Quick commerce
Quick commerce is the next step in the evolution of eCommerce and as the name suggests it’s all about speed. Quick commerce generally means consumers can expect delivery within one hour of placing an order.This may seem like a very short timeline but quick commerce is usually reserved for small orders rather than the weekly grocery shop. Consumers might purchase a product they unexpectedly ran out of or an ingredient they need for making today’s dinner.To get orders out as soon as possible retailers rely on online ordering systems local warehouses and delivery team on two wheels.When you think about it quick commerce is nothing new. It has been used in the takeaway food industry for many years. With eCommerce brands consistently cutting delivery times it was just a matter of time before consumers could get other products delivered to their doorstep without delay. What is Q-Commerce? Q-commerce vs. e-commerce-‘E-commerce’ refers to the online purchase, or sale, of a good or service. Alongside the democratization of the internet, came the marvel of online shopping. Customers could order a product digitally, be that an electronic gadget or apparel, and receive it in the next 3-5 days – a bracket of time considered to be acceptably quick. Q-Commerce meaning-Q-commerce (‘quick commerce’) – sometimes used interchangeably with ‘on-demand delivery’ and ‘e-grocery’ – is e-commerce in a new, faster form. It combines the merits of traditional e-commerce with innovations in last-mile delivery.The premise is largely the same, with speed of delivery being the main differentiator. Delivery is not in days but minutes – 30 or less, to be competitive.This has in turn expanded the breadth of what individuals can order, with perishable goods – like groceries – being a large niche q-commerce companies speak to. It tends to focus on the micro – smaller quantities of fewer goods. For example, a missing ingredient urgently needed for a recipe that’s already in motion. “Consumers now want and expect more items than ever to be delivered to their doorstep…It is no longer a case of waiting 24-48 hours for a delivery. Rather, the expectation for this is now a matter of minutes.” The bigger, less visible, difference happens on the backend – in the way that q-commerce operate behind the scenes. Not all have the same business model, but many use ‘dark stores’ – strategically located warehouses – to ensure a quick turnaround from order to doorstep. These can be anywhere between 3229 and 7500 sq ft (300-700sqm) in size and tend to stock upwards of 1,000 unique products. Many also crowdsource labor, equipping them with a fleet of individuals ready to spring into action at any moment. The combination of these factors, plus others (including adoption of the latest softwares, and the layout of dark stores themselves) provides them with the ultimate agility and flexibility required to adeptly respond to customer demand, round the clock. The benefits of quick commerce 1. A competitive USP- Q-commerce provides businesses with a new value proposition which can really set them apart from competitors. Customers in need of immediate delivery may be willing to try new products and order from new stores.The added convenience that comes with quick commerce offers online retailers a way to compete with large multinational marketplaces like Amazon as well as brick-and-mortar stores. 2. The potential for greater margins- Quick commerce holds a lot of potential profit for those who take advantage of it.One study from Deloitte suggests that during the pandemic 50% of shoppers spent extra money to conveniently get what they needed. They paid extra for on-demand fulfillment as well as buy online pickup instore (BOPIS) options.Because q-commerce is associated with a smaller selection of products retailers can also use this opportunity to drive sales for their most profitable lines. It’s also worth noting that convenience often appeals to wealthier demographics. For example time-strapped professionals and business leaders who tend to value convenience more than discounts. 3. Providing the ultimate customer experience- As consumer expectations grow quick commerce can help online retailers meet and exceed them. This in turn will foster brand loyalty. The customer pain points that quick commerce addresses are often meaningful. It can save a party host who has run out of food. It can help an uncle who has forgotten to buy his niece a birthday present. Or it can simply help someone who can’t make it to the shop to stock up on essentials.There are many situations where the convenience of q-commerce can reduce stress and maybe even avert disaster. How could customers be anything but satisfied? How to implement quick commerce 1. Set up local hubs- If you want to pick pack and deliver products in less than an hour you need to be located pretty close to your customers. For this reason quick commerce relies on local warehouses which can serve people in the immediate proximity.Most quick commerce delivery services are based in cities and employ their own community of riders to deliver products. The duration of two-wheeled deliveries are less likely to be impacted by heavy traffic. They don’t have to find parking spaces either.Alternatively businesses can enlist the help of local partners or third-party services. For example Deliveroo and Uber Eats have both made their services available to supermarkets.In China Alibaba has taken a unique approach by opening hundreds of brick-and-mortar ‘Fema’ stores. These act as quick commerce hubs that deliver in under 30 minutes. But they also offer other omnichannel services such as collection points and in-store scanning which can be combined with online payment. 2. Carefully choose your q-commerce stock- Right now quick commerce works best for some specific product niches. On-Demand delivery makes sense for food drinks cosmetics and other CPG products that consumers use every day.Gifts and medicine are also ideal for quick commerce delivery. And with the rise of working from home office supplies and electronics are also excellent candidates.Businesses specialising in q-commerce tend to fill their local warehouses with their most commonly purchased products – particularly those popular among Gen Z and millennial customers as they’re most likely to