in the store, warehouse goods are mostly non-sensitive goods, there is a profit margin to give points.

If the customer buys store goods on the APP, the order before 19:00 every day, 19-21:00 centralized home delivery, no delivery fee from 1 yuan. If customers need fast delivery, they pay another $3 delivery fee and have their order delivered within 15 minutes.

If the customer buys warehouse goods on the APP, then the same day order, the next morning delivery to the store, the customer can go to the store to pick up, or the next day 19-21 pm centralized home delivery, no delivery fee from 1 yuan.

Note that the rule here is no delivery fee of 1 yuan, which is the key to the realization of the fragmentation of shopping, traditional shopping behavior, go to the supermarket to spend time and energy costs, online shopping need to pay postage. The fragmentation of shopping, so that customers do not take into account the distance and postage, what you want to buy what you want to buy, will not be full of 89 yuan free shipping to buy goods that do not want to buy, what is missing what to buy, out of the cell phone to search for a key to order, a minute to get it done. The most important thing to remember is that you can shop anywhere, anytime, and anywhere, and that's what mobile commerce is all about.

The basis of fragmented shopping is extremely low distribution costs, with centralized distribution from warehouses to stores, and centralized distribution from stores to customers' homes every day from 19:00 to 21:00, resulting in extremely low delivery costs for individual orders. Fragmentation of shopping although the unit price is low, but the volume of customer orders will be raised, each delivery for the customer, in fact, it is likely to be a few single centralized delivery, and reduce the cost of each single share of delivery.

This online shopping experience and Jingdong Taobao compared to, first, centralized delivery through the store, the cost is lower. Secondly, the fragmented shopping without freight is more trouble-free, thirdly, the APP points system is more attractive to consumers. Fourth, at the same time support store pickup and delivery to the home more secure and good experience. Fifth, the store is closer to the customer, the influence is stronger, the consumption frequency is higher, high-frequency beat low-frequency. Sixth, you can also operate mass fresh goods, Taobao Jingdong can not do. Seventh, there are stores to support the return of after-sales more simple and convenient low-cost.

The third step community merchants stationed

Invite the community around the merchants stationed in the APP, consumers to merchants to consume, can get points. There are three types of merchants, one is the physical category, such as fast food restaurants, florists, pharmacies and so on. The second is the consumption category, such as beauty, dry cleaning, massage parlor, etc., and the third is the service category, such as housekeeping, locksmith, car rental, etc..

Consumers go to merchants to spend money, and merchants give consumers points, which come from merchants buying from us. Merchants are willing to enter the APP, in the community supermarket can develop more members, can bring sales for merchants. Customers are willing to choose merchants because they can use their rebate points at the community supermarket.

The core competitiveness of the APP is not in the fancy points, but in the evaluation and monitoring system and in helping merchants save on promotion costs. Consumers to merchants after consumption, you can evaluate merchants, only in the community supermarkets have consumed more than 3 times the customer can evaluate the merchant, at most, can only evaluate the same merchant 3 times, in order to prevent brush single. A real and effective evaluation system can help consumers to screen the merchants.

Consumers can view the information of nearby merchants on their cell phones, distance, discounts, services and evaluation, which can help merchants to promote, especially the third type of service merchants, such as housekeeping locks car rental, etc., not only to help merchants to save promotional costs, but also to help customers to choose safe and reliable merchants. In addition, the APP can also realize the CRM function for the resident merchants.

The fourth step of the project optimization

Partner system: the so-called partner is a one-to-one relationship, an area of the order can only be a partner in the delivery of all the problems of the customers in this area to follow up on the partner to solve the partner's earnings by the responsible area performance, so as to stimulate the partner for the customer to provide perfect service.

Partners often deliver for the customer, each delivery is the same partner, through the delivery of contacts to establish friendship, such as helping customers to bring garbage downstairs. For example, if you find out that a customer has a child or an elderly person at home, you will be sent a gift certificate accordingly. For example, if a customer orders certain special products, the partner will remind the customer of the precautions to be taken with these products. With neighborhood-style extreme service to stick to the customer.

The application of big data: supermarkets are newly opened in the promotion stage, the member price is more affordable, with the increase in customers, more merchants stationed on the line to increase sales. Will be appropriate to enhance the store membership price, enhance the magnitude and a number of factors related to the need to find the best point in practice and data analysis.

APP fragmentation shopping is mostly done on the cell phone screen, so fast and accurate recommendations are very important. For example, if a customer searches for soy sauce, the system automatically recommends the ones that the customer has purchased or is most likely to purchase, helping the customer save time.

Customers often buy goods is the interest of goods, the APP can be used to launch thousands of promotions for loyal customers, high-value customers, lost customers to give different recommended products and discounts, such as a customer has not come to shop for a long time, the system believes that this customer belongs to the loss of customers, it will be pushed to promotional activities to him, the activities of the recommended commodities are the customer is interested in and attractive prices, only this customer can use the Only this customer can buy these products at this price. Even if the customer goes to the store to store, as long as he or she swipes the app, he or she will be billed according to the price of the campaign.

Other optimization points: APP can add a function similar to Alipay Sonic Payment, so that you can use APP payment and points without going online. For merchants who are on APP, there is also no need to add equipment, and all functions can be realized by installing APP.

Customers shopping in stores, you need to pay cash and brush APP, you can guide customers to use the pre-deposit online payment, more convenient, but also for the future to engage in financial lay the foundation.

If some of the goods in the warehouse sales are better, can be considered to the store display sales, try to shorten the distribution distance, reduce the delivery link, not only can optimize the store commodity structure, but also reduce the waste of social resources.