The trend for quick commerce (Q-Commerce) has been catching fire since the pandemic brought lockdowns and quarantines to the masses. It became difficult for people to get everyday groceries and household items. There were restrictions on movement, and many vendors went out of business.
This is when Q-commerce swooped in and saved the day for deprived customers and desperate business owners. This is also why it was a constructive trend.
What is Q-commerce?
Q-commerce emerged from the already successful trend of E-commerce which consisted of an online ordering system, and delivery would take at least two to three days. Q-commerce (quick commerce), also called on-demand delivery, built upon the notion of e-commerce but exponentially changed the delivery duration from a couple of days to a couple of hours.
The deliveries are made within the next hour or so. It is an expeditious way of making purchases online. The purchases can be groceries, household items, frozen food, or electronic gadgets. This is why q-commerce is also conveniently called e-grocery.
There is a fine line between e-commerce and q-commerce, which is the delivery speed. The deliveries are made fast, and sometimes they can be within a few minutes.
This industry is highly competitive, and it is not easy to enter it due to the industry leaders already ruling in this world. There are no limits to what the consumers can purchase online, including perishable goods.
Scope of Quick Commerce (Q-Commerce)
Quick commerce is all about speed deliveries and making things more convenient and accessible for the consumers. A Q-commerce business is more inclined towards perishable goods and immediate consumption products.
It makes it possible to deliver goods to homes directly by using an Internet connection, and the service is primarily local. It is like a food delivery system in which the food is delivered to your doorstep within a few minutes.
But now, it is possible to deliver groceries and electronics within a few minutes to your doorstep with the help of quick commerce. A quick commerce business relies on the online ordering system and local warehouses.
It is quite common for vendors to deliver different products by using the quick commerce system. The deliveries are usually made by using a bike as they are faster modes of transportation and consume less fuel. However, it is not a new concept because e-commerce has been around for a long time now.
There is significant growth potential in this industry. This industry is expected to grow by more than $500 billion within the next decade.
There is a scope for quick commerce in the following industries:
- Pharmaceutical industry
- Fashion and jewelry
- Household essentials
More than ten different companies are currently following the instant grocery delivery model all over Europe. It is just the tip of the iceberg because it is expected to grow with increased funding. It is a significant contributor to the growth of quick commerce business start-ups.
Features of Quick Commerce (Q-Commerce)
Today’s consumers are fast, just like the delivery services. They do not want to wait for 24 hours to receive the products they order on the internet. Q-commerce has made it possible to deliver the products within a few minutes to meet the demand and expectations of consumers.
Here are some of the most noticeable features of Q-commerce:
1. Delivery time
The delivery time has shortened as compared to e-commerce. There is less than a 1-hour waiting time for receiving the products you have ordered at your doorstep.
It is a huge time saver in today’s fast-paced world. All of this has been possible by implementing a quick commerce business model for the convenience of consumers nowadays.
2. Two Wheeled Vehicle
A two-wheeled vehicle is used to make deliveries in the quick commerce business model. It is beneficial because bikes and small vehicles can easily pass through the crowd in the traffic.
It makes it possible for them to reach your doorstep as early as possible, which is the exact purpose of quick commerce in the first place. Groceries and other household essentials are delivered on bikes, just like the good old days of pizza delivery.
3. Local Store/Warehouse
In the quick commerce business model, the businesses are not confined to keeping their stock in the warehouses. There is no need to have an inventory in the warehouse in the first place in this business model because the product can be delivered by picking them up from a local store.
Once the products are picked up from a local store, they are delivered as soon as possible to the consumers’ doorstep.
4. Selection of Products
The selection of products is vast in the quick commerce business model. As many products as possible can be added and sold online, including groceries, meat, medicines, and apparel.
There is no restriction on the kind of products that can be sold in this business model, which is why it is an excellent convenience for today’s consumers.
Reasons why q-commerce has been flourishing lately
Speed matters a lot, which is why it is a significant reason this business model has been very successful lately. Companies can deliver the goods to customers’ doorstep within a fraction of their time.
It is done by marking hyperlocal micro fulfillment centers, also known as dark centers, on the map. These dark stores are marked so that they are close to the consumer making the order online. It enables the riders on bikes to reach the consumers as early as possible.
2. Guaranteed availability
Sometimes consumers are not sure whether they will get their hands on a particular product if they visit the market physically. Quick commerce has been a great hit because of the guaranteed availability every time the consumer places and orders online.
Artificial Intelligence and software are utilized to analyze the demand patterns of the consumers so the companies can keep their inventory up to date.
3. 24 hours system
Quick commerce is viral because it operates 24 hours a day, and there are no restrictions. This pattern is inspired by the “always-on” culture of the smartphone. It gives a sense of comfort to the consumers that they can order all their essentials at any hour of the day or night.
Convenience is the fundamental factor contributing to the popularity of the quick commerce business model. Consumers are always looking forward to making their lives easy, and quick commerce has precisely provided a new shopping experience.
One of the major reasons for the boost in the Q-commerce business model during the pandemic was the apparent house arrest that everyone was under. With such limited access to the outside world, it became important to find a system to deliver daily essentials to homes and offices quickly.
If businesses hadn’t seen a loss in their revenues due to the global lockdown, there is a chance they may not have wanted to invest in this model as it definitely takes time, effort, and money on the vendor’s side. However, the pandemic came as a blessing for this particular business model, which will reign long after the world has seen the last of the virus.