Q-commerce was a success with brands receiving large amounts of funds or being purchased at exorbitant prices. The paradigm of the delivery market changed when brands like Fridgenomore, Weezy and many more began to deliver in minutes. Due to the eye-catching offers, consumers changed, no one would refuse to have their orders in a few minutes.
But, the reality is that even if they became attractive brands, all this cost them money. The startup Fridgenomore is the best example, since they were forced to close in March of this year because they were unable to acquire funds, giving us a clue about the reliability of this strategy.
All of those companies we mentioned above had to close their doors this year. So we will break down the topic of fast trading further to see the situation from different points of view. In order to find the flaws they had and in the end propose how they could improve their services.
The profit and loss margin
Every company that has worked following this type of commerce is dedicated to the food or essential items niche. Depending on the area, it can be considered low profit, because there is usually a lot of competition and varied prices. Therefore, profit margins remain extremely tight, leaving little room for losses, even if they are minimal.
Q-commerce shipping costs
Ironically, the value proposition of express trade seems to not want to charge much more when it comes to delivery. We have to be realistic and understand that there are already many delivery giants looking to recruit clients and their wallets. However, shipping costs are ruled out when there is a source of cost minimization.
Achieve customer acquisition
In business, when it comes to starting out in a competitive market, you have to stand out to catch the attention of your potential clients. Unfortunately, this has a high cost if we talk about marketing and advertising, but Q-commerce does not generate enough money for these expenses. On the other hand, new e-commerce competitors with customized software have been able to take advantage of them.
Problems guaranteeing security
One of the most relevant aspects with this promise of delivery in minutes is the safety of all parties involved. Because let's remember that when including a delivery service, you have to hire a fleet of motorcycles or bikes that will be asked to be quick. But does the company guarantee that they will have insurance in cases of accidents?
Many companies have stated that optimization to achieve fast deliveries involves algorithms. Passengers have said they are under pressure to meet strict delivery time requirements. The WHO says that approximately 1.3 million people suffer traffic accidents each year. So having additional stress for a fast delivery is not the best for delivery drivers.
Profitable logistics model
Logistics is one of the fundamental pillars of Q-commerce and must be given priority. Therefore, we should choose to distribute logistics hubs, in order to provide faster service to strategic areas. Adapting it depending on the size, whether it is a large city or a town. Thus, it can be seen as an opportunity to offer a new differential value proposition.
Tips to reduce your time safely
A good warehouse design is essential, maintaining a constant supply of stock and optimized routes. Since this will allow you to select the items in the shortest possible time. Working with the right shipping company will ensure successful delivery. There are two options: organize your own transportation network or subcontract to another company that ensures fast shipments.
Another aspect that can help considerably is to improve order preparation. They will leave sooner, saving time and, above all, resources that can be used later. Finally, take advantage of the opportunities that technology provides by acquiring specialized software. This will provide you with functions that will simplify many of your tasks.
Take care of the environment
If there is something positive about express trade, it is its search for sustainability in its service. Route optimization is the way to achieve this, since efficient routes are generated, avoiding traffic jams and unnecessary long journeys. If motorcycles are used, fuel savings will be noticeable, but bicycles or even better, electric cars are always recommended.
Other ways to contribute ecologically is by using recyclable packaging materials. Food containers that can be used at home again, covered in alternative materials or simply cloth bags to avoid plastics. You can use this to give your customers small discounts so that they return their bag in good condition.
It's all about application
We have already seen how it is debatable whether or not the rise of e-commerce is better than express commerce. It is considered that the latter failed and led businesses to close simply due to the lack of good logistics. However, we can see that with easy-to-use apps and offering a wide range of products, there is a change in buyers.
It is evident that providing a comfortable shopping experience will be a very advantageous strategic decision for your business. But this way of working does not have to only be dedicated to Q-Commerce. Automatic customer service or efficient returns can be guaranteed, practices extended by successful E-commerce. So, don't hesitate to take advantage of them!