We are living in a digital world where we can’t imagine most things without the internet. Of course, it is the era of easy access to the internet. From basic daily needs and buying expensive things, everything is being shopped around through online apps. Online shopping apps have become an integral part of everybody’s life.
With it being said that the number of internet users expected to increase every year, online sales are expected to grow at a faster pace. Groceries are the things that will continue taking their sales irrespective of economic condition. You can leave going to entertainment places or restaurants, but you can’t live without the basic needs that let you lead an everyday life. Since buyers are finding quite comfortable with online shopping, online grocery stores and their market is growing towards the peak.
Market share of online grocery shopping
As far as considering online retail shopping, there are clear signs of growth in the recent decade and especially with online grocery, the market has doubled in its value and estimated the value will be tripled in the future days to come. These days, customers are feeling more comfortable ordering groceries online.
Pertaining to the study of the Food Marketing Institute, it has been estimated that nearly 20% of grocery retail sales will happen online by 2025. The leading reason behind most of this analysis is the growth of bigger brands around the world such as Target, Walmart and Amazon.
Almost all companies in the modern world look for ways to reinvent their existing store to easily accommodate online shops. This change is definitely on the horizon and the question of how many parts the online grocery stores will take remains unknown.
Opportunity with retailers
India is being a country with a large population, an increased penetration of internet access and the growing popularity of online shopping – all these pave the way for the great potential of building e-stores for the grocery industry. The spending on daily essentials and other grocery items are the most consistent share with any household things. Even these days you could have noticed the rise of many online retailers who have set up a system to allow customers to order over the phone, which looks to serve as an independent business model.
If you are an entrepreneur who likes to become successful in the online world, then you should have a good and strong understanding of retail supply chain technology and making the delivery to people. If you look at traditional methods of selling groceries, it is mostly followed by hub models. All stocks will be procured and stored in a warehouse. This then gets supplied to respective stores for serving people. Since warehouses are able to serve specific stores that are situated at particular distances for immediate access, investing in independent establishments for every city that you operate the stores will make good things. Moreover, often it comes with the idea of tie-ups up with local dealers or suppliers for serving many items in locations.
Are customers taken by the convenience of online grocery stores?
Imagine those days where only you have the option of buying groceries from brick and mortar shops. The time taken from stepping outside the home to wait and buy for home – this has raised the thought to grow Indian grocery store to a vast extent to simply buy from home at comfort.
It is being noted that most of the consumers’ behavioural patterns are changing and is one of the most influential factors that lead to the emerging trend of ‘online grocery stores’. With the drastic growth of eCommerce websites and also the people are more inclined towards buying online with few easy steps; the online shopping world is flourishing. It has been predicted that the online transaction value of a retail shopper once in a month will be averagely between Rs900-1200.
This has become a common thing among individuals, in their free time they scroll through their social media accounts or other apps that offer services. The rising online shopping culture across the globe has built a strong foundation and motivated the modern age giants Flipkart, BigBasket etc. These most popular BigBasket and Flipkart are the ones that take 1, 00,000 and 40,000 orders in a day.
Since most office-goers find it easy to take time from their busy schedule and also find it hard along the tiring times, online grocery shopping is a suitable and convenient way of shopping. Online buying is one thing that could ease the effort and provides a hassle-free buying from anywhere and at any time.
Rise of online grocery shopping and its impacts
The ecommerce industry has been favouring consumers with the convenience of delivery at their door steps by buying through online shopping. As Covid-19 pandemic has made people get caught inside their homes and they are wary of stepping out from their safety zone of homes, online retailing started to pick up significantly.
With normal days, working people used to shop the things after their official hours have completed that is in evenings, however most grocery shopping usually happens with their neighbourhood grocery vendors or stores. But these days after a large section of people, who are still allocated with work from home for their safety, the dependency on online shopping has increased.
Since people have to practice social distancing, they are readily accepting to shop online and order the necessities given the convenience of doorstep delivery, and promise for quality, hygiene, contactless delivery and robust digital payment ecosystem. Those individuals working-from-home from lockdown continue their work in home although most companies started and they try to balance their office and house responsibilities. To cope up with these tough times, online grocery apps that deliver the essentials and groceries have emerged as the best way as time is becoming a limited commodity for them. Whether you can name it as a call at convenience or smart shopping or make the best of available time, online grocery shopping is becoming a preferred option for those who work from home and find hard times.
