The pandemic has hugely impacted the on-demand grocery delivery system in India. This unexpected growth in the online food market has accelerated the shift from store shopping to home shopping. According to market researchers, this new food purchase behavior (home delivery) will gradually become a new habit among all people. Customers are likely to adopt such home delivery facilities with more tech-enabled and omnichannel options. Here are some tips to start your grocery delivery business in India:
Undertake Market Research
Prior to embarking on the creation of your online grocery delivery business plan, it is essential to assess the viability of your venture. To ascertain the feasibility, engage in thorough local market research to gauge your potential for success in comparison to existing competitors.
Through market research, identify gaps in the market that your services can effectively fill. Armed with this valuable information, gain a clear understanding of your target market and formulate strategies to fulfill their needs optimally.
Identifying location and target audience
This is the first step in opening a supermarket. Fruits, vegetables, milk, pulses, and other food staples have a short shelf life and a tiny delivery radius if delivered fresh. So you must organize your delivery strategy properly to ensure that your customers’ orders are delivered fast and of the finest quality. It’s also vital to identify their eating and shopping habits. It will help you detect hot things and upcoming trends, allowing you to stock up on hot items and reduce waste.
Also Read: Tips To Maintain The Best Mix Of Stock In A Grocery Store
Putting backend in order
You may need a warehouse to keep the goods you will be selling online, preferably within your jurisdiction. This would ensure fast delivery of the merchandise to awaiting clients. You can also establish partnerships with trusted suppliers and wholesalers. They can keep you well-stocked with the supplies and items you require regularly. In most cases, you may negotiate a volume discount because you would regularly buy in quantity.
Registration of business
This is a critical step in creating your online food store. If you are an entrepreneur, you can register as a proprietary business or, if you have partners, as a partnership. You can hire a tax expert or a chartered accountant to help you with the registration and GST requirements. After completing the registration process, you can create a business account with any bank.
Also Read: 5 Clever Ways To Boost The Sales Of Your Ecommerce Store
Inventory infrastructure
Stock management is critical to running an online food delivery service. Stock management can be done in two ways. Firstly, you can either have your product ready in your warehouse or just develop a connection with a local grocery store.
Even if you have a little budget, building your inventory is not advisable as it is costly and time-consuming. Working with local sellers and building your inventory once you have enough money is better. You also don’t need a physical presence if you sell groceries online via a mobile app or website. You can purchase products from local merchants and distribute them to customers.
Also Read: Why You Need To Add Multiple Payment Methods To Your Online Store
Delivery service
The internet consumer market relies on delivery techniques. It is critical to your business’s success. It is usually picked up when the consumer goods are delivered. To regulate the delivery time, you must first establish the delivery area. Because groceries are perishable, many customers allege that inadequate delivery methods harm the quality of their purchases.
The worst part of the delivery is not receiving the order on time. Nowadays, most online supermarkets employ capital to cover delivery costs. Hiring delivery lads on motorcycles is the greatest option. Great customer service can attract the market and deliver the best services.
Funding procurement
To get started, online grocery delivery firms require a significant amount of capital, including raw materials, inventory, a delivery system, employee pay, and other expenses. Taking out a company loan may be the best alternative if you don’t have the cash on hand right away. Before applying for a loan, be sure you understand the eligibility requirements of your lender.
Also Read: 5 Costly Mistakes To Avoid While Launching Your Online Store
Developing website and app
This is the foundation of starting to sell groceries online. Because your business is entirely online, you will need an excellent app/website that allows clients to order online. If your app or website UI isn’t good or user-friendly, you’ll lose sales and users. You need to pick a company that offers affordable app and website development.
Ensure your website or app is speedy, clean, and easy to use. An app is often more expensive than an eCommerce website, allowing clients to effortlessly browse products and place orders. If you can afford it, get an app for your grocery store. If your budget is limited, an eCommerce website can meet practically all of your needs.
Marketing strategy
Invest in marketing to make your company visible and approachable. To be recognized and approachable, you need marketing. The marketing plan should define your company and products, create goals, choose digital marketing strategies, budget, and analyze results.
Use search engine marketing and optimization, affiliate and associate programs, email marketing, establish an opt-in email list, articles or news stories, and online press releases to promote your business. Email, social networking, display advertising, SEO, Google AdWords, and other online and digital platforms should be used to advertise your online business.
Also Read:- Become A Digital Business-The Way Forward For Retailers In 2019 & Beyond
Also Read: Role Of Technology In Making Retail Stores More Meaningful In The Ecommerce Age
Deciding payment method
It is usually desirable and suggested that you present your clients with all potential modes to feel satisfied and equitable when purchasing your product. Your app/website developer should handle online payment gateway integration. Also, include a COD option to your app/website.
Cash-On-Delivery is preferred as your delivery is door-to-door (COD). Customers will learn about the quality and develop loyalty and trust for your store and items. Also, when you use COD as your primary payment method, you don’t have to wait for the payment gateway to process the money. Also, when your clients choose COD, you save roughly 2% of TDR that you would otherwise pay to the payment gateway firm if you accept online credit/debit cards, net banking, or other payment methods.
Today, the fastest-growing business is online. Why should your grocery shop be any different? Grocery is a basic human necessity that will never decline in demand. It is all about how you build your business. So, now is the time to get digital and keep up with the pace of the surrounding world. We hope that our tips to start a grocery delivery business provide some useful insight.
Pros and Cons of Operating a Grocery Delivery Business
| Pros | Cons |
| Affordable Startup Expenses Operating a grocery delivery business doesn’t require substantial initial investments, making it convenient to commence without significant financial commitments. This flexibility enables you to enter or exit the business at your discretion, minimizing upfront concerns or financial risks. | Intense Competition With the ease of entry into the market, there is a significant likelihood of facing stiff competition as numerous contenders vie for a share of the market. In this highly competitive environment, many entrepreneurs may feel disheartened and opt to exit the industry entirely. |
| Increased Market Demand In today’s contemporary landscape, particularly in the post-pandemic era, there has been a significant surge in the demand for on-demand delivery services, evident in urban areas as well as suburban regions. This presents a lucrative opportunity for small businesses to seize the moment, capitalizing on the trend and swiftly building a substantial consumer base with minimal exertion. | Narrow Profit Margins If you source your products from a grocery wholesaler, you may encounter slim profit margins due to the straightforward nature of the industry. These narrow margins can test the patience of many business owners and render the venture financially impractical for those entering the market. |
| Simple and Direct Business Approach In contrast to many other industries, the process of delivering groceries to households involves minimal complexities. The straightforward nature of this business model implies that there is a lower learning curve, making it easier to attract a significant number of loyal customers in a relatively short timeframe. | Intense Workload In meeting customer orders, it is essential to exhibit punctuality and responsibility while addressing potential sources of customer dissatisfaction. This role also entails significant physical demands, necessitating optimal physical health for peak efficiency. |