Have you ever realized that we all are much dependent on technology for almost everything? Are you looking for an eCommerce business idea? No matter, it’s clothes, accessories, pharmacy products, services, and whatnot. Then why should grocery shopping not be treated in this way? Honestly, grocery used to be the outing cause for almost all the families on the weekend. The long waiting lines and crowded stores made it worse. Thanks to the technology that flipped the coin and moved us to the world.
The eCommerce industry made it easier for selling groceries online to have amazing e-commerce business ideas. It saves both effort and time. We can easily do our grocery shopping on the weekdays while sitting at home and use our weekends for constructive work or just spend some quality time with family. Indeed, the fact can’t be denied that selling groceries is the new trend and too much flourishing in the markets globally. If you want to begin your new only grocery shop, then there is no better time to go for it!
What Is An Online Grocery Store?
An eCommerce business idea of an online grocery store is associated with the concept of selling a huge variety of products that ranges from spices, packaged products, and seasonings to beverages. In the previous year, the noticeably increased rate has been observed mainly from Tier 2 and Tier 3 cities and towns
Many social commerce startups have touched the household essential also as fresh and dry groceries to the doorstep of customers. The market has developed eCommerce giants also newbies who have done fabulous business growth by entering into the grocery segment. According to the industry report, the Amazon grocery division has doubled its facility at the time of the pandemic.
The great reason for the increase in the fame of eCommerce business idea of online grocery stores in the entire world is enhanced usage of mobile phones. This allows people to make orders from the ease of their house. The growth estimates are so big that most of the foreign huge companies are investing in this segment.
Normally, an eCommerce business idea of an online grocery store model has divided its operation with different vendors. Take an example of foodpanda, which is one of the leading grocery stores in many countries of the world. Because of the outbreak of the coronavirus, more people are making orders online. This business allows many opportunities to small individual players, who are willing to enter this industry to facilitate a more localized customer base.
Why Should You Go For An Ecommerce Business Idea For An Online Grocery Store?
Day to day expenditures on groceries is the huge and most steady share in the person’s budget of a family. In most families, both husband and wife are working so they do not want to spend hours just shopping for local groceries and like to be involved in online grocery shopping just through using their smartphones. Well, an eCommerce business idea of an online grocery store has an amazing prospect of growth.
How To Start An Ecommerce Grocery Store
In this article, you will come across how to start an online grocery store with yourself. It’s not much difficult, here is a clear understanding of the business. Well, we create amazing online stores if you want to have one, connect with us here.
Keep these mentioned factors in your mind for eCommerce business idea execution:
1. Order Collection
This is the beginning point for the customer to make a long-term relationship with your store. It should be simple for a purchaser to place an order from his mobile or laptop. You can establish an app or create a website for your store. Another option is to do registration with an eCommerce platform to take orders over the Smartphone.
2. Order Implementation
According to a report by fabric that is a micro fulfillment company prioritizing grocery operations, 65% of the customers would update their grocery supplier if they could not provide the one-day delivery. So keep in mind that it is significant to streamline the supply chain.
3. Payment Gateway Method
Make sure that your eCommerce business idea of an online grocery store has online mobile payment facilities for users that should be efficient and also with no risk of fraud. If you are going to add delivery service then you need to add additional charges as a delivery fee while the other is placing an order.
The following steps are involved in starting an online grocery business:
4. Registration Of Your Business
The first step you are supposed to do is to register your grocery business as a proprietorship or partnership depending on the nature of ownership. To accomplish the registration process effectively, you can get in touch with any chartered accountant or tax consultant
5. Recognize A Target Audience
Keep an eye on the eating habits of the people in your zone; recognize them in a better way. It will allow you to choose items that are high in demand and stock them properly in advance. Other vital data includes the number of households having educated and young partners.
6. Work On The Delivery Region
It is one of the most important factors as people are now veering away from the problem related to shopping for regular essentials and can frequently be found searching for “grocery delivery near me”. An eCommerce business idea of online grocery business mainly depends on the delivery component. You should choose your prioritized delivery location in terms of that it will be possible for you to send the grocery supplies instantly.
