Top 5 Benefits of Quick Commerce – The Fast Future of eCommerce
Have you ever imagined grocery delivery at home in just 20-30 minutes? Quick commerce has made it possible. Especially after the pandemic, when people were locked in their houses and had to rely on online eCommerce websites to get groceries, Ultra-fast delivery was in its seed stage. According to OECD, more than 20% of consumers in the USA ordered groceries online from a nearby store as a direct result of the pandemic.
In the USA quick commerce generated 21 billion dollars in 2022. These services are based within cities. People are willing to pay more to get their products on time. So, fast delivery has become more important than discounts on products. According to our on-demand app development company Q-commerce has revolutionalized the entire eCommerce industry.
Although the pandemic induced a shift in customer behavior, this is not going to look back. Even it is here to stagger growth in the online business. Leaders in quick commerce are Swiggy Instamart, Zepto, and Blinkit. And other eCommerce companies are also shifting to this new culture of fast delivery.
What Is Quick Commerce?
Quick delivery of groceries and food items is quick commerce. You can get delivery in only 20-30. It is an ahead-of-the-pack marketing concept that provides gratification to customers. This is a unique business model that focuses on smaller quantities of goods ranging from groceries and stationeries to over-the-counter medicines.
Many big eCommerce companies have on-demand apps and websites to take orders and provide ultra-fast delivery within the city. However, quick commerce is usually reserved for small orders because quick delivery is possible with it.
Types of quick commerce:
1) Vertically integrated models:
Blinkit, Zepto, and Gopuff are examples of vertically integrated models. These platforms handle end-to-end operations from managing inventory, picking the order, and delivering it instantly. Q-commerce companies focus on the concept of instant and transparent delivery within 10-30 minutes.
2) Third-party delivery platforms:
Doordash, Ubereats, Dunzo, and Swiggy Instamart are the top players in this type of model. They deliver products from third-party retailers to buyers. Customers can get a variety of choices from these companies. Many third-party delivery platforms promise “Same Day” delivery. However, the delivery time can be more than 30 minutes.
Well, the Transition to quick commerce has not been quick. Have a look at the image below.
Is Q-commerce Different from eCommerce?
Yes, Q-commerce is the subset of eCommerce. It delivers products in a few hours while eCommerce takes 3-4 days. Quick commerce is only for small orders whereas, eCommerce is open to big and heavy orders. These are the main differences between quick commerce and eCommerce.
Artificial Intelligence is used for eCommerce app development and analyzing the shopping behavior of consumers. Other technologies also proved game changers in online business. on-demand VR and AR technologies are shaping the eCommerce industry.
Top 5 Benefits of Quick Commerce
There is a big Q-commerce race among many companies. They are trying to offer the best services in a short time. Customers experience gratification after having the products on their doorsteps on time. There are many benefits of quick commerce in the present time. Let’s have a look at some of them below.
- Instant Gratification
- Increased Profit
- Lower Logistics Cost
- More Happy Customers
Scroll down to read about each benefit thoroughly.
Grocery at home in just 10 minutes! Have you ever imagined it? Now you don’t have to run to the grocery shop after office hours, you can go home straight and order the items online. Ultra-fast delivery saves you time. You don’t have to track orders for 3-4 days like before. It offers faster delivery than the traditional eCommerce store.
Fast delivery services leave a long-term impact on the customers and improve relationships with the delivery platform. Ultra-fast and extremely efficient delivery of essential items provides tangible results to businesses.
2) Instant Gratification:
Having the desire to want things now or at the right time provides instant gratification. When you have the urge to get groceries right now to make something delicious and you receive it in just 20 minutes, it gives you instant gratification. Q-commerce is born to offer a faster response to our needs.
eCommerce platforms provide immediate pleasure in favor of a better reward. They understand human psychology and design marketing campaigns accordingly. Grocery and goods delivery in just 10-30 minutes gives customers instant gratification. That’s why most customers go for it.
3) Increased Profit:
Quick delivery is a unique selling proposition. The revenue generated from Q-commerce increased by 50% in the time of the pandemic. Many customers were ready to pay high to get the delivery of items on time. It increased the profit margin of eCommerce companies. They were able to earn a substantial amount by charging extra.
Since small quantities of items are delivered in quick commerce, retailers take advantage of this by selling their most profitable products. Moreover, quick delivery helps to complete more orders in a short time. It also leads to more profit.
4) Lower Logistics Cost:
Fast delivery eliminates the need for warehouses because fewer items need to be stored. It reduces logistics costs and ultimately helps the company. Businesses that use q-commerce partner with the local warehouse and local vendors for fast delivery in the area. It frees up resources that companies can use for other things. It is also helpful in leading to sustainable business.
5) More Happy Customers:
More happy customers more profit. When customers get orders on time they feel good and write good reviews for the company. Quick delivery builds strong customer relations and helps in customer retention. Providing a better user experience has become the crucial thing. Most eCommerce websites and apps work day and night to constantly improve the user experience. Quick commerce is an example of meeting customers’ expectations before they realize it.
