Are you planning to start a business? Then, why not consider opening an online grocery store business! Not only are they becoming increasingly popular nowadays, but they can also generate a lot of revenue if your business kicks off. In addition to that, research has concluded that the online shopping trend is here to stay, so any businesses set up in this department don’t have to worry about not finding work.
So, now that we’ve established that, here are the steps you need to follow to start your very own online grocery business!
Behind every successful business is a sturdy business plan. When you plan your company right, you are set on a yellow-brick road to success from day one.
While planning your business model, you have to ask yourself several questions like:
- What products does your grocery store plan to sell?
- Do you want to include both perishable and non-perishable items?
- Do you plan to have poultry or dairy products?
- Is your grocery store offering general products or products that cater to specific diets?
- What areas do you plan to deliver in?
- What payment methods do you prefer?
- How are the products going to be delivered?
- Do you want to introduce a store-picking option?
- Finally, what budget do you want to allocate to starting this business?
Asking questions like these is important because it will help you understand how you want your business to operate. In addition, getting these sorted and out of the way right from the start will make things very convenient later on.
2. Choosing A Business Model
Now that you have some basic questions out of the way, it’s time to start developing the foundation of how your online grocery supermart is going to work. Here are a few business models you can consider
A. Hyper-Local Business Model
The objective of this business model is to only cater to the needs of a local region. Thus this business model will limit the space you can operate in. But this business model guarantees speedy delivery and helps local grocery store owners. You have to collaborate with multiple grocery store owners and sell products on your site. The more grocery stores you have on your site, the more inventory you can have. This way, grocery stores use your site to sell their products online.
B. Multivendor Business Model
Instead of selling the grocery yourself in this business model, you set up a platform where various grocery shops can register and sell their products. These sellers pay you a commission for operating online on your site.
Thanks to this, you do not have to worry about any inventory.
Packaging and dispatching orders can either be taken care of by the sellers themselves or by your company
C. Click And Collect Business Model
In this business model, your customers can use your site to order groceries from the nearest store, which will shop for them and have their groceries ready. But the difference here is that instead of delivering the groceries to the customers, the customers themselves come to pick up the groceries from the nearest grocery store once they’ve been bagged. Of course, the customers can still opt to have their groceries delivered if they wish, but the click and collect model adds an extra feature for added flexibility.
This is a popular business model, and it is a healthy alternative for the environment as well.
D. Inventory Based Business Model
In this business model, you are responsible for sourcing and managing the groceries you plan to sell in a self-maintained warehouse. You can make contacts with various suppliers to stock up on groceries. You have to be responsible for keeping track of your inventory and ensuring that your products remain in pristine condition.
Once a customer places an order, they are prepared from the warehouse and shipped.
3. Developing A Site
The next step in embarking on this journey to establish your online grocery supermart is designing your website. This is an integral part of the process because your site layout will determine whether your business will take off successfully or not. In addition, it can help you stand out from your competitors and attract not only more customers but also more sellers (if you plan to go through with a business model like that).
Try to include various features in your site and hire a web developer to create a very user-friendly site. Make sure your site is up to SEO standards, so it pops up first when someone searches for where to buy groceries online.
Some features you might want to include in your site are
- Courier tracking
- Discount coupons/vouchers
- Maps and Navigation options
- Product and order management tools
- Search filters
4. Register Your Business
Now comes the documentation part. You can start with the registration process after completing the steps mentioned above. Then, get all the necessary permits and educate yourself about the tax submissions. Finally, get all your legal formalities sorted out.
5. Consider Payment Methods, Delivery Areas, and Delivery Methods
In this last step, you have to finalize your business details.
You have to consider whether you want to collect payment online when the order has been placed or upon delivery. If you’re collecting online payment, do you only accept credit, or do you also accept debit, bank transfer payments, or other options?
Unless you’re a hyperlocal online grocery supermarket operating in a minimal zone, you have to decide what range of areas you plan to operate in. Are you starting on a small scale like your local area or your city? Or are you going big from the start shipping nationwide or even across nations.
The delivery methods also matter. You can either have a company van delivering your groceries, send groceries through a courier in case of long-distance parcels, or even have customers collect the groceries themselves at the grocery store.
Now that you’re equipped with all the essential information, you can start researching and begin your venture to develop your own business. Weigh out your options carefully, and hopefully, you can maximize your profits through a well-established business. Good luck!
Author Bio – Ombir is SEO Executive at eRank Solutions. He is an SEO and Writer who has experience of 2 years in these respective fields. He likes to spend his time researching various subjects.