Are you looking to earn money by selling groceries online? With the right strategy, selling groceries online can be a great way to earn extra income and even start a full-time business. The market for online grocery shopping has experienced rapid growth in recent years, and the demand is expected to continue to increase. Consumers are looking for convenience and the ability to purchase items from the comfort of their own homes. The online groceries market had already built up a valuation of $285 billion in 2021 and is expected to touch $354 billion by the end of 2022. This number is estimated to grow up to $2.15 trillion by 2030. Let us look at the different aspects of the online grocery delivery industry to give you a comprehensive idea before considering entering the industry.
Why should you think about Selling Groceries Online?
On this page:
- Why should you think about Selling Groceries Online?
- How to Make Money Selling Groceries Online?
- What are the different ways to Sell Groceries Online?
- Different Platforms for Selling Grocery Online
- Tips to Achieve Success in your Online Grocery Selling Business
- Reach a Wider Audience: Online grocery stores can reach a much broader customer base than traditional grocery stores. This means that you can increase your sales and profits.
- Cost Savings: Selling groceries online can save money on overhead costs associated with running a physical store. You don’t need to worry about rent, utilities, staff, and other costs associated with running a brick-and-mortar store.
- Convenience: Customers can shop from their homes and have groceries delivered right to their door. This is especially helpful for customers who don’t have the time or energy to go to the grocery store. Being available online will help you get in front of these customers quickly.
- Increased Profits: Selling groceries online can increase profits because you can offer more products and services than a traditional grocery store. You can also customise your offerings to meet customer needs.
- Flexibility: An online grocery store can be opened and closed anytime, giving you greater flexibility. You can also make changes to your store whenever you want.
How to Make Money Selling Groceries Online?
Different business and revenue models exist to make money from online grocery stores. Entrepreneurs can choose the business model that best fits their needs and start earning money.
- Commissions: Grocery wholesalers can charge commissions to sellers/stores for each sale using your platform. You can charge commission rates for various products in various countries based on the demand and supply rates.
- Membership: Grocery sellers can provide clients with a membership subscription with extra perks, including discounted pricing, priority delivery, scheduled delivery, and free delivery.
- Subscriptions: Entrepreneurs can enable clients to subscribe to certain products for recurring delivery rather than having to place a separate order for each item. Items that clients frequently use can easily fit into the model. Milk, vegetables, fruits, etc., fit right into this model. Customers can be charged monthly for providing grocery delivery services.
- Promotions: Once your online platform starts getting some steam, you can take paid partnerships from big companies to display their products on the main page of your website/app. You can use banner ads, videos, graphics, and much more and charge a different fee for every service.
What are the different ways to Sell Groceries Online?
1. Online Grocery Store
The most popular way to sell groceries online is to create an online grocery store. With an online grocery store, customers can shop for their groceries online and then deliver them to their homes. Customers can search for items by category, brand, price, and more, making it easier to find what they need. Additionally, most online grocery stores are integrated with payment gateways and order management systems, so customers can easily check out and track their orders.
How to Setup your Online Grocery Store?
- Registration: Entrepreneurs can register their online grocery store as a partnership, a sole proprietorship, or a private limited company. The following licenses are the minimum for any grocery store to run smoothly.
- FSSAI Registration and Licence: The Food Safety and Standards Authority of India (FSSAI) is the main body that governs the sale of packed food items in India. Every grocery retailer must have a license signed by the FSSAI to prove their trustworthiness.
- GST Registration: GST is an indirect tax for any retailer’s products and services. Grocery sellers must also register for GST before starting their operations.
- Trademark: Registration of a trademark is a significant help for grocery sellers, which helps them protect their brand and establish a distinctive character. A trademark is also a requirement for listing your products on online commerce platforms.
- Pick your Target Audience: Before starting your business, you must ascertain the population’s food preferences and requirements. You can choose the high-demand items with the aid of this study and stock them well in advance. The audience preferences may differ based on the area you start from and the area you wish to cover in the future.
- Pick your Delivery Region: Currently, only the citizens in Tier 1 cities have the propensity to order groceries from online platforms. People in Tier 2 and Tier 3 towns still prefer buying groceries at a store. New sellers must choose the area they serve based on the demand for online grocery products.
