We all know the hustle happened during the need of urgent grocery. You need to go to the brick and mortar store get the grocery needed and carry them with you at home. Sometimes its really time consuming and tiresome.
Thanks to the digitization of everything around us. The Grocery industry is ever-growing and enhancing its market by leaps and bound. Nowadays everything has become mobile. And the grocery store is no exception.
Grocery store mobile applications like Instacart and amazon fresh has come as a big rescue and save our time.
This blog is for those who want to convert their physical grocery stores to online stores and those who want to start a grocery delivery app like Instacart.
Knowing about how lucrative is the grocery market, it is obvious that you want to challenge your entrepreneurial spirit to invest in such an idea. But do you know what kind of challenges you may face while building your online store?
Let’s cut to the chase and know the challenges faced and their solution.
1. Storage & Delivery Cost Problems
Storage for the perishable items such as foods, vegetables, milk, etc is not easy to store for a longer time.
The problem with buying a huge storage room for it the demand may fall at any time. So you have to pay for the storage room even though it is not optimally utilized.
In addition, there can be a problem in delivery due to the place being too far from the storage. If you having online storage there is a high chance that you get the complaint like delay in delivery, wrong product delivery, return and more.
So to have an effective inventory and infrastructure becomes imperative.
Sometimes order size is to small that the delivery charges may seem more than that. Hence, people are not happy to pay for the delivery charges.
- Integrating Just in time Inventory management with your online grocery store reduces the storage cost and streamline your grocery store management. In addition, you can know what your customer wants and thereby reduce the wastage.
- As an online grocery store owner, you need to partner with the dependable delivery service provider so that it readily meets the expectation of the customers.
- To provide grocery delivery to your consumers on time you need to start a local network system.
2. Less Profit Margin
Today people love to shop online only because of the convenience but they love the deals that come from buying such items.
So the online grocery store owner faces this predicament of providing reasonable pricing. Which reduces the profit margin. Besides, in the case of buying perishable items like fruits and vegetables, customers prefer to physically present at the store. So being an online grocery store owner you need more efforts to persuade your customers.
- Incorporate non-perishable items such as personal care, Beauty products, Household items, packaged foods, etc. Because the storage and delivery cost is less.
- Merge your online and offline business to provide a great customer experience.
3. Rigid Behavior of Consumers
Consumers who have always been shopping for their grocery buy their groceries offline. They get it while they are returning from the office or go shopping on holidays to purchase it in a physical store.
So the problem lies in convincing them to know how much online grocery delivery app can facilitate streamlined delivery. They think that online deliveries are inefficient and don’t deliver on time. In their minds, they think that they won’t get the good stuff if they‘ll buy online.
There is still a huge market which is untapped. As per the survey held in the US, about 4% of a consumer in Los Angles and 16% in New York brought their grocery online. If you look at the bright side you can change their rigid thought bu providing something unique with online delivery.
- You can change consumer preference by providing them that your competitors are not providing. Lately, a consumer prefers more to buy organic foods. As per the statista, the number of people buying organic food has risen from 52. 6 million to 55% million in 2016.
- If you want to offer something unique when you can integrate voice technology with online grocery delivery applications. Consumers nowadays prefer voice search instead of googling anything. Amazon Alexa and Google voice search allows your potential customers to order through just voice command.
We know that grocery consumption is the bare necessity of human beings. And people do always welcome a new change that lessens their work. So online grocery business idea is perfect and fits into these dynamics. If you are looking forward to venturing in a grocery delivery app or online store then find the best company that suits your requirements.
What challenges you face in your grocery store. Comments are welcome.