According to Grand View Research, the online grocery market will experience global growth at a CAGR of 25.3% between 2022 to 2030. The revenue forecasts similarly are $2158.53 billion in 2030. These numbers suggest the profitable nature that online business has altogether.
Due to convenience these solutions provide to customers in terms of connecting them to grocery stores nearby, and shopping for items they are in search of, their popularity has grown manifold.
This is why those in the quest to digitize their grocery delivery operations are considering building an online grocery delivery app.
Want to know why? As you read the article below, you will get educated about the factors responsible for the app’s prominence. Later you will know how you can create a similar business with knowledge about the features and revenue model that would streamline the process.
Reasons Why Online Grocery Delivery Business is Popular
The online grocery delivery business model focuses on boosting visibility for supermarkets which until now had operations offline. This has allowed their offerings to get known among larger audience numbers. This has helped the business to get more returns. These factors have contributed to their popularity growing manifold.
Here are some other factors that contribute to its popularity and prominent nature.
1. Market Stats
Numbers speak volumes about the prominence of a solution particularly if taken from the perspective of a business. If we take an online grocery delivery app for instance; the market stats cite its prominent nature.
Check these below-
- The value of the online grocery market globally was $285.70 billion in 2021
- Growth in the market will occur at a compounded growth rate of 25.3% from 2022 to 2030
- The market size value in 2022 was $354.28 billion
- The revenues the solution will generate is around $2158.53 billion in 2030
- The online grocery market will earn revenues of $243.67 billion in 2025
2. Easy App Operations
- Customer simply has to enter the app and add their location details. Upon doing so they get a list of stores nearby.
- Thereafter they get the flexibility to select a store of their choice and choose items they want and order them. On performing this, the store assigns a delivery driver for picking the order up. The customer during this juncture is notified the driver is arriving at the store to pick the order up.
- The driver reaches the store and picks the order up; which is notified to the customer. Now customer and driver can track each other in real-time until the latter provides delivery
- The delivery professional makes the delivery, and the customer rates the store and driver both.
Now that you know the factors that contribute to the prominence of the online grocery delivery business trends, you must be wondering about ways you can be successful in this game too.
How to Start an Online Grocery Delivery Business like a Pro?
Want to get your profits rolling for your grocery delivery business that you are digitizing? Keep these pointers handy to achieve this like a pro.
1. Know Different Business Models
When you set out on creating an online grocery delivery business, you must know how the solution functions.
The app contains a list of vendors who list their products online. When customers locate them, they purchase the items, and order confirmation takes place. Delivery occurs thereafter. However, there are different business models that the solution integrates to make this achievable.
- Hyper-local business model where a grocery website or app has a list of vendors and customer orders from one matching their preference and gets its delivery done.
- Marketplace business model where items get mentioned on website or app, and buyers choose desired items and the quantity they require upon which they receive its delivery.
- Inventory-based business model where inventory gets purchased and stored by the e-Commerce store that carries on its management thereafter.
2. Select Appropriate Revenue Model
The ultimate aim of any business particularly for operations like the online grocery delivery business is to generate maximum sales.
Therefore it is a good idea to choose an appropriate revenue model.
Here are some you can select from-
- Commission fees to vendors or sellers on sales made on the platform
- Delivery charge to buyer and delivery driver on order purchase and its respective delivery
- Subscription fees to vendors for registering on the platform
- Advertising fees for on-site/on-app promotions
3. Keep It Relevant – Include Unique Features
When you venture on the journey of grocery ordering app development, you must know the solution has three respective segments – customer, delivery driver, and grocery store. It is thus necessary to include unique features in each of their solutions.
Have a look at the features that will come in extremely useful.
- The advanced search filter to make grocery search pleasant and seamless
- Schedule orders to allow customers to book order delivery as per their flexibility
- Order history to give clarity on different orders end-users made through the app
- Real-time location tracking to know order location and expected time of delivery of grocery items
- Add to cart to ease the shopping process
Delivery Driver App
- Earning history to get insight on the earnings made through the deliveries on a daily/weekly/monthly/yearly basis
- In-app chat/call to ensure a seamless connection between customer and delivery driver after order pickup takes place
- Set delivery radius to receive delivery requests from their vicinity
- Set availability online to start receiving pickup requests
- Accept/reject requests based on flexibility
Grocery Store App
- Assign delivery driver so that customers’ order is picked up
- Update store details to modify store details already present
- Reports and analytics to assess app performance and check areas for improvement
- Customer/delivery driver management to check on activities customers and delivery drivers perform
- Accept/reject orders in case available or unavailable at the juncture to get a driver to pick the order up and have its delivery done
4. Empower Yourself with the Grocery App Clone
Upon including these elements, the last step you need to follow is purchasing the grocery app clone. Outsource on-demand grocery delivery app development services to a company offshore examining their skills in developing the solution. Check their portfolio and assess client reviews.
Once you are satisfied with these areas, get in touch with them.
Perform these steps thereafter-
- Share your requirements and the target market you want to reach
- Assess their understanding and be in constant touch till they deliver the grocery app clone to you
Lastly, let us assess the grocery delivery app development cost.
Cost to Develop Grocery Delivery App
The grocery delivery app is slated to earn revenues of $243.67 billion by 2025. This cites its overall lucrative nature which is why startups wish to digitize their operations. However, when it comes to app development, grocery app clones are what they prefer since it saves finances consistently.
If you are a similar offline grocery store that plans to digitize operations it is vital to keep finances within check.
So if you plan on the buildup, the estimated cost to develop grocery delivery app will be somewhere between $36,000 to $47,000.
If you ideate it based on countries, the hourly costs are as follows.
The global online grocery market will generate $2158.53 billion in 2030. This cites its overall promising future. With convenience being the mantra to its success, digitizing the grocery store operations is key to success. If you are a traditional supermarket setup planning to get the app advantage, the time is now. Connect with a company competent to give access to the white-labeled grocery app clone to accomplish scalability and growth. Analyze different revenue models and features. Share app requirements with the enterprise you connect, and see your app idea gaining fruition. This will ascertain that you start obtaining handsome returns like never before.