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Top Online Grocery Stores – A Review

Sep 9, 2015 DiscountMantra

Sep 9, 2015 Food


We all know that the eCommerce business is booming. But, eCommerce has not stuck only to fashion, electronics and home decor. You can even get groceries right at your doorstep by ordering for it online. According to a research, it has been confirmed that the eCommerce business is only 0.4% of the overall retail market. It is expected reach to around $32 billion by the year 2020! And, of this 0.4%, grocery accounts for 1%, which is said to rise to 2% by 2020. At present, the grocery market has seen an investment of $103.21 million since January 2015!

There is one drawback in the online grocery business that it is a city-specific business and high amount of stock cannot be kept in the warehouse because of the possibility of going stale. You need to analyze the daily requirements from the shoppers to know how much you should stock, which is a very challenging task.

Agrees Sharad Harjai, assistant vice president of marketing at Grofers says that the online grocery business seems promising, despite of the presence of 30 players in this section. He says that this section is yet to be explored properly. Even in this section, there are many different players. For example, some companies might be selling only fruits and vegetables, while some might be selling meat and others would be selling dairy products. Thus, there is an opportunity for every different company that enters this industry. Grofers believes that giving away something extra with an order will help customers returning back to them. Harjai confirms, “We gave comic books on mangoes when we delivered mangoes during the summer season. Likewise, before Independence Day, we gave a flag kit to every customer who placed an order.”

Hari Menon, CEO of BigBasket, another big name in this industry says, “As we use four-wheelers instead of two-wheelers, we have the ability to deliver orders worth Rs.3000-4000. Also, we stock 15,000 SKUs in our warehouses.” It stocks all its items in its warehouses located in Bengaluru, Hyderabad, Mumbai, Chennai, Delhi and NCR. It is planning to put up two more warehouses in Kolkata and Ahmedabad. Menon says that their inventory-led model allows them to earn margins up to 22% just like an offline retailer. They are also coming up with more innovative schemes to compel customers to return to them. Menon says, “We plan to start one-hour express delivery for orders worth Rs. 400-500.”

PepperTap is a company that believes in a marketplace model, where it ties up with local stores. Naveneet Singh, Co-founder and CEO of PepperTap says, "The marketplace model enables partner stores to generate 40% increase in sales resulting in high revenue."

NinjaCart, a Bengaluru based hyperlocal startup, created a buzz in the market when it declared that it would sell onions at only Re. 1 per kg from September 4 to September 6, while the price of onions in the offline market was a whopping Rs. 60-80 per kg! Although, it decided to give away only 1 kg per person but, you can still imagine how many orders they might have got. Ashutosh Vikram, Co-founder of Ninjacart said that they were expecting to sell about 10 tonnes of onions in these three days! This was an awesome marketing strategy by Ninjacart.

Companies are on a regular basis offering great deals and discounts to customers shopping in this category. They offer cashbacks and discounts up to 10-15% on MRPs. With the increase in cost of fruits and vegetables at the offline retail stores, why wouldn't customers want to buy groceries at discounted rates online, and they could get it right at their doorstep?

But, in order to set up all this, these companies have spent a lot of revenue on advertising themselves to bring the company a name. BigBasket has spent Rs. 50 crore on advertising in the first seven months, while Grofers spent Rs. 29 crore and PepperTap Rs. 9 crore!

So, what are you waiting for? Just like you order food online, start ordering grocery online at great discounts and have them delivered to you right at your doorstep, while you sit comfortably at your home without having to rush to the crowded streets of the market. Visit DiscountMantra - India’s best online offers and coupons store to avail online shopping coupons in order to get additional discounts. You can also subscribe to the newsletters to get the latest offers and coupons from various online stores delivered to your inbox.

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