Online grocery market is expanding day by day and there are many statistical proofs to agree with this fact. Around 45% of consumers are shopping groceries online, which is a 22% increase when compared to the pre-pandemic period. This grocery industry is expected to grow exponentially in coming years.
Building a perfect online grocery platform will be the right choice to start your online business. All you need is to understand the challenges that any grocery ecommerce platform would face and should plan an excellent online grocery market strategy that will confront all challenges and will make you earn well.
Challenges of running a grocery ecommerce platform
- Traditional grocery stores – although customers have experienced more comfort in shopping online still traditional stores get in touch with customers emotionally and they provide more customer benefits and they are also found in the neighborhood and are easily reachable whenever customers need to return the product.
- Stock maintenance – most grocery products are perishable and they need to be sold within a timeline. For this they need to get continuous orders that will keep products moving. Else the perishable products get rotten and this will cost you more. When you start an online grocery store it will take months to get customers and more orders. Till then one needs to bear the loss.
- Inefficient delivery – extraordinary delivery infrastructure is needed to maintain grocery products. Dedicated refrigeration will cost additional expense. To offer on-time and speed delivery your grocery ecommerce platform should be integrated with reliable and efficient delivery partners. But getting a perfect delivery agency is the greatest challenge for any online grocery store.
- Low profit margin – Customers always prefer speed delivery but they are not ok with the delivery charge that the platform asks. To attract more audience, any grocery ecommerce platform should offer free delivery charges initially. This will reduce their profit margin.
- Heavy competition – by understanding the market demands, every single entrepreneur has started investing in building a grocery ecommerce platform. As a result, customers find thousands of online grocery stores to access. To acquire new customers among tough competition is the real challenge that any grocery platform faces today.
Best online grocery marketing strategies for grocers
To beat the competition and to overcome all the above-mentioned challenges any grocery ecommerce platform needs to have a unique grocery market strategy that will easily promote the platform and will gain the attention of the audience. Now let us analyze more about the grocery market strategy.
- Connect with customers – acquiring new customers is important and likewise retaining old customers is also very important to grow your online grocery business. This is possible by getting connected with each customer and understanding their preferences and offering personalized shopping experience. Use all customer data and analyze and understand customers’ shopping behavior that will help you to suggest products to them in future and increase your sales.
- Utilize trending features – your grocery ecommerce platform should have more new features to be added frequently in your marketplace. This will make the audience curious to know what is new in your platform and will make them visit again and again. You can include curb-side delivery, in-store pick up options and many more. This will have an added advantage for customers to select your grocery ecommerce store for shopping.
- Have a flexible fulfillment option – you can plan your fulfillment by setting terms and conditions that will meet your business demands effectively without affecting customer experience with your online grocery store. You can set a minimum order value or can offer customers free delivery for orders that exceed a certain value. This will benefit your platform to earn well without spending much.
- Increase the revenue stream – you should not stick on to any particular revenue model alone. You should go for multiple revenue streams that will positively increase the revenue. You can build affiliate modules that will accept affiliates to work on your behalf and earn you business. You can have ads running on your platform and through ads you can increase your profit margin.
- Integrate your grocery platform with latest technologies – technologies have a greater role in building an effective grocery ecommerce platform. These technologies will simplify business operations and offer better customer understanding. Advanced technologies like artificial intelligence and machine learning algorithms will help you study more about the grocery platform and will give you a clear picture about fast-moving goods and other consumer shopping preferences.
- Building better customer relationships – retaining customers will always benefit us in building our business to the next level. But holding them back with your platform is not an easy joke. You need to offer better customer loyalty programs and many more referral programs that will gain their attention and will let them stay with your grocery platform for a long period. You can also provide them better earnings while shopping with your online grocery store. This will motivate them to refer more friends and you can also increase your customer base with less effort. This is the best online grocery business strategy that will assure better results. Have multiple communication channels that will allow customers to communicate with you and you can also measure their satisfaction level then and there.
How to promote the online grocery store software is the main question that rises in every grocer’s mind. It is all about the grocery market strategy you implement. The strategy determines your success rate and will let you get better returns. Check with your competitors and understand what marketing strategy they are utilizing for their grocery business. You need to provide better plans and offers to attract a larger audience.