Question

existing system on online grocery and fresh market?​

Answer 1

Grocery shopping is a routine task; it is generated from need, and not desire, or luxury for that matter. We are not talking about planning a vacation or dining in a fancy, posh restaurant; we are talking about something that needs to be done on a routine basis. And yet, online penetration of grocery shopping lags far behind other sectors.

That definitely makes one wonder, when the majority of other eCommerce sectors are doing great, what’s the reason behind eGrocery segment not booming enough?

It is due to the following challenges, which also represent the growth opportunities in the sector:

Challenge 1: Storage & Delivery Cost

Perishable items require more investments on storage & delivery infrastructure (refrigeration). Special warehouses, delivery containers and specialized delivery vans must be there to ensure perishables are delivered fresh. All this requires a lot of capital.

Challenge 2: Low Profit Margins

Customers are reluctant to pay for convenience charges and want to get faster delivery along with quality assurance. Catering to this particular need can actually turn out as a financial nightmare for eGrocery retailers.

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Challenge 3: Inefficient Delivery

It’s hard to break the threshold called hyper-local segments with one delivery system, especially when the customers expect same-hour delivery. Product quality, time, and delivery cost – all these critical factors impose a huge challenge for an efficient delivery system.

Below mentioned are some common delivery challenges that online grocery marketplaces come across and their respective solutions:

Direct Delivery: In this delivery model, potential consumers place orders for grocery delivery through the grocery marketplace. The order details are received by the fulfillment center where the pick-up, packaging, and shipping functions are performed. Next, the orders are delivered using the services of the delivery partners.

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