Bangalore is the location of Big Basket’s headquarters, which it established in 2011. Its business strategy is to provide customers with groceries delivery services online.
It operates throughout India. Delhi, Chennai, Mysore, Pune, Kolkata, Mumbai, Gurgaon, Surat, Ahmedabad, Vijayawada, Vadodara, Patna, Surat, Chandigarh, and many other well-known cities are among those where it operates.
Business Plan for A Large Market
Shopping for groceries is one of the most tiresome activities. Before visiting a grocery store, a number of items need to be thought about and mentioned.
Checking the products’ quality, choosing the proper retailer, evaluating product costs, and the strain of shopping in an open store are a few of the issues.
By offering an online food purchasing service, Big Basket has made things simple. It makes it easier for clients to shop for groceries from the convenience of their homes.
Big Basket’s channelization strategy involves purchasing produce, livestock, fruits, and meats, then keeping track of these goods in a warehouse.
Significance of Big Basket Business Model
Big Basket began to prosper more in recent years. With a customer base of almost 100 million, it offers services in more than 30 locations across the nation.
It processes more than a lakh order every single day. Big Basket sends out upwards of 18,000 items in a single day. Products are arriving from 1,000 different merchants and are displayed on a platform to be sold.
Big Basket eliminates the middleman in the customer-supplier chain, greatly saving the customers’ money. Using the Big Basket mobile applications, you can easily purchase products from top companies.
For those who lack the motivation to go out and buy groceries for their family, it is a huge boon.
How Does Big Basket Make Money?
Big Basket’s business model is set up to increase the company’s profits. Customers receive the best services at the best value for their money.
Big Basket uses a variety of revenue sources, such as store sales, merchandise sales, sponsored content, sales commissions, and local retailers. The models created for its revenue generation are listed below.
1. Inventory Model
In this model, they make more money. Big Basket purchases its goods from mills and farmers on behalf of some of the biggest and most well-known brands in the nation, including HUL and P&G.
These goods are divided into two groups. There are perishable and non-perishable goods. Preventing perishable things from becoming odd requires immediate attention.
Contrarily, non-perishable goods can be given after some time. When compared to their whole revenue, the amount of money wasted on perishables is just about 5% of the total. The corporation earns more money with this inventory model.
2. Hyper Local Delivery
The delivery of the products is the key concern when doing an online grocery order. Whether it is sent correctly or not, mistakes or tampering could still occur.
Big Basket’s flawless delivery of groceries to the customer’s location is one of its key achievements.
Big Basket has partnerships with 1800 neighborhood retailers across the nation. It ensures that there are no delays in the delivery of the goods.