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Offline-to-Online Commerce with Shopify Plus

29/08/2023

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Enterprises are using Shopify Plus to sell directly to their consumers because, let’s face it, most of us don’t like going to the store anymore. One of our clients decided to take some of their more unique products and start selling them online using newly integrated Shopify stores. It seems that Offline-to-Online commerce is an inevitable transformation in this era.

From traditional to online retail with Shopify Plus optimization

Selling Directly to Consumers With Ecommerce

You’ve probably been to a supermarket or drugstore and bought toothpaste. If not toothpaste, you may have bought soap or laundry detergent. If you haven’t gone to a brick-and-mortar store to buy any of these consumer goods, which can be found on shelves all over the world, then you’re way ahead of the game (or in desperate need of some soap). 

Most people use these consumer products on a daily basis. When they run out of what they use, they can easily buy more at the nearest store. Unless they’ve pledged undying loyalty to a single brand, they’re likely to walk down the aisle and compare multiple products side by side on the shelf. This is the traditional way to shop for these types of products.

But some products require special treatment. They’re not like all the other products, so they don’t belong on the shelf next to them. They are branded and marketed more carefully. Not to wholesalers and retailers, but directly to consumers. 

But how does a large company, known only as a large company, with consumer goods on shelves everywhere, differentiate itself? One of our clients decided to launch Shopify stores to sell a few select products directly to consumers. 

Developing Middleware for Shopify Plus Integration

For this project, we partnered with our Shopify Plus partner, Fracta, to create a Shopify Plus store for one of these unique products. Our job was to provide support for SSO login (Single Sign-On login), new account registration, a feature for customers to update their information or deactivate their account, and display the terms of service. 

We had to synchronize the client’s user information between their existing system provider and the new Shopify stores. We also developed the admin page for easy management when connecting the middleware application to the stores. 

Our client was a large corporation that has been selling its household products on Japanese retail shelves for years. This means that they already had a system and store for wholesalers and retailers. However, they wanted to use Shopify to sell their new products directly to consumers. They still wanted to connect their old service provider to the new Shopify stores, but decided that a full migration to Shopify was not an option. Therefore, we decided to connect their current system to the new stores by developing custom middleware for the client. 

A middleware to link two Shopify Plus stores and streamline offline-to-online commerce
Streamlining Offline-to-Online Commerce with the aid of a custom-built middleware

The client had an SSO application, and wanted end users to use their accounts with their existing service provider to log into the accounts for the two Shopify stores. We integrated the new Shopify stores with the service provider by developing the backend for the middleware. Aside from a last-minute UI change, there were no major technical challenges that pushed us to our limits. In many ways, this was a routine project that delivered the custom and desired Shopify solution for the client. 

The Future of Enterprise Offline-to-Online Commerce

Rather than going through the list of technical requirements for this project, what I found most interesting was the client’s new business model — and how Shopify Plus can help.

This was an established company that most people would passively know their brand from seeing it so often in stores. This is the problem that some companies are starting to address: their brand is only passively understood and recognized. There’s nothing compelling or unique about them compared to their competitors. They all make similar, but slightly different, products and put them on the same shelves. As consumers, we are forced to make decisions based solely on marginally different price, quantity, or packaging. So how can these companies get their name out there as more than just a “large manufacturer”?

For starters, these same companies are looking at Shopify Plus as a way to sell their products directly to consumers. They’re not just trying to sell the same soap or toothpaste; they’re getting creative with the products and giving them new aesthetic branding — using Shopify as a platform to do so. 

“The ability to buy what we need online directly from the source is the new normal.”

Of course they will likely never completely abandon the old sales flow, but they’re trying out new methods. But, this could be just the first step in a revolution. Perhaps one day, all of these large consumer goods companies will start developing their own specialty products to sell on ecommerce platforms. As the modern consumer continues to change, our desire to drive to the drugstore is diminishing; the ability to buy what we need online directly from the source is the new normal. 

For these reasons, businesses may begin to see Shopify Plus as the best method to streamline their sales. Coupled with a strong technical team, there’s no telling what the future of ecommerce will look like.

Middleware’s Technology stack:

  • Node.js, DynamoDB, Serverless (used for greater scalability)

Looking for the same technology solutions? Let us know!

SupremeTech has the expertise in bridging offline-to-online commerce. Whether you’re about to migrate your business to Shopify Plus or just trying to improve your online store’s operations, we offer bespoke solutions to solve your business problems quickly and effectively. Contact us!

