Big Basket has its headquarters in Bangalore, founded in the year 2011. Its business model is the online delivery of grocery services to its customers. It functions across India. Some of the popular cities where it functions are Delhi, Chennai, Mysore, Pune, Kolkata, Mumbai, Gurgaon, Surat, Ahmedabad, Vijayawada, Vadodara, Patna, Surat, Chandigarh, and many.

This post will help you to understand the entire business model of Big Basket and how to initiate a business like Big Basket.

Business Model of Big Basket

Big Basket Business Model

Grocery shopping is one of the most tedious tasks. Various things need to be considered and listed before going to a grocery shop. Some of the things are, checking the quality of the products, finding the right shop, comparing the prices of the products and in addition the pressure of shopping in an open store.

Big Basket has made everything easy through its online grocery shopping service.It facilitates the shopping of grocery products from the comforts of customers’ places.

The channelization of Big Basket works by buying vegetables, farm products, fruits and meats and manages these stocks in a warehouse.

About Big Basket’s Business Strategy

The founders of Big Basket, V S Sudhakar, Abhinay Choudhari, Vipul Parekh, Hari Menon and V S Ramesh. Initially the team started a venture in the name FABMART in 1999, it is an online store that sells books, toys and groceries. But this store is closed since it doesn’t run well.

Again in 2011 they started Big Basket and this venture is running more successfully covering all the major cities in India. Their target is very clear and this helped them to reach a robust market.

Significance of BigBasket Business Model

In the last few years Big Basket started flourishing more. It provides services to around 30+ cities across the country having its customers of around 100 million. For every single day it processes more than a lakh orders. Big Basket delivers around 18,000+ products in a single day.

From 1000 different sellers the products are coming and showcased in a platform to sell the products. In customer-supplier chain Big Basket removes the role of go-betweens and this saves customers money a lot.

Best brands products can be bought just with a few taps using the Big Basket mobile applications. It is a big Boon for the people who don’t find to go out and to get groceries for their households.

Big Basket Business Model

How Big Basket Make Money?

The business mode of Big Basket is structured in a way making more profit to the company.Customers get their right services for the right price for their hard earned money. Different revenue streams are used by Big Basket that includes store sales, Merchandise sale, Sponsored content, Sales commission and local reatilers. Below are the models comprised for its revenue generations,

1. Inventory Model – This model gains them more profit. Big Basket buys their products from some of the largest and big brands in the country such as HUL, P&G from farmers and from mills. These products are separated into two categories. Perishable products and non-perishable products.

The perishable products need to be addressed before they become unusual. On the other side the non-perishable products can be delivered in some time. It wastes around 5% from the total revenue on perishables and this is not a huge amount when compared to their overall revenue. This Inventory Model brings more revenue to the company.

Related: Top 10 Online Grocery Shopping App & Website in India 2021 

2. Hyper Local delivery – This is the next key point of the Big Basket Business model. The main worry of ordering groceries online is the delivery of the products. Whether it will be delivered correctly or not, there may happen any mishaps, tampering.

One of the main successes of Big Basket is its perfect delivery of groceries to the customer location. Big Basket is tied up with 1800 local stores across the country. It makes sure that the products are delivered on-time without any delay.

For each delivery of products a delivery charge of Rs. 30 is charged from the customers and this is one of the reasons for the profit of the company.Due to the successful growth they started “ same day delivery “ of products. Customers can get their products delivered on the same day of the order.

Excellent warehousing techniques were used by the team. Maintenance was good so that even the perishable products are also delivered correctly without any loss. The gap between the customers and the farmers were bridged by Big Basket.

Big Basket Business Model

Big Baskets Business Model Strengths

If you are looking for creating a similar type business of Big Basket there are few points that need to be considered.

1. User friendly interface – Provide customers easy user-interface to select their preferred products from the available list.

Both in the Mobile app and website Big basket provides various options like search, filter and much more. Users can select their products from the brand which they are looking for.

2. Value for Customer Money – Each penny of the customer is valued. Grocery is an essential requirement for all of us. Selling quality products at the right price is the only way to reach more customers and that is clearly understood by the Big Basket team.

Offers and discounts will be given to the customers on occasions. To attract more new customers they offer more, providing a better and best shopping experience.

3. Wonderful Customer Service – Customers are always the king, Business that deals directly with the customers need to provide the best customer services. Big Basket provides excellent customer services to all its customers. It is having customers, feedback, ratings and review systems to improve their service much better.

The techniques they follow for delivering the products works great for them, ensuring on-time delivery without any excuses. The marketing and the management team works towards improving the client base of the company.

The Future of BigBasket

BigBasket now partnered with TATA groups. There are so many competitors in the industry like Amazon, Grofers, Flikart. There need to be a strong plans in order to survive in the competitive market.

It is also said that the entry of Reliance in the online grocery industry might made Tata to take this partnership decision. It is also assumed that there need to be more competition and innovation in the online industry though still people preferring to buy groceries in local shops.

Related: Business Model of Swiggy – How does Swiggy works & make money?

Final words

Big Basket is one of the most successful and user-friendly online grocery shopping platforms. The Business model explained above gives them more and more profit. We hope the business model of Big Basket explained above will help you to come up with a new business to fulfill the demands of customers and the market.

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