Mrs. Iyer delved into unit economics (economics of a single delivery) which is critical for a path towards profitability. Unit economics at bigbasket is a function of margin, cost and average ticket size. Bigbasket diligently manages delivery charges to ensure that customers are encouraged to place an order of at least Rs 1000. This has led to the average ticket size at bigbasket being around 1200-1300.
Speaking of social change that bigbasket has brought about, Mrs Meera Iyer had significant news to share. In the wake of demonetization, the number of farmers who had registered with bigbasket rose from 3000 to 5000. This is because in early 2016, bigbasket opened Jan Dhan Accounts for each one of their registered farmers & enabled smooth automated online payments directly to their bank accounts within 24 hours of receiving the farmer’s produce. The organisation takes pride in helping the small and marginal farmers of our country.
Concluding her discourse on the progress of bigbasket in the online grocery business, she emphasised the importance of having a maniacal focus on customer experience and building a brand that is liked, respected and adored. Although there is a rise in digitisation and urbanisation in India today, the act of buying groceries remains traditional. Buying groceries is a low-involvement, high-risk category with no rewards. The biggest challenge will always be how to get people to buy stuff online by busting the barriers to shopping online.
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