Let’s face it: Your customers are already ordering groceries online — just not from you.
If you can’t meet the convenience needs of busy families or elderly shoppers, they’re forced to rely on grocery giants like Walmart or Kroger for grocery pickup and delivery.
Tired of losing revenue and customers to these big-box players? There’s good news: Getting into the online grocery game doesn’t have to be complicated.
In this blog, we’ll explore the why and how behind online ordering for small, independent grocery stores like yours — including six practical tips to take you from zero to making your first online sale.
Let’s get started.
Setting up your online grocery store and managing orders is no easy feat, so let’s make sure it’s worth your time and money.
Online grocery shopping has never been more popular, and experts predict online sales will account for 17% of all grocery spending by the end of the decade. Currently, over half of consumers place at least one online grocery order per month.
The data is clear on the growth of the online grocery market, but e-commerce is more than a trend or buzzword. Here are the biggest benefits of getting your grocery store online:
Grocery e-commerce comes with huge benefits, but you should be prepared for the downsides, including:
Understanding these challenges and making a rock-solid plan to overcome them is crucial, so let’s dive into the six simple steps to set up a smooth, profitable online ordering system.
Related Read: 7 Online Grocery Delivery Challenges (and How To Overcome Them)
Online grocery store success starts with the right tools. Your e-commerce platform should make it a breeze to build your virtual storefront, list products for sale, process online purchases, and fulfill orders quickly and accurately.
When it comes to online grocery platforms, you have two main choices:
Keep in mind that you don’t have to choose between these two options. You can always start with Instacart, then build your own website later — giving customers multiple ways to find and shop at your online grocery store.
Related Read: Online Grocery Software: 10 Challenges, Solutions, & Providers
You’ve chosen your online grocery platform — now it’s time to list your products for sale.
Creating product listings and managing orders can quickly become overwhelming, so start with a limited selection of your grocery store’s bestsellers.
For example, instead of listing every single flavor of potato chips, check your sales reports to find your top three sellers. This is also a great opportunity to promote high-margin options like your private-label products.
Perishables — especially produce — are some of the most difficult products to sell online. Customers have strong preferences about the ripeness of their bananas or the sell-by dates on their dairy, so consider leaving these items off your website until you feel confident in your quality control plan.
Once you’ve identified what products to offer online, it’s time to organize them. Your goal is to recreate the same great experience for your online and in-store customers, so sort them into easily shoppable categories like beverages, baking needs, and breakfast items.
Diving into the world of grocery delivery can seem intimidating, which is why we recommend starting with grocery pickup instead.
This removes the pressure of finding delivery drivers, planning routes, and meeting arrival windows while still giving customers a time-saving way to stock up their refrigerators and pantries.
In fact, some experts say that grocery pickup is growing even faster than delivery options!
Here’s a quick overview of how to launch your grocery pickup operation:
Along with saving time and money for you and your customers, pickup allows you to solve produce quality problems or substitution issues face to face — ensuring customer satisfaction and reducing the chance of refunds.
Offering online ordering is a guaranteed way to increase your grocery store’s revenue, but unfortunately, it doesn’t always translate to higher profits.
Picking, packing, and fulfilling orders will increase your operational expenses — and if you don’t account for these costs, you could actually lose money on every online order.
That’s why you need to make data-driven decisions about how to price products in your online grocery store. Here are a few pricing strategies to consider:
Remember: Grocery pickup and delivery are premium services, and you need to charge premium prices to turn a profit on each order.
Related Read: Online Grocery Pricing Strategy: 6 Ways To Make Delivery More Profitable
Without the right inventory management tools and techniques, your online and in-store operations can turn into a nightmare.
You’ll unexpectedly run out of your bestsellers, promise online customers products that don’t exist, and disappoint in-store shoppers with empty shelves.
Want to avoid the headache and protect your bottom line? Spruce up your inventory management approach before launching your online store.
Most importantly, ensure your e-commerce platform and point of sale (POS) system seamlessly integrate. This means that every single sale — whether online or in store — is reflected in your inventory and sales records.
From there, you can spot potential stockouts before they happen and adjust your ordering strategy to meet your customers’ changing needs.
Free Resource: The Ultimate Guide to Grocery Store Inventory Management
You’ve set up your online grocery store — now it’s time to make your first sale. Here are a few of the most effective marketing strategies to encourage new and existing customers to take advantage of online ordering:
These strategies should help you earn sales and turn your customers into online grocery fans.
Launching your online grocery store doesn’t have to be stressful, especially if you have access to the right tools and resources.
IT Retail is an all-in-one POS solution built to help grocers sell in-store and online. Our software seamlessly integrates with several grocery e-commerce platforms, including our built-in, grocery-specific solution.
Plus, it includes all the features you need to manage inventory, market your store, and keep customers satisfied.
See IT Retail in action by scheduling your live, personalized demo with one of our grocery industry experts.