Casestudy
BulkBuy Platform
Consumer empowered e-commerce through AI-driven Platform for Group Buying and Optimized Deals
Executive Summary
This concept paper outlines the development of an AI-enabled e-commerce platform designed to empower consumers to pool their individual demands to secure the best deals from dealers and product manufacturers.
The platform aims to leverage AI to
- aggregate consumer demands
- negotiate the best prices
- ensure top specifications
- expedite delivery
- provide robust after-sales support.
This innovative approach intends to disrupt the traditional e-commerce model by harnessing collective buying power, thereby benefiting both consumers and sellers.
Introduction
Core Objectives
- Aggregate consumer demands to form a collective purchasing power.
- Negotiate and secure the best prices and terms from sellers
- Ensure fast and reliable delivery
- Provide comprehensive after-sales support
Value Proposition
For Consumers:
- Cost Savings: Achieve lower prices through demand pooling and bulk negotiations.
- Quality Assurance: Access to products with the best specifications and verified quality.
- Convenience: Fast delivery and comprehensive after-sales support.Personalization: Tailored product recommendations based on AI analysis of preferences and purchase history.
For Dealers and Manufacturers:
- Increased Sales: Bulk orders and assured sales volumes.
- Reduced Marketing Costs: Direct access to pooled consumer demand.
- Efficient Distribution: Streamlined logistics and inventory management.
Revenue Streams
Transaction Fees: A small percentage fee on each transaction made through the platform.
Subscription Plans:
- Premium Consumer Plans: Enhanced features such as priority delivery, exclusive deals, and extended after-sales support for a monthly or annual fee.
- Business Plans: Advanced analytics, marketing tools, and dedicated support for sellers.
Advertising and Sponsored Listings: Revenue from ads and sponsored product placements on the platform.
Data Analytics Services: Selling aggregated and anonymized consumer behavior data insights to manufacturers and dealers for market research and product development.
Business Model options
| Model 1 | Model 2 | Model 3 | On ONDC | |
|---|---|---|---|---|
| Product Search | Create pool | Search & order individually | Search & order individually | Search & order individually |
| Customer Demand | Pooled in the Platform | Pooled in the platform | Pooled in the platform | Pooled in the platform |
| Price & Terms Negotiation | By group leader from pool | By Platform | Offer bid by seller | Through ONDC |
| Payments | Direct to seller by group lead through PG | Through platform (escrow) | Direct to seller by individuals through PG | ONDC linked PG |
| Delivery logistics | Co-ordinated by group lead | By Platform | By Seller | ONDC linked partner |
| Customer Support | By Seller | Platform coordinated | By Seller | ONDC linked System |
| Platform revenue | Min fee as commerce gateway | Commerce Gateway + Value Added Services fee | Min Fee from Seller for facilitation | Min success fee from Buyer/seller |
AI interventions for unique value add
AI-Driven Demand Pooling
AI algorithms analyze consumer demands in real-time, grouping similar requests to create bulk orders that can be negotiated for better deals.
Fast and Reliable Delivery
The platform partners with logistics providers to ensure expedited delivery. AI optimizes delivery routes and schedules to minimize delays.
Dynamic Pricing and Negotiation
AI tools engage with multiple dealers and manufacturers to secure the lowest prices and best specifications. The system dynamically adjusts prices based on demand and supplier offers.
Personalized Recommendations
Using machine learning, the platform provides personalized product recommendations based on user preferences, purchase history, and pooled demand trends.
Comprehensive After-Sales Support
An AI-powered support system handles customer queries, warranty claims, and service requests, ensuring a seamless after-sales experience
Market Assessment
Indian e-commerce Market opportunity
USD 200 Bn
Indian e-commerce market size by 2026 *
USD 7.4 Tn
Indian e-commerce market size by 2025 *
Growth drivers in India
- Over 700 million internet and over 500 million smartphone users in 2021
- Conducive consumer behaviour for e-commerce
- AI in retail is expected to reach $20.05 billion by 2026, growing at a CAGR of 34.9% .
- Government Initiatives
- Digital public infrastructure in payments, identity etc
- Open National Digital Commerce (ONDC) push
- India Brand Equity Foundation (IBEF). (2021). E-commerce Industry in India. Retrieved from IBEF
- eMarketer. (2021). Global e-commerce forecast 2021
- PwC India. (2021). The Future of E-commerce in India. Retrieved from PwC
- Internet and Mobile Association of India (IAMAI) Digital in India 2021. Retrieved from IAMAI
- Counterpoint Research. (2021). India Smartphone Market Share
SWOT Analysis
Strength
Innovative Value Proposition: Unique demand pooling mechanism leveraging AI for better deals
Scalable Technology: a scalable and adaptable platform
Growing Market: growing e-commerce market in India and globally.
Weakness
Initial Adoption: Convincing consumers and businesses to adopt a new purchasing model
Operational Complexity: Managing bulk orders, logistics, and after-sales support efficiently.
Opportunity
Market Expansion: Potential to grow in to emerging markets with similar consumer behavior
Partnerships: strategic partnerships with suppliers, manufacturers, and logistics providers
Threat
Regulatory Changes: Potential changes in e-commerce regulations and policies.
Market Dynamics: Fluctuations in consumer behavior and market conditions.