On-demand Grocery Trend: A Fad or Future?

The world is at the peak of a digital revolution, and we are witnessing a new digital trend every day. One such trend that is stealing significant attention is on-demand grocery.The online grocery purchase at the beginning of 2019 was not more than 2.3% of the total sales. While in 2020 almost 35% of U.S. consumers switched to ordering groceries on-demand online.

With that said, we cannot ignore the elephant in the room, i.e. social distancing measures. Now, we are aware that the pandemic situation has been playing a prime role in shaping these digital trends. And lockdown and social distancing together have compelled consumers to resort to online grocery purchase.

So, the question is: Will consumers continue with the on-demand grocery shopping trend? Or will they adapt to the traditional store-based grocery shopping when the situation goes back to normal?

Here this article brings you answers to some influential questions for the retail and grocery businesses. These include:

  • What does the Current On-demand Grocery Trends Hint?
  • How to Grow On-demand Grocery Business in 2021
  • Is On-demand Grocery Trend a Fad or Future?
  • The Step Ahead

What does the Current On-demand Grocery Trends Hint?

The on-demand grocery market grew up to 70% after the pandemic situation. Moreover, trends like curbside pickup and contactless delivery are growing alongside.

Online Grocery sales skyrocketed to $7.2B in June 2020.

Nevertheless, online grocery sales are rising, the businesses are adapting to this new trend rapidly.

Grocery businesses are trying to leverage the surging on-demand grocery trend up to the maximum. And they are adapting to this trend in ways like:

Grocery retailers are creating their own e-commerce app solutions

One of the most effective ways to lead with the on-demand grocery trend is to building a proprietary on-demand app. Many individual grocery chain businesses and supermarkets have started building proprietary apps or enrolling on custom grocery apps. And a grocery business named Kroger was able to increase its online grocery sales by 92% owing to its app.

Some businesses are also building their comprehensive grocery e-commerce apps that can help them manage the demand and supply through the app. This further indicates that businesses expect the on-demand grocery trend to stay even when the situation goes back to normal.

Grocery businesses are partnering with on-demand food delivery apps

Some small grocery retailers are still shy to leverage the maximum of growing online grocery demands. And therefore, they are trying to fulfil the demands by partnering with on-demand food delivery apps. For instance, Walgreens is a grocery retailer that has opted to partner with DoorDash. This way it is trying to fulfil the online grocery delivery demands from its existing customer base and some new customer base.

However, this practice might not serve well if on-demand grocery becomes a mainstream sector. Partnering with another platform may allow you to meet the existing demand but you cannot earn or build a significant customer base that actively depends upon online grocery purchase. Moreover, you would have to share a significant part of your profits with your delivery partner.   

Popular on-demand delivery platforms are adopting grocery delivery services

Seeing the increasing demand for on-demand grocery services, many existing on-demand delivery networks have extended their services to grocery items. They are either partnering with the existing grocery retailers and businesses, or they are setting up their own on-demand grocery marketplace platforms. Uber Eats inked a contract with a popular on-demand delivery platform known as Cornershop. This step helped Uber Eats to get the best value from their already established delivery network.

It further indicates that the trend is on the rise and businesses are leaving no stone unturned to cash upon the opportunities. On the other end, businesses with proprietary grocery e-commerce apps are able to draw the best benefits from the rising on-demand grocery trend.

How to Grow On-demand Grocery Business in 2021

Now that you have witnessed how the on-demand grocery trend is influencing the consumer market, you would wish to draw the maximum profits from it. So, here we will discuss some ways you can grow your on-demand grocery business in 2021.

Cease the Right Opportunity

The U.S. online grocery purchase market grew by 34% within the first quarter of 2020. And it is estimated to surge from 55 to 66% in 2024. Moreover, the competition in the on-demand grocery industry is also increasing rapidly. Therefore, early adopters are likely to draw the highest returns from it.

Businesses need to analyse the opportunity and meet the demands in the most profitable way. One of these ways is by building a proprietary on-demand grocery app. As aforementioned, many businesses are already leading with a proprietary app and they are drawing great returns from it.

Deliver Seamless E-commerce Experience

The on-demand grocery sector is proliferating and it has already made its potential evident. Therefore, you must focus on delivering the best e-commerce experience to your grocery consumers.

Some grocery retailers are trying to cash upon the situation by temporarily utilizing social media and email network to promote their on-demand delivery services. However, a majority of users would not settle down for these efforts when your competitors are already offering dedicated e-commerce portals.

