How To Start Online Grocery Business In India.

Selling groceries along with daily-use products online can start a sales avenue for stores at little extra cost. Groceries sell no matter what the state of the economy. You can stop going towards cinema and restaurants, but there’s no way you can live without toothpaste, soap and, well, veggies. Caught in the city’s fast pace, tedious commuting and extended working hours, many consumers don’t have some time to buy groceries or want to avoid the chore.In this post, we will discuss about How to start online grocery business in India.

Buyers are actually quite comfortable ordering apparel, shoes, electronics, among others, online. Using improving comfort with online repayments, selling groceries online has become easy.

Introduction

With a significant customer base and increasing penetration of Internet connectivity (partly via smartphones) and growing popularity of online shopping, some entrepreneurs have witnessed the potential in creating e-stores with regard to groceries. If you understand the particular retail market, a bit of creative thinking and excellent customer service may help you build a great business.

AaramShop. com, EkStop. com, BigBasket. com, AtMyDoorSteps. com, MyGrahak. com, ZopNow. com, Omart. throughout, LocalBanya. com, RationHut. com and SeaToHome. com are some on the online stores retailing groceries. The majority of the existing etailers offer their service in metros and major metropolitan centers.

RETAIL OPPORTUNITY

“The spending on grocery and daily essentials is the largest and most consistent share on the wallet for any household. Nonetheless, it is still out on the ambit of online shopping and, therefore, represents a huge option, ” says Vijay Singh, chief executive and managing director of AaramShop. com, a network of neighborhood retailers based in New Delhi. AaramShop. com currently operates in 30 Indian cities with increased than 3, 000 partner stores.

Best thing about grocery business is you are not required to integrate payment gateway in your website as COD is preferable in this business, and not even you need a logistic tie-up as your own boys are doing the delivery. And so their charges are also saved. Next is, you get the payment on the same day. And the most important thing is flipkart, amazon, snapdeal etc. are not in competition with you.

1. Arrangement of Stock:

Either you can have your stock or you can do a tie-up with a present store initially. Prepare a list of products (with their margins) you want to keep in the store and arrange accordingly.

How to start online grocery business in India: Steps

You will have to register your firm (proprietor or partnership will do in the start) and get a VAT i.d. for sales tax submission. Any Chartered Accountant will do this work for you.

2. Register your firm:

You will have to decide the range of your delivery. For example 5km, 10 km radius or whole of the city. Then arrange a 2 or 3 delivery boys with bikes, for the start. (according to scale of business you forecast).

3. Development Local Delivery System:

Get your grocery website developed by any good professional Company who has experience in this field like Nationkart etc. Upload the photos and the rates of your products in the website. Showcase 2-3 good offers in your website.

4. Development of website:

You can give COD (Cash on Delivery) facility (this is preferable) to your customers this would be easy as your own staff will be delivering the goods to the customers house, so you will receive the payment same day unlike in other ecommerce businesses where the currier companies collect money on your behalf and then give you after a week after deducting COD charges. If you want you can even get the payment through debit card or net banking, but thru this payment method the payment gateway company will deduct their charges and then give you the amount after 5 days. So COD is preferable for Online Grocery Stores.

5. Payment Method:

You can market your service in local newspaper, through pamphlets, SMSes, hoardings, door to door meeting etc. And location based Online marketing is also preferable.

6. Marketing:

1. Make an Android app of your website as most of the house wives are using smart phones now a day and so it will be easy for them to order as they will not have start your computer again and again.

2. Keep a English and Hindi website converter button at the top of the website, for those who don’t know the English names of many grocery items, like jeera etc.

Few Suggestions:

3. Contact number in the top and facility to take order on phone, as many would like order that way.

4. Show different sizes of the packages in the page of the product. Like 250gm, 500gm and 1kgsugar.

5. In second phase you can also selling bakery items, fruits and orders from restaurants.

6. You can take delivery charges in the range of rs30 to rs80 on orders of below Rs250 ticket size.

7. Nationkart.com, an advanced eCommerce platform, has all the required modules to start an online grocery store.

1. Stock

2. Delivery bikes or vans.

3. Store house with small office (on rent(preferable) or on ownership).

4. 6 months marketing expense backup.

5. 6 month’s salary and other expenses backup.

Investment Heads:

If you earn rs80 gross profit (which you get from margins and delivery charges) in one delivery, then to earn rs8000 gross profit a day you need make 100 deliveries. Which will result in gross profit of Rs2,40,000 a month. And from that the salaries, electricity and other operational charges will be deducted. You can get a handsome profit of rs1,50,000 per month in this scale of business.

Feasibility check:

According to my view, if you follow all the terms which is well explained regarding How to start online grocery business in India, you will have a fair start in this business and you can even expand your business in other cities through online.

Thank You…