With the internet being a crucial part of our daily lives, online grocery shopping is expected to be the next big pitch for entrepreneurs. And this is not a statement but a fact backed with data. As per a Business Insider study, the market which was at USD 13 billion in 2017, is expected to be USD 36.2 billion this year and by 2023 it will reach a market size of USD 117 billion.
Currently, online grocery is not one of the sectors, which are seeing volcanic growth. However, it is forecasted that online grocery will achieve faster growth than any other e-commerce sector.
As per the online grocery market analysis, purchases of fresh foods and packaged goods over the internet saw a 36% growth yearly. This incredible growth has crushed all the estimates and anticipation, which caused a competition among entrepreneurs who have started looking for opportunities to launch their online grocery stores.
Over the period, online shopping has developed enough, and consumers are now becoming accustomed to purchasing products online. This has smoothened the journey of this sector, and it does not have to face the hurdles that the other e-commerce sectors had suffered in the past where they had to introduce the customers to the concept and win their trust before being able to capture the market.
One of the best qualities about online grocery shopping is that you as customers can quickly get your produce delivered to your home as your desired delivery time slots. This saves customers’ time, and they get products offered on time.
It is forecasted that customers of the online grocery market will spend more than $100 billion in the coming years. As of now, only 14% of the US customers are purchasing groceries from online stores, but it can go up to 70% in the upcoming year. So, if you are planning to invest in this market, then this is the best time to go ahead.
However, there is still a sector of customers who want to touch and check the products to confirm their freshness before going ahead with their decision. They want to enjoy the benefits and convenience of online shopping, but they do not want to compromise on the benefits of the traditional methods also.
As we all know, online shopping includes the benefits of ordering from the convenience of home, gets products delivered to your home, compare prices conveniently, shop quickly and avoid the trouble to wait in the long queues.
So, a great option can be a mix-and blend of both methods. As per a survey conducted on 2,000 correspondents, grocers will succeed if they focus on online ordering and delivering their products to specific store aisles. Approximately 50% of those who were surveyed said online shopping is more sensible when it comes to items that have a long shelf life, which is not easy to find in the market.
Items that can be stocked up and things that are easy to be shipped have more demand in online marketing. However, there is also a category of people who still believe that food is not an appropriate type for online shopping.
An online grocery is a great option where the population is dense; there are several youngsters, incomes are high, and are ready to pay extra to have their food delivered to their doorstep during their busy schedule.
Online grocery attracts the most profitable customers who have disposable and income and ready to spend on quality and convenience.
Moreover, the pace at which the internet is growing and becoming involved in our lives, a day will come when people will use their smartphones in every aspect of their lives. Be it online shopping or on-shop marketing, and people will find it more convenient to surf and find their products in an app or a website than in the departmental stores.
You should have a robust marketing strategy to make sure that your competitors do not eat into your share. And also a strong network of delivery so that customers get their best products delivered to their required destination at the required time.