How to Start Selling on Q-Commerce: Fees, Contracts & Essentials

This article has been contributed by Griffith David, Founder and CEO, of Habanero Foods.

The rapid quick commerce industry in India is undergoing a remarkable transformation, soaring from $300 million in 2022 to an astounding $7.1 billion by the fiscal year 2025, as per a report released by Cornell University. Additionally, the report forecasts a 24-fold increase in gross order value, with estimates suggesting it will hit $35 billion by 2030. This sector is showing impressive growth, and it has outpaced conventional e-commerce.

At its heart, quick commerce is all about a vast network of cleverly positioned "dark stores"—those nifty little warehouses that cater to online orders—to ensure hyper-local fulfillment and lightning-fast delivery, often wrapped up in just 10-30 minutes. Initially, all about groceries, this sector has rapidly expanded to cover personal care goodies, household must-haves, electronics, mobile gadgets, and even a variety of fashion items, pulling in a colorful mix of businesses, including fresh direct-to-consumer (D2C) brands. India's quick commerce market is booming like never before, completely changing the shopping game for consumers.

Thanks to rising urbanization, higher disposable incomes, and an insatiable desire for instant gratification, this growth is nothing short of remarkable. For businesses, this rapid expansion is a golden opportunity. But thriving in this cutthroat environment demands a solid grasp of operational frameworks, pricing strategies, contractual commitments, and the must-know best practices of these platforms.

What is Quick Commerce? | Features of Quick Commerce

Quick commerce creates a better customer experience by helping businesses connect with their customers more quickly than the traditional methods.

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Getting Started: Essential Steps for Businesses

Starting a quick-commerce business in India is all about following some key steps. First off, businesses have to get officially registered in India, typically picking from options like sole proprietorship, partnership, limited liability partnership (LLP), or a corporation. Additionally, it's crucial to secure the right licenses for certain product categories. For example, online food businesses need to get an FSSAI license, regardless of their earnings. A valid GSTIN and PAN card are also essential since GST registration is a must for all e-commerce ventures in India. Second, choosing the right platform is crucial. Although major rapid commerce providers share similar core features, they vary in focus areas, geographic coverage, and commission structures.

It is advisable to thoroughly research each platform's features, target audiences, and selected product categories, considering factors like operational cities and logistical challenges. According to a report from Cornell University, in the initial quarter of 2025, a dominant platform holds about 47% of the market share, whereas the others represent 29% and 24%, respectively.

Product Preparation and Documentation

Preparing products for the fast-paced commerce environment is essential, as this model relies on quick consumption and attractive packaging. Businesses should tailor their product offerings to increase sales, focusing on fast-moving consumer goods (FMCG), everyday essentials, and those irresistible impulse buys. Dark stores usually carry a wide range of stock-keeping units (SKUs), with a large share dedicated to items that fly off the shelves.

Packaging should be designed for smaller, often single-use formats, making sure they are durable for swift handling and delivery. Maintaining product quality and freshness is crucial, especially for perishable goods, to ensure customer satisfaction and encourage repeat purchases. The documentation and registration process is mostly uniform across different platforms, necessitating detailed information about the business and personal details, along with key documents. Typically, this includes email verification, submission of business details, GSTIN, bank information, and high-quality images and descriptions of products.

Licensing, Onboarding, and Crucial Criteria

Obtaining an FSSAI license is essential for food products, and some platforms may require that these products be sent to their warehouses, necessitating an APOB (Additional Place of Business) license for that particular site. Furthermore, some platforms might impose a product activation fee, which could be deducted from an advertising account.

While a few platforms can complete initial verification within 30 to 45 business days with varying onboarding fees based on revenue and product type, others require businesses to complete a registration form and submit business registration certificates, GST details, PAN, proof of address, and bank account information, followed by a partnership agreement and training for the seller platform. Essential requirements for all platforms consist of GSTIN, PAN Card, bank account information, business registration certificates, proof of business or warehouse address, FSSAI license, medicine license (if relevant), trademark certificates or authorization letters, and a digital signature.

