E-grocery has been growing exponentially in India like other e-commerce businesses. Some companies projected their pan-India expansion plans where as some just want to remain local players. However, all these companies are continuously working to make their business profitable and achieve break-even at the earliest by making more consumers buy from them as well as optimizing their entire supply chain, right from procurement to delivery of the goods.
According to Bal Krishn Birla, co-founder and CEO of Zopnow, “An online grocery business needs to track its profitability at four levels —the SKU, the basket, the warehouse and finally, the company”.
In most recent news, Flipkart is planning to sell groceries through its website later this year. Amazon is already running a pilot project in Bangalore. Snapdeal is already selling more than 400 FMCG products through its partnership with Godrej Nature’s Basket. And these are just the novices in an already fledging e-grocery market. Significant volumes of goods are already being sold through website such as Bigbasket.com, Localbanya, MyGrahak, etc.
The Indian e-grocery market is growing rapidly and changing consumer preferences are fuelling this growth. Successful e-grocers need to offer their products at competitive prices with promised delivery schedules. E-grocery is challenging, but it also has the big advantage of high percentage of repeat orders. Acquiring customers is a vital aspect of the e-grocery business. All you need to do is delight the customer with the first order and there is high possibility of having a loyal customer.
The author is Associate Professor in Marketing at IMT, Ghaziabad