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Introduction – Online Grocery Store
In the past few years, with the rising fever of e-commerce startups, countless online business ideas have emerged. But the idea that seems to be catching the eyes of most entrepreneurs is Online Grocery Stores. There are numerous online grocery businesses across the world that has gained massive success in the past couple of years.Challenges of opening an online grocery business:
Inventory of Online grocery store: For any retailer, online or offline, storage is a big concern. And when it comes to storing perishable products, the concern is much bigger. Refrigerated storage definitely manifolds the inventory cost & management efforts. Inventory management for grocery items needs to be quite efficient with faster turnover ratios & minimum spoilage, as only then a decent profit margin can be expected. Packaging & Delivery Cost of Online grocery The perishable nature of grocery items also reflects on the packaging & delivery cost, which also needs to be refrigerated in most cases. On top of that, in order to make a greater impact on the market, you also need to keep the delivery cost minimum. All this indicates the need for a very efficient supply chain, which would certainly require some extra efforts.Timely Delivery of Online grocery Like online food ordering sites, your delivery system needs to be quick, since primarily you are dealing with customers who prefer convenience & quickness over price. The fact that most online grocery shopping is dual-income households is also the reason behind the low market penetration of online grocery stores. To attract more customers, it is essential to ensure the freshness & quality of the grocery products, which can only be achieved by implementing an efficient hyper-local delivery network in all target markets. No Returns of Online grocery Perishable items also mean a very thin window for returns. So, it is imperative that you have an impeccable online ordering & delivery system. Unlike other products selling online stores, online grocery stores have very low chances of making amends (without really facing a loss) if something goes wrong. So, that too is an added challenge for online grocers. Now, let’s take a look at the future scope of this sector.
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