Retail and consumer goods
Quick commerce
Delivering groceries and daily items in about 10 to 30 minutes.
Last reviewedWhat does Quick commerce mean?
Quick commerce (q-commerce) is online retail that promises delivery in minutes, usually 10 to 30, from a network of nearby dark stores carrying a limited range of fast-selling items. India is one of its fastest-growing markets, led by Blinkit, Zepto and Swiggy Instamart, and China has a large instant retail sector; in Europe and the United States many early players shrank or closed after 2022. The model works only with high order density, a good average order value, and extra income from advertising and delivery fees. Example: an order of 500 with an 18 percent gross margin brings 90 of gross profit. If delivery costs 35, picking and packing 15 and dark store costs 25 per order, the order earns 15 before marketing and head office costs.
Where does it come up in case interview prep?
- Retail players, trends, and how to crack retail casesLesson in Retail
- Order economics: last mile, dark stores, and returnsLesson in E-commerce, marketplaces, and quick commerce
- E-commerce players, trends, and how to crack the casesLesson in E-commerce, marketplaces, and quick commerce
- Consumer goods players, trends, and how to crack the casesLesson in Consumer packaged goods (FMCG)
Related terms
- Dark storeA small warehouse, closed to shoppers, used only to fill online orders quickly.
- Last mileThe final step of delivery, from a local hub to the customer's door.
- AOV (average order value)Revenue divided by the number of orders.
- Contribution marginRevenue minus all variable costs, as an amount or a percent of revenue.
- Unit economicsThe revenue and cost of one unit: one product, order or customer.
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- Sales per square metreStore sales divided by selling space: how productive the space is.
- Shrink (shrinkage)Inventory lost to theft, damage, errors or spoilage.