Hello all,
I am planning to startup a retail online grocery store, as today’s era of e-commerce with price war of products which is definitely benefit for the customers. i researched on grocery e-commerce,which shows that it is increasing day by day. I think a good startup needs
*. A good product quality with affordable price.
*. A good service to customer.
*. User friendly shopping experience.
*. Proper marketing strategy.
*. Getting customers trust and fulfill their requirements.
I would like to know that what should be the strategy before launching a online grocery store.
following points confusing my mind:
1. How can we changed the customers mind moving them from local grocery purchasing method to online grocery method?
2.What should be marketing strategy and marketing method?
3. How to decide USP, to attract more customers?
4.What makes customers to be shop online in easy way?
Thanks
asha chaudhry
tanay,
quick suggestions
– start locally. which city are you from? mention that in your post. it would give us a better perspective. what works in one city, might not work in another!
– based on where YOU are from and operating, ONLY YOU can decide what your USP should be!! check out other online grocery stores and see what they aren’t offering. or try to solve a genuine pain experienced by people. do a survey – ask grocery buyers what issues they face.
– one thing i would suggest: when you get regular customers – keep track of what brands they buy regularly and how often. then you can reach out to them with a suggested shopping list every month or so – will be perceived as great pro-active customer service. also make them aware of offers on brands they buy.
– use our search engine to locate stories on online groceries
– look for articles by tanutejas of shopkirana (indore) and go onions (gurgaon)
these rodinhooders have success stories to share and lots of insights as well. do try to connect with them.
Kamal Tripathi
Tanay,
I had done some research in this area as I was interested however didn’t pursue because in order to exploit it completely needs to go in entirely different direction and I didn’t want to pursue it.
Asha is right. You have to start locally so start by distributing pamphlets in housing societies. You don’t need to convince customers I believe. I am already sold on this idea because I hate grocery shopping and keep telling my wife that the day online grocery launches in/around Noida, I will be the first one to try it. People want to save their time from such activities.
Your endeavour must be to book regular orders so that there is no friction in repeat order placement. Also YOU have to ensure that you meet customers’ finicky demands of fresh veggies, non-expired stuff and be able to take refunds.
Pls bear in mind that groceries is low margin business say around 10% and entrepreneurs have to take vertical route. BigBasket already features its own brands of atta and dal and they plan to go to farmers directly. Only if you can do that, you can get very good margins.
As Asha mentioned, every city has to be treated differently in terms of choices and you need expertise in supply chain to be able to do justice in this area. This business is not very scalable but if you provide good service like bigbasket does you will definitely get customers. BigBasket founders have good experience in retail and grocery. Make sure you work with people who have similar experience.
All the best.
Shravan
Hi Tanay,
I guess you are from Indore. Please check out ShopKirana which operates in Indore and is founded by a Rodinhooder Mr.Tanutejas.
I have myself worked for a small online grocery store in Hyderabad which has currently suspended operations. If you think I can help you with anything, feel free to reach me out at ventures529@gmail.com
Anoop Nair
Dear Tanay
While starting up an online grocery store, you might have to consider a hell lot of things. Yes, there are numerous things that you have to consider. e.g: MRP, Cost of transportation, Profit margin, Cost of operations, marketing, feasibility in the area where you are planning to deploy this, discounts, USP, COD, Payment gateway, domain, server, technology, packaging, legal aspects, invoicing, and many more. Do a thorough research on all these before you actually startup.
I have started a similar but a different concept of selling South Indian Snacks online. I did all these research and finally started the execution.
You can get in touch with me (anoop.nair@thesouthindianstore.com) in case you need further assistance in starting up your eCommerce store.
Good Luck 🙂
Paawan Seksaria
My Wife does a weekly supply of Organic Vegetables to clients directly to their homes. Orders are by email. We are in the process of setting up a website. All the above issues asked are addressable. The problem arises with perishables. In India, people still like the ‘touch & feel’ aspect while purchasing perishables. Fresh hai kya ? Itna chota size kyun … etc. The returns, complaints and associated headaches are what need addressing
Amit Shroff
Hey Tanay,
There are many website dealing into grocery products. I suggest you should go through these website do a detail RND, try using these system to shop / add products to your cart as per your monthly budgets. List down issue you face in these store and then look at your own plans and program.
https://www.gopeppers.com/
https://www.naturesbasket.co.in/
https://www.aaramshop.com/
https://bigbasket.com/
https://www.localbanya.com/
https://www.greencart.in/shop/
Here are answers to your questions in details:
1. How can we changed the customers mind moving them from local grocery purchasing method to online grocery method?
I believe following are the basic logic that should be followed:
Products : Ensure you keep best quality products, don’t keep or off load a product if you receive frequent complaints. A customer should feel that what even your store offer is best and trusted.
Price – Ensure you are able to provide better pricing then local store, since you don’t have high over head cost, not suggesting that you do 50% off.
Ease – Ensure customer can locate product at ease and add it to basket, better product information.
Payment & Shipping – Usually COD would be preferred with FREE delivery over a certain amount of min shipping charges. Don’t over promise.
