The past two years have brought a dramatic change in each one of our lifestyle around the world, and slowly we started to adapt to it. Being stuck at home for days, weeks and months we got used to many new habits, one is definitely online shopping.
Even though online shopping was pioneered in 1979, it took the mid of 90s for people to get used to the internet and to start shopping online. But by now the eCommerce platform has grown insanely, and from the data collected by Statista, by the year 2025 retail e-commerce sales will be about 7.4 trillion dollars, which is 50% of growth from the 4.9 trillion U.S. dollars collected in 2021. With this rapid growth of ecommerce many ecommerce website development companies have also emerged widely.
Quick commerce is one of the main reasons for this staggering growth in online business. Delivering a good user experience can attract new customers and help you open your business to other markets. Modern customers demand quick delivery, taking this into account Quick Commerce was introduced.
What is Quick Commerce?
Quick Commerce (Q-commerce) or popularly termed as next-gen of e-commerce is a revolutionary eCommerce business model that is made focusing on the millennial and gen-Z buyer’s journeys. With speedy delivery usually less than 30 mins, Quick Commerce disrupts traditional eCommerce businesses with large warehouses by leveraging the connections with local vendors as well as their small fulfillment centers.
People got used to relying on online stores to purchase daily necessities like dairy products, food, and other grocery items in a bulk quantity, where the delivery is scheduled on a weekly or monthly basis. But what if the customers decide to buy a product in a short time since they unexpectedly ran out of it? Q-commerce involves a quick order fulfillment process that brings small quantities of goods to customers almost instantly, whenever and wherever they need them.
Based on the economic operations, we can segment Quick Commerce’s business model into two. They are;
- Vertically integrated models – such as Blinkit, GoPuff, and Zepto handle end-to-end operations from managing inventory to pick and delivery to achieve the promise of instant delivery, typically within 10-30 minutes. These companies primarily focus on the speed of delivery and transparency.
- Third-party delivery platforms – Companies including DoorDash, Swiggy Instamart, Uber eats, Dunzo, etc collect and deliver products from third-party retailers to buyers. While these companies usually promise a ‘same day’ delivery, the options vary from 30 minutes to several hours. The advantage of these business models is the variety of choices since they collect from various retailers.
Perks of implementing Q-Commerce
With the outgrowing technology of quick commerce, both the customers and the brand who adapt it gains benefit. We’ve listed 5 benefits of implementing quick commerce in your business.
- Swift Delivery
It’s all about speed. The quick commerce business model promises faster delivery than a traditional ecommerce store. A customer will receive the requested delivery at their location in about 15 to 30 minutes. This is likely to have a long-term impact on customer behavior since it is tied to the ease of a fast and effortless shopping experience.
- Competitive USP
Q-commerce has introduced a fresh approach to business that helps one to stand out from competitors. A customer looking for fast delivery may also be willing to try out new products and order from a new store. Attract more customers by offering a wide range of products that are usually difficult to sell, because they require faster delivery.
A customer’s value should be taken into consideration when adapting to quick commerce. And ensure that the products sold can be delivered consistently.
- More Happy Customers
We should constantly bear in mind that the experience we offer to the consumer meets or exceeds their expectations while working in a customer-centric industry. So, among all the benefits, we cannot ignore the comfort and ease that clients experience while using quick commerce services. Having a trustworthy relationship with customers can boost brand awareness and customer retention.
A customer journey has distinct phases such as; finding the right retailer, considering making a purchase, making a transaction and purchasing, revisiting the store for a future purchase, and advertising the store to a potential customer.
- Increased Profit Margin
In addition to providing a unique selling proposition, quick commerce is said to provide more opportunities to gain profit from each sale, for those who use the maximum out of it. The revenue statistics for quick commerce increased 50% higher than the previous data during the pandemic, meaning that 50% of consumers paid extra money to easily buy what they needed. Analysing this pattern in customer behavior, companies were able to earn a substantial amount by charging extra for such on-demand items within a specific time.
