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Why you need a delivery mobile app for your new online grocery business? Learn Below.

According to Orian Research, the global online grocery market is expected to grow at a CAGR of 23.7% between 2020 and 2025. On-demand grocery delivery apps allow customers to order groceries from the comfort of their homes. Because of the popularity of on-demand apps, grocery delivery app development companies are on their toes to provide something new to users.

Online Grocery Business

Why Start an Online Grocery Store?

Rapid Adoption

Grocers are bringing their stores online because they experience a two-to-three-fold increase in order volume. The pandemic acted as a catalyst in the fast growth, and now that things have returned to normal, people still love to order groceries online because of the convenience online platforms provide.

Ease of Management

Online stores are easy to manage. Vendors get panels to control their inventories, and they can upload product pictures and descriptions. They can also know which are the best-sellers and which products are out of stock. Besides, vendors can know how much revenue their online store has generated in a day, month, and year.


Online grocery stores are a great way for grocery businesses to market their business. They can reach a much wider audience, which results in business growth.

Enhanced Convenience

Convenience is what customers want. In an offline grocery store, customers have to first reach the shop, stand in the queue to pay the bill, pick up the basket, etc. And on top of that, they have to spend a significant amount of time in the store, and we can’t ignore the time spent commuting to and from the grocery store. People love to spend this time on other activities important to them, and grocery delivery apps provide them with that.

Analyzing Customer Experience

One of the most crucial things for any business is to analyze customer behavior. What products do customers like, how much time do they spend on your app, what are their likes and dislikes, etc.? All this data can be collected when you have an app or website from where customers buy their groceries. Whether you are a startup or an enterprise, this valuable data can help your business grow.

Personalized Offers

When you know the likes and dislikes of your users, you can send them personalized offers, which play a huge role in attracting customers. Not only that, you can enhance the customer experience by providing them with relevant suggestions.

Order Tracking

The real-time order tracking feature in the grocery delivery app allows customers to see where the order is and in how much time it will reach them; it makes waiting time less frustrating. For the grocery business, it’s a great way to keep a tab on delivery personnel.

Improved Customer Loyalty

Customer loyalty is crucial for business success. One needs to retain customers; however, it takes time to build customer loyalty. When you have a grocery delivery app, you can introduce loyalty programs through which you can retain existing customers and attract new ones.

Multiple Payment Modes

Grocery delivery apps provide multiple payment modes. One can use debit cards, credit cards, e-wallets, etc., to pay for their purchase on the grocery delivery app.

Reducing Overhead

For running a grocery store, one needs to hire people and provide them with a salary. As the offline store grows, you need to hire more people. On the other hand, if you have a feature-rich grocery delivery app, many of your tasks, like generating bills, get automated. You don’t have to hire people when you decide to scale up your business.

Contactless Delivery

Contactless Delivery
Photo by RODNAE Productions from Pexels

Customers can even opt for contactless delivery, or they can buy online and pick up from the store. When customers are provided with options, it enhances their experience with the business.

Business Model of Your Online Grocery Marketplace

There are different business models for the online grocery store, and you can pick the one that resonates with your business goal:

Inventory Based Model

Many online businesses adopt inventory-based business. In this model, grocers maintain their own groceries. They buy goods from suppliers and store them in the warehouse. Goods are generally stored in bulk in an inventory-based model. Big Basket, a popular name in online grocery shopping, uses this model, and the major challenge in this model is preserving perishable goods. Since they are perishable, vendors have to sell them before they rot. Big Basket practices a “just in time model,” where the company preserves goods for 10 days. This strategy has resulted in reducing the wastage of perishable goods.

Grocery Marketplace Business Model

In the grocery marketplace business model, the online store delivers orders within a limited geographical area. The marketplace is a platform for local grocers to reach more customers and these grocers become vendors on the app. There is no inventory in this business model as it connects vendors with customers. Buyers can buy from their favorite grocery store. Vendors have to pay a monthly or yearly fee to showcase their products on the platform. This model is also known as the aggregator business model.

How Are You Going to Offer Delivery Services?

After placing the order, customers expect the same-day delivery. When it comes to perishable goods, it becomes all the more important to deliver on the same day. When products are fresh, customers don’t hesitate to pay a delivery fee. It’s important to satisfy customers with the latest manufactured products and on-time delivery. For you to provide on-time delivery, the grocery delivery app must have a location information feature. The feature detects the location of the buyer and filters products on the basis of zip code or distance from the buyer’s place. It helps your grocery eCommerce business to deliver on time.

Wrapping it Up

A grocery delivery app is the need of the hour for grocers. People love to order online as it adds convenience to their lives. The tremendous success of the delivery apps during the pandemic opened endless opportunities for grocery businesses. In order to make your grocery delivery business successful, build a feature-rich app with an interactive interface. Regular discounts and loyalty programs play a huge role in making the online grocery store a favorite of users.