Customer Satisfaction : Ensure customer satisfaction, else you deliver your price and build trust over the time.
Don’t try to Sell Everything : Don’t try to be a Big Bazar etc focus on what you can delivery and what people can easily shop online and don’t need to touch and feel.
2.What should be marketing strategy and marketing method?
Market you brand for Quality, Fair Pricing & Customer Satisfaction, don’t run price war with other store.
3. How to decide USP, to attract more customers?
I think my above points would have answer this question.
4.What makes customers to be shop online in easy way?
Market your product well, use SEO, Social Media, educate customer on product utility etc. So not just adding value in terms of creating an ease of shopping but also educating him with new product, better utility of products etc.
If you need additional help, please feel to get in touch with me at amit.shroff@72interactive.com or visit us at https://www.72interactive.in
Tanay Neema
Thanks Asha for the reply.
Sorry for late revert as i was busy. I belongs to indore, as indore city is commercial capital of M.P is on business developing track. Due to e commerce era,I think nowaday’s people’s response towards online shopping is taking shape. They are getting more aware about the products by comparing on various shopping websites.
yes, You are right. I have to do Survey regarding what customers phased during grocery shopping and how to overcome their shopping problems.
As after all in any business, customer feedback towards that business will decide its business growth and how that business overcome their customers problems.
Thanks,… 🙂
Tanay Neema
Hi Kamal,
Yes you are absolutely right. It is very necessary to plan proper marketing strategy and also to understand customers demand, as per my plan i think as per step wise step
1. Target the particular area’s of city in starting phase then expand accordingly.
2. Need to Perform survey in that target areas and know the customers response.
3. Distribute pamphlets in that area to know the customers that what business offer and how it will lower their burden of their shopping hectics.
Thanks for the suggestion bro.
Tanay Neema
Hi Paawan,
I think in india, people still believes in touch & feel concept but its is not possible in every business. See, while purchasing vegetable or other items they become used to fire their all time favourite queries like kitna fress he, koi discount nahi he kya, itne price me dusra bhi de rha he,..etc.
For getting over it, we have to develop their trust by providing good quality products with affordable prize and make them to get their confidence that the products we are offering is a quality product and our services is no doubt is good. As this is an era of competition and i think in these competiton one who will win is one who win customers trust and their confidence.
All the best..
bhavesh shah
Hi. I thibk you will need to build on 2 main things. 1. A customer acquisition model which can be scaled up. You need to find a simple scalable way / method through which you can find and and ensure customers sign up and are active. This can be through business model like say a monthly subscription model for grocery.
2. You need to strongly differentiate yourself from offline and other online sellers. This can be pitching yourself as a good heatlh expert. For example today people eat the same stuff daily. You xan provide the menu and recipe and the ingredients ( veggies and fruits ) which are different every day so that people get all the required vitamins and minerals and eat all different of green vegetables and fruit.
You might wanna pickuo a locality which is yoyt target audience and for 6 months focus on it. Get the business model right the logistics the numbers etc.
Tanay Neema
Thanks Bhavesh,
Yes it is very necessary that the online business model should made in such a way that
1. It should be easy and Convenient for customers to shop online.
2. As people need something different apart from daily needs to fins some extra. It can be sort out by providing guidance abt different types of recipies to get them better and some different taste in their food.
3.Yes, Monthly subscription will help customers to know their monthly budget also help them to know their daily needs abt groceries and veggies..
4. Nowadays Peoples are getting more aware towards their health and they try to follow diet plan, it will be good if they also know a proper diet plan while shopping and how the items (Fruits, Veggies) ingredients,vitamin will contribute to their health.
Tanz
Hi Tanay,
Ecommerce in India is picking up and people are buying online. Shops, such as local baniya and big basket as pointed out by Amit are doing very well. The new age consumers are all internet savvy and are shopping a lot. You said that you belong to Indore which is moving towards becoming one of the big cities in India. An online grocery store definitely has good potential. To answer your questions,
There are two major things people look for when shopping. Convenience, price and quality. If you are selling good quality products at prices which are comparable to the local grocery stores, then shifting people to online buying should not be a problem. Who would not want to buy good fresh groceries online of they have a chance. It is true that people like to touch and choose groceries while buying them, but the new generation is usually hard pressed for time. People shirk away from online grocery shopping because the prices are higher than regular stores.
2. What should be marketing strategy and marketing method?
As pointed by Asha, you need to begin with selling in Indore. Try and capture the market here and then move to other places. For a good marketing strategy, you will need to identify your target audience exactly and then market at those places. For instance, you target audience will be office going people who do not have time to buy groceries. You can get in touch with multiple offices like this and market your store to the people there.
3. How to decide USP, to attract more customers?
As pointed out by Bhavesh, a subscription modal for regular items at discounted prices can work. Also, if you venture into fresh products, make sure the quality is optimum.
4. What makes customers to be shop online in easy way?
Cash on Delivery option will be very important for an online grocery store.Make sure that your website is mobile responsive and optimized, because it will be easier shopping for groceries on cell phones. I belong to Zepo and we provide an ecommerce platform which includes mobile responsive and optimized sites and logistic services.