Quick trading is a trending topic of conversation in the e-commerce industry. Quick commerce has evolved during the pandemic to meet consumer needs for convenience and faster delivery of groceries and everyday essentials. Players who seized this market opportunity and responded to consumer demand were Swiggy, Dunzo, Blinkit, Bigbasket, Zepto and Zomato. The business model adopted by these companies was to create dark stores and maintain fast-moving inventory by knowing the pulse of local consumers and arranging inventory daily based on market appetite. It is a type of fast-paced commerce where the hyperlocal needs to rent space, maintain inventory, and have a delivery system to meet the 30-minute delivery goal and robust technology to support it. back to manage the whole process seamlessly.
The other Quick Commerce business model that is gaining popularity and has great potential for growth is enabling quick commerce through local stores. In this type, local neighborhood stores are integrated on an e-commerce platform from which they can directly interact with shoppers and fulfill orders. As we all know, these stores rely on walk-in customers for their business, so giving them a digital presence will not only empower them, but also increase their business and add almost every category of products under fast trade. A video shopping app adopting this model has already been launched in India and is successfully registering local sellers on its platform.
Let’s take a look at the challenges faced by players in fast trade through dark stores and fast trade through stores.
Retail dark stores need to stock up on inventory that includes perishables. The cost of inventory, operations, back-end technology, and rent for dark stores is high. Additionally, actors must also manage perishables and their removal and ensure proper storage, prompt delivery and daily replenishment to maintain quality and customer satisfaction. This business model leads to higher operating costs and the discounts offered lead to high cash consumption. The fast trade black store model also has a significant impact on local markets. When shoppers shop in dark stores, neighborhood stores lose customers.
Quick trade through stores also has its own set of challenges. Sellers must remain online and available to receive orders. Additionally, stores typically operate from 9 a.m. to 9 p.m., which means overnight orders become difficult with fewer stores available to fulfill those orders. However, this solution is extremely scalable due to the large number of stores in each locality, it does not require any additional investment and has low risks of inventory expiration, shrinkage, etc., because the merchant manages the stocks and sells the same stock offline and online. , and requires no additional inventory holding. Moreover, all possible categories including long-tail products can be serviced with this model.
Human interaction is lacking in fast-paced dark store commerce. In the retail shopping experience, since the beginning of human-to-human commerce, interaction has always been and will continue to be important to the successful completion of any type of commerce.
The way forward is to automate last mile logistics, in-store pickups, label printing, shipping, tracking and communication flows, as well as enabling sellers to connect with their consumers. in new ways, maintaining the trust customers have in their favorite brands as well as their favorite stores where they love to shop. The fast trade store is a better fit for the entire retail economy keeping in mind that the customer is king and their preference would be to continue buying from local sellers that they have been shopping with for decades. years.
The opinions expressed above are those of the author.
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