Online shopping has taken the world by storm. Different businesses in a variety of industries are currently using online websites to sell and promote their products. While the phenomenon has offered many benefits, there are also a lot of challenges of online shopping, especially for businesses like grocery stores. Below are some of the most common challenges of online grocery shopping and how to address them;
1. High storage and delivery costs
One of the most common challenges of online grocery shopping is the high costs of storage and delivery. Groceries are highly perishable hence the high amounts of delivery and storage costs. The groceries need to be stored in a special warehouse with refrigeration to ensure that they do not go bad. They also have to be kept away from specific conditions like moisture so that they do not go bad while in storage. Additionally, the same measures have to be taken when delivering the products to clients. For instance, the delivery infrastructure like the vans must be appropriately constructed so that the perishables are delivered while in perfect state. Achieving this requires a lot of capital.
How to address the issue?
The best solution to this issue would be to team up with a delivery service provider that already has the right vehicles. This means that you will not have to purchase and design the cars on your own, hence reducing the operation cost. Therefore, all you have to worry about is the storage of the goods while in the warehouses. It will also help to amplify the customer satisfaction.
2. Low amounts of profit
Another challenge is the low margin of profit. Most of the time, customers do not want to pay for convenience services to allow them to get their groceries faster. This puts a lot of strain on businesses because they have to worry and take care of issues like storage and delivery of the groceries before they are spoilt. This becomes a burden to the company, who end up spending a lot of money to satisfy the clients. Therefore, the amount of profit that is made is significantly low.
How to resolve the issue?
The best solution to this issue would be to hire a logistics company. This means that instead of spending money paying a delivery staff and buying delivery vehicles, you can have the logistics company take care of all aspects of delivery. By doing so, you will not have to spend too much money on transportation. It would help if you ensured that the logistics company is aware that they will be handling the delivery from your warehouse to the client. Make this clear in the contract agreement. This will benefit your business and the logistics company’s because all they have to worry about is delivery, and all you have to take care of is the packaging and handing over of the goods. By doing so, your profit margin will increase.
3. Inefficient delivery systems
Most clients expect instant delivery when they shop online. They fail to understand the challenges of transportation and how intricate the system is. Many factors influence the efficiency of the delivery system, like the quality of the product, time, available infrastructures, and cost of delivery. Therefore, most online grocery businesses face constant complaints from clients about inefficient delivery.
How to resolve the issue?
The best solution would be to provide clients with a wide range of delivery options with different costs. For instance, you can have them pay extra for direct delivery, provide an option where they can pick up the products on their own and the standard delivery services. Make sure to be clear on the amount of time that it will take for the delivery to be completed. Doing so will prevent pressure from clients about delivery and other common challenges. In other words, they know what they are getting into beforehand. Partnered delivery will also help to make the process effortless and more efficient.
4. Price fluctuations
This is a challenge that every company faces regardless of the products and the industry in which the company is. Therefore, fluctuating prices of grocery items is also a significant issue. It results in a lot of losses and low-profit margins for the businesses.
How to resolve the issue?
The creation of proper and sustainable management systems will help to resolve the issue. You need to anticipate the problems and come up with solutions before they happen.
5. Consumer behavior and habit
For businesses to serve the clients efficiently, there needs to be an adequate understanding of consumer behavior and habit towards the products. The issue is that consumers are often very unpredictable. This means that it is hard to tell and anticipate their habits. This could lead to a lot of losses that you cannot predict. For instance, they may be obsessed with a product, prompting you to increase your stock only for their interests to shift.
What is the solution?
The best solution for this issue would be to merge online and offline grocery stores. This way, if the products are not moving as fast as you hoped, you can move them to an offline store instead. You can also try stocking a wide range of products to accommodate the different needs of clients.
Conclusions
Another solution to the most common challenges of online grocery shopping is providing clients with online coupons and voucher codes. Doing so will encourage more purchases. You can get such online coupons and voucher codes from here.