Business And Revenue Model of Online Grocery Business

One of the implications of the 2022 pandemic & the resulting lockdown is the surge in online grocery shopping.

Covid-19 has disrupted the panorama of offline grocery retail & has paved the way for online grocery ecommerce platforms. With basic flow of information that will help ventures in setting up an online grocery business

Start an online grocery delivery business are flourishing around the world. Whether it’s groceries on-demand, food on demand, or other services, the on-demand economy is expanding

Business Model

Grocery delivery consists of vendors listing their products online & buyers purchasing from them. The order then gets delivered to the consumer. However, there are several ways of how this online grocery business model works.

Hyperlocal Business Model: You have built a grocery website for grocery vendors from the vicinity. The customer orders & you deliver the order to their doorstep.

Marketplace Business Model: The other alternative is that you mention all the items on your website. The buyer chooses the grocery items & their quantity. You get those from the vendors & then timely deliver them to the customer.

Inventory Based Business Model: In this business model, the inventory is bought and stored by the eCommerce grocery store. The eCommerce company manages a warehouse of the purchased inventory.

Revenue Model for Online Grocery Delivery Business

Online grocery delivery businesses primarily generate revenue via commission. There are three prominent ways:let’s talk about the revenue generation model.

Commission on Each Transaction
Commission on Delivery
Vendor Subscription Fees

Commission on Each Transaction

This is levied on the vendor/seller on every sale they make on the marketplace.

Commission on Delivery

The buyer & the rider are charged a certain amount on the purchase & the delivery of the order.

Vendor Subscription Fees

This is also known as the membership fees which the vendor can pay annually, quarterly, and so on.

Zielcommerce provides an online grocery ecommerce platform that can help to how to start an online grocery store in a short time period.

It also offers best-in-class features and a lifetime license. Equipped with buyer-readymade and grocery apps, it is a perfect platform to launch an online grocery business without hassle.