Things to Know Before Starting an Online Grocery Store

What You Need to Know Before Starting an Online Grocery Store

Posted 2 years ago by Anastasia Prokofieva

These days, it�셲 possible to桂buy and桂sell just about anything online. It桂wasn�셳 all that long ago that buying books and桂electronics online was a桂new fad. But today, there are very few items you can�셳 find in桂online stores.

One of桂the桂most recent trends in桂ecommerce is桂the桂rise of桂online grocery shopping. The trend of桂buying food online had already begun prior to桂2020. But the桂COVID-19桂pandemic helped popularize (and necessitate) the桂idea of桂buying groceries online. Today, setting up桂an桂online grocery store is桂a桂completely viable business option for桂ecommerce entrepreneurs. If桂this interests you, here is桂everything you should know about how to桂start an桂online grocery store.

How Much Investment Is桂Needed to桂Start an桂Online Grocery Store?

The first concern for桂many entrepreneurs thinking of桂starting an桂online grocery store is桂how much it桂will cost. While it桂will require some financial investment, the桂commitment is桂not as桂much as桂you would expect. However, there are some key expenses to桂consider when starting a桂grocery business.

One of桂the桂fees that is桂unique to桂grocery stores is桂a桂. Retail food licenses are issued by桂state or桂local government agencies, so桂you will need to桂apply locally. Additionally, fees vary based on桂location but can range anywhere from $100桂to桂$1000.

Perhaps the桂biggest financial investment, however, will be桂your inventory. Running an桂online grocery store means regularly restocking your inventory with new items. Most grocery items have a桂limited shelf life and, hopefully, will sell quickly.

Again, prices will vary depending on桂where you are, what you sell, and桂where you source your products. But you should expect to桂invest a桂significant portion of桂your budget into your products.

Another cost consideration that some businesses must consider is桂the桂cost of桂delivery. This may not be桂a桂necessity for桂every online grocery business. But, if桂you will be桂handling deliveries yourself, there will be桂fees involved. Paying a桂delivery driver or桂delivery team is桂the桂most expensive option, but delivers the桂best results. Meanwhile, a桂lower-cost model would involve delivering items yourself. But this could be桂very stressful and桂put major limitations on桂your expansion potential.

How to桂Start an桂Online Grocery Business From Home: Choosing a桂Supplier

A桂supplier is桂an桂important partner for桂any桂retailer. But choosing the桂right supplier is桂an桂even bigger deal for桂grocery stores than most businesses. Customers have a桂lot of桂options to桂choose from when shopping for桂groceries. The convenience of桂an桂online grocery store is桂a桂distinct advantage over physical grocery stores. But if桂customers are not receiving high-quality products on桂time, that convenience won�셳 matter at桂all.

Choosing a桂dependable supplier is桂the桂simplest way to桂avoid this problem. Ultimately, the桂best way to桂find reliable suppliers is桂to桂conduct thorough research into suppliers. For products with a桂short shelf life, local suppliers are much better. But for桂all other merchandise, there are two main categories to桂choose from: wholesale providers, and桂dropshipping providers.

Dropshipping

Dropshipping is桂a桂business model in桂which retailers (you) act as桂the桂middleman between the桂manufacturer and桂the桂consumer. In桂this arrangement, you reach an桂agreement with a桂dropshipping provider to桂list their products on桂your website. When a桂customer purchases an桂item from you, the桂dropshipper sends that item to桂the桂customer. You pay a桂small fee for桂the桂item itself while selling the桂item at桂a桂markup. The leftover revenue goes to桂you.

Dropshipping can be桂an桂effective business model for桂non-perishable food items. However, it桂is桂essential to桂find local dropshipping providers to桂ensure timely grocery deliveries. If桂there are no桂dropshipping providers in桂your area, this model may not work for桂you.

Wholesale

Buying groceries in桂bulk from a桂wholesaler gives you much greater control over your inventory than dropshipping. While it桂comes with greater upfront costs, it桂is桂often a桂more consistent and桂reliable model for桂online grocery stores.

In桂a桂dropshipping model, you would only pay for桂items as桂they are purchased by桂customers. But when buying wholesale, grocery stores typically spend a桂fixed amount each week or桂month. There are also storage costs and桂concerns to桂figure out when buying wholesale. Your feed needs to桂be桂stored safely and桂responsibly to桂avoid contamination. While the桂costs can add up, the桂convenience of桂buying wholesale makes it桂preferable to桂many online grocery retailers.

How to桂Create a桂Grocery Store Website From Scratch

After you have figured out all the桂logistics of桂your business, one pressing question remains. How do桂you build your own grocery store website? If桂you have no桂experience creating websites, this may seem like the桂most difficult task of桂all. But it�셲 not. You can use an桂ecommerce platform like to桂help make this process much easier.

Using 붚죕쳔�셲 website-building tools, you can easily customize your website with product listings and桂easy checkout options. But what are some of桂the桂key elements you need to桂include in桂your online grocery store website?

Branding &桂Display

First, you want customers to桂recognize and桂trust your business. This helps to桂ensure that they will return for桂future purchases. You can achieve this with distinctive branding on桂your website, and桂a桂crisp display. Your website should look nice and桂be桂easy to桂navigate for桂first-time and桂returning customers alike.

Product Information

Many people prefer to桂read the桂nutritional labels on桂grocery items before making a桂purchase. Shopping for桂groceries online can make this a桂bit trickier. That is桂why your website needs to桂make product information easily accessible to桂your customers. If桂you neglect to桂present this information in桂a桂way that�셲 easy to桂view, you may lose customers simply due to桂the桂inconvenience.

Easy Checkout

Speaking of桂inconvenience, that every online retailer should try to桂minimize. One of桂the桂leading causes of桂cart abandonment is桂an桂inconvenient checkout process or桂complicated payment method. Your website can help reduce these problems by桂streamlining the桂user checkout process and桂incorporating multiple different payment options.

Want to桂learn more about building your own online grocery website? Read about to桂learn how our platform can help get your business up桂and桂running.

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About The Author

Anastasia Prokofieva is a content writer at 붚죕쳔. She writes about online marketing and promotion to make entrepreneurs�� daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.

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