Technical

Quick Commerce: Understanding the mechanisms of instant delivery.

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Now, we are the generation of leveraging instant delivery-driven e-commerce, known as quick commerce. We get our ordered item within 10-20 minutes. That's like a paradigm shift for customers and the companies as well.
Ever wondered how something can arrive at your door in 10 minutes? How has it become possible for quick commerce companies to act like this? What's the Technology behind this business operation, what factors determine the speed of delivery, and what are some quick commerce business models that develop a whole new universe of online shopping?
For the next few minutes, get ready to dive deep into the functioning of quick commerce businesses.

How does quick commerce work?

Here is the general outlook of the basic functioning of q-commerce:

Customers order the item from any quick commerce company’s app or website. They get notified in the customer’s closest dark stores or retail partners, and the delivery agent picks and packs the order from dark stores or retail partners and then delivers it to the customer.

For the quick fulfillment of the order, customers must have a reliable internet connection, and quick commerce companies should coordinate dark stores, distribution centers, and delivery partners.

The functionality of quick commerce business depends on what type of models they utilize. Many businesses are strategically located in their micro fulfillment centers, called dark stores. Whereas many businesses rely on partnerships with local retailers and also many businesses leverage both models to expand their reach and provide a wide range of products to their customers.

Here is the breakdown of the whole process of executing fast delivery:

Online ordering:

Quick commerce companies develop their website and mobile applications through which their customers can place orders. This website or app is the first point of contact between the company and the customer. Customers need to create accounts in the company's app or website for payment information and store their choices for future purchases. In this intuitive user interface of an app or website, customers can also browse products or services, add items to their cart, and proceed to checkout.

Inventory management:

Many companies manage their inventory by using their micro-fulfillment centers, called dark stores. These tiny warehouses range from 400-2000 square meters and contain 1000 SKUs (stock-keeping units) or unique products. They are conveniently positioned near customer sites, allowing for speedy order fulfillment. The SKU count may vary according to the company, product category, and target market.

Whereas many quick commerce companies don’t have their dark stores. They perform partnerships with local retailers to access and manage inventory. While embracing this model, companies can provide a wider product selection to their customers. This avoids the need for established infrastructure and reduces upfront expenses.

However, companies can utilize both models to take their business to the next level. It should not be surprising that in the future more innovative business models will emerge that will allow companies to manage their inventory.

Order Processing:

After the order is placed, the Q-commerce platform gathers information about the order and confirms the payment; after that, the platform gives the order’s information to the customer's nearest dark store or local retailer, where the order gets prepared for delivery. This process must be done within 5 minutes or less to execute speedy delivery.

Delivery Logistics:

Quick commerce companies have a vigorous logistics network for providing hassle-free delivery. Delivery Partners or independent couriers play a vital role in streamlining the logistics.

Real-Time Tracking:

Quick commerce companies often provide real-time order tracking in their app or website. With this, customers can track their order’s progress, location, and estimated delivery time.

Last-Mile Delivery:

This is the last phase in executing ultra-fast delivery, where customers get their orders. Quick commerce companies implement innovative solutions, such as lockers or designated pickup points, to nearby couriers.

Customer Support:

Quick commerce companies assist customers by guiding them through phone, email, or live chat. Customers can clear their doubts about order tracking, returns, and product inquiries.

How does Technology contribute to quick commerce businesses?

In quick commerce businesses, Technology is everywhere, from inventory management to last-mile delivery.

  • They developed a real-time inventory to ensure the demanded product is always there for the customers. With the evolution of cutting-edge technologies like AI, companies can easily get information on stock items, and it also reduces order cancellations.
     
  • With the help of automation, order processing can be done more efficiently. It also becomes very helpful to optimize the order routing to minimize the overall processing time and packing of the items.
     
  • The use of sophisticated routing algorithms assists with finding efficient delivery routes to maximize efficiency and reduce travel time in delivery logistics.
     
  • Utilizing automated technologies like drones or robotics is also notable for efficient last-mile delivery.

     

Final Words:

We are the generation who get introduced to services like quick commerce. The future of how these businesses will work can be different from what we have discussed in this article. 

Tell us honestly you had an idea how the instant delivery worked.

So enjoy your favorite food with your family and take the privilege of on-demand delivery.

We will see you with some interesting information that serves your needs.

Cheers!

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