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    Hi our tech fellows, this is SupremeTech's blog series about retail and commerce. You may ask why a tech company like us writes about such irrelevant topics. Actually it's opposite. About 50% of our tech solutions serve clients in retail industry. The increasing demand of customers for a more convenient buying journey encourages corporations to digitalize their traditional operations system. In order to solve this puzzle with optimal technology solutions, understanding the latest business movements is a must for our technical team. In this article, we're gonna go through the topic of Online to Offline Commerce for retail industry (aka O2O Commerce). What is Online to Offline Commerce? Online-to-offline (O2O) commerce refers to a business strategy that draws potential customers from online channels to make purchases in physical stores. This model integrates the digital and physical shopping experiences. 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That customers migrate to online order lifts the burden of operations off physical store. For example, with the same amount of staff, one store can proceed more orders if they don't have to allocate resources taking order or processing payment for each customer directly. Moreover, retailers can capture additional sales by reaching customers who start their purchase journey online but prefer to complete it in-store. Better Customer Data That the whole order and payment process takes place online allows business owners to keep track of customer's behavior and preferences. Then, strategy planners are able to customize marketing campaigns, promotions and other customer service initiatives. Data-based decision making mitigates the negative consequences caused by biased assumptions. Reduced Return Rates When customers pick up online orders in-store, they have the opportunity to check the product immediately, reducing the likelihood of returns. Examples of Online to Offline Commerce Starbucks Mobile Ordering: Starbucks' mobile app allows customers to place their orders online and pay in advance. This functionality reduces wait times and enhances convenience.Personalization: The app offers personalized recommendations based on previous purchases, increasing customer engagement and loyalty.Rewards Program: The Starbucks Rewards program is integrated with the mobile app, encouraging repeat visits by offering points for every purchase, which can be redeemed for free items. Walmart Click-and-Collect Service: Walmart offers a robust click-and-collect service where customers can order groceries and products online and pick them up at a local store. 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These tools create a seamless integration between online data and in-store experience.Omnichannel Rewards Program: The Beauty Insider program integrates online and offline purchases. Customers earn and redeem points through any shopping channel, encouraging loyalty and repeat visits. Online to Offline Commerce from the technical perspectives Online to Offline commerce for retail industry involves both digital and physical technologies to create not only seamless buying journey for customers but also smooth operations for admin team. There are a bunch of components worth considered for a retail company when implementing O2O Commerce. Whichever option chosen depends on the scale and strategy of a particular business. Within this article, we will go through the most common types of technical request we received from clients: Mobile and Web Applications Responsive Design: Developing mobile and web applications that provide a consistent user experience across different devices and platforms. Augmented Reality (AR): Implementing AR features, such as virtual try-ons or in-store navigation, to enhance the shopping experience. Payment Systems Omnichannel Payment Solutions: Offering seamless payment options that work both online and offline, such as mobile wallets, contactless payments, and integrated point-of-sale (POS) systems. Integration with Payment or Point Gateways: Sometimes transactions are processed by third-party gateways. As a result, there's an increasing demand for payment and point gateway integration. Data Integration and APIs API Management: Using APIs to enable communication and data exchange between different systems, such as e-commerce platforms, CRM systems, and POS systems. Middleware Solutions: Implementing middleware to facilitate integration between disparate systems, ensuring seamless data flow and operational efficiency. Personalization Engines Recommendation Systems: Leveraging machine learning algorithms to provide personalized product recommendations based on customers' browsing and purchase history. Dynamic Pricing: Implementing dynamic pricing strategies that adjust prices in real-time based on demand, competition, and other factors. From a technical perspective, O2O commerce is a complex but highly rewarding strategy that requires the integration of multiple technologies and systems. Is Online to Offline Commerce for retail industry a must for all businesses? It depends, of course, on the nature of the business and the particular products on sale. There are other factors like the scale of the business, target market, and competitive landscape. Furthermore, O2O commerce is not a one-size-fits-all solution. For many, a hybrid approach that gradually integrates O2O elements as the business grows and market conditions evolve can be a pragmatic way to leverage the benefits of both online and offline channels. Technical capability is another deciding factor. Operating O2O commerce requires at least a team of tech people to handle system maintenance and troubleshooting. If the business is in early stage with small budget, looking for low-code solutions or outsourcing seems to be a more efficient approach. Thanks for reading us. See you in the next articles.

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