- Inventory Management: Grocery sellers must understand inventory management to operate a profitable online grocery store. There are two options: either you can keep supplies in your warehouse or collaborate with other nearby supermarkets to get wholesale supplies for your deliveries.
- Payment Options: The most excellent choice if you provide door-to-door delivery would be to accept payments through card or cash. Prepaid deliveries are a better idea since they will allow for safety against any losses in the delivery cycle.
- Website/App Development: Most consumers these days prefer to purchase groceries online from the convenience of their homes. Hence, designing an attractive, value-providing mobile application and a functional website will allow you to earn new and recurring clients.
- Marketing: One of the most significant factors that will affect the success of your business, marketing is an important skill to promote your business to the public in the minimum amount of time. You can hire professional marketers or market your business yourself. Focus on digital marketing to see the best returns. Some other techniques can include providing discounts, distributing vouchers, and organising flash sales.
2. Online Grocery Delivery Service
Another way to sell groceries online is to offer an online grocery delivery service. This works similarly to an online grocery store, except the customer orders groceries online and has them delivered directly to their door. This is a great way to save time, as customers don’t have to leave their homes to shop for groceries.
3. Online Marketplace
An online marketplace is another way to sell groceries online. This platform allows customers to shop for groceries from various vendors, all in one place. This can be a great way to reach a larger customer base, as customers can shop from different sellers without visiting multiple websites.
4. Mobile App
Developing a mobile app for grocery shopping is another way to sell groceries online. This can be a great way for customers to shop for groceries on the go, as they can access the app from their phone or tablet. Additionally, mobile apps can integrate with payment gateways and order management systems, making it easy for customers to pay for their orders and track their deliveries.
5. Affiliate Program
An affiliate program is another way to sell groceries online. This program allows customers to purchase groceries through a third-party website or app, and then the seller will receive a commission for every sale they bring. This can be a great way to reach a larger customer base and generate more sales without investing in your business.
Different Platforms for Selling Grocery Online
EarnKaro is an affiliate marketing platform allowing users to share deals from 150+ partner companies and earn hefty commissions. People can earn money by sharing deals from online groceries retailers like Flipkart, Amazon, and ITC Store and earn huge commissions on every sale made through their link. This is the best mode of selling groceries if you need more time and money to invest in your business. Simply register on the platform, find lucrative deals, create affiliate links by joining high-paying top grocery affiliate programs and start sharing!
Selling groceries on Amazon can be a great opportunity to reach a large customer base and grow your business. Here are the steps to get started:
To sell groceries on Amazon, you must receive approval from the e-commerce giant. If you have been selling on Amazon for a long time, you might be allowed to sell goods without authorisation; otherwise, you must submit some paperwork to Amazon to sell groceries. By copying an ASIN from the grocery shop, entering the item in the seller dashboard, and then selecting ‘application to sell,’ you can check for pre-approval. When you choose the ‘seek approval’ option, Amazon will automatically approve your request.
2. Choose a Supplier
Choose a distributor or reseller who will simplify the procedure and whom you can use to obtain a valid invoice from Amazon. One purchase invoice from a manufacturer or distributor must be submitted when the Amazon Seller Program asks you to do so.
3. Listing Requirements
The product you will list on Amazon should satisfy the following requirements:
- The photos should be accurate.
- All sides of the product must be displayed
- Model Number, Product Name, or both.
- Name or the Physical Location of the business.
- The local language shall be used to upload any material information
Amazon may reject your application sometimes; however, it can be resubmitted.
4. Product Requirements
Amazon puts some basic requirements that need to be fulfilled, which include an order defect rate of less than 1%, A cancel rate of pre-fulfilment of less than 2.5%, and the shipment should not be late by 4%. Apart from this, product-related requirements include:
- The food must be properly packed, labelled, sealed, and preserved.
- Necessary licenses must be available.
- Products must be in line with central and state laws.
- Every food unit displayed for sale or shipped should have an expiry date.
- Keep the fulfilment centre shelf life details up to date for the products you will be selling.
- Correct labelling on all the products.
- Packing the food to avoid contamination, spoiling, melting, and spilling.
- Shipping the product while it has enough shelf life.
