JioMart Business Model: How Reliance’s Jio Mart makes money and revenue sources.
Reliance Retail Ltd’s new e-commerce venture JioMart is launched with the tagline “Desh ki Dukan”. Jiomart business model works on the O2O (online-to-offline) model where the customers can order online and the product is delivered from the local Kirana store.
What is JioMart?
Reliance Industries Ltd finally launched its e-commerce website under Jio platfroms – JioMart. The website started its service in Mumbai region and later it spread the service across India. JioMart will build the digital pan-India infrastructure by doing partnership with local Kirana store as well as its Retail shops.
The JioMart got a good response from customers after the launch of the service and now the company increase its presence in other cities and towns of India.
Facebook-owned Whatsapp and JioMart joined hands to make the service of JioMart more smooth and to reach the users of the WhatsApp. Users can place the orders through Whatsapp which will help the customers who are not comfortable with digital platforms to place orders with JioMart.
JioMart Business Model
Reliance revealed the business model of the JioMart, the e-commerce website will allow local vendors and small Kirana stores to take orders through WhatsApp while the orders will be delivered within 24 hours or same day to the customers.
Currently, Reliance Retail stores are delivering the orders on the JioMart, but later eventually the Jiomart will work on a hybrid model whereby its own retail stores, as well as local Kirana stores, will be roped in for order fulfilment for the quicker delivery.
The JioMart also works as tradition e-commerce website where user place order online through the website and app and the product is deliver by the company in specified time period.
Currently, JioMart is operating the service across 200 cities and towns in India including all big cities like Mumbai, Chennai, New Delhi, Hyderabad, Chennai and Kolkata. The mobile application of the company is not yet launched but the Jiomart website is live for the customers (www.jiomart.com).
The local Kirana stores can now able to register online for the groceries delivery platform JioMart. After the JioMart Kirana registration, the company help them to make their Kirana shop digital to receive orders through WhatsApp.
After the order is prepared by the Kiaran then it sends the confirmation to the user to pick up the order from the store.
Features of JioMart
Here are the features of JioMart which makes it popular among the customers.
Free home delivery: The company claims that there is no minimum order to get free home delivery.
No minimum value: Every e-commerce site have a certain minimum venue to make you deliver free but the Jiomart follows no minimum order policy.
Express Delivery: The company also preparing to deliver the order placed on Jiomart quicker. Reliance looking to deliver groceries, fashion, television and smartphone within 1 to 2 hours while for large appliances to deliver either the same day or next day.
No questions asked return policy: The company to take back products without any question which would make the service more customer-friendly.
Big Discount: JioMart offers every product at a minimum 5% discount and goes up to a maximum 50% discount.
Reliance’s JioMart has roped in over 2,500 grocery Kirana stores in Mumbai and looking forward to increasing the number rapidly across India.
Later Reliance is planning to make these stores as JioMart franchise to source products directly from Reliance retails and make them fully digital. All the order then can be fulfilled by the local Kirana stores.
Currently, JioMart is fulfilling orders between 50,000 to 70,000 orders per day.