23/01/2023 By Ghia Marnewick Reading Time: 3 Minutes

There are many trends that have accelerated due to the Covid-19 lockdowns, and quick commerce is one of them. But what is quick commerce? And, why is it so popular? In this blog post, we will reveal everything you need to know.

What is Quick Commerce?

Quick commerce, often shortened to Q-commerce, refers to the rapid delivery of products, typically within one hour. Because of the short timeline, Q-commerce is typically reserved for small orders, rather than a weekly grocery shop.

For example, if a customer is making spaghetti bolognese, and they realize that they don’t have any pasta, they could place a quick Q-commerce order for the missing ingredient.

10 Important stats on Q-Commerce

Q-commerce is a field that is growing at a rapid rate, so let’s delve into the quick commerce market size and some other important stats.

  1. The quick commerce industry is valued at $25 billion
  2. The industry is expected to grow to over $75 billion by 2025
  3. By 2030, the demand for last-mile delivery is expected to grow by 78 percent
  4. 21 percent of customers in the US ordered groceries online from a local store due to the pandemic
  5. Q-commerce is expected to grow by 10-15 times its current size by 2025
  6. The UK Q-commerce market is forecasted to have grown approximately 10 per cent year-on-year
  7. The current quick commerce market in the UK is valued at £1.5 billion
  8. 4 in 10 quick commerce shoppers in the UK place an order between 1 and 2 times per month
  9. The average basket value for Q-commerce is £29.50
  10. Only five per cent of people are not aware of Q-commerce

Q-commerce vs. eCommerce

It’s important to understand the difference between Q-commerce and eCommerce. eCommerce refers to buying products or services online. Q-commerce is often used interchangeably with on-demand delivery. It’s a type of eCommerce; a faster version! It combines all of the benefits of online shopping with the latest delivery innovations to ensure a very quick service.

There are also other types of commerce, such as unified commerce, which need to be considered. Unified commerce concentrates on creating an environment where consumers can completely experience a brand. Retailers are then able to leverage a single, 360-degree customer view.

What are the benefits of Q-Commerce?

There are a number of different reasons why businesses should consider offering quick commerce services:

  • The potential for improved margins - One study from Deloitte has indicated that 50 per cent of shoppers spent more money during the pandemic the get what they needed conveniently. This is a trend that has continued. We live in a day and age whereby people are time-poor, and they want products as quickly and easily as possible.
  • A competitive USP - Quick commerce gives you a fresh value proposition, which can set you apart from the competition. If someone needs quick delivery of an item, they may move from another business to yours.
  • Provide customers with the ultimate experience - Consumer expectations are only growing. We expect more from online providers than we ever have. Slow delivery is one of the biggest problems people have with online delivery services, and Q-commerce can rectify this.

Q-Commerce Examples

Now that you have a better understanding of what quick commerce is, let’s take a look at some quick commerce examples to illustrate this.

  • Getir - Founded in 2015, this Turkish start-up offers a courier service for restaurant food deliveries and on-demand delivery services for grocery items.
  • Gopuff - Not only does Gopuff deliver food, snacks, and alcohol, but all of your home essentials.
  • Deliveroo - Whether you’re in need of a small grocery order, a takeaway, or a coffee, Deliveroo picks up items from a wide range of stores and eateries, delivering them directly to your front door.
  • Gorillas - Gorillas is another great example of Q-commerce, delivering organic, local, and fresh produce to people’s homes.
  • DoorDash - Finally, DoorDash is an American company that was founded in 2013. They deliver breakfast, lunch, and dinner from restaurants and takeaways.

What is the future of Q-Commerce?

So, what can we expect when it comes to the future of quick commerce?

  • Inventory diversification - At the moment, food is the core of Q-commerce, but this is something we expect to see change. Other categories of items, from electronics to books, will be available for quick delivery.
  • Improved supply chain and inventory management - Because of the constraint of a quick delivery, supply chain and inventory management are critical. Both must flourish for Q-commerce to continue rising.
  • Personalised consumer experiences - With more Q-commerce businesses coming on the scene, businesses need to stand out from the crowd, and we expect them to do this with more personalised experiences.

Current challenges for quick commerce

While the benefits of quick commerce are evident, there are some challenges that need to be overcome. Quick commerce challenges include reducing costs associated with the last mile of shipping. Warehousing and labour expenses are significant. Also, most orders are low-value orders. People don’t do ‘big shops’ when they’re in a rush. However, they are often willing to pay more. Therefore, driving down costs is a big challenge for those entering the quick commerce space.

Businesses are currently trying to scale up by offering unique customer experiences and selling a broader range of products. This is a challenge a lot of businesses face, as they aim to offer products that cannot be purchased via other q-commerce channels. Exclusivity can be key here.

Final Thoughts

The Q-commerce market is thriving at the moment. However, it is not without its challenges. By honing in on your USP, finding exclusive opportunities, and running a tight ship from a supply chain and inventory management perspective, you can truly flourish in this sector.

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Ecommerce, Digital Marketing Ecommerce, eCommerce Marketing, Digital Marketing 0. Comments BY Ghia Marnewick

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