Pertaining to the last few years. When ecommerce industry has started to place its roots in Indian industry. There has been many online businesses and startups that have been established. But the current flavour seems to be of online grocery stores.
There have been a number of online grocery stores that have gained a huge amount of success in the past few years. Grofers, Bigbasket, PepperTap, and many others. Furthermore, recently Ola – an India based taxi service has also entered this arena which further cements the fact that the sector is full of opportunities.
Why is the grocery business taking an uphill movement recently? Maybe because the needs of the audience for grocery and similar items are more demanding and the supply the industry has – is phenomenal too.
Let us have some insights on various aspects of this growing sector in terms of challenges associated with it, its future potential, and some tips on the successful launch of online grocery stores.
Like every damn business, the process of opening up an online grocery store is equally challenging. Yes, there is a huge demand and supply for this – but there are some major things that are needed to be taken care of before going this way.
Storage or inventory is always the biggest concern for any type of retailer – whether it’s offline or online. Especially when it comes to storing perishable products, this concern for inventory gets even bigger. For grocery items, this storage needs a proper refrigeration which maintains and lessens inventory costs and management efforts.
Packaging & Delivery Cost
The perishable nature of grocery items also reflects on the packaging & delivery cost, which also need to be refrigerated in most cases. Also, you need to keep the delivery cost minimum to make a greater impact on the market. All this indicates the need for a very efficient supply chain, which would certainly require some extra efforts.
Delivery on time is the most prime issue for a grocery business. They need to be quick and convenient – because well, customers prefer these both elements over prices. To attract more customers, it is essential to ensure the freshness & quality of the grocery products, which can only be achieved by implementing an efficient hyper-local delivery network in all target markets.
This is the most faced challenge for grocery stores – because of perishable items. And that calls for an impeccable delivery and ordering system. These stores also have very low chances of making amends if anything goes wrong.
What’s In The Future?
Though this department has a lot of challenges to be faced initially. An established grocery business has a lot in future for it to hold – because if they get along well with the changing trends these business have nothing else but to flourish.
Changing Customer Behaviour
Customer behaviour changes quickly over time. Like, in the past ten years, customer have started preferring convenience over prices, and this accounts as the sole reason for every online business success. And with people’s increasingly busy lifestyle and grocery being a necessary household item – online grocery shopping perfectly fits as a profitable business idea for today & tomorrow.
Assured Industry Growth
While customer behaviour in itself is sufficient to ensure the future potential of a business idea, it is always mindful to check what studies predict. These reports provide further assurance that as a prospect online grocer, you are not gambling.
Tips For A Successful Launch
Every business gets successful only with some right moves and some great planning. New ideas and creativity never goes out of trend. Going through some of these tips can come handy in making an online grocery store a successful launch.
Be An Early Bird
As the trend of grocery stores is progressing – these are growing at a rate of thrice, annually. And this is a clear indication that soon the market share with deplete within no time. So, the earlier you start if you are thinking of going this way – it would be better for your business.
Just having a presence is not enough. Your grocery selling website should also allow customers to do shopping easily. A good user experience, seamless order processing, various payment methods, and optimised for mobile shoppers.
Start Small, Grow Large
Small steps at start – make the place for big ones in the long run. So, it would be better to not to keep your target audience a huge one – keep it short and simple. Since you must be having less funds and resources – it makes sense to start small initially. And then, expand your business with time as much as your growth allows.
So far, this sector has its own share of challenges because of the perishable nature of grocery items – but it also has a bright future. And if one is diligent enough to carefully analyse the facts & insights – these challenges can easily be transformed into the stepping stones for the establishment of a successful online grocery business.