Whether, you like it or not, there are clear discernable reasons why shoppers prefer big online stores like Amazon. Consistent discounts, reliable product quality etc. No matter what you are purchasing, sure savings and peace of mind won’t hurt.

Tegelijkertijd, this makes it harder for the smaller retailers to compete with the big online grocery retailers. doorgaans, cheaper prices mean compromised products quality and eroding profit margins to the businesses.

Simultaneously, the online Grocery market does pack-in tremendous opportunity as well.

The fast moving consumer goods industry is the fourth largest industry in Indian economy. The market size of FMCG is expected to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018. According to the report of India Brand Equity Foundation, it will probably reach $103.7 billion by 2020.

Due to high level of competition in the market, CRM plays vital role in the growth of any business. As food product is the largest consumption category in India (nearly 12% of country’s GDP), customers expect higher quality product and service from online grocery stores.

Let’s begin by understanding the major aspects of customer’s behavior as they visit an online grocery store.

Major Aspects of Grocery customers’ Behaviors

  • Now customers have more access to information, thanks to extensive use of internet. This leads them to having a great number of purchase choices and different quality options.

For example – near about 70% of customers read food labels before making a purchase.

  • According to study repost, one-third of consumers check online prices, nearly half of them research products, and more than half find product promotions on their smart phones.
  • The big online stores have made online customers accustomed to receiving significant discounts.
  • Nu, consumers recognize that grocers are gathering information about their previous purchases and search history. They expect them to use that information to provide better shopping experience.

Increasing preference of online grocery shopping stores add something more to the competition. Let’s see why consumers prefer online stores for grocery shopping –
Online Grocery Stores

Chief Challenges Facing by the Small Retailers

The consumer needs are changing gradually. With the changing requirements, online retail companies are facing seven major challenges today.

  • Managing effective communication system with consumers: Customers always have thousands of enquiries regarding the product, shipping status, shipping charges, delivery time, delivery person’s details and many other things. Especially for the online grocery stores, where the products are expected to be delivered as soon as possible, it is necessary to build a strong communication system among customer service, delivery boys and the consumers.
  • Managing a positive online profile – By its very nature, the online consumers are more likely to be aware of their products and purchases. This means that small or large businesses need to cover their online media category and product interests. This helps business to really focus on creating new user accounts for their businesses.
  • Managing the online enquiries – as the grocery store will drive regular purchases, you need to make sure that you are handling online enquiries regularly. This helps cultivate regular online purchases and definite buying habits.
  • Difficulty to penetrate in small towns: In small towns, people are not yet accustomed to online grocery stores. They are used to traditional food and beverage shopping and have major trust issues with online delivery policy.

online delivery policy.

  • Discovering the loyalty Factor: Gaining customer loyalty is one of the critical challenges of small online grocery business. The retailers offer rebates, special coupons, free shipping and discounts as incentives to consumers. Echter, the consumers keep shifting from one app to another to find out better deals.
  • Balancing the discounts and profitability aspects – The online stores could positively repel the customers by following the wrong pricing dynamics. You need to understand and create an accurate customer profile to buy the products at the right discount.
  • Tracking the buying pattern of consumers: It is difficult to track and understand the customer’s buying pattern, by analyzing purchasing history of each customer. Unless you can understand the consumer’s buying behavior, you cannot able to provide the personalized service and offers.