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D2C companies cough up 30-45% cut for a spot on quick-commerce sites

Economic Times · 1y

Niche direct-to-commerce (D2C) companies in sectors like FMCG, beauty, and health are paying higher commissions of 30-45% to be listed on quick-commerce platforms. This is in contrast to the 10-20% commission paid by larger FMCG companies. Small brands face challenges in the listing process and rely on personal referrals for visibility. Brands also spend around 20% of sales on advertising and offer discounts of 20-25%. Despite the high costs, quick-commerce platforms account for a significant portion of sales for D2C brands. However, uncertainty and limited access to data pose challenges for these brands.