Online grocery businesses are a type of e-commerce business that allows customers to purchase groceries online and have them delivered to their homes or picked up at a store. This type of business has grown in popularity in recent years due to the increasing convenience and affordability of online shopping.

The following statistics show how the industry is growing rapidly:

1. The global online grocery market is expected to reach $285.70 billion by 2030, growing at a CAGR of 25.3% from 2022 to 2030.

2. The online grocery market in the United States was estimated to be worth $35 billion in 2022. This is expected to grow to $59.5 billion by 2023 and $187.7 billion by 2024.

3. The Asia Pacific region is the fastest-growing online grocery market, with a CAGR of 32.2% from 2022 to 2030.

Continue reading if you’re an entrepreneur who wants to build your own online grocery business similar to Shipt. We’ll go over how Shipt operates, the revenue streams available to the grocery industry, how to launch your online grocery business, and more. 

How does Shipt work?

Shipt is an on-demand grocery delivery service that connects customers with personal shoppers who handpick and deliver groceries to their doorstep. To start an online grocery business like Shipt, it’s important to understand the underlying model. Shipt operates with the following key steps:

  1. Customers place orders through the Shipt website or mobile app, selecting their preferred grocery items from participating local stores.
  2. Shipt network of personal shoppers receives order notifications and accepts them based on availability.
  3. Personal shoppers visit the designated store, locate the requested items, and check out using a Shipt-provided payment card.
  4. Shoppers then deliver the groceries to the customers within a specified time window, ensuring prompt and convenient delivery.

Revenue Streams of an Online Grocery Business

To build a successful online grocery business, it’s crucial to identify viable revenue streams. Here are some potential sources of revenue:

1. Delivery Fees: Charge customers a delivery fee for each order or offer subscription-based plans with free or reduced delivery charges.

2. Markup on Products: Set product prices slightly higher than the in-store prices to cover operational costs and generate profit.

3. Partnerships with Stores: Collaborate with local grocery stores and earn a commission on each order placed through your platform.

4. Advertising and Promotions: Generate revenue by partnering with brands or stores for product placement, sponsored listings, or targeted promotions.

What Makes Shipt Different?

To differentiate your online grocery business, it’s essential to identify unique selling points. Shipt stands out by offering the following:

  1. Personal Shoppers: Shipt provides a personalized shopping experience with dedicated shoppers who handpick items according to customers’ preferences.
  2. Membership Program: Shipt offers a subscription-based membership program that provides unlimited free deliveries for a monthly or annual fee.
  3. Flexible Delivery Time Windows: Shipt allows customers to select specific delivery time windows that suit their schedules. This flexibility enables customers to receive their groceries at a convenient time, enhancing the overall convenience factor.
  4. Product Availability: Shipt leverages partnerships with local stores to ensure a wide variety of available products, including perishable items.

How to Launch a Grocery Marketplace Like Shipt?

To launch an online grocery marketplace like Shipt, follow these steps:

1. Market Research: Conduct thorough market research to understand your target audience, competition, and market potential.

2. Develop a Business Plan: Outline your business model, revenue streams, marketing strategies, and operational processes.

3. Build an eCommerce Platform: Partner with a reliable eCommerce platform provider, such as Growcer by FATbit Technologies, to develop your online grocery marketplace.

4. Secure Partnerships: Establish partnerships with local grocery stores to ensure a wide product selection and smooth supply chain management.

5. Recruit Shoppers and Delivery Personnel: Hire and train personal shoppers and delivery personnel to ensure efficient and reliable service.

6. Launch and Promote: Launch your online grocery marketplace and implement marketing strategies to attract and retain customers.

Conclusion

Starting an online grocery business like Shipt requires careful planning, a solid business model, and the right technology platform. Growcer, a white-label software built by FATbit Technologies that allows entrepreneurs to launch an online grocery marketplace. With features like inventory management, personalized shopping experiences, secure payment gateways, and scalability, Growcer provides the foundation for a successful online grocery business. By incorporating unique selling points, streamlining operations, and providing exceptional customer service, you can strive to create a standout brand in the competitive online grocery market.