Online grocery stores are increasingly gaining popularity among millennials and younger generations. Previously, it was common to see people buy books, electronics, clothes, shoes, and many more, but now seeing people buy groceries from online stores has become the new normal.
It is one of the most straightforward business ventures with more than subtle challenges, but you can resolve all the issues with a bit of common sense and hard work. This business venture doesn’t even require formal industrial or technical training and can quickly be learned and operated.
In the past few years, many industries such as fashion, food, and consumer products have shifted almost all business online, taking a massive turn to digitization, increasing revenue, and earning huge profits. But the online grocery store business is still growing and is in its early phases, making this the best time to get into the online grocery store business.
So, in this article, we’ll explore all the reasons for investing in the online grocery store business. But before that, let’s get a quick look at what market statistics tell us about the online grocery business.
What does the market indicate about the success of online grocery stores?
The last couple of years have been dramatic in favor of the online grocery stores business. The newly emerged business is growing at an exhilarating speed, making its mark on the global economy and adding innovation to its business functionalities to expand its business services.
Let’s get a quick look at the recent market statistics:
- The online grocery become has become a $190 billion business in 2019.
- The annual growth rate is estimated to be 28% CAGR.
- It is estimated to be worth $1 trillion by 2026.
- The subscription-based business model is estimated to increase 30% through 2026.
- In countries like the USA, Canada, and the UK, more than 40% of people buy groceries online.
Now let’s get straight to reasons for investing in the online grocery store business.
Advantages of investing in the online grocery store
The fast-growing online grocery store business has seen a massive surge in the pandemic due to increasing demand. The online grocery store business is now at record highs and is expected to expand even further.
Following are the reasons to invest in the online grocery store business:
Cost-efficiency in staring-up the business
It is one of the most cost-effective business ventures in the present. There are thousands of Grocery Delivery App Development service providers who can help you build an online grocery store app at affordable prices. Apart from that, the delivery and storage take up more capital than anything else, but new innovative methods have proved to be more cost-efficient.
Emerging business demand
The pandemic rattles our lives inside out, the complete lockdown of the economy forced people to close their businesses. However, online grocery was still active with the highest business peak ever. High-earning countries have already adapted to this industry, but middle-income countries like India, where people tend to shop for groceries traditionally, embody the modern approach.
Flexibility of choosing employment type
The most successful element of the online grocery store business is the flexibility for the employees to work according to their time and need. There are multiple approaches for choosing employment; people who want to spend little time working can opt for part-time jobs rather than full-time.
Lesser competition compared to other industries
This business industry is relatively new to the economy and has a minimal number of businesses operating at total capacity to satisfy the heavy demand created by the pandemic. The low-income countries probably haven’t even heard about this business venture, making it the right choice for small entrepreneurs to grow in other countries.
Transitioning consumer behavior
The traditional approach of buying groceries from stores is witnessing a massive transition to digital buying. Previously, people like going out and purchasing hand-picked groceries, but as the environmental hazards have started increasing, people tend to stay home and get their groceries delivered at home: one way or another.
Potential industry growth
The advent of the home delivery system boosted many other industries to new heights. Books, electronics, clothes, and consumer goods everything is now available at attractive prices compared to your local stores. The new digital economy has the online grocery delivery business working at the maximum capacity and paving a new path to buying goods online.
Convenience for customers
Traditionally, buying groceries required people to get out of home and head to the nearest market, whether externally sunny or rainy. If you wanted to stay alive, you need to go out and buy food and groceries. But now, customers can buy any of their required groceries from a single tap. The customers can select the quality and quantity as per their needs. And with digital payment methods, there has never been this level of convenience for customers in the past.
Protected from pandemic
The Covid-19 pandemic rattled our lives, leaving us home helpless and vulnerable to the hazardous disease spread across the globe, taking lives at a dangerous rate. All the business and activities are forced to stop, making the economy stand still for a year. But the online grocery store business remained intact and fully functional for users to buy groceries.
You need to visit multiple stores to buy groceries, as it is impossible to find all the required items in one place. But with the online grocery store business, you get access to thousands of stores and whorehouse, making it impossible not to find your desired items.
24/7 shopping experience
The most convenient feature of the online grocery store is that you can access them anytime and anywhere. The business operates at all hours, in all seasons, through the year. There are rarely any holidays when running an online grocery store, apart from the timely technical glitches.
Promotions and advertising
The online grocery store business works on a commission basis for all the groceries sold by the store owners and warehouse owners. But apart from that, you can create additional wealth by adding promotions and advertisements on the app for different brands and merchandise.