Listing Products and Inventory Management

Once the approval process receives the go-ahead, sellers must meticulously list their products and monitor inventory closely via the seller dashboard. A customer's trust always leans upon accurate detail. So, it is of utmost importance that product names, descriptions, MRP, and selling prices are perfectly visible to the customers. Managing inventory in real-time is vital; regular updates that show current stock levels are necessary to prevent stockouts and order cancellations, which can negatively impact seller ratings. Platforms often provide tools or APIs for smooth inventory synchronization, and it is important to develop strong internal inventory management systems that incorporate smart distribution (placing products closer to customers).

Pricing and Advertising Strategies

Pricing and advertising strategies need thorough research. Analyzing the prices set by competitors is crucial for determining the pricing of your products. Additionally, understanding how the platform's commission operates is essential, as it varies based on the product type and is becoming more flexible. For example, a platform may implement a commission structure that changes according to the selling price, beginning with a smaller percentage for less expensive items and increasing to a larger percentage for more expensive ones.

Hence, it is crucial to factor in these commissions, along with possible warehousing and advertising costs, when developing a pricing strategy, since total platform fees can sometimes surpass 30-45%, as reported by a reputed news platform. Utilizing in-app advertising, special promotions, discounts, and bundled offers from the platforms can significantly boost visibility and sales. Furthermore, some platforms may even provide support for initial marketing investments, as ad revenue is becoming increasingly important for their sustainability.

Order Fulfillment and Financial Considerations

While quick commerce platforms manage last-mile delivery, the seller plays a vital role in effective order fulfillment. This involves promptly processing orders as they come in through the seller app, securely packaging items according to platform standards, and quickly handing over packed orders to delivery partners. Real-time notifications, like marking orders as ready for pickup, are also important. It's crucial to grasp how the payment cycle of the platform operates, usually on a weekly schedule, and how funds are funneled into the seller's bank account. Keeping a close eye on settlement records is a surefire way to monitor your earnings with precision.

For businesses aiming to hit the ground running in commerce, understanding the ins and outs of financial and contract details is essential. Commission structures aren't set in stone; they can shift depending on the type of product, pricing tiers, and the brand's standing, often providing heftier commissions for sought-after or high-end items. Besides commissions, companies might also encounter additional costs tied to warehousing, which encompasses receiving, storage, fulfillment, and inventory removal, along with marketing expenses and potentially fees for onboarding or activating products.

Mastering Partnership Contracts

When bringing new partners on board, companies have to sign a standard partnership agreement with the quick commerce platform. It's crucial to take a close look at these agreements. The reason these agreements are so vital is that they contain specific details about commission rates, payment terms, return policies, and how to deal with damaged or returned items (including potential customer return fees for seller-related issues). They also include information about inventory management responsibilities (like stock reconciliation and losses) and order fulfillment Service Level Agreements (SLAs), which should be thoroughly assessed. SLAs detail the expected preparation and handover times, along with penalties for non-compliance. The terms for data sharing and usage are particularly critical, as they outline how the platform can manage sales data and customer information, especially considering regulations like the Digital Personal Data Protection Act of 2023.

Clauses about marketing and promotion responsibilities, including who pays for the related costs, are also important. Additionally, it's essential to pay attention to methods for resolving disputes and arbitration clauses. Termination clauses, which cover notice periods and conditions for ending the partnership, as well as product liability and quality assurance measures that clarify responsibilities for defects, round out the key areas that need review. While larger, established brands might have significant negotiating power, newer or smaller sellers are more inclined to accept the platform's standard terms.

Driving Success Through Data and Strategy

Overall, making choices rooted in data is crucial. Keeping an eye on platform performance metrics (like sales trends, customer habits, delivery times, popular products, and return rates) sets the stage for continuous improvements in product choices, pricing strategies, and marketing plans. The rapid evolution of commerce in India offers a fantastic chance for businesses eager to grow quickly and serve a tech-savvy audience.

By carefully analyzing what the platform requires, monitoring expenses and agreements, and prioritizing key operational efficiencies while ensuring excellent customer satisfaction, sellers can carve out a successful niche in this dynamic and ever-changing market. Although starting out might seem overwhelming, the immense potential for growth and brand visibility in today’s fast-paced business environment makes it a highly rewarding opportunity for contemporary Indian companies.