Amidst the coronavirus pandemic, online grocery shopping has picked a record-breaking pace. A transition in the purchasing habits of consumers has pushed grocery retailers to frame new techniques to increase sales. Since the extent of the pandemic is still unknown, retailers may have to face the pressure of unique challenges anytime. Let’s take a look at what these challenges are and what lessons grocery retailers can extract from this grim situation. 

Challenges and Solutions

  • Increase in the Number of E-Commerce Grocery Stores

A big challenge is that there is a rise in the number of online grocery stores like Instacart, which has widened the choice for the customers to buy grocery products. But there is a positive aspect of this situation. Reports state that the online stores are finding it difficult to fulfill the demand, therefore, the online grocery business is not yet in the stage of tough competition as the demand is still rising for such services. 

  • Supply Chain Management

Coping -up with the increasing demand for grocery items is already a problem faced by grocery shop owners, but another major issue is “the supply chain management.” 

The grocery retailers are struggling hard to maintain the supply of the goods in demand.

Before you start your online operations you need to focus on the supply chain of goods like eggs, milk, pork, rice, etc that are high in demand but short in supply. The only way out is to connect with the local suppliers and restrict the daily sales of such products to keep the items in stock. Many online retailers have restricted their sales in particular areas to keep up with the demand and also cut down the delivery cost to faraway places.

You can add a warehouse management system (WMS) to your logistic networks. Also, automation methods for grocery order fulfillment which replaces manual ways with technology-oriented modern methods can play a vital role in streamlining the supply chain. 

What can US grocery retailers learn from China?

China has always surprised other countries with its management and technological capabilities. During the lockdown situation, Chinese consumers’ shopping behavior changed from panic-buying to home-cooking (that led to a rise in demand for products like spices and baking ingredients). 

Lessons that US grocery retailers learn from China:

  1. The offline grocery shops shifted online and invested heavily in digital marketing to reach out to their customers.
  1. The big online grocery retailers partnered with local retailers, enlisted them on their website so that the demand and supply could be managed well.
  1. Companies like Freshshippo hired workers from closed restaurants to manage the warehouse and be a part of the operational activities.
  1. The Chinese grocery companies invested immensely in contactless delivery and warehouse automation as soon as they realized the need and long-lasting effect of the coronavirus outbreak.

This is how retailers in China managed the demand and made the best use of the opportunity. The experts predict that even if the situation turns better, the trend of online grocery shopping won’t face any sudden change.

So, if you are planning to start an online grocery business or shift your offline store online this is the best time.

Suggested Read: Coronavirus – Lockdown Lessons From China For US Grocery Retailers

How to Build an Online Grocery Store?

The best way to establish a grocery business online is by opting for ready-made grocery solutions like Growcer Lite and Growcer. Such platforms help you to launch your grocery website easily and effectively.