Yet most of the customers want same-day delivery when it comes to grocery shopping, you must have a good arrangement for a fleet of vehicles. Or you can hire some delivery boys with motorcycles. The range of your delivery area should be under a 5 km radius; otherwise, you will need to bear the high cost.
7. Understanding Of Inventory
To operate a good grocery business, it is significant to work on inventory management. You can have two ways to handle your inventory for the ecommerce business idea of an online grocery store. Initially, you can go for finished inventory in your warehouse, after that, you can tie-up with the local grocery stores and wholesale suppliers. You can go for the storage of the products for your warehouse for which you might get online orders easily. The location should be very close to your area of operations.
Do not expect a huge margin in the grocery business because normally, there is a very thin margin that is between 2 to 5 percent. Therefore your invested capital should be sufficient to cover all costs. Yet you have to deliver the orders to their homes so get the factor of delivery charges in your order too.
9. Select A Method Of Payment
If you have set up a reliable delivery system in place for your eCommerce business idea of an online grocery store, the best way for you will be the cash on delivery option for accepting payment from customers. This will ensure a trouble-free flow of cash for your business. An increased reward is that you will not require waiting for the payment as this is the problem of many payment gateways based on credit and debit cards. You will save on the greater .4 percent payment deducted by them for transaction fees.
10. Pick-Up At Store Service
You can add the pickup service for your customer as an additional feature. It will help them to order and pay the amount in advance so that later they can pick them up at a proper time. This can decrease the shipping costs and decrease person-to-person interaction.
In this world of high competition, you need to reach the large audience eCommerce business idea of online grocery store execution. And you have the internet for that. Go and make preparations to launch online campaigns to make your grocery store look more innovative and creative. You do not need to spend on high profile celebrities like the big actors. You have other marketing tactics to use like paid marketing on social media platforms, print media, and so on.
12. Build Up A Website
Did you know that the eCommerce business idea of online grocery stores is the biggest retail category in the world, but it is still not digitized much? You should use this aspect, making an online presence will allow your business to grow and connect with a huge clientele. A website is the online face of business so make sure you create a presentable and trouble-free website.
Buy a domain name of your business name that is the virtual address of an online store such as www.abcstore.com. You can go for the purchase of a proper domain name from a domain registrant. It should have a connection to grocery; design should be industry matched and be SEO friendly. If you want to have the best development of your grocery store, hand over the entire process to ITSolution4x7, they are experienced and provide the best development services in the industry.
13. Grocery Smartphone Apps
Grocery application allows brilliant convenience and value to shoppers like the ability to offer from a sole interface and live order tracking. You can also enhance the sales of your online grocery store by making a reliable and amazing app for your customer. Grocery applications can be of different types, some of them are here;
Ecommerce apps-These apps help purchasers to browse via a broad variety of items and schedule the delivery as per their convenience. This kind of app is primarily used by online retailers like the big basket, and Amazon.
In-store grocery apps- these apps are the perfect blend of eCommerce functionality and independent grocery app, and you can present your entire product with their details and specifications.
If you want to create your online grocery store to implement the eCommerce business idea of an online grocery store and be financially independent and live the life of your dreams, it is a great time and idea to start your business right away. Do you know that globally the grocery industry is worth $1 trillion and online grocery is just taking 10% of that? There is a big prospect of growth so don’t delay, go and chase your dream.
Frequently Asked Questions
Is eCommerce grocery stores profitable business?
It depends on the model of online grocery shopping; some models are not profitable without charging additional fees. The profit occurs only when the service provider picks items from the store for home delivery. Automated micro fulfillment centers are considered profitable which click and collect online groceries with a margin of 2 percent.
How do online grocery stores make a profit?
Grocery businesses can make a profit from the commission earned on each transaction. Commission can be charged by the admin on every transaction from the seller. Another source of income is vendor subscription which is the fixed amount to pay by the vendor to admin to access, list, and sell on a grocery on eCommerce platform.
Should I open a bank account for my online grocery store?
Yes, after completing your registration process, you can go to the bank to open an account.
What is the challenge in the online commerce business?
In the grocery business, many products are perishable. Storage is the biggest challenge for that product.