How To Build Your Own Online Grocery Delivery Business

How To Build Your Own
Online Grocery Delivery
Business?
-Oyelabs Technologies

Is Starting an Online Grocery Delivery Business a
Good Idea?
Yes, the stats mentioned above clearly shows
the trend that more and more businesses are
willing to come online. The year 2020 has also
been significant. Due to obvious reasons and
safety concerns, more customers than ever
are ordering groceries online.
So, if you are thinking of providing online
grocery delivery solutions, I would say it’s a
win-win startup idea.

Online Grocery Delivery Services & Verticals
Services
●
●
●
Home delivery
Pickup from local store
Hire personal shopper
You can provide same day delivery services as users want quick deliveries. With Instacart Express, Instacart is providing
home deliveries as quickly as within 1 hour to stay ahead of the competition.
Verticals
Daily Grocery – Right now is the perfect time to invest in a business that deals with the everyday grocery items supply. Be it
a single-vendor grocery delivery business or a multi-vendor grocery delivery business, you have the choice to select any
online delivery business model you are fine with.
Fresh Meat supplies – On-demand for fresh meat delivery services requests has also surged recently. TenderCuts, Licious,
ZappFresh are some of the startups doing well in these categories.
Pet Supplies – If you are looking for a unique business idea, pet food on demand could be one of the great options. Given
that there are only a few online platforms available that supply pet food items, you can leave a mark.

Steps To Build Your Own Grocery Delivery App!
Step 1 – Finalize Your Business model
The business model is as simple as picking up the ordered items from the vendor and delivering it to the customer.
Grocery delivery service providers generally tie up with multiple grocery wholesalers. This way, they get a wide selection of
products. The online grocery delivery business works on the core model of fast, usually same-day, delivery of grocery as per
customer’s convenience. It also makes sense as most of these items that users order under the umbrella of grocery products
have short shelf life. Moreover, customers prefer getting fresh items as far as food shopping is concerned.
Step 2 – Choose Your Grocery Delivery Solution
There are 3 major app solutions you can choose from
1. Custom App Solution
With a custom-build mobile app, you have complete control over the design and user experience. You can ask the developer to
create a fully customized app as per your needs and features requirements. A custom-build app will enable you to stand out from
your competitors.

Steps To Build Your Own Grocery Delivery App!
2. Readymade App Solution
As the name suggests, a readymade app is already built and you can directly buy it, as it is or with some minor modifications,
from its developer or the development company. All you need to do here is choose the product you think has all of your
required features included in it and get it. The developer of the app will modify the app as per your branding needs, such as the
app logo, app name, theme and deliver it to you.
3. SaaS Based Solution
Using a SaaS based grocery app, you can manage your grocery delivery business with a monthly subscription model. These
apps are already designed and are ready to use. Once you subscribe, the app is prepared for your business with the required
customization. You can then connect your grocery outlet to the app in no time.
To know more about these grocery delivery solutions and their advantages and disadvantages click here.

Steps To Build Your Own Grocery Delivery App!
Step 4 – Build Your Brand (+ Legal Aspects)
Choose a name that is brandable. How? Think about the other players, their names and how they have
named their businesses. Go with something that will click to your audience and target market. Just thinking
about it won’t be sufficient. You need to do the research. See if the name is not already taken by someone
else. Check if the domain name is available. Register it with a domain registrar as soon as you finalize it.
Tip: It’s time to form a legal entity. Register your company as a legal entity such as an LLC or corporation. It
will safeguard you from being held personally liable in case your business is sued. Get legal advice to
register for taxes and open a business bank account. Finally, you need to obtain necessary permits and
licenses.

Challenges you might face and how you can overcome
them!
●
Highly Competitive Market:
This market has become highly competitive. You are just starting to acquire users and vendors on your platform. Imagine
you have to compete with established names such as instacart, Walmart, Fresh Direct and more.
Solution: Before launching your grocery delivery services, do a thorough market researchand check if there are any existing
service providers in your target areas. Let’s say there is, you need to figure out how you can establish your own market
niche. For example, if your competitors deal in grocery foods, you can target the farm-to-table grocery market on weekends.
It will provide your business a chance to stand out.
●
Delivery Challenge
With regular online stores, delayed deliveries, delivering wrong items by mistake, returns tackling these issues on daily
basis is affordable. But for your business, these delays and poor customer service may prove detrimental. One more
unsatisfied customers and you are out of business.
Solution: Sign up with reliable delivery service providers that can meet your customers’ demand. Optimize your delivery
network for fast deliveries by carefully dividing it into hyper-local networks.

Challenges you might face and how you can overcome
them!
●
Storage Infrastructure & Quality Assurance:
Grocery items are perishable and need to be stored (and delivered) in refrigerated chambers. Setting up a storage infrastructure can
significantly increase the cost of operations. Apart from this, some customers do not want to buy groceries online because of quality concerns.
Solution: Integrate a robust, inventory management system API such as JIT (or Just-in-time) with your online store. It would help you automate
things better and to reduce storage cost.
●
Low-Profit Margins:
Let’s face it. Customers today have more choices than ever before. They are going to compare different stores, marketplaces before placing
their orders. Moreover, well-established companies are already offering competitive pricing. This leaves you with minimal scope to increase
your profit margins.
Solution: You can offer more competitive pricing than your rivals. But operating like this, sustaining your business might be a challenge. Try to
find out and list locally produced items that are not offered by others. This way you won’t have to compete.

Wrapping Up!
The Online Grocery Delivery Business market possesses a lot of scope and has a lot of potential to grow.
With the right features and approach towards developing your own grocery delivery app you can take
advantage of this growing market and be successful in the process.
Building the right app and hiring the right developers for your app would be the key to the success of your
business .