The e-commerce landscape has quickly adapted to the dynamism of customers’ requirements. The modern consumer journey revolves around speed. As a part of the eCommerce ecosystem, the potential stakeholders are concerned to respond to the fluctuations in demand and supply. Ad-hoc and last-minute orders too need to be catered with optime efficiency.
Post-pandemic, customers valued convenience and speed. To complement the current mindset of the customers, Quick commerce comes into the picture.
Before moving ahead to the discussion about how, when, and why components of Quick Commerce, let us know what this stands for!
What is Quick Commerce?
Popularly termed as the next-gen of e-commerce, it is categorized as a unique business model where there is a very narrow order placed and delivery window. With millennial Z, ruling the digital ecosystem, the delivery cycle has been replaced from a 1-day delivery window to a 10-30 minutes time frame.
The Quick Commerce involves a quick order fulfillment process that caters micro to smaller quantities of food- varied from groceries, stationeries, pharmacies, and many more.
To achieve the staggering product-fit concept to the existing online marketplaces, many businesses have embraced the concept with full hands. Hence, the transition from the traditional good model to the quick commerce model has to do a lot while defining the value proposition of any business.
Quick Commerce business model: A brief Overview
With the pandemic entering our lives, there was a huge disruption in the supply chain logistics. This has given a new variant to the eCommerce business with the nomenclature of Quick commerce. For the unversed, it is a unique business model of super-fast delivery that caters the logistics operations and doorstep grocery delivery within 10 to 30 minutes of ordering.
The prime focus is on catering to the micro and smaller quantities of light-weighted goods ranging from daily grocery demands to pharmacy requirements. With the consumers focusing more on online shopping behaviorism, the shift from well-stocked large warehouses has been done to micro- warehouses available in the proximity of the potential customers.
Salient features of Quick Commerce
Here are the enlisted features of quick commerce that make it unique, preferable, and a trendsetter in the competitive space.
- A predefined competitive USP
Quick commerce definitely opens new horizons to your business’s existing USPs. Adhering to the concept of bridging competitive advantage in the market, Quick commerce is known to add a new value proposition to the business model and helps to add convenience and speed as a part of their logistics journey.
The Quick Commerce processes are designed to compete with any of the e-commerce marketplaces as well as the brick and mortar stores. To know more about how you can edge in the competition, pick a call slot to talk with our experts.
- The burning margin
On top of adding a unique value proposition, Quick commerce is also said to open new opportunities to earn potential profit with every sale. If you are able to decode the process of staying ahead in Quick commerce, you can probably be at a profitable advantage over others. During the pandemic, the revenue figures for quick commerce had risen with 50% more value than the existing figures.
Those who were able to crack the code were able to earn a hefty amount on the pretext of charging extra for on-demand fulfillment within a defined time slot. Another bunch of advantages that go hand in hand with Q-commerce can be defined as divergence in product lines, appealing to wealthier demographics, and many more.
- Offering the delightful customer experience
When you work in a customer-centric industry, it is very important for your business to keep track of the customers’ expectations and experience. When we work in the quick commerce vertical, it is important to fit into the shoes of your customers. To win loyalty, it is important to deliver within the expectations of your customers.
With quick commerce coming into the picture, the customers’ dynamic demands could be catered to and addressed with great clarity.
A happy and delightful customer will be there to help you retain your customers and build a stronger customer base for your business. To know more information about it, you can choose to connect with our team of experts.
Interested in knowing and implementing the concept of quick commerce, head to the next section to get details.
Steps to implement Q-commerce
If you wish to earn customers’ loyalty in today’s highly competitive market with a better profit margin, quick commerce is a must-to-have process in your delivery business.
Here is a small minute read-up to know how to deal with a broader audience with wider profitability and broader profitability margin while maintaining the concept of superfast delivery.
- Setting up the local hubs
To begin with, there should be a local hub or warehouse where picking up, packaging, and delivering the products can be done at a faster and cheaper rate. A quick commerce process can be established when you have a local warehouse within the immediate proximity of the customers. It will add up operational efficiency, reduce the extra miles/ fuel cost, and will add up in less turnaround time.
Irrespective of road conditions, and traffic congestion- you can choose to ask your delivery partners to offer super fast delivery. The combination or collaboration with the 3PL at a very cost-effective rate is another pre-establishment task that can help in incentivizing the business process.
- Keeping up with the stock
Another step that should be kept in mind while choosing to get into the shoes of Q-commerce is to carefully choose the stock and its SKU. Do intensive market research and get an ideal picture of the demand and fluctuations of flexible demands in the market. You can choose to have a stock list and decide about the quantity of the goods in total.
How can it help?
This will be an added advantage to quickly respond to on-demand fluctuations and escalate the delivery process by picking up the stocks from the nearby warehouse and speeding up the delivery window. Hence, in no time you can achieve the quick commerce model for your existing business.
Top players in the Q-commerce vertical
During the pandemic and post lockdown, we have seen many emerging players that have transitioned their businesses into Q commerce business models. Some of the names worth mentioning here are:
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Committed to matching the 15- minutes delivery window, these players are ruling the market.
Perks of choosing a Quick commerce business model
- Speed: As compared to the conventional retail outlet, the quick commerce business model offers speed in the delivery process. In a matter of 15 to 30 minutes, a customer can get the desired delivery at their doorstep.
- Round-the-clock services: To meet the dynamic requirements of customers, Q-commerce is subjected to offer round-the-clock services with a complete 24 operation services.
- Convenience: So, among all the benefits, we can not ignore the convenience and comfort that customers get with quick commerce services.
Why is Q Commerce on the rise?
The old methods of purchasing groceries have given way to a newly invented idea known as Q commerce. Convenience, urbanization, and hectic lifestyles have influenced consumer purchasing habits. Furthermore, since the outbreak of the pandemic, social distancing and work-from-home customs have led consumers to choose home delivery. This shift in purchasing habits has incentivized e-commerce companies to establish quick delivery, business models.
How can Q-Commerce be a game-changer?
What are dark stores?
High-level tasks in a typical warehouse system involve storing the products in the correct area, restocking the stock, choosing and packaging the components according to the order, and final shipment. Order arrival to dispatch time in dark stores should preferably not exceed five minutes (for a 15-minute guarantee time) so that delivery workers have enough time to reach the customer. As a result, for an effective, quick delivery dark store or micro fulfillment centers, developing a lean system to reduce time losses in all process phases owing to excessive operator movement or item search becomes important.
How dark stores are changing the delivery systems?
Technological advancements are enabling more efficient use of space and the introduction of interesting new urban fulfillment options, such the dark stores. According to Future Gazing research, internet retail sales are expected to increase by 37 billion pounds by 2025, increasing from 27 percent to 30 percent.
A micro fulfillment center also requires personnel to choose and pack the items, as well as timely delivery services to deliver the goods to consumers' doorsteps.
How Jungleworks powers Europe's successful Q-commerce startup
Q-commerce is a newly emerged term that has opened many doors of opportunity in the commerce vertical. Keeping in mind and matching the current mindset, picking up a Q commerce model is an ideal choice.
If you are willing to give a try quick commerce business model and wish to implement the market-fit strategies in your existing business, reach out to our team. Let us bring together a unique value proposition for your business and make your business reach the next level with us!