Why should retailers grab the opportunity of online grocery selling?
During this lockdown period, you might have noticed that people have bought from the online to stock the pantries more than ever. So what kind of impact does online grocery store leave with the people or in the ecommerce industry? Of the online shopping, grocery business has been observing tremendous growth in the past few years. Various set ups and enterprises are shifting their attention towards building online stores using feature rich applications. Have you ever wondered why you should go for creating your online grocery market? Without any doubt, online grocery buying has been satisfying the essential needs of people from the comfort of their home.
According to GroceryDive which indicates that by 2020, more than 30 million users will prefer buying groceries using online applications. The online grocery sale which was about 22 billion in the year of 2019 is expected to grow to 29.7 billion by 2021. These figures clearly show that you certainly will be benefited if you build your online grocery store. Still not convinced? Find below reasons to know more.
Ecommerce penetration has been projected to reach triple of its value in the next 10 years. This surely will influence people in the way of shopping for groceries and moreover digital transactions have been practiced by more people these days. So, this is obvious that this is a golden opportunity for the traditional retailers to meet the demands of people and make the most of their reputation good relationships with the customers by building an online store. Online grocery industry is different from traditional shops. They are the quick way to get in with lower overheads and easy to build.
Better control over inventory and order management
Since online grocery stores come with an easy to handle admin panel, you can manage the entire inventory and orders through your desktop or smartphone. These stores also have the options of stock notifications which help in knowing the stock level of specific products and give you the ability of managing past, present and future orders as well. So you can leave the worries about inventory and order management of your online store.
Yes, this is the most obvious reason that people prefer buying from online shops. Can you buy or order anything that strikes your mind at midnight? Online grocery shops let this happen. You don’t have to wait for the time that shop opens or no need to wait in lines. You are allowed to shop the website 24/7 without the interruption of any sales person near to you. There can be no better place to buy your needs without worrying about the time being spent and shop closing hours.
No time to continue shopping? Forget to prepare the list of groceries? No problem! Just save the items that you have in memory in the cart, later you can continue paying and check out. If you haven’t the list in hand, just go to categories, you are having the products that will remind you what left out or just follow the product recommendation of the seller. Its flexibility allows you to embrace the online store in your daily schedule.
Ability to deliver personalized offers
How can you give customized offers to your wonderful clients? It is possible if you know about their buying habits. Online grocery stores allow you to get the data of analysing customer behaviour and buying habits. This valuable data lets you know about the interests and dislikes of customers and make a note of what items they prefer more to buy. This data is sufficient for you to enhance the shopping experience of customers as you are able to give relevant suggestions based on their past purchase. This makes the shopping for customers to go smooth and easy.
As more people order from their home and they reduce the travel of visiting to stores in their vehicles, this in turn reduces the pollution level. A single delivery vehicle can serve many and hence no need for multiple vehicles travelling on the roads. Furthermore, the grocery delivery trucks are looking more efficient. DOT and EPA have set standards that will help to reduce emissions and aids in improved fuel economy. Even they are ready to take the steps into the future with alternative fuel elements like electricity and hydrogen. The flexible delivery time schedules that are being selected by consumers let trucks optimize their router and all these things play a major role in building a better environment.
Time and cost saving
The retailers can make direct contact with the sellers and get their products/ services listed out on the website. Hence it eliminates the need for a store to stock for sales. You don’t have to spend maintenance charges that are needed to upkeep your traditional stores. All you need is a warehouse where you can maintain the inventory and just display the list of products in the online grocery store. Hence retailers can save time; gain best profits and build their brand strong reputation.
On demand supply
Your online store is your virtual marketing executive for intimating how much you need and what items you need. This helps in maintaining sufficient stock in the inventory or else you can build up the stock once you come to know if the customers need a specific product. Hence you don’t have to pile up stocks like conventional brick and mortar stores. Just display a single image of the product to customers and based on the demand, you can raise the inventory of the products. You will be alerted with notification when the stock level goes low and so you can keep up with customers’ demands without any trouble, no matter if you buy from a vendor or sell your own items.
Not only do these benefits help the retailers to enjoy the online grocery store building, it also makes shoppers to have much more conveniences. Set up your own online grocery store to respond to changing customer expectations.