The emergence of electronic commerce meant an increase in business sales to brutal levels. This sector has been growing over time to the present day. It has evolved so much to the point of not having to leave the house to do the shopping anymore. that with a simple ‘click’ you have your product in the place you want, and the most surprising thing is that you can have it in less than an hour. This is what is known as ‘q–commerce’Do you want to know more about this new form of business that is taking the world by storm? Keep reading and find out everything.
What is Q-Commerce?
The Q – Commerce, also known as ‘quick trade’ is the latest trend in e-commerce. It is named like this because it refers to those companies that carry out Home delivery by way of ‘almost immediate’. I say almost because it doesn’t arrive exactly at the moment, but it doesn’t take more than an hour. This is possible thanks to the use of bicycles and scooters that move faster in heavy traffic.
Orders are made completely online, and being quite fast resemble the food delivery model (Food Delivery). Therefore, if this business works with food products, why not export this same idea to other products or services? This is how Q – Commerce emerged. In addition, the outbreak of the health pandemic caused a large part of the companies, if not the majority, to go digital and adapt to the online channel.
But, what is the difference between e-commerce and q-commerce? Do not be scared, the differences are very clear. We will show them below in a table:
|
E-Commerce |
Q-Commerce | |
|
Delivery time |
Days | minutes or hours |
|
Stock availability |
Great variety of products |
Small selection of products |
|
Transport |
Delivery truck |
two wheeler |
|
warehouse type |
Central warehouse |
small local stores |
Buyers profile
A survey conducted by capterra states that 46% of German online shoppers approve of shorter delivery times for their online orders. Although he highlights that when it comes to food, delivery time is more important: 69% would like their grocery orders delivered the same day, 25% within an hour. Therefore, Q – Commerce is the perfect answer to the current needs of customers, especially German ones.
To check this, Statistical has carried out a study showing who are the main buyers in the Q – Commerce. This is in agreement with the previous survey, since it shows that they are Germans the main buyers. The graph shows that most Germans have not yet used these services but see it as a profitable business model. Only 17% have tried it before and repeated it. Therefore, 57% of German online shoppers are e-commerce leads.
How do you ship the products so fast?
To achieve this speed in the delivery of orders, companies have logistics hubs at strategic points in the city (also known as DMARTS or Dark Stores). These establishments make it possible to offer this service to different neighbourhoods.
That is why the business is evolving. Many companies are toying with the idea of eliminating warehouses on the outskirts of cities and including them in key places where you can arrive and access more quickly. However, this option is not yet accessible for all products or services.
Another alternative is to set partnering relationships with some local businesses. In this way, it is possible to have a wide range of products always at hand and deliver very quickly thanks to this collaboration in which all parties benefit.
The technology It is also very important in quick commerce, as is the case with use of drones or robots for order delivery. This is a point in favor of sustainability. Replace motorcycles with technology.
Why use Q – Commerce? Which has benefits?
As everything in this life, everything has its good side and its bad side. We will begin by exposing the benefits, since, comparing, they outweigh the negative part. So what benefits does it have? There are three pillars that promote this business and they are as follows:
- Speed: the Q – Commerce is specialized in the speed of the delivery of the order. They usually take less than an hour, even if it is delayed for any reason, the order will arrive the same day.
- Proximity: the shipment is subject to proximity to meet delivery deadlines in this way.
- Availability: Products must always be available. In addition, they are usually always essential products.
These points are quite striking, right? However, we must also talk about the negative side, since, as I mentioned at the beginning of the section, everything has its good side and its bad side. And, it is that, this new business model is ‘ruining’ the traditional business model. Most people are becoming fond of making their purchases online without taking into account that there are many people who make a living from it. They are increasingly positioning themselves above the competition, such as Mercadona, Día or Carrefour. These have no choice but to evolve so as not to stagnate.
However, this is not so bad, Q – Commerce emerged relatively recently, as a result of the Covid – 19 one could say, and it has achieved brutal success. Therefore, it is normal that what is current and novel attracts more, and, above all, if the business model serves to cover an immediate need.
What sectors benefit from Q – Commerce?
As we have mentioned before, quick commerce is applicable to all types of products, although they are mainly first need products. Therefore, the businesses that apply this model are evident: online supermarkets where there are many fresh products. They also highlight other items such as cosmetics, cleaning products, gifts, toys, office supplies, etc.
Q-Commerce Platforms
In the previous section we have commented on the sectors that apply this business, therefore, we can get an idea of which platforms have this service:
Glovo, a Spanish company, was the first company to opt for ultra-fast delivery, offering a wide variety of products in half an hour. It offers items from large retailers such as Alcampo, Dia, Carrefour, Douglas or Primor. It currently registers 2.5 orders per minute.
Delivery Hero reported an annual growth of 400% thanks to the number of orders placed in the first quarter of 2021. The company expects to reach €56 billion by 2030 and €448 billion domestically.
Gorillas emerged relatively recently, in 2020, as a result of the growth of q-commerce. It is a German company and it is oriented to the delivery of food and household products quickly: in less than 10 minutes.
Dija also emerged in the year 2020 with the aim of delivering food products from local businesses in 10 minutes, just like the ones mentioned above.
Uber is mainly known for its Uber Taxi service, but also for Uber Eats. It consolidates its position as a home delivery company for any local product, helping businesses to get closer to their consumers and offer the speed of delivery that they currently demand.
This new e-commerce trend, Q – Commerce, has only just begun. This is the beginning of a new stage to which more and more companies will be added to offer an almost immediate delivery service. And you? Have you already tried it?
