How to start a grocery delivery business with an on-demand app- everything you need to know!

Running a grocery business can be competitive or lucrative depending upon the way you operate the business. Nowadays, people are preferring online groceries instead of going themselves and picking up the desired items. Grocery delivery businesses require less capital investment and result in higher profits in return. You can start this business if you have a vehicle through which you can drive and deliver items to various destinations, or you can hire some drivers and coordinate with some other grocery delivery stores. Before actually launching your business, you must do detailed research of the local market that analyzes the current situation of the market.

Let us have a look at the challenges people face while starting a new grocery delivery application:

Competitors: As markets are having already established competitors like Grofers and Deliveroo, your business might not reach heights in the very beginning, but in the long run, it will give you higher profits. You can use their applications and see what exactly you can provide to your customers to shine among your competitors.

Inventory management: Updating inventory on a daily basis is also one of the challenges faced by new entrepreneurs. One should have complete stock before launching your business and implementing marketing strategies.

Legal formalities: Stating a new grocery delivery business is not an easy task. There are multiple legal formalities attached to it. You should register your firm and take the approval of the government before starting your business.

Digital presence: Every business has its own application which is important for reaching out to new people easily. So, you have to hire a team of developers who can make a fully customized application for your business. Once the application is made, you can then implement marketing strategies.

Targeting customers: The most difficult challenge one faces when starting a new business is how to reach people and advertise their business. One should start with a small area having a dense population and try to create a strong customer base. A thorough study of the market can help to identify a particular area to start with.

The revenue model of grocery delivery business:

Commissions: When you are starting an online business and you have coordinated with a nearby vendor to deliver the products, you will get the commission on the products sold. This is the best and old method of revenue generation.

Delivery charges: This amount is charged by the customers on every delivery. When a customer is choosing the products from an online store, the delivery charge is calculated there and then and will be paid along with the bill.

Membership fee: This fee is also charged from the customers but it is not mandatory. If a person opts for the membership, he/she will only have to pay the one-time fees and avail heavy discounts. This is a kind of marketing strategy applied by the owners to reach more customers.

Importance of starting a grocery delivery business in the current situation
As we all know that the current situation of the world is worsening due to the virus outbreak and billions of people are locked down in their houses. No one knows, how much time it will take to control the situations. Starting a grocery delivery business at this time of the pandemic can be helpful to many people because they are not able to go out of their homes to buy necessary items. So, if you want to start a grocery delivery business and help people to fight against this disease, you need to start it now. You just need to build an application and try to deliver as many essential items to various houses as you can.

When you are building an application, you will get four different panels:
• Customer app
• Delivery agent app
• Admin panel

Now, let us have a quick look on what all features are in all the panels
For customer app:
• Easy sign-up and login
• Browse and select
• Add to cart
• Multiple payment options
• Order tracking
• Schedule delivery
• Offers and discounts

For delivery agent:
• Easy sign-up and login
• Real-time tracker
• Order notification
• Update availability
• Customer address
• Rate and review customers

Admin panel:
• Stores management
• Orders and product management
• Reports and analytics
• Add or remove vendors
• Transaction history
• Content management

These are some of the features which a grocery delivery application should possess. If you want to add any more features, or you have your own technology stack, you can discuss it with the development team who took up your project. The above-mentioned features are some basic and primary ones, without which, an application can’t work.

Reach us by filling the form for cost estimation of Grocery Delivery App

Let’s have a look at what would be the overall cost of developing an application as it depends upon various factors. They are listed below:

Basic and advanced features: The cost varies according to the features added in the application. If you want only the basic features to be added in the application, the cost will be low but if you want some advanced features with advanced technology, the cost will be high.

No. of platforms: An application generally works on iOS, android and web. When the number of platforms increases, the cost of the application increases accordingly and if you want your application to run on only android or only in iOS, the cost will decrease.

Location of the company: Company’s location and the expertise of the developers’ matters. There are many places where you will find cheap and inexpensive developers and there are expensive locations as well.

No. of hours worked: When you will find a particular company that is ready to take up your project, they will give you an estimate of the overall cost. At the end of the project, the cost will be decided on the basis of number of hours worked on your project.

Summing up:
Overall, starting a grocery delivery business is beneficial nowadays when whole world is facing a crisis. If you are sure to start a new business, you first need to study the whole market thoroughly and identify the area where people need commodities and adopt marketing strategies to run your business. You just need a feature-enriched application and a plan to create a strong base of customers. Overcome all the challenges one by one and no one can defeat you in any way.