Glossary

Zepto franchise & quick-commerce terms

The vocabulary behind the COST + OPD payout model and quick-commerce fulfilment — in plain language.

COST + OPD model: The current Zepto franchise-partner payout model. The partner earns a fixed monthly payout set by the store’s OPD (orders-per-day) slab, plus an SLA performance incentive, while Zepto reimburses manpower and provides most operating costs. It replaces the older per-unit (CPU) approach.
OPD (Orders Per Day): The number of customer orders a dark store processes in a day. Under the COST + OPD model, the store’s OPD band is what sets the fixed monthly payout, so OPD is the primary driver of partner earnings.
OPD-slab payout: The fixed monthly amount a partner is paid for the OPD band their store falls into — ranging from ₹50,000 at 0–499 orders/day up to ₹3,75,000 at 5,000+ orders/day. It is a flat monthly figure per slab, not a rate per unit dispatched.
SLA (Service Level Agreement): The agreed performance standards a store commits to — fulfilment speed, defect rates, stocking speed and task discipline. The store’s weighted SLA score decides the performance incentive or deduction added to the monthly payout.
SLA performance incentive: An amount added to the monthly OPD-slab payout when the weighted SLA score clears a threshold: +₹25,000 at 85%+, +₹50,000 at 90%+, +₹75,000 at 95%+, and up to +₹1,50,000 above 98%. It replaces the old performance multiplier.
SLA deduction: The mirror of the incentive: when the weighted SLA score falls below target the payout is reduced — stepping down from −₹25,000 to as much as −₹1,50,000 at the lowest band. Strong, consistent operations avoid deductions.
SLA metrics & weightage: The four inputs to the weighted SLA score: Instore Speed (FM_80P) at 40%, % DH Defects (Non-Café) at 30%, Dock-to-Stock (D2S) at 20%, and Task Adherence at 10%. Together they determine which incentive or deduction band a store lands in.
Instore Speed (FM_80P): The first-mile fulfilment speed metric — how quickly the store gets orders picked, packed and ready for dispatch, measured at the 80th percentile. It is the single largest SLA input at 40% weight.
Dock-to-Stock (D2S): How quickly inbound inventory moves from the receiving dock onto the shelves and into available stock, measured at the 95th percentile. Faster putaway protects availability and carries 20% of the SLA score.
% DH Defects: The rate of delivery-handling defects on non-Café orders — wrong, damaged or short items attributable to the store. Keeping this low is worth 30% of the weighted SLA score.
Security deposit: The refundable capital a partner places with Zepto to take on a store — ₹80 lac for a new partner (₹75 lac for an existing one), of which ₹72 lac is refundable after infrastructure and inventory reconciliation at handover. Exact terms are confirmed on review.
Brand fee: A one-time ₹1.18 lac charge (inclusive of 18% GST) paid to book the store. Unlike the security deposit it is non-refundable. Specific amounts are the brand’s and are confirmed on review.
Reimbursed manpower: Store staffing — associates, shift incharge, security, loaders, housekeeping — whose salaries Zepto reimburses at city-specific rates rather than the partner absorbing them. The partner still recruits, trains and manages the team to SOP.
Fixed opex: The running costs the partner bears directly under the model — a fixed monthly operating expense (around ₹54,000), plus consumables such as bags, and asset AMC after the first year. Most other operating costs are provided or reimbursed by Zepto.
ROI %: Return on investment, expressed as the annual payout divided by the ₹80 lac security deposit. Because most of the deposit is refundable, ROI here measures earnings against the capital committed rather than a sunk cost.
Dark Store: A compact, delivery-only micro-warehouse that stocks fast-moving items for quick fulfilment. It is not open to walk-in shoppers; its sole purpose is rapid picking, packing and dispatch for online orders.
First-Mile Fulfilment: The initial stage of the delivery journey — from receiving and storing inventory at the dark store through to picking and packing an order so it is ready for the rider. Its speed is captured by the Instore Speed (FM_80P) metric.
Catchment: The geographic service area around a dark store from which it draws its orders. A strong catchment has good order density, favourable demographics and manageable delivery distances — all of which support a higher OPD band.
Pick-Pack-Dispatch: The core in-store workflow: selecting the ordered items (pick), bagging them accurately (pack) and handing them to the delivery rider (dispatch). Speed and accuracy here drive the SLA metrics directly.
Reimbursement / Opex: Operating expenses (Opex) are the day-to-day running costs of the store. Under the COST + OPD model most are provided or reimbursed by Zepto, while the partner carries a small fixed opex, consumables and post-year-one asset AMC. Specifics are confirmed on review.
Expression of Interest (EOI): A formal, non-binding indication that a prospective partner wishes to be considered for an opportunity. It typically kicks off the evaluation and due-diligence process.
Franchise Consultant: An advisor from our independent consultancy who guides prospective partners through the enquiry, evaluation and onboarding stages, coordinating between the applicant and the Zepto team. We are an independent consultancy and not Zepto itself.

New to this? Start with the franchise guide or register your interest.