THE IMPACT OF LOGISTICS ON PRODUCT ASSORTMENT POLICY: AN ILLUSTRATION WITH Q-COMMERCE

Abstract

A new stage in the evolution of e-commerce, quick commerce (or Q-commerce) is expanding rapidly on several continents. Its business model is based on ultrafast delivery since the online shopper receives the product between 10 and 15 minutes after ordering via an application on his/her smartphone. Q-commerce introduces a real supply chain revolution thanks to the promise of a much shorter delivery time than in traditional e-commerce. However, this reactivity introduces a double constraint: Q-commerce companies can only offer their shoppers a very limited product assortment, and the preparation of orders requires the presence of multiple micro-fulfillment centers, or dark stores, in the heart of cities. This research note proposes a reflection on the stakes and the future of Q-commerce, by underlining that the product assortment policy, in other words the retailer’s offer strategy, is strongly conditioned by the efficient organization of the logistical operations.