Quick Commerce vs. Traditional E-Commerce

To clear the air, we would like to start by laying out the point that there are no major points of distinction between quick commerce and e-commerce. The only distinction that both of these business models have is that Quick Commerce enables the users or customers to get products delivered to their doorstep faster, or rather, in minutes. This change in the delivery system, or on-time delivery system, has changed the way that business operates. We would like to highlight the following points −

• More resources to build the warehouse − In the e-commerce system, the company does not have to build dark storage spaces. These spaces are basically warehouses located near crowded civilizations. The distance between two storage units is less, and this is what gives the company efficiency in fast delivery.

• More human resources and delivery vehicles are required − The company has to onboard more and more delivery people. Since the company is delivering goods within minutes, they have to have large human resources available for work.

• Less order value − Along with this, the order amount for Quick Commerce companies by each customer is less than the e-commerce companies. This is because Quick Commerce stands for getting urgent goods delivered to your doorstep. This means that the company has more orders from most customers but not bulk orders. The value for each order is low, and the business model is currently also working with fast-moving consumer goods or goods of low value or price.

• Mode of transportation for delivery − E-commerce businesses use large vehicles or trucks for delivering orders. This is one of the reasons why e-commerce companies take 3 to 4 days to deliver the order. On the other hand, Quick Commerce uses two-wheelers as their primary mode of transportation for delivery purposes. Two-wheelers are possible because the order value and quantity are lower and the company is not delivering heavy products.

• Warehouse location − in the case of e-commerce companies, warehouses are located on the outskirts to have a larger area at a lower cost, but in the case of Quick Commerce, warehouses are located in densely populated areas to make fast delivery possible. This in turn increases the operation costs of the Quick Commerce companies.

• Difference in the customer demographics − In the case of e-commerce companies, we are seeing that young customers are the primary focus, but we have customers from the middle ages and older levels as well. In the case of Quick Commerce, we generally see young customers who are keen on trying out new products or services.

• Payment method − Another point of distinction that will be discussed in detail later in the tutorial is the payment method. Quick Commerce is a more secure and faster form of payment as compared to e-commerce.

Quick Commerce is doing wonders and, in a way, has taken up a lot of share of the e-commerce market and has a lot of potentials to offer to both customers and business owners, but for that to happen, companies have to make sure that there is market and custom penetration and they start to ride on the positive scale of profits.