In 2022, delivery applications are undoubtedly going to dominate the market. Affected by the pandemic crisis, the business landscape has changed, and people have come to value services they can take advantage of without leaving their house, including grocery delivery. As a result, grocery stores and customers have already benefited from online grocery shopping applications.
While businesses strive to provide better services to consumers due to the growing competitiveness of the industry. Milk, meat, produce, and many other delicacies can now be conveniently delivered to your door, gate, curbside, etc. – a luxury becoming more and more readily available to the general public.
South Korea leads the way by buying 20.3 percent of its groceries online, according to Statista. Additionally, the UK is an absolute European leader in online grocery sales, where 7.6 percent of groceries are purchased via mobile apps. With apps like Instacart, Shipt, Peapod, BigBasket, etc., grocery shopping has never been easier, and they continue to grow worldwide. There is no doubt that this market will generate vast revenue soon.
Many people are also turning to online stores over traditional brick-and-mortar stores, mainly because of the many conveniences and other benefits such as not leaving the house to shop and attractive deals on festive days. Isn’t it a great idea to order groceries online? Since there is such a big market and needs to be filled, many people are moving towards developing on-demand grocery delivery apps to meet these needs.
A Shift in Behavior: Fascinating Grocery Delivery Statistics
Consumers have long been attracted to online shopping’s convenience and increasingly personalized experience. But, with a global pandemic causing people to flock online and to mobile devices for ease, convenience and safety, it’s clear that online ordering won’t be going anywhere, even in grocery stores.
According to one of the article, consumers admits that they are shopping online for essentials for specific reasons, including,
- For the convenience
- They prefer not to go to stores
- They want doorstep delivery
- It helps them to prepare a weekly meal plan
According to Forbes, rather than grocery shopping, in general, seeing changes at the beginning of the pandemic, online grocery shopping saw the greatest changes. So now let’s see some of the shocking figures and facts related to groceries.
- As of 2020, online grocery shopping generated nearly $90 billion in sales in the United States, increasing by over $30 billion.
- Forbes reports that 81% of consumers didn’t buy groceries online a year ago, but nearly 79% of consumers have done so during the pandemic.
- Online grocery shopping has increased sales by 30 billion in the U.S. alone and is predicted to increase by 250 billion by 2025, so it is evident that grocery stores make more money with online grocery shopping.
Trends in online grocery shopping are definitely on the rise. Both established and new players in the market offer curbside delivery and pickup. Do you know that most consumers prefer home delivery to curbside pickup four times more? Delivering your groceries to your doorstep is much more convenient than picking them up.
A Roadmap to Create an Online Grocery Delivery App
Online grocery delivery apps are getting popular across the globe. Whether we talk about Instacart, Shipt, AmazonFresh, or anyone, all are performing well in their respective regions, and grocers are leaving no stone unturned to leverage this emerging trend by partnering up with grocery app development company as it allows them to meet the continuously increasing demand for ordering and delivery.
So, if you are someone managing a startup or a supermarket owner willing to invest in a grocery delivery application with an aim to boost business, you have come to the right place. So, without any ado, let’s go through the various steps.
Conduct a Market Research
Starting a business requires knowing your target customers and competitors, along with the current market. Check out the features that your competitors offer. Take the time to understand what your customers need and implement the features that would address their pain points. Your app will be more successful if you make a thorough market assessment. It will also help startups in marketing and promotional activities.
The key to developing a grocery delivery app is to conduct a market analysis and research. Competitors and customers form the market. A thorough analysis of both involves:
- Who are your rivals, and what strategies do they follow?
- Who are your potential customers?
- How to target your potential customers
- What are the special features you can integrate
- What is the purchasing power of your ideal audience
- How can you solve customer’s pain points
Clarify the above points first, and then comes the second most important step: choosing a grocery delivery business model.
Choose a Grocery Delivery Business Model
There are various grocery delivery business models available, entrepreneurs need to choose one based on their requirements. Let’s go through each business model with examples.
Inventory Based Business Model
The business model relies on an inventory management system, as the name implies. Buying and storing inventory is the responsibility of the platform owner with an inventory-based business model. Owners of eCommerce businesses purchase inventory from different suppliers and store it in self-maintained warehouses.
For instance, BigBasket follows this business model and experienced escalated sales in a short period.
Multi-vendor Marketplace Vendor
The platform does not manage Stocks. Instead, it allows customers to find local supermarkets. The website transfers the customer’s order to the local grocery store after the customer places the order. In addition, their delivery network allows them to manage shipping by collecting shipments from individual stores and delivering them directly to customers.
By connecting the platform to a store’s branding, the platform sends orders to the customers. This is how Amazon does business in numerous regions.
Hyperlocal Grocery Delivery Business Model
It optimizes multiple supply options to satisfy consumer demand within a specified region. For inventory availability, the entrepreneur must make sure to work with as many local suppliers as possible. Instacart follows this model as the app connects customers with personal shoppers to deliver hyperlocal groceries on-demand.
Selection of the Distinguished Features
Create a website or app that has the most important features for your grocery delivery business. Customers will benefit from an elegant, fuss-free front-end experience, while the delivery drivers will benefit from an app that allows them to pick up and drop off orders quickly. It is necessary for vendors to have access to an admin panel where they can view business operations.
Stack Up Your App with Right Technology
It’s imperative for grocery delivery apps to stack up with the right technology to provide an easy-to-use ordering experience for users. The following technologies are essential to making a robust grocery delivery app,
- Android: Java, Kotlin
- iOS: Swift, CC
- Backend: Node.js, Express.js, MongoDB
- Frontend: React.JS, Material UI
- APIs: Twilio for SMS, Google Maps
Hire a Right Team to Build Grocery Delivery App
Not lastly, hiring an expert team of developers will relieve you of all worries. Essentially, an agile team made up of experts from diverse technological fields will get the job done expertly by a good development company.
Are You Ready to Capitalize on Emerging Markets?
Today, the time has never been more important than it is in the age of capitalism when most people lead a highly dynamic life – whether that be working, studying, or raising a family. Because of this, people are looking for anything that will save them time so they can spend it on their dreams or what is really important. By itself, this fact could be enough to propel grocery delivery apps to great heights.
Due to these factors, industry newcomers will have an easier time competing successfully with existing companies with a smart business strategy and nimble approach – opportunities are basically endless, as the market is still growing.