If you are creating a grocery delivery platform, you’ll face many challenges. First, the competition is already too high. Locally, there are many players, so it will be difficult to create a brand name. You have to offer some unique features to acquire new customers. Heavy discounts and promotions are also good techniques for customer acquisition. 

Why are so many people investing in grocery ordering platforms? By 2024, the market size of online grocery ordering will be $782.40 billion, of which meal kit delivery will be $14.59 billion, quick commerce will be $170.80 billion, and retail delivery will be $597.10 billion. The grocery delivery industry is growing at 12.03% and will hit $1381.45 by 2029. 

Overcoming the Challenges of Prebuilt Grocery Delivery Platform

It is difficult to overcome the challenges of creating a grocery delivery platform. The main challenge is delivering various orders simultaneously without making mistakes or causing delays. Let’s discuss some challenges to overcome with a prebuilt grocery delivery platform.

High Competition

During the COVID-19 pandemic, online grocery delivery has increased as people can not go outside to shop for groceries; ordering groceries from the app is so convenient and easy that people are shopping online only now. Many startups were launched during that time; some are now billions of dollars, and some are shut down. 

It is difficult to make a brand name in this competitive market. However, offering good discounts and promotions can attract customers. Meeting the customer’s deadline for grocery orders results in customer retention. 

Delivery Cost & Timeline Expectation

Calculating delivery costs per order is completely automated. They are calculated according to the distance, time of ordering, and total order value. Delivering multiple orders and meeting customers’ timeline expectations can give a good competitive advantage. 

Initially, the entrepreneurs must work more on logistics because delivering the goods at a specific time is crucial in this business. If the order from a