10 Challenges in Grocery Delivery App Business
We face challenges in every business; we should be aware of how to be out of a situation or handle it with utmost care. Some guidance before you step your foot into the grocery delivery app business is of no harm.
The grocery delivery app business is the exact scenario that demands challenges in the development or post-development process. There are many things that we practically learn.
Stats for online Grocery Delivery App Business
As the population goes digital there is an increase in the users for several apps grocery delivery being one of them. It’s a great deal where you can same time and resources and just get your essentials delivered right on time.
Lets have a look at the latest stats before you begin with grocery delivery app development process.
- 95% of Americans shop their groceries online
- Since 2018, the usage of online grocery delivery app have increased by 50%
- Grocery shopping’s apps have reached 106 million downloads across the globe.
- It is expected that 30 million adults will be active users of the app by 2022.
Grocery delivery app business is a growing sector with a lot more potential to be sense in the upcoming years. But lets not forget with growth comes challenges. Here we will throw light on the common challenges faced by entrepreneurs and how to deal with them.
Listed below are some experiences shared by people involved in the grocery delivery app business.
If you are willing, planning to invest or own a Grocery delivery app business, these pointers may act as a guidebook to you and will definitely help you out in some way or the other.
-
Market trends
We know it well enough that how important it is to be updated about the market trends and how we should not leave one string loose and keep our business updated. Unfortunately, many choose the wrong path of sticking to the traditional way of trends, but we know how the importance of evolution.
Always choose and be a part of the existing competition; you should know the current trends and what your competitors are following.
Adopt practical advertising strategies and plan things with a marketing team for your seasonal campaigns, brand collaboration, grapevine advertising.
-
Customers, not so technology friendly
We must have seen how older adults aren’t willing to involve themselves in any such online hassle. They do not rely on online shopping or willing to make any online transactions either.
Convincing that age group of people to switch to online grocery shopping is a challenging task.
This is another major tasks that fall under challenges for grocery business app owners.
-
Delayed deliveries
Being on time and delivering fresh is something a grocery delivery app should be efficient and quick with. The situations that can stop you from being fast should be kept in mind, and one should always have a backup.
Build a delivery system for your online store with a perfect strategy by creating a local network with other grocery stores and delivery agents to execute your work at the minimum wage.
-
Storage & delivery costing
Storage cost and rent for warehouses might cost you a lot. It would be best to have a proper place with electricity and other supplies and a good road for the vehicles to commute along with the goods.
You have to deal with the delivery cost along with transportation maintenance and fuel cost.
You can create solutions to these upcoming issues and plan out things nicely that will make your business grow rapidly.
Factors for consideration will be storage location, transportation route, electricity supply, target your market area, and plan your investment.
-
Fluctuations in taxes
When we are all ready with our investment, we should be ready to pay for taxes that might hit us anytime. The list of taxes might include sales tax, income tax, excise duty, and many others.
New amendments and bills lead to these fluctuations, so you should be updated beforehand on what might come for you.
These taxes have increased on products that might shake the customers, so you should know a way not to suffer any losses on users or profit.
-
Difficulties in entering small towns
Approaching small towns is a tough task for online grocery businesses. The population still has traditional beliefs and has no habit of inviting changes in their lives. Investors also aren’t convinced enough because people are well aware of the state of business growth in small towns.
-
Inventory management
You definitely need an inventory for shopping applications; it will manage your selling products and make it easier for you to keep access.
Inventory management can be complicated as you might need accurate information on the lack of products’ quantities, expired products, old prices, etc.
This issue can be easily fixed if you can fix a recurring inventory management schedule or integrate an automated inventory management system.
-
Fresh edible commodities
The online grocery business has a crucial responsibility to store products and deliver them fresh without hampering the quality to the customers. Unfortunately, it isn’t easy to solve these issues at times, but you can definitely go with coordinating with suppliers to recycle products and maintain the chain like this. Also, try buying a limited quantity of such products to avoid suffering from losses.
-
Customer satisfaction
You have to know how to make your customers happy and satisfied to buy their loyalty. Deliver some quality for users to stick to your business forever. Aware about your online presence as online ratings and reviews.
Ratings and reviews by customers play a vital role in an increased number of app installations.
-
Engaging UI/UX
As a grocery business app owner, you should be focused on going with the UI/UX that is easy to use. Many people already find it difficult to surf through applications; make sure you make it easy for them to navigate through the complete application.
You need to work with the grocery app development team to closely keep in mind having no glitches or any bugs. If your app is facing technical errors quite often, it might make your user focus on some other app and enjoy using it forever.
Also, a simple user interface will have a low cost on your budget and might save upto a lot of coding during the app development process.
Conclusion
All you have to do is offer a highly personalized digital experience for your customers and make them satisfied with your online services.
We have seen the growing importance of online business in the past couple of years; we just need to hit the market with the right strategy, and nobody can stop you from succeeding.
Hope the key to success mentioned above turns out to provide a good advantage to you and your team.