Also taking note that quick commerce focuses on small quantities of products, retailers can take advantage of this to drive sales for their most profitable category of products.
- Lower Logistics Costs
Local deliveries offer advantages over traditional eCommerce shipping, such as faster delivery times and lower costs. By placing small local warehouses around the delivery area and partnering with local vendors, you may reduce the logistics costs for these deliveries, freeing up resources to use in other operations.
Key Trends to Expect in the Quick Commerce Spectrum in future
Optimized Buyer Experience
While several Quick Commerce businesses are emerging, user retention is the challenging part that most of them face. With access to abundant user data of purchase history and frequency, businesses will be focusing on custom-made user experiences based on their likes and dislikes. Also, tailor-made messages based on buyer behavior which are analyzed using AI and ML will help to stand out in the competition and improve the retention rate.
Quick commerce inventories are expected to be extended to other industries like medicine, books, electronics, and accessories.
With adequate infrastructure and logistics options, quick commerce can be extended to other industries as well. Spanish rapid delivery startup Glovo came into action with electronics and furniture delivery under a plausible delivery time below 60 minutes recently.
Convenient and Strategic Warehouse Locations
Using artificial intelligence and machine learning, Quick commerce businesses are optimizing their warehouse location to optimize the efficiency of the delivery process. These strategic locations are identified by analyzing the purchase volume and value and thus suggesting new optimal locations as well.
Sustainable and Eco-Friendly Initiatives
Quick commerce companies must be aware of the global net-zero emission initiatives to find sustainable opportunities in their future processes. These could be varying from electric scooters for deliveries and reusable packaging options that do not harm nature.
Quick commerce VS eCommerce
To the long list of trendy businesses, the terms “q-commerce” or “quick-commerce” has also been coined as a variant of eCommerce. Q-commerce can be described as an online way to buy and sell products and services, just like eCommerce.
It was e-commerce that came first, and as technology progressed, the customer’s expectations and needs also changed. With the emergence of quick commerce platforms the busy working millennials have found a saviour. Even ecommerce brands like Zepto, Gorillas, Swiggy’s instamart, Dunzo Daily, Blinkit, and few others have already switched to quick commerce.
However, there are some key differences between these two.
- 3-4 days or longer delivery period.
- Uses traditional methods, and delivery period may extend.
- Inventory stocked in warehouses.
- Wide variety of products.
- Bigger delivery vehicles.
- 30 minutes to 1 hour delivery period.
- Use quantum mechanisms to speed up transactions.
- Guaranteed availability and higher security.
- Localized stores and warehouses available.
- Small or selected range of products.
In a Nutshell
As the eCommerce trends change there are more chances to grow and expand a business. It also takes the right technology, statistics, infrastructure, and team to bring it into action. Quick commerce is a new term that has brought in an immense opportunity that has largely remained untapped in eCommerce. Testing it out won’t cost you too much money if you aren’t sure whether it’s right for your business.
Here is a quote to inspire you – “It is never too late to start something new”.
Frequently Asked Questions:
What are the features of quick commerce?
Fast delivery speed, micro-fulfillment facilities, convenience, 24*7 delivery, lower prices, easy order monitoring and tracking, and one-stop shopping are the main features of e-commerce.
Why should you choose quick commerce for your business?
Customers demand quick delivery and when compared to traditional retail outlets, the quick commerce business model offers speedy delivery, in just 30 to 45 minutes.
How to implement quick commerce?
- Set up local hubs
- Carefully choose your stock
- Ensure you have the right software in place
How did quick commerce begin?
The Covid-19 pandemic’s impact on the supply chain resulted in the rise of q-commerce, a unique business model where products and services are delivered shortly after being ordered.
Is there a future for q-commerce?
This business model may, however, encounter difficulties at various points in carrying out activities properly. The rise of q-commerce will undoubtedly increase the number of goods delivered to customers.