The grocery industry surely changed much a few years. The traditional way of grocery shopping is replaced by those eCommerce shopping wats. Every one of these upgrades is the outcome of shifting customer preferences and also technological advancement. If you are thinking to invest in the e- Grocery business then you need to know the industry. Because without a detailed analysis you can’t plan your e- Grocery business. So then you can pick a good grocery eCommerce store software to make your business profitable and meaningful. Too much information, huh. Don’t get confused let me take you on a little trip about the Online grocery business. So you can understand it’s profits.
Online grocery industry opportunities
Online grocery stores are attracting people rapidly. E-grocery businesses is competing and seeing a huge competence for consumer base in their unique separate ways and even always try to give the best service and quality as quickly as possible. This is always a business where players experiment what unique models of e-grocery models for hitting the best balance between consumer’s profitability and taste.
Even this covid-19 has a huge boost to this online grocery industry. Where it made people look at E-grocery and what can it do. Here the mix of people’s fears to go out and lockdown across the world amplified the requirements for grocery delivery services online from e-commerce popular kids like Walmart, Amazon.
Few consumers usually resist this online grocery shopping for avoiding those delivery charges. There are other reasons why people is not into these services. People like to check the quality of the product before purchasing but E-grocery doesn’t allow it. But with covid-19 there was a great urge for online grocery shopping. This means coronavirus made people for changing their shopping preferences and priorities.
Online grocery shopping and delivery business models
If you are thinking to grow your food supply application or thinking or love to launch hyperlocal mobile food supply functions or for others, here are the unique business models to launch an online grocery business:
1. Inventory based business model
Like the name, this kind of business model is based upon the inventory management system. So here in the inventory-based business models, e-commerce platform owners are fully responsible for storing and buying inventory. eCommerce brand owners buy stock from unique stores and suppliers in the best self-maintained warehouses. Here the e-commerce brands are fully responsible for tracking inventory, interacting with consumers, and make sure the on-time delivery of your orders.
Here the biggest example of inventory based business models is Alibaba backed Big basket. This business switched to an inventory-based business model in 2013 and seen huge sales in a very short period.
2. Multi-vendor marketplace business model
Multi-vendor e-commerce grocery offers the best platform for many sellers and buyers. Here the vendors and also buyers engage and registered themselves and interacting in trading by the finest online grocery website. Here the business models are referred to as the Zero inventory business model. The unalike, inventory-based business model e-commerce platform will have no responsibility for handling your inventory. About distribution and packaging, sellers control logistics, or else the eCommerce platform handles every dispatch. Here the e-grocery website charges a certain sales percentage like a commission from the vendors.
Here the best example of a multi-vendor marketplace business model is peapod which operates over many vendor marketplace business models.
3. Hyperlocal Grocery business models
The hyperlocal grocery business model’s main objective is to serve the demand of consumers in a limited area and to cater to a rocket speed delivery. This business model empowers local grocers and supports amazing many supply options for fulfilling customer demand in a targeted region. But the entered needs to ensure that they collaborate with many local suppliers for the availability of inventory. As the multi-vendor company models entrepreneur don’t own grocery stores. They offer a place for grocery retailers for selling their products over the platform.
Here the best example of a hyperlocal grocery business model is instacard. It offers hyper-local on demand grocery delivery by linking consumers with personal shoppers.
4. The online selling model
The niche provides different outlets for making money depending upon your preferred business models. Here the bulk of the sales are produced from the e-commerce multi-seller and food supply platforms. To maximize sales you need to associate these following channels:
Charging store and seller fees for every sale they earn through your site for monetizing your brand.
The best way for businesses to earn money by selling their merchandise online.
5. Click and collect business models
Click and collect business models are referred to as BOPIS which stands for buy online, pickup in-store. This business model is such a finest mix of offline and online shopping experiences. Here BOPIS is supporting grocers offers the full convenience of online along with an offline model of purchasing to their consumers.
Even as per research by post and parcel, at the end of 2025 10% of sales could be drawn through adopting click and collect retail plan. It allows buyers for ordering groceries online then pick up orders through their nearest stores. It is a vital type of contactless delivery that is trending these days due to the global pandemic. There is always a place for getting orders delivered at the home.
Kroger is a grocery store online which celebrated it’s success recently with their 1000th click and collect grocery shopping.
Get your own online Grocery marketplace customized as per your requirements:
You all got the business models you need. Then we need to look at grocery eCommerce store software. Who and why’s that? Grocery holds more inventory than other kinds of retail stores. You need to sell in many kinds of ways and could need workers. Which is why you need a finest grocery eCommerce store software
Fatbit’s Grower is the finest and leading e-commerce grocery store software which is built for grocery stores and adored by users widely. It offers every hardware and feature options that grocers require. They are known to provide the best consumer support and services with a consumer-focused mindset which is why consumer satisfaction is always high for Fatbit.
- Their standout functionalities include
- admin and seller dashboard management
- readymade grocery ordering
- delivery app
- order tracking
- click and collect and more
Get your e-grocery store personalized as per your needs with FATbit today.