This week has seen an abundance of news about the rise of online grocery shopping around the globe…
- Ocado, a UK-based exclusively online grocery retailer, reported an increase in revenue of almost 20% in the last 6 months, and new customer growth by 30% year on year.
- The latest IGD research reports that “the Chinese online grocery market is set to be worth almost $180bn by 2020…$70bn more than the combined values of the other top nine online grocery markets”
- Supermarket group Morrisons in the UK increased its share of the grocery market for the first time since the end of 2011, supported by a rise in online shopping.
- In a 2015 CBRE India Consumer Survey, nearly 80% of shoppers “feel that they are likely to spend more via online shopping routes” than at physical stores.
- Online shopping sales in South Korea surged 19 percent in May, fueled by brisk demand for clothing, foodstuffs and cosmetics.
This isn’t just happening overseas. Although Americans have historically been more hesitant to buy their groceries online, we are quickly catching up.
Door to Door Organics, an online grocery service in Colorado, released a study this week of 1,100 participants that revealed that an average of 19% of their weekly grocery shopping is currently done online. On top of that, “more than half (54%) said in the past year they had increased the amount of grocery shopping they do online by an average of 29%”.
Why the recent rise in online shopping?
For some time now consumers have been shopping online for other goods and services, so it only makes sense that they are starting to become comfortable buying their groceries online as well. As they explore this new way of shopping, they are quickly seeing the convenience and benefit it can offer in their busy lives.
Technology companies like Instacart and Uber delivery are also increasing the popularity of buying your groceries online.
However, even though online grocery shopping is being embraced, there are still some hesitations about adopting it for 100% of shopping needs. For example, many shoppers still want to feel, see and smell the produce they are buying. The majority of consumers still rely on a combination of online shopping and brick-and-mortar stores.
According to the Door to Door Organics’ study, 53% shop at three or more online and/or offline grocery stores each week. This presents an opportunity to create consistency and cohesiveness between the online shop and the in-store experience for your customers.
How can you help your customers easily get on board?
- Make it simple to start to adopt online grocery shopping by using the in-store experience to introduce the idea to your shoppers. For example, use point-of-sale as an opportunity to tell your shoppers that through your online offering you can prepare this same order for pick up for their next shop.
- Understand that although consumers want to embrace online shopping, they might not be ready to do 100% of their shopping this way yet. Ease them into the process by offering things like curbside pickup so that they can still come into your store for the products they may still want to hand pick, like meats and produce.
- Leverage data from your loyalty program to enhance your eCommerce offering so that the online store is personalized according to what shoppers already like to buy. This will make the customer experience enjoyable and easy to embrace.
To learn more about how to create the right online experience for your customers, request a demo.