People also like to read: Benefits of having an eCommerce website like Flipkart
What Are the Q-commerce Examples/Companies?
If you are also planning to take your business off the ground with q-commerce know some players in the market. Here is the list of top quick commerce providers.
- Swiggy Instamart
- Zomato Blinkit
Starting a business requires an analysis of existing players in the market. Visit the websites and apps of the above quick commerce platforms before you hire eCommerce developers for your app.
You can also check out the best platform for eCommerce development and make better decisions. But why go for q-commerce when there are other ways to enter the market? The next section has the answer to it.
Why You Must Choose Q-commerce for Your Business in 2023?
No doubt competition among eCommerce platforms is thriving every day. Companies continuously look for better ways to attract more customers and be the top player to offer better services. Quick commerce is an effective way to help your business grow fast. Have a look at the monetization strategy of Q-commerce.
What Is the Business Model of Q-commerce?
Customers feel more excited and satisfied when they get orders very fast. It’s like a dream come true. But how it benefits the platform that provides this service? The quick commerce platforms focus on high-demand items only.
Instead of keeping the inventory of all types of items open for order, only high-demand items are kept and delivered. This way companies can reduce costs for keeping warehouses. They can adopt more compact spaces.
The company will not have to rent a big warehouse outside of the city. It can rent small warehouses inside the city so that picking up the order and delivering it is possible in 10-30 minutes.
Using micro warehouses increases efficiency. These are also called ‘dark stores”, or ‘cloud stores’. These stores are located right in the heart of the city so that items can be picked up and delivered quickly.
Q commerce platforms partner with delivery people on the basis of specific routes and times. This is a strategized delivery concept crucial to deliver the order at the ultra speed. Not only this, they have to separate zones within the city into different categories.
For example, The type 1 zone handles 50 deliveries every day, and the Type 2 zone 100 deliveries daily. In 2023, people are easily get attracted to better delivery partners, so if you want your business to be successful, Quick commerce can be a better option.
Have a look at the image below to know about the Q-commerce market.
You can start with some high-demand categories of items. Here are they.
What are the top quick commerce categories?
- Packaged and frozen food
- Health & beauty
- Restaurant delivery
Do You Need Help to Set up Quick Commerce?
Whether you want to transit your business or want to get a new business off the ground, without help from experienced professionals it can be difficult. You can read how to build an eCommerce website in 2023 if this is a beginning phase.
If you want to set up quick commerce follow the below steps.
1) Hire app developers:
The first requirement is the right software in place. Analyze successful companies and their strategies to operate q-commerce and tell your app developers to implement them. Make it easy for customers to order from your platform.
2) Set up local hubs:
If you want to deliver products quickly you need to set up local hubs near your customers. Partner with local warehouses that can serve customers in close proximity.
3) Choose stock carefully:
You can’t provide all the items to customers because you can’t keep all the items in warehouses. So select your stock carefully. Go for high-demanding items for more orders. Check out the ‘What are the top quick commerce categories?’ in the above section.
4) Have alternative solutions:
If you are not ready to take this step on your own because of any reason, go for 3P delivery platforms. Partner with them because they are specialized in connecting stores with local consumers through deliveries. Gorillas and Uber Gopuff Doordash are examples of 3P delivery platforms.
How to Build a Q-commerce App? Simple Steps to Follow
A feature-rich and robust app is crucial for running a Q-commerce business. Better software will offer great help and do half of the work. If you are a non-technical person, hire app developers to build a Q-commerce app. But you must have an idea of the cost of an eCommerce mobile app.
Steps to Build a Q-Commerce App:
- Know your target market
- Identify use cases
- Gather information
- Analyze competitors
- Define the features of the app
- Select the best app development company
- Develop back-end and front end
- Design UI
- Include features for the app security
- Test and optimize the app
What Is the Future of Q-Commerce?
What can customers expect next from the eCommerce industry? Well, for now, quick commerce can replace the traditional model of delivery to meet customers’ demands and expectations. The last mile problem will be exacerbated in the near future. Centralized warehouse results in a longer delivery time.
Setting up micro warehouses everywhere is also a challenging task to resolve this issue. So, in the future, we can expect more micro warehouses will be placed to reduce delivery time for remote areas. Furthermore, road traffic, pollution and fuel costs in metropolitan areas are also challenges to resolve in the future for smooth, safe, and fast delivery.
In a Nutshell
No doubt Quick Commerce offers a value proposition, but to adopt this new industry domain you need to focus on many things. Since customers’ expectation has increased to get the best products even within 30 minutes is quite challenging for many new businesses to meet. Be mindful while selecting infrastructure, logistics, team, and technology for your Q-commerce platform.
Why go for quick commerce for your business? What are the features of quick commerce? What is the cost of developing an eCommerce app? How long does it take to build a Q-commerce app?
Why go for quick commerce for your business?
What are the features of quick commerce?
What is the cost of developing an eCommerce app?
How long does it take to build a Q-commerce app?