JioMart Revenue Model (Case Study on JioMart 2021)

JioMart is an O2O(online-to-offline) grocery retail market place, where users can browse products and place their orders online, and complete the transaction offline at the nearest store located in the customer’s locality.

JioMart was founded in May 2020 by the Wealthiest Person in India “Mukesh Ambani”. The headquarters of JioMart is in Mumbai, Maharashtra India.

Mr. Mukesh Ambani is the Richest Person in India.

Mukesh Ambani has a net worth of $88 Billion which has interests in petrochemicals, oil & gas, telecom & retail, and now on Information Technology too.

Jiomart provides 50,000+ grocery products at discounted rates at your doorstep through an express delivery system.

It follows an on-demand model. In this model, Jiomart will avoid the system of warehousing the products and partner with local retailers instead. These retailers will source the grocery products and deliver them to the customers.

Jiomart launched their beta version which is great and started selling their products all over India. You can check the locations that are operational by entering your PIN CODE in Deliver to section.

By the End of this Article

• About Jiomart
• How Jiomart works?
• Revenue Model of Jiomart
• Business Model of Jiomart
• How Jiomart earns money?
• Jiomart SWOT Analysis

INFOGRAPHICS

You can also visit FAQs page of Jiomart

How JioMart Works (How to place order on JioMart)

To place orders from JioMart, users have to send an introductory WhatsApp message to +91 8850008000.

Users will receive a “Welcome to JioMart WhatsApp order Booking Service” message, along with a shopping link that is active for 30 minutes.

Then link takes them to a page where users have to enter their personal details like mobile number, area, locality, society name, and house number.

After that, they can select essential grocery items, which they can add to their cart. JioMart has a catalog of more than 50,000 products.

Once the order has been placed, JioMart sends an Invoice to the customer along with the local general store’s address details and Google Maps location.

The customer will receive a message from the Kirana Partner once the order is ready, after which they can pay at the store and pick up the order.

Customers will have to place their orders by 7 pm every day, which would be ready at their nearest JioMart Kirana within 2-3 days.

O2O Business Model (Jiomart)

We will discuss about how JioMart will operate on online to offline business model;

JioMart will connect with local retailers and deliver the goods to customers by procuring them from the nearest store located in the customer’s area. This model is different from the warehouse model used by Grofers and Amazon.

The company wants to develop the unorganized retail sector and help local shopkeepers whose businesses were adversely affected due to competitive pricing and warehousing strategies of online retail stores.

In addition to increased sales and margins, these shopkeepers will be equipped with point of sale (PoS) terminals, integrated billing applications, and GST compliance. It will also upskill them in inventory management and supply chain management.

JioMart claims to offer the following consumer-friendly services:

• Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by procuring it from the nearby store, and that too free of cost, which your ‘Local General Store’ may not.
• No minimum value: Generally, e-commerce sites set up a minimum value of a purchase to validate free delivery. For example, Big Basket has the policy of free delivery on a minimum purchase of INR 500. JioMart will not expect a ‘minimum payment’ and abstain from delivery charges, even for the smallest of items ordered.
• Express Delivery: Express delivery means quicker delivery than ordinary services. In the e-commerce segment, it is generally within 24 hours.

JioMart Revenue Model (How JioMart earns Money)

JioMart earns money by the following ways:

Jio Brand Products

Just like Grofers launched their brand “HAPPY HOME”, Jio will also launch their brand products after capturing and gaining customers all over India. JioMart already approaching all local Kirana general stores.

JioMart first promotes all the stores through their platform and then launch their brands with heavy discounts with the strategy of Indian Products (Made in India).

How to Become a Seller on JioMart

A retailer can register with JioMart to become a seller.

After registering with JioMart, retailers will receive the required support and guidance for the smooth delivery of goods to customers.

Registered grocery store owners will be able to list their inventories, take orders, create offers, and manage online sales using the app provide by JioMart. JioMart will ensure that the sellers associated with its platform get a smooth selling experience.

FAQs