5. Start Selling
After all the legalities are completed, you can research the groceries items you plan to sell and start selling as a wholesaler, retailer, or reseller.
6. Fulfilment Options
Fulfilment is keeping things safe, wrapping them, and shipping them. According to their product items, many merchants combine the fulfilment processes.
- Fulfilment by Amazon: If you choose fulfilment by Amazon, you must send the merchandise to the Amazon facility, and they will handle the rest of the procedure. When Amazon receives your order, they will pack, ship, and deal with customer inquiries.
- Easy Ship: The sellers who come under Easy Ship will have to store their goods, pack them using either their own or Amazon’s packing materials, and schedule a pick-up so that an Amazon representative may deliver the picked-up goods to the clients. The Easy Ship option will be ideal if the sellers have their warehouse and wish to offer their interests with a smaller profit margin while leaving the delivery to Amazon.
- Self-Ship: Your products can be stored, packaged, and delivered at your convenience using any third-party delivery service.
Many sellers are concerned about getting paid online or whether their money will be delayed, but Amazon will handle all these concerns and guarantee a seamless payment procedure. Your account balance will be settled within 14 days of your registration. On the settlement date and every seven days after that, Amazon will start the payment process. To become eligible, you must have a positive seller account balance and valid bank account information.
If you are looking to sell groceries on Flipkart, you can follow these steps:
1. Vertical authorisation
When you decide to grow your business by advertising on Flipkart, the first step is to list your products. In essence, that entails creating a list of the product’s specifications, features, versions, and costs. You should provide category/vertical and emblem information when you upload product details. Go to the Flipkart seller page to get approval for your business. If you already have an exciting account, continue to the next step. Otherwise, register a seller account first.
2. Brand acceptance
You must first receive brand permission to sell groceries on Flipkart. You can obtain brand approval if you have a trademark or have applied for one. A letter of authorisation from the brand is furthermore required. To sell on Flipkart, trademarks are necessarily needed. A few standard products, meanwhile, demand, at the very least, an invoice from a licensed distributor. You may also need to submit different documents, including brand name & logo, product images with MRP, trademark, license, etc.
The Flipkart team performs a verification known as an audit. The auditor visits the seller’s property in person. Flipkart guarantees that a seller does not engage in fraud and complies with all commercial and legal standards to sell in the chosen category. The vendor uploads a particular class of papers.
4. Listing of products
Once the audit is complete, there are different ways through which you can list your products on Flipkart, which include:
- Individual Listing: You can log onto your Flipkart seller account. Choose Listings > My listings > Add new listings > Add a single listing. Before moving on to the next step, where you must choose the brand, you must select the vertical. After entering the brand, move on to the product details. You ought to include images or pictures of the goods. Before importing product photographs, follow the instructions and the Flipkart photo guidelines. Each vertical has its own distinct set of specifications. Your dealer’s dashboard will display an immature tick if you have satisfied those standards. Remember that clients choose whether to text with visible photographs. Include the mandatory information along with the product price, stock, shipping information, and description.
- Bulk Listing: Sellers can also list products through an Excel sheet. Go to Add New Listings > Add Listings in Bulk to add listings in bulk. Choose your brand and pertinent vertical similarly to how you would single listings. The subsequent steps are like the single listing discussed earlier.
5. Start Selling
Once your products are listed on Flipkart, you will receive orders as the website displays them in its dashboard.
Builderfly is an advanced eCommerce platform for online grocery shopping. It helps online businesses to create, manage and grow their online grocery store with ease. It helps retailers to integrate their physical store with the online store and offer customers a seamless shopping experience. Builderfly offers a wide range of features and tools that make it easy to set up and manage an online grocery store. The platform has advanced order and delivery management systems, integrated payment gateways, and real-time inventory tracking. It also offers a comprehensive set of marketing and analytics tools, allowing online businesses to track customer interactions and analyse the performance of campaigns.
Dukaan is a new e-commerce platform in India designed to empower local kirana stores and small retailers. It is an app-based marketplace that allows local retailers to set up their online stores easily. With Dukaan, retailers can create their storefronts, manage orders and payments, and track their profits and performance. The app is designed to make it easy for retailers to take advantage of the digital economy. It is easy to use and provides several features that make it convenient for retailers to manage their business. The app also offers a wide range of features that make it easier for retailers to manage their business. Retailers can access various features such as product catalogues, order tracking, inventory management, payment processing, and more.
