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January 16, 2015

Online Retailers Take On Groceries

Posted by Amitabh Mudaliar (View Profile | View All Posts) at 4:25 AM

Can online grocery shopping really save you money? [Source: https://www.youtube.com/watch?v=CEtreaNHrg8]

If there is a poster child for the advantage of having a robust bricks-and-mortar infrastructure in the competitive world of online commerce, it's the grocery store.

Just ask anyone at this week's annual meeting of the best and brightest in the retail world, the Big Show. That's what the National Retail Federation calls its terrific gathering of speakers, exhibitors, entrepreneurs, and, of course, the globe's leading retailers.

On its own, selling food is one of the most challenging businesses in the world. Your inventory is highly perishable and your margins are among the slimmest anywhere. Executives who succeed in other industries and businesses have been known to shrivel up when faced with the prospect of running a grocery store chain.

Now add the fact that consumers (some of them, at least) are demanding online grocery shopping and delivery. If you have ever visited New York City, home the NRF's Big Show, you know the already-clogged and congested streets are made even more so by 'e-grocery' concerns that park their giant, refrigerated trucks on busy street corners, where delivery boys rush packages of highly perishable foods into apartment buildings. The cost and complexity of delivering online grocery orders is staggering.

Not unexpectedly, one of the web's most talented and ingenious businessmen, Jeff Bezos of Amazon, is attempting to dominate the online grocery space. Why are he and other entrepreneurs so interested in groceries? In the United States alone, the food and beverage industry is the largest by sales of any other industry: $600 billion annually. To get even a small slice of that pie is quite desirable to some businesses.

But now that it's 2015, and everyone is making their New Year's predictions, I will predict that the companies that succeed in the growing market for online groceries will be those that can leverage IT successfully ... not just food. That's because information technology is what helps a company track orders and ensure that food is not damaged as it is rapidly delivered to the consumer.

A major study on the subject says that savvy, online consumers are willing to pay extra for the convenience of avoiding the supermarket and instead having items delivered to their doorsteps. If Amazon, eBay, and even Google can ensure same-day delivery of books and music, then perhaps food is a natural extension.

If the IT infrastructure is there, why not include more products? In this new study, a full quarter of millenials surveyed said they would be willing to pay extra for same-day delivery for the online orders.

Then there are the disruptors. The lean, mean, smaller companies for which online groceries aren't simply things you add onto an already sprawling online enterprise. These companies are known as concierge shops, and they offer what the big online companies cannot: a focus on one sector and the same sort of focus on their online consumers. They're not delivering books one moment and bananas the next.

Another prediction: These market disruptors will find ways of establishing shared food storage and fulfillment centers in major metropolitan areas even though they are competitors. That kind of move is market disruption at its best: working together to take on the big guys -- some of the NRF's most prestigious members -- when the big guys expect it least.


In India, online grocery has picked up well in cities like Bangalore, Mumbai. Onsite grocery sites like bigbasket.com don’t only have web versions but user friendly mobile-apps, which makes it very convenient to order groceries anytime , anywhere. Some additional features on website of naturesbasket like “Shop based on recipes” and “Healthy Ideas” are very practical value adds which enhance online shopping experience. Most of these online grocery stores have also stores setup at strategic locations on metropolitan cities. ZopNow, another online grocery company has tied-up with HyperCity chain, and leverages its sourcing and storage. Interesting business models coming up. With local convenience stores also promising telephonic business orders, free home deliveries and rates at par with bigger players, let’s see where the consumers tilt…..

hi, thank you
i really appriciate that that topic so good.

Very Nice lines is here to describe "online grocery shopping really save you money"
You can give extra time to your family, make fun, activities and many more which you can.
Thanks For Sharing valuable article..


It's fact online grocery shopping save your time,fuel and money.And reduce your stress, also standing in queue.

Very Nice lines is here to describe "online grocery shopping really save you money"
You can give extra time to your family, make fun, activities and many more which you can.
Thanks For Sharing valuable article..

The Online grocery segment is definitely making its presence felt despite. Many of the smaller cities are joining the tier-1 cities in getting their 'own' local online retailers. Recently, PayU stated that Online grocery shopping is expected to see the highest number of electronic transactions, after mobile recharge, within a year.

You can read the complete article at - http://economictimes.indiatimes.com/articleshow/47864302.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Now a days, Online grocery sites rapidly increasing.

Hi, online grocery shopping expand in more cities like Bangalore, Pune, Mumbai, Delhi & more so quickly. early few months before started Pune based BiggMart.com got more growth in online retail sector.

Great Article for me and for that persons who are going busy, They are not getting time to do shopping.
Really Online Grocery shopping saves our money as well as our valuable time. we can use that valuable time for our family, urgent work as well as meet to friends.

Yes, Amitabh Mudaliar! Was amazing.
Now India’s goes to be Fastest Online Shoppers. Because here lots of facilities for customer instead of Offline where they can’t choose grocery items in sufficient time. Also I have read Great Stuff on Online Grocery Shopping here - Shop & Save Smartly on Grocery.

great article, now a days people use to prefer online shopping more as compared to offline due to its convenience, home delivery, offers they provide, refund policies etc. just by sitting at home you can order whatever you want to may it be food or a mobile phone anything. In Delhi i know a site needsthesupermarket.com, it is an online grocery portal offers many exciting deals and discounts.

Really very nice and informative post shared by you.
Please Keep update us........

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Thanks you posting nice article on online grocery shopping. I prefer doing online grocery shopping on aaramshop.com as it saves my lost of time and many offers are also delivered to me by the retailer.

This blog is really interesting .I always love to shop online because it save my time and money.

Hi ! Really nice blog. Really appreciate the effort that you've put in.

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Online grocery shopping is good option it reduce your work , you don't have to go anywhere you can shop it from your home.Now a days there are easy exchange and return offers availble there so online shopping is profitable for everyone.Yesterday I shop grocery from gandhibagh.com and it was great.

I have started working for zapmart.com and i think online stores is the future. Quick delivery and easy payments its just like ordering from your local store.

online shopping portals growing fast everyday.In busy schedule we don't get time to buy groceries.so shopping of online groceries is best option.Recently I shop groceries from gandhibagh and it was good experience.

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Online Grocery market has a lot to offer no only to the customers but also to retailers...they can let their presence known which will definitely help the customers to take the benefit of things they have to offer..

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