Q-Commerce: Boon or Bane

It's a race against time. This is a guideline that millennials who are short on time live by. Whether it's coffee, noodles, or streaming material, everything has to be instant. The more quickly something occurs, the more it is valued.

Quick commerce, or Q-Commerce, is the newest to join the fast-paced trend, promising to bring consumer delight in 30 minutes or less. 

E-commerce vs Q-commerce:

Q-commerce, sometimes known as quick commerce, is a type of e-commerce that focuses on fast deliveries, usually within an hour. It is e-commerce in a new, rapid form, commonly referred to as 'on-demand delivery' or 'e-grocery.' It blends the benefits of traditional e-commerce with last-mile delivery innovations.

Source: https://www.freepik.com/free-vector/fast-free-delivery-logo-with-bike-man-courier_9736050.htm#query=delivery%20time&position=10&from_view=search

The Q-Commerce business, which was valued at roughly $25 billion in 2021, is predicted to expand to $72 billion by 2025. The Covid-19 pandemic is a big contributor to this since it has not only accelerated digital transformation of enterprises by decades but has also changed consumer behavior, a move that will last for years.

Q-commerce began with food delivery, and it currently accounts for the majority of the company's revenue. It has quickly grown into new sectors, including grocery deliveries, pharmaceuticals, gifts, and clothing, among others. The constraints imposed due to the COVID-19 pandemic have given q-commerce a big boost in early 2020 since it has allowed stores to stay open by providing speedy home delivery. These long-term limits resulted in a long-term shift in customer behavior toward rapid deliveries, and q-commerce was born as the third generation of commerce.

Q-Commerce, A Boon?

For their commercial efforts, any organization, large or small, must use some type of q-commerce. In today's competitive market, it is critical for all businesses to make use of the advantages of q-commerce. The success of q-commerce can be attributed to a number of factors, including: 

1.     Less Time Consuming

Q-commerce enterprises can deliver goods to customers at a fraction of the time it takes a traditional retail location.

This is owing to the aforementioned hyper-local micro-fulfillment centers ('dark stores') dispersed throughout densely populated areas of cities and located within 3 kilometers of people placing orders. This means that orders can be completed up to 25% faster than in-store fulfillment.

Dark stores don't have to compromise valuable space footage to accommodate people browsing aisles because every inch of their floor plan is optimized for efficiency. Couriers can effortlessly zip back and forth between dark stores and consumers' locations once orders are ready.

2.     Round the clock services

Dark stores are not bound to specific daily opening hours like physical and retail merchants are. They can operate 24x7, 365 days.

This round-the-clock access corresponds to the 'always-on' mindset that smartphone technology has spawned, in which individuals are up at all hours and have their smartphones within arm's reach.

3.     Easy to Operate

The basic and very appealing value proposition that q-commerce companies offer time-strapped customers is easy

4.    Availability of handpicked, relevant products is guaranteed.

Due to investments in AI and technologies that monitor demand and alter inventory in real-time, things are more likely to be available, not merely faster delivery. Companies can respond by ensuring things are delivered in accordance with demand patterns identified by intelligent software.

They also leverage mobile technologies to keep its army of delivery personnel - who serves as the brand's face - updated, upskilled, and giving high-quality service to clients.

Source: https://www.freepik.com/free-vector/delivery-concept-illustration_5205022.htm#query=fast%20delivery&position=4&from_view=search

Q-Commerce, A Bane?

Although Q-commerce is a very beneficial and profitable proposition for both enterprises and customers, there are a few drawbacks if adequate care is not taken during the implementation stage. Some of them are: 

1.     Customer Acquisition

In the Q-commerce industry, Customer acquisition is a major challenge faced by an organization. For example, Swiggy already has a large client base thanks to its food delivery service, so convincing them to buy groceries from Instamart will be easier. Furthermore, convenience-driven shopping will only benefit the top 15-20 crore households, many of whom are already using food delivery services such as Swiggy.

2.     High Operating Costs

The major issue with Q-commerce is that many products have poor profits but significant shipping expenses. 

Q-commerce delivery enterprises have a high initial cost for these businesses must create the infrastructure and facilities necessary for last-mile delivery. This entails establishing a warehouse facility where they can keep their items, hiring and training delivery partners, and providing them with the tools they need to deliver goods.

3.     Unrealistic Pricing

To attract customers, companies provide major discounts on the products in order to sell their products and attract a wide consumer base.

4.     Customer Relations

As the customers are not physically going to a store, therefore understanding the exact requirement and providing personalized services and experience is a challenge that all the companies in this field are facing.

Source: https://www.freepik.com/free-vector/delivery-logo-template_2719784.htm#query=delivery%20time&position=8&from_view=search

Q-commerce is a brand-new business paradigm that is growing rapidly. Furthermore, the Covid pandemic has resulted in a consistent shift in customer shopping habits. They are now more oriented toward online, on-demand services, with a preference for convenience above loyalty.

Quick commerce has increased, but it was already on the rise before the pandemic. These freshly acquired behaviors aren't going away anytime soon. As the number of products in demand grows, so will the number of rapid commercial services.

Mumbai-based Zepto, food-tech platform Swiggy's Instamart and Dunzo Daily are among the prominent players in the quick commerce sector. Swiggy's Instamart will deliver within 15 minutes by January 2022 via a network of dark stores close to the majority of its consumers.

Thus, it can be concluded that Q-commerce is the future of commerce and that in the coming years, online vendors will transition from traditional business models to q-commerce business models.

---- Author Astha Singh