Recelery is a new and revolutionary app that revolutionises how people eat. This app is designed to help people eat healthier and smarter. Recelery was created by a group of nutritionists, chefs and food experts who wanted to make it easier for people to make healthy food choices. The app is designed to provide users with personalised nutrition advice, recipes, and meal plans tailored to their needs. Recelery’s unique user interface allows users to sell unused food items and groceries to minimise food waste. Anyone within a mile of your location can sell and buy old grocery store items on Recelery’s public marketplace. Sellers can include information about the food item’s expiration date, place of purchase, pickup location, and selling price when they upload an item to the app.
BigBasket is an online grocery store that offers customers a convenient way to purchase groceries. With BigBasket, customers can shop for fruits, vegetables, packaged foods, dairy products, and other necessities without visiting a physical store. BigBasket also offers customers various discounts and offers, making it a great choice for budget-conscious shoppers. BigBasket’s online store is easy to use, and customers can quickly find what they need without having to scroll through pages of products. BigBasket is one of the biggest online grocery retailers in India, and traders may start selling with BigBasket by simply registering with the online trading chain through its website.
Gobillion is a revolutionary new app changing how people shop for groceries. Its vast selection makes Gobillion stand out among other grocery delivery services. The app offers a wide variety of grocery items, including fresh produce, dairy products, meats, seafood, and more. Customers can also find snacks, drinks, pet supplies, and home items. Plus, Gobillion offers special deals and discounts to help customers save money. Gobillion provides an online marketplace where registered sellers can offer to sell their products to registered users of the application and take advantage of the friendly user interface of the platform.
Apnaklub is an app that allows you to shop for groceries conveniently from your home. Customers can browse thousands of grocery items, from fresh fruits and vegetables to all their favourite snacks. The app also allows them to compare prices from different stores so that customers can get the lowest prices on their favourite products. Apnaklub also makes it easy to find local produce and other speciality items. Apnaklub is an online B2B platform that allows grocery sellers to sell more than 4000 products and deliver these eatables within 24 hours. The zero-investment online marketplace allows sellers to open a digital store on the app, add their products and easily start selling.
Shop101 is a great platform for selling groceries online. With Shop101, you can reach a larger customer base, save on overhead costs, and provide a convenient shopping experience. Shop101’s secure payment gateway and customer service support will also benefit you. Selling groceries on Shop101 is an ideal way to increase sales and grow your business.
Moreover, we would also like to tell you all about our Flipkart affiliate program. You can join and promote Flipkart products and earn an affiliate commission on every successful sale.
Tips to Achieve Success in your Online Grocery Selling Business
If you’re ready to take advantage of this growing trend, here are some tips to help you get started:
- Research the Market: Before selling groceries online, it’s important to research the market to determine what products are in demand. Consider the competition, customer preferences, and prices of similar items. You’ll also need to consider what type of delivery services you’ll offer and the associated costs.
- Choose a Niche: Once you’ve identified what products are in demand, you’ll need to decide what niche you specialise in. Focus on a particular product or cuisine if you’re selling groceries online. This will make it easier to target the right customers and build a loyal customer base.
- Find a Supplier: You’ll need to find a reliable supplier that can provide you with the products you want to sell. A good supplier should be able to provide you with various products at competitive prices. You’ll also need to consider delivery times, shipping costs, and return policies.
- Create an Online Store: Setting up an online store will make it easier for your customers to shop for groceries from their homes. You’ll need to choose a platform, create product listings, and set up payment options. It’s also important to create an appealing design that reflects your brand and makes it easy for customers to find what they’re looking for.
- Market Your Store: Once your online store is up and running, you’ll need to promote it to potential customers. Social media is a great place to start, as it’s an effective way to reach a wide audience. You can also consider running ads on other platforms like Google or YouTube.
Selling groceries online is an excellent way to make money. You can build a successful and profitable business with the right strategies and a commitment to providing quality products and services. You must understand the market, choose the right products, develop an effective marketing strategy, create a user-friendly website, and provide excellent customer service to succeed. Following the steps given above can earn you good money and create a thriving groceries business online.
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