It was just in 2019 when JioMart came into the picture and became a super big name in just a matter of months. Why? Well, Reliance Industries’ backing is the reason for that. By this point, we just know that JioMart is an e-commerce platform for online shopping, but is that the only way they make money? If you’re wondering about that, then just keep on reading because here we will be talking about the JioMart Business model and how does JioMart makes money. Here we go then.
| Company/Brand Name | JioMart |
| Establishment Year | 2019 |
| Headquarters | Mumbai, Maharashtra, India |
| Founder/Owner | Owned by Reliance Retail (Reliance Industries Limited) |
| Industry | E-commerce and retail (multiple categories including grocery, electronics, fashion, home) |
| Net Worth | Not separately disclosed for the JioMart brand |
| Total Revenue in 2024 | Reliance Retail consolidated revenue FY2023-24: ₹3,06,848 crore (parent company context) |
What Is JioMart?
Primarily, JioMart is an online shopping platform established by Reliance Retail back in 2019. By far, we all know that Reliance Retail is a subsidiary of Reliance Industries Limited, one of the major business conglomerates in India. JioMart was instrumental in the grocery delivery industry at the beginning; however, it has expanded its product range to nearly everything, including electronics and apparel to beauty products, and home essentials, too.
What makes JioMart really stand out is the fact that it is present in more than 200 cities all over India, and with that, it is able to facilitate the connection of customers not only to big brands but also to local kirana stores. That’s pretty much the super good part with it!
However, the point that is really fascinating is that one can also do shopping via WhatsApp. Thus, it becomes very handy for those people who like to send a quick message rather than install an app.
How Does JioMart Work?
Let us now discuss the working of JioMart in detail. JioMart runs an O2O, like Online to Offline, business model, which is quite innovative. Basically, you place an order on the internet, but the items can be delivered from the local stores that are close to you.
After you make an order, it is sent to a store of Reliance Retail store or a kirana store that is in partnership. They do the packing of your products and dispatch them for delivery.
How Does JioMart Make Money?
1. Marketplace Commission
For every sale that is made on JioMart’s platform, JioMart imposes a commission on sellers. The commission rate changes according to the product category, like groceries, fashion, and electronics each have a different percentage.
2. Transaction Fees
Sellers, apart from the commission, also have to pay a small transaction fee (usually between ₹15 and ₹30) for each order, which is calculated on the basis of the order value.
3. Shipping and Logistics Charges
Delivery arrangements are done by JioMart for the sellers, and they are charged for it. The price varies with the distance, the type of location (local, regional, or national), and the weight of the product.
4. Retail Margins
JioMart has some items that are directly sold by Reliance Retail. On these items, JioMart gets normal retail profit margins, similar to those of a regular store.
5. Wholesale Business
By means of JioMart Partner, the platform is able to sell products in bulk to kirana stores, restaurants, and offices. This wholesale business leads to a new revenue stream.
6. Advertising Revenue
JioMart receives money from the brands whose products they promote on the platform. They do this through featured listings, banners, and sponsored placements.
7. Private Label Products
JioMart sells branded products of its own, like groceries and household essentials, that attract the customer with higher margins than the third-party brands.
Recent Developments and Growth
In 2024, JioMart made a major move into the quick-commerce segment by promising 30-minute deliveries in big cities. That was a big thing and the growth is looking super good too. They have set up more than 600 dark stores all over India to be able to deliver on this promise.
Their integration of shopping via WhatsApp is another major step, a collaboration with Meta that enables customers to look through and order products right from the conversation. By using this method, JioMart can get to those customers who like doing easy shopping without the need for an app.
Future Outlook
Ok, we are going to finish with what is ahead of JioMart. JioMart’s business model is perfectly tailored to thrive in India’s fast-expanding e-commerce market. The firm not only makes it easy for customers to use digital services but also saves the local retailers from dying by creating a hybrid ecosystem, which is mutually beneficial for both customers and small store owners.
JioMart clearly knows what Indian consumers want by their emphasis on quick delivery, WhatsApp-based shopping, and low-price offerings. Also, with Reliance’s powerful support and huge logistics network, they are in a good position to continue growing.
