Quick commerce emerges as the key channel for sponsor product ads, reveals mFilterIt's report

Festive season saw a trend towards premium pricing on quick commerce platforms, where chocolate products commanded higher average selling prices

By  Storyboard18Oct 29, 2024 5:41 PM
Quick commerce emerges as the key channel for sponsor product ads, reveals mFilterIt's report
The festive sales period also highlighted the importance of maintaining high availability, especially on quick commerce platforms where immediacy is critical.

As the festive season brings a surge in chocolate cravings, quick commerce platforms such as Zepto with 23 per cent and Instamart with 38 per cent emerged as key channels for sponsored product ads, indicating a heavy focus on impulse buying and immediacy, reveals a report by titled 'Sweet Success on Chocolate Craving across Digital Commerce Platforms' by mFilterIt. The report further highlighted that traditional e-commerce platforms such as Amazon with 21 per cent and Flipkart with 12 per cent were the primary contenders for chocolate ads, showcasing the importance of sponsored efforts in increasing product exposure. This means that visibility played a critical role in driving sales, especially during the festive rush.

As per the report, festive season saw a trend towards premium pricing on quick commerce platforms, where chocolate products commanded higher average selling prices. For instance, dark chocolate gift packs were priced 10 per cent higher on quick commerce than on marketplaces, capitalizing on consumers’ willingness to pay for convenience and rapid delivery. Conversely, competitive pricing strategies dominated e-commerce marketplaces, where bulk buyers and value-seekers opted for multipacks and larger quantities.

Additionally, on sites like Amazon Fresh, high-quality images, A+ content and detailed descriptions helped brands drive organic visibility. In contrast, impulse-driven platforms like Instamart saw less emphasis on content as consumer behavior was more oriented towards convenience and immediate purchase.

Talking about the report, Ajay Macaden, Chief Evangelist at mFilterIt states, “One of the most exciting aspects of the e-commerce channel is its ability to disrupt the status quo, allowing new brands to challenge established players. It’s equally interesting to observe how these established brands consistently bring their A-game to stay relevant in such a dynamic space, especially during festive periods. Through this report, we aim to demystify the e-commerce landscape and provide key insights to consider when crafting strategies for the chocolate category during the festive season—insights that can extend across other categories as well.”

The festive sales period also highlighted the importance of maintaining high availability, especially on quick commerce platforms where immediacy is critical. Brands that leveraged automated monitoring tools to track inventory and raise alerts for stockouts were able to meet the high consumer demand and avoid lost sales. However, availability remained a challenge in marketplaces like Flipkart, where some brands faced stock inconsistencies.

The report further identified the need for brands to tailor product assortments based on platform-specific buying behaviors. Single packs were more popular on quick commerce platforms, catering to impulse buyers, while multipacks and combo offers found greater success on marketplaces, appealing to consumers seeking value and bulk purchases. Brands that optimized their assortment strategies accordingly were able to better meet customer expectations and drive higher sales.

Furthermore, the report unveiled four key pillars that chocolate brands should focus on to ensure e-commerce success during the festive season, that is visibility, pricing, availability, and content quality. Per the report, brands must take a data-driven approach to optimize their digital shelf presence.

First Published on Oct 29, 2024 5:41 PM

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