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Challenges in Online Grocery Business: How to Grow Revenue in 2021

Consumers shop grocery items on a routine basis. Around 19% of their day-to-day spending goes to grocery purchase. The online grocery business’ main objective of building a grocery ecommerce software is to offer a better grocery shopping experience to consumers. This mission should not be failed.

Although the grocery business model has great demand, still they lag in beating other ecommerce industries. This is mainly because of challenges that grocery ecommerce platform face today is high compared to other ecommerce platforms.

If you plan to start a grocery delivery business, then you should definitely know about those online grocery business challenges and this article will help you to find solutions and will support in uplifting to the next level. 

Challenge #1: Difficult To Handle High Website Traffic

Every grocery ecommerce platform will have a wide range of target audience. If you have effectively promoted your brand, then definitely you will get a huge visitors count to your online grocery platform. The bandwidth of your online grocery store should support the traffic. But most servers will never provide enough bandwidth, and this makes the functioning of the online grocery store to be interrupted.

Solution: Tune Your Server And Optimize Your Store Performance 

Traffic fluctuation cannot be avoided. Every user should have a proper plan for facing the issue in advance. The only solution is to find a reliable hosting server provider and get the best plan that will support your grocery platform performance.

Challenge #2: Complicated Product Arrangement

When you run a multi vendor grocery app, you will have thousands of sellers connected with your platform and each seller will have his own set of products. Organizing the products and making it more appealing for customers is the real challenge. Customers do not get time to search a wide list of products and to find the one they want. They will lose their patience easily when it comes to online shopping. At this rate, they will leave your grocery platform and will move on to a better platform.

Solution: Offer Convenient Navigation And Advanced Search Options.

Implement clear and logical structure at the time of developing your multivendor grocery app. Organize products and categorize them into several departments. Provide advanced search options that will filter customers’ search and will take them directly to the product page they want to buy. 

Challenge #3: Frequent Change In Terms And Conditions

Every online grocery platform faces many crises and delivering products has become more challenging due to COVID 19. So, every platform keeps changing their terms and conditions often just to make the platform survive in this pandemic. For e.g. Some platforms have set a minimum order value which was not there initially. Customers without knowing these changes when they enter the site to purchase, they face many restrictions.

Solution: Alert Your Customers Priorly

Whenever you make any changes in the terms and conditions then it is very important to intimate your customers in advance. Without informing them, it is going to be difficult for you to gain their trust. Use multiple communication channels and let your customers be notified about any changes that happen in your ecommerce grocery platform. 

Challenge #4: Poor Inventory Management

Managing the inventory is the tedious task for any seller. Although the admin may not handle stock but still if the seller is not good in maintaining his stocks and when he cannot deliver the order received through the grocery ecommerce platform then the platform will lose its credibility among customers. This is one of the main reasons for losing our customers.

Solution: Integrate Bi-directional Inventory System

Your ecommerce grocery store should have a perfect inventory management system that will help to deliver products without any delay. Have a proper push notification feature that will alert the seller and the admin when the stock hits the minimum value. By getting the message the seller needs to fill his inventory and the admin should recheck whether the stock has been filled. 

Challenge #5: Inefficient Delivery Processing

Speed delivery is the main aspect that any customer expects from an online grocery platform. Many platforms offer same day delivery, and some assure delivery in 2 hours. These are the attractive selling points for any grocery ecommerce platform. But the truth is getting the right delivery partner is the major challenge and many platforms fail in this mission and find it difficult to survive in the market.

Solution: Choose The Best Delivery Service Provider.

The real success of your grocery ecommerce store depends on its on-time delivery. So, make sure you choose the best delivery service provider. Before entering business with them, analyze their work and get to know more about their experience in this field. Check for their customer reviews and then fix your delivery partners who can perform the delivery task effectively. 

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Challenge #6: Retaining Customers

The competition is very high in the grocery business. You can see thousands of online grocery shopping software emerging every day. Acquiring new customers is one difficult task and retaining them is another most difficult task. Satisfying customers is not an easy deal. More effort is needed, and this is always a headache for the platform owner. Your competitors are also in the race and they can easily grab the attention of your audience.

Solution: Implement Customer Loyalty Programs

You need to build a trustworthy relationship with your customers. Customers will purchase with any business with whom they have some emotional bonding. To create an emotional bonding you need to implement best customer loyalty programs that will facilitate them and will also motivate them to keep buying again and again with your grocery eCommerce platform. The loyalty program can have cash back rewards, special offers and discounts, and other monetary rewards. By following this you can easily retain your customers. 

Conclusion

Running a grocery ecommerce platform is not a bed of roses, rather it is a bed of thorns. One needs to be more prepared to confront all challenges and should not give up at any stage. This is how many leading online grocery shopping software like bigbasket, grofers and many more are surviving in the market. Start your grocery business journey and stand alone in the market.

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