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8 Easy Ways For Setting Up Online Grocery Business

Business & Marketing | Ankit Gupta | Last Updated: 2021-01-17

8 Easy Ways For Setting Up Online Grocery Business

Businesses turning digital is not an unprecedented concept. In the last decade, there was a whopping 45% growth in digital businesses. Keeping aside the e-commerce giants like Amazon and Flipkart, there are more fishes in the pond that are flapping to compete in the ever-evolving e-commerce realm. Apart from selling apparel, electronics, and footwear, the grocery industry has also enrolled in e-commerce.


During the pandemic, the established online grocery stores and even startups faced a colossal success rate. Reason- the imposition of lockdown for safety boosted online grocery purchases throughout India. As per the reports generated in January 2021, the Indian online grocery sector benefitted the most after the lockdowns from March 2019. Today, a majority of people are ordering their groceries online.


With the growing online grocery stores, many I.T companies are now offering Online grocery store solutions in India. No doubts setting up an online grocery store is a catch-22 even if you understand your competitors! Therere a lot of things to be planned before executing and tasting success. As you will peruse ahead, youll be reading more about everything essential for starting an online grocery store and keep it running successfully.

  • The Delivery Area : The foremost stepping stone for running an online grocery business is setting up the delivery location. You cannot come up with the idea of starting an online grocery, giving out discounts, and having no clue for delivering the stuff. That would be absurd. Whether you plan to sell fruits or vegetables or both, the area would be defined for a specific boundary. Tying up with local vendors has to be done for stabilizing roots and gaining prominence. With a futuristic vision, you can make desired changes as per the budget.
  • Inventory Management : For an online grocery store, managing inventory is a necessity else the business would be in jeopardy. Hence, the whole supply chain should be managed with efficiency. Right from producers to suppliers and customers, the whole framework should be aesthetic and decorated with punctuality. Furthermore, fruits and vegetables are putrescible and must be stored in refrigerated chambers. A lot more has to be done for managing the stuff efficiently:
    • Collaborating with a credible delivery services provider for meeting with customer requirements
    • Knitting a better delivery system for offering instant deliveries to buyers
    • Integrating inventory for storing the grocery stock
    • Low Profit & Quality Assurance

Running a business doesnt mean earning blind profit. Competitive pricing is on the higher roll because of increasing competition in the area. However, managing the cost for supply chain, storage, and infrastructure poses a challenge. On the other hand, customers do not purchase fruits and vegetables without checking their freshness. It is an option that remains nullified in the case of online groceries in India. Hence, it is a challenge with persistence in nature.

  • Get an App/Website Designed : If you worship Ludditism, this aint for you. In 2021, no business would succeed if it doesnt have a Mobile application. When youre conceiving the framework of the online grocery store, get a website/app designed side-by-side. With a functional website, you can easily refine the entire concept and easily lock horns in the industry. The points that you shouldnt miss are:

Keeping an eye on the entire frame of the website & app

  • Getting the app/website designed with a customer-friendly perspective
  • Pay special attention to the website SEO and mobile-responsiveness
  • Choose an appropriate template for the website
  • Customer Acquisition & Retention

One of the biggest challenges in running an online grocery is acquiring customers and retaining them. Undoubtedly, theres cut throat competition in the online market and it is consistently growing. Humans have a tendency to shift their priorities swiftly, especially when they see better offers. Hence, the competency remains consistent. To increase the acquisition and retention rate, it is essential to keep an eye on the competitors strategy. Learn from those strategies like what to do and what to avoid for gaining new customers and having a strong retention rate.

  • Payment Gateway & Options : Would it be COD or e-payment? This isnt a tussle anymore because most online stores now have dual payment options. However, it depends on your choice for integrating which payment option as per the convenience. It becomes essential to keep in mind that the online payment gateway has an SSL security patch so that there are no lacunae that can invade it. Furthermore, the details should be kept confidential on the server without 3rd-party access.
  • Marketing and Promotion : An essential part of every business is promotions and marketing. Without marketing, it is a tough job to aware others of the presence of a brand/service. For flawless brand promotion, you must approach a digital marketing company. They have hundreds of strategies based on the clients budget. This practice is like an elixir for the online grocery business due to which it will flourish. Some basic promotional activities include:
    • Social media campaign
    • Bulk SMS services
    • Promotional emails
    • Pamphlets/leaflets
    • Business Registration

You cannot miss out on this one. Running an online business in India is easy but getting it registered is a tough job. You need to complete a lot of formalities and paperwork to acquire the operating license. The perplexing process can be easily executed with the professional assistance of a tax consultant. The task includes registration of the business, applying, and acquiring the GST number. Once the paperwork is done and you acquire the license to function, youre all set for the business.

Final Words

If youve decided to run an online grocery business, congratulations on it. It is estimated that by 2025, the online grocery market will grow by 35% which clearly favors the bright future of the online grocery business. It is a perfect option that will reap profit once you grab the core knowledge of this industry.

1 thoughts on "8 Easy Ways For Setting Up Online Grocery Business"


  • mehak
    18 August, 2021 at 12:33 pm

    A greatly designed website is certainly the most important requisite for a business owner to attract and engage the user, as well as communicate your brand and raise awareness about a product or service. Online Grocery Market business is one of the top growing businesses. As a result, having the best start in this competitive industry is essential.

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