Common Reasons For Facing Failure In Online Grocery Delivery Service Business?
Shopping from an online grocery store is a trend these days as you get the things delivered at your doorstep. It is imagined to be one of the next level things for the startups. But in the last few years, many of the grocery businesses took a major step and entered the E-commerce industry, but failed to prove themselves. The failure in the same led to the slow withdrawal of startups and compelled most of the new startups to quit.
With any of the grocery shopping app, people try them to claim the first discount feature that comes up with placing the first order. Then they simply uninstall the app, and the story ends.
In this world, where the majority of other e-commerce segments are performing great, but why only the online grocery business was not able to boom much?
We’ll showcase a few reasons today, that were responsible for the failures in the online grocery delivery business. Let’s take a look..!!!
1. Packaging and Delivery
As perishable items among the grocery are more likely to get decay, the business needs to invest more on the storage and delivery groundwork. The issue that mainly comes with the non-perishable items is their packaging and shelf life. The best grocery delivery service always ensures that the product packaging is up to the mark.
2. Growth Strategy
Marketing is something that leaves an impact on the user. If a brand’s marketing strategy is not up to the mark, it may fail to be profitable. The way a brand list its products online gives know-how to the customers. They get to know how well a brand can perform in terms of quality service. Setting up a good online base of marketing the items increases brand awareness. Sponsored campaigns can be run on the social platforms along with introducing promos/ offers to the customers.
3. Choose the best technology partner
It happens most of the times, whenever the customers try to operate the app, they might experience a few bugs in the same. This somehow reduces the interest level of the customers and further, they don’t prefer to switch to the app. An ideal business plan should be set and the latest uber app model for the grocery delivery business should be brought into effect to be more user-friendly.
4. Low-Profit Margins
Shifting a physical business to an online shopping platform requires a lot of capital. And customers on the same end demand for lower prices and good offers. However, it sounds quite tough to sell the products at a lower price and turn out as a financial ordeal to the business holders as it becomes difficult to handle the relevant expenses. Instead of acquiring a personal fleet, an online grocery business should hire a logistics team. That can influence the expenses at a better level.
5. Poor Inventory Management
Most of the time, the online grocery delivery service lacks in having a comprehensive inventory management system as it is the best alternative to maintaining manual records. It helps to have a perfect overview of the stock without the risk of overstocking. And will also support you to analyze stock changes and plan future demands accordingly. So, always opt for a fully integrated inventory management featured app.
6. False Shipment and Add on rewards
Majority of the customers have come across the issue of wrong goods delivered. Either the products are damaged or either they are missing. In a few cases, product substitutions were delivered instead of the original product. Apart from this, most of the perishable items were found to be entirely decayed or with a shorter shelf life. Customers are also highly affected if their desired item is not in stock. Delivering the substitution instead of the original product/ brand should be avoided. In case, the wrong product is delivered to the customer, an add on reward gift should be sent along with the right order.
7. Inefficient Delivery
It’s difficult to break the segments with an individual delivery system, especially most of the customer requirements are expected to be in the same hour delivery. And somehow these businesses have failed to exhibit timely delivery to the customers.
8. Inoperative Offers
Customers also experience the issue of offers and promo codes, which don’t just claim to be correct or either they don’t work and this leads to customer loss. While adding or introducing such discounts and offers to the customers, the admin should ensure that they are fully acceptable and working properly.
The online grocery industry is still going through a rough phase as it just started to pick up the pace. If technological advancements will be introduced to this, then for sure this sector will be more efficient and profitable. To stay competitive in this field, the company needs to invest more in the implementation of technologies that can help to easily review and manage the stock and customer requirements. Last but not least, be a marketplace where your brand can connect with the potential customers easily, focuses on customer experience, and holds a strong online business presence.
On the other hand, getting an uber model for your business can be a favorable idea. The grocery app development cost varies according to the chosen business model, platform, and features. If you are also planning to develop your grocery app, then connect with the top mobile app developers in the region.
Goteso is the top mobile app development company, with a team strength of 80+, that accumulates the best developers, analysts, testers, digital marketers and designers in the region. To know more about our on demand app solutions, get in touch with us at +1 415-992-6367 (US & CANADA) or share your queries at info@goteso.com.
