Quantified Commerce: Introduction
Conventional retail outlets face many challenges. In 2017, there were record low stock levels for major apparel shops, and other big apparel businesses went bankrupt. Well known retail brands, like JCPenney, Macy's, and Sears, closed more than 100 shops. People around the world are opting for e-commerce, due to its price benefits and convenient nature. Quantified Commerce is a vertically integrated business from India, which is the world's quickest growing e-commerce country. The business model it uses saves consumers more money than just an e-commerce model does alone. Here are some ways Quantified Commerce is revolutionizing business while keeping costs down.
By combining an e-commerce business model, with vertical-integration, and a gig economy, Quantified Commerce is revolutionizing business all while keeping costs down.
Quantified Commerce owns Indian factories that work in line with GMP standards internationally. The business manufactures wellness and beauty products. Beauty and wellness products are quickly becoming India's most in-demand sector for e-commerce. Because it owns factories, call centers, warehouses, and shipping lorries, and builds its' brand through joint social media ventures, Quantified Commerce can reduce overheads and pass on the savings to consumers.
Quantified Commerce minimizes expenses through its' ownership of key supply chain elements, meaning they are fully vertically-integrated. Product expenses must be under eight percent without vertical integration. By controlling the advertising and distributing, the business spends more on products by selling directly to consumers. While e-commerce is cost-effective by eliminating physical premises, vertically integrated e-commerce is even more so, without impacting the quality of products.
An E-commerce Business Model
While e-commerce business models save consumers cash on travel expenses including the cost of parking, gas, and shopping mall snacks, the biggest savings from e-commerce business models are enjoyed by businesses like Quantified Commerce. Real estate is the most glaring overhead. By keeping all its inventory in warehouses, rather than purchasing brick and mortar shops, the business reduces its set up costs significantly compared to traditional retail outlets.
Automation is another major cost advantage for businesses like Quantified Commerce. By taking its' operations online, it doesn't have to employ staff to serve customers at the checkout as it would do in a brick and mortar shop. This means that it does not have to pay the salaries of potentially hundreds of workers, who would be entitled to other benefits if they were full-time employees. Automation reduces inventory management costs as well, thanks to online systems for managing inventory.
A further notable benefit is that Quantified Commerce does not require a large budget for advertising and promotion. Instead, the business has built its brand effectively through social media exposure, and free visitors from Internet search engines. This equates to huge cost savings over the long term.
Win-Win Gig Economy
In a gig economy, flexible and temporary contracts and jobs are the norms, and businesses mainly hire independent contractors or freelancers. Quantified Commerce capitalizes on India's thriving gig economy, by hiring freelancers to make its deliveries. This allows the business to deliver products quicker and provide superior customer service while reducing costs. Better still, its freelancers can work for themselves and still earn good money.