Moreover, you can draw the best conversions through on-demand grocery mobile app solutions. According to a statistic, a mobile e-commerce app is capable of drawing 157% higher conversions than a website. 

Match Supply & Demand

Now when you are trying to make the on-demand grocery shopping experience seamless for your consumers, you must also focus on optimizing the demand and supply chain management.

A smart way is to build a comprehensive B2B & B2C e-commerce app solution. This could help you streamline the demand and sales as a grocery retailer. Moreover, if you are a distributor you can manage your supply and vendors through such a comprehensive app. Using such an app can bring various benefits like automated stock management, repeat ordering, consumer data analysis, digital records management, invoice management, etc.

However, building such a solution from scratch might dig a hole in your pocket. A better solution would be to buy access to a custom B2B e-commerce software, which could meet your needs without exhausting your budget.  

Forge Partnerships and Build Network

On-demand grocery services might require you to build a reliable network of suppliers and distributors. Moreover, if you are a distributor yourself, you would require to build your retail network. Your network will help you keep the demand and supply chain managed. A custom B2B e-commerce app can help you streamline the processes in your network.Except for your business network, you need to ensure a managed door-to-door delivery network. You might connect with an LMD provider or manage the delivery network yourself.

Make the Most Out of Your App Solution

If you opt for an e-commerce grocery app solution that delivers both B2B and B2C solutions, it can reduce your operational costs and increase your profits. You would not have to invest plentiful hours in manual paperwork processing. Instead, you can replace it with digital processing and automated data management.

The e-commerce grocery app will further help you with:

  • Automated sales management
  • Orders management
  • Repeat ordering management
  • Payment management
  • Delivery management
  • User feedback management

An advanced e-commerce grocery app allows you to integrate with other plugins and tools as well.

  • You can integrate upsell and cross-sell tools to increase your grocery sales
  • You can integrate with online reputation management tools
  • You can integrate with customer loyalty management tools

All these integrations will help you grow your on-demand grocery business up to many folds with an e-commerce app solution.

Get the Right Audience Reach

The on-demand grocery trend is growing rapidly and it is definitely the best time to grow your audience reach. Some businesses are still trying to draw some leads and conversions through social network and traditional local presence. While many grocery businesses are gaining the best from this opportunity by building their own e-commerce apps and utilizing various online marketing channels.

If you are leading with an on-demand Grocery app you can get the maximum reach by:

  • Utilizing the paid advertising channel on search engine and social media
  • App retargeting notifications that could boost sales and repeat orders
  • Reaching out to potential customers through an email marketing channel
  • Creating in-app promotions like discount deals for first-time users and loyalty rewards for repeat orders

Walmart recently integrated its main app with Walmart Grocery App to maximize its marketing reach and conversions from the rising on-demand grocery trend. The company is also able to boost its grocery sales by a good margin after this step. It might give you all the reasons to opt for a comprehensive e-commerce grocery app if you are still skeptical about it.  

Use Data to Inform your Business Processes

While market trends are at the peak of the digital revolution, you need to optimize your business processes with the help of crucial business data. If you opt for an advanced e-commerce grocery solution you can collect abounding data to inform your business development strategy.     

Some of the important metrics that you would like to track:

  • Monthly sales cycle
  • Inventory turns
  • Product Mix
  • User metrics on the platform
  • Conversion rate
  • Growth in sales (monthly or YoY) 
  • The best-performing products and offerings
  • Customer loyalty metrics (repeat orders)
  • Cart abandonment rate and successful deliveries
  • No. of same-day delivery requests

You can analyze the above metrics to make changes in your business processes and e-commerce strategies. The goal is to grow your conversion rate, sales, repeat orders, and draw the best returns from your investment. Moreover, this data will help you with your inventory management, cost management, network management, etc. 

Is On-demand Grocery Trend a Fad or Future?

Most of the statistics hints on-demand grocery trend to continue even after the situation goes back to normal. A majority of grocery retailers, supermarkets, distributors, and brands have accepted it as the future of the grocery retail industry and are already investing in this sector. Many grocery businesses have started forging partnerships with established on-demand platforms. While some of them have built their own on-demand apps to draw maximum profits from online grocery sales. 

The Step Ahead

Make hay while the sun shines! Though the on-demand grocery may continue to rise in the future, you cannot ignore the exponential rise it has displayed in the previous months. And therefore, a smart move is to adopt this trend as early as possible to draw significant early gains. Moreover, you can stay ahead of the curve by investing in a proprietary e-commerce grocery app solution.

Further, feel free to contact us for a free consultation on how you can get the maximum profits from the proliferating on-demand grocery trend.  

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