Unlike the fashion or entertainment industry, the grocery industry is not a luxury but a necessity.
Grocery shopping is similarly, not a desire for that matter. It is not like dining in a fancy restaurant or planning a trip. It is a part of our lives that we do on an everyday basis. Though we can say a lot about their importance and all, the online penetration of grocery shopping still lags compared to other sectors.
This brings us all to the same question, that when all the other eCommerce sectors are growing, why not the grocery sector is booming in a more significant way?
Look below to know about the challenges faced by the online grocery delivery industry.
Table of Contents
Storage:
Storing and delivering perishable items is a big challenge in this industry. Because perishable items would need considerable investments in both their storage and in the infrastructure of delivery, to ensure that the perishable items are kept fresh, they need delivery containers, customized delivery vans, and special warehouses. All of this would require a lot of money.
Quick fix:
Inventory costs can be minimized by integrating state-of-art inventory management with the just-in-time supply system. Partnering with an efficient delivery servicer who has vehicles of the right type can also be helpful. This would draw the customer satisfaction from both the operational and economic perspectives.
Low profit:
Getting a faster delivery with the assurance of quality is what customers wish. But they are also reluctant in paying the convenience charges. But this is kind of a nightmare for online grocery retailers.
Quick fix:
Instead of having to own several fleets of drivers and vehicles, hiring a grocery logistics company would be a good alternative. The cost is less when compared with the money you will need to spend on cars and the delivery staff. To maintain a smooth delivery, mention in the agreement that the delivery has to be provided from the office gate to the specific customers’ doorstep. The goods are under the service provider’s responsibility until delivered.
Consumer mindset:
No matter how much ever online grocery businesses are opening up, or how much convenience these online grocery shopping apps provide, most people still prefer to buy the grocery items from a physical store. This is because of human nature, where we want to hold the potato in our hand and take a whiff of the melon.
Quick fix:
To solve this, the online and offline grocery shopping experience can be merged.
Here’s how you can improve the customer experience while keeping the expenses low:
- Customers can verify the availability of the item online, and they can visit the store. After confirming its quality, they can buy the item.
- All the bookings can be made by the customer online, and they can come to the physical store to get the products themselves.
These models will save the delivery cost. In contrast, there is another cost that we can reduce along with improving the customer experience.
- Customers can visit the offline store, order those items online, and then can get them delivered to their homes.
- The longer checkout process can be avoided using self-checkout processes. You can draw Amazon Go as an example. There is no way that the customers wouldn’t love it.
Some other exciting techniques, along with this, are the curbside pickups and pre-orders that will enhance the experience for the customer. It is not a complicated process and can be implemented quickly, by just offering a pre-order grocery feature, and customers can schedule a delivery time or also can select a pickup spot. It is a win-win situation, as it saves last-mile expenses and the time consumption of the customer.
Inefficient deliveries:
With just one delivery system at hand, it is hard to break the limit known as hyper-local segments, as the customers prefer and expect same-hour delivery.
Quick fix:
As a solution to this, we can see that online marketplaces are gaining momentum, but it is also essential to identify some prevalent opportunities in grocery eCommerce. There are many approaches to be implemented by the business owner of the grocery eCommerce marketplace, which will accelerate the success rate of online grocery deliveries.
There are common challenges in e-grocery deliveries. They are:
- Direct delivery
- Partnered delivery
Each of these deliveries would have different problems. The common problem being the time taken for the product to be delivered on time.
Direct delivery:
The challenge faced here is to manage the functioning like extra expenses for making up separate storage spaces and warehouses. Since most of the centers are placed at the outskirts, the same-day delivery and on-time deliveries might be affected.
Quick fix:
The admin of the workplace can induce some free deliveries for bulk orders with minimum order values.
Partnered delivery:
The challenge that the admin of the marketplace will face is that they should ascertain if the associated stores have enough stocks. Additional delivery costs might be involved.
Quick fix:
The retail stores can get to experience better profit and sales. The stores would not have to invest in the construction and also on additional workers since deliveries can be made by employees.
Conclusion:
There’s no doubt that the online grocery delivery market will always remain challenging. But to make the most of it is to come up with an excellent plan and get an Instacart Clone script for the best launching experience.
