India’s leading telecom business and the chain of retail stores; Reliance when shared the news of the arrival in the ecommerce business was like a stormy wave in the ecommerce market. The global ecommerce giants like Amazon and national brands like Flipkart started looking for different models and ideas with which they can reserve their space in the market.
Unlike most of the ecommerce marketplaces, Reliance adapted the O2O business model earlier used by Alibaba. This model connects the small offline retailers to connect with the customers with the help of the digital mediums.
What is the O2O business model?
O2O (Online-to-offline) business model is dedicated to offline businesses. The business model will help you discover the opportunities in the digital market and leverage them for your offline business. It is often referred to as the click-to-brick model and click-and-mortar model. The business model primarily focuses on the marketing of the physical stores on the online marketplaces to help customers discover the local business.
Ecommerce businesses planning to use the O2O model can create their website with the help of which they can market their offerings. Still, the cost can be said to be custom. You can share your product’s tentative price and ask the customer to visit the showroom to make a purchase personally.
In this way, you are adding the chances of conversion via your store and adding the value of digital growth in your cart.
How Is Reliance Deploying O2O Business Model?
Reliance is leveraging the O2O business model by creating a marketplace where the local businesses can connect and market their products. As per the set eligibility criteria, you can find your eligibility and list your offerings on the marketplace. The interested customers can check your product listings, make inquiries, book orders, and collect orders offline.
The services of the Reliance retail collab version with JIO came with the marketplace AJIO. Initially, it was started in Gujarat, and it is serving Mumbai now. Though offerings are restricted to the locations, for now, Reliance aims to take this model across India.
To implement this business model in a righteous manner, they tried selling groceries and food staples from their app at first. The successful delivery of the food staples worked so well, even in the time of lockdown due to the COVID attack. They have been still serving the essentials and now even connecting the local businesses with them.
RIL leveraged their telecom network, and contacts via Reliance retails stores to invite local traders to register on the platform and sell via their platform. After counting on the essentials and food staples, Reliance on the launch of AJIO, selling fashion, lifestyle, and electronics. If you are selling in any of these business niches, you can check for the availability in your location and apply for registration.
By registering your physical store on AJIO, you can take orders online and deliver offline and online. The option of in-store pickup helps customers check for the product, make a selection at their pace, and take direction from the store. This reduces the wait-time for product delivery and reduces the headcount for business.
With online payment modes, customers can make the payment and receive the same from the AJIO wallet. It will give the bonus points as well as more options for the conversion. The reward points turn out to be active after 30 days of purchase. Thus, they can be redeemed and used.
The timely sales at the store will help customers grab the best deal and help businesses acquire more sales. When you are a registered business serving under Reliance’s brand, it will be easier for you to earn the trust of your prospective customers. Further, you will be selling via their store; this will keep you from the trouble of managing your website.
Reliance’s support team will keep you guarded with all the claims, returns, and refunds per seller policies. So, you don’t have to worry about their primary queries. When customers come to visit your store, you will be able to connect personally and network with them.
What Is The Benefit Of Reliance Ecommerce Business Model?
The Reliance ecommerce business model aims to empower physical stores and understand the power of online mode to flourish. Online marketing comes to a lot of handy, as compared to that of traditional marketing. The major benefit of deploying this model for your business is multiplying the options of sales. When you are already selling your products offline, you won’t worry about the online businesses; rather, walk hand-in-hand with technology.
- O2O business model is meant to bring the traction of online customers to your physical stores. This will automatically improve the reach of your business.
- These days several businesses are adopting in-store pickup service at their physical stores. The primary benefit is, you will save the delivery cost of your business.
- O2O model will give the customers enough time and choice to check for the products and variants online. This will reduce the in-store traffic and let you manage your sales well, especially in the post-lockdown period. With a limited rush, it will be easier for you to manage customers at your store.
- The in-store pickup gives fair chances to the customer to try the product before purchase. It will reduce the rate of product returns and optimize the profit gained from your sales.
- The O2O model is a lot favorable for companies offering electrical and electronic products. When they are checking online through the marketplace, there are options to compare the best, and by purchasing offline, customers can claim for servicing and post-installation services.
In addition to this plan of Reliance ecommerce business, it is an amazing growth opportunity for local businesses. This promotes the idea of Self-reliant India and boosts the chances of engagement and awareness in the local market. With the support of the cause, local businesses can achieve new heights with this supermarket.