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Online Grocery Market | Major Challenges




An online grocery can be solely clarified as a platform or grocery store that makes it easy for the customers to shop grocery items simply from there place by charging some basic delivery fees. Rather, it can also be told as an independent e-commerce service that includes grocery items.

At the present time, online grocery so called eGrocery is providing a flourishing customer base in order to tackle the problems and satisfaction of customers regarding grocery shopping. Online grocery shopping market is adopted by large number of people as more and more people are getting aware about internet The whole story of eGrocery was commenced with the peoples inclination towards ordering products online though internet vendors in late 1990s. At that point it was quite clear that the industry was going to remodel itself with the aid of this modern shopping method.

Further the Grocery was spotted as a large industry able to gain high popularity when blended with internet services. Initially it gained large profitable rewards from high-spending consumers who shopped regularly. Real time grocery shopping being a thing that many people find it unenjoyable and hence, customers used to approach to online version of it as it helped increasing convenience and saving consumers time. Very firstly the industry was succeeded by technology companies willing to use their knowledge of coding, systems, etc and not by supermarkets or food manufacturers.

Online Grocery Market

Today, online market has given a vast exposure to many grocers in the market. Rather, the industry now is not dominated by technology firms or pure-play online retailers. Rather, it is full of traditional grocery chains like WalmartFreshDirect, Safeway, Amazon-owned Whole Foods and far more. Growing e-commerce industry and increasing internet penetration is resulting in rise of online grocery sales. Currently a large part of economy is been occupied by online grocery market and It is also assumed that the growth is not going to downgrade but increase in coming years. Despite of presence of some challenges to the industry the growth is virtuous, but the ignorance of such problems and challenges by the players willing to dominate the industry can prove injurious. Some of the major challenges faced by the market are as given below.

Storage & Delivery Cost:

More investment is to be done on storage & delivery infrastructure (refrigeration) of perishable items. Special warehouses, delivery containers and specialized delivery vans must be used by companies in order to deliver perishable items fresh. All this needs a lot of capital requirement.

Consumer Habit:

Many people still prefer buying grocery items from a physical store real time. They refuse to go online due to some habitual reasons including trust issues this affects online grocery market competitors.

Low Profits:

Many customers refuse to pay for convenience charges and want to get faster delivery along with quality assurance. Fulfilling these particular expectations of customers can actually turn out as a financial nightmare for retailers. This costs the eGrocery retailer more than the actual profits in some cases.

Inefficient Delivery:

It’s difficult to maintain same-hour delivery for the customers in any area, it is hard to break the hyper-local segments with one delivery system. Product quality, time, and delivery cost – all these factors impacts an efficient delivery system in adverse way. However delivery issues can be solved with some techniques such as Direct Delivery, Click-and-Pickup, Partnered Delivery and Micro Fulfillment Centers.

The global industry for online grocery can be ruled by a company if they successfully overcome the challenges affecting the efficient management and services. Various business models and techniques such as asset-light business model, state-of-the-art inventory management API, online portal & picks up and Self-checkout should be adopted and implemented by the players to scale the industry. The market for online shopping of grocery holds a wide and fortunate future for players in the industry, those performing with help of eminent problem solving strategies and effective cost and quality will be seen on the TOP.

About the Author
Akshay Patil

Akshay Patil

Regional Sales and Marketing Director     

Passionate International Business Professional with 3 Years of experience in Sales & Marketing and Business Development of market with deep understanding of Chemical Industry.

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