News taps into the O2O market

Friday 21 March 2014 13:29 CET | News, a Chinese B2C retailer, has agreed to integrate online sales with 11,000 physical convenience stores, according to Xinhua Insight. The move is part of the company`s strategy to test the online-to-offline (O2O) market.

The company has revealed plans to take advantage of its established logistics systems by joining forces with 15 partner companies, including chain stores and enterprise resource planners (ERP) with nationwide networks.

Mo Daiqing, analyst at China e-Commerce Research Center states that convenience stores have the fastest-growing sales volume and that partner stores will help accumulate customers in all cities with convenience store distribution networks, the source reports.

He continues with the idea that partner stores can set up online stores on, the companys e-commerce platform. As such, customers can collect whatever they order online from stores in cities around the country. The new business model offers traditional retailers more sales platforms and channels. It is a way for both sides to spread investment risk.

After-sales services for online goods will be dealt with in the physical partner stores. Delivery costs have not yet been determined and the final rate will be tailored to each citys consumption. moved into the digital realm in 2004, selling consumer electronics, computers and books. It now has 25 million registered users and 6,000 suppliers nationwide. By the end of 2013, had 82 warehouses in 34 cities, almost 1,500 delivery terminals in 460 cities and 209 locations for customers to pick up their orders.

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Keywords: China,, B2C, online payment, convenience stores, O2O, logistics system
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce