Thanks Yash and afaqs! for quoting my perspectives on how Amazon will fare in its quick commerce foray.
While I’m admittedly not a fan of q commerce, I thought there are arguments for and against Amazon. Here are 5 each.?
+ Amazon’s logistics foundation - including warehouses and a last-mile delivery network - can provide a strong base for quick commerce.?
+ Economies of scale could be used to lower operational costs and provide competitive pricing, new product categories could be tapped via Amazon Basics and the vast seller network, and convenience through features like Subscribe and Save, Rufus (AI shopping assistant) and Amazon Pay could be integrated for a superior user experience, especially for Prime subscribers.?
+ Adding some machine learning sauce to their years of consumer data from e-commerce operations can help them predict demand patterns and optimise inventory at micro-warehouses, and personalise offerings for quick commerce users.?
+ Amazon has brand salience and an existing presence on your mobile screen
+ Maybe it can even position itself as the kirana-friendly player by leveraging its ‘Local shops on Amazon’ program.
- While Amazon is a giant in ecommerce, the existing players have established a fair amount of brand loyalty and operational expertise in quick commerce.?
- They are also innovating at a pace Amazon might find difficult to match. e.g. Zepto offering BNPL and Jarvis (for advertisers).?
- Between the capital intensive nature of the business and a hyper-price-conscious customer, margins and profitability is tough.?
- Introducing quick commerce inside the existing app will clutter it - the Swiggy problem. OTOH, getting users to download another app will be a struggle.
- And then there are regulatory challenges.
The Indian consumer is pretty merciless - wants width and depth of product categories, pricing (with discounts and dhaniya), and seamless user experience - both in ordering and delivery (speed and quality). It will be a fun battle to watch. To borrow from Ravi Shastri, in the end, the consumer is the winner.
Any thoughts?
#Amazon #quickcommerce #Zepto #qcommerce
Amazon is set to enter the $5.5–6 billion quick commerce arena. Can it outpace rivals and redefine the game, or will it struggle to pack the punch needed to win this race?
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Story by: Yash Bhatia
#advertising #marketing #quickcommerce #business #vision #amazon #latest #news #QSRs #updates #retailmarket Manu Prasad Samriddh D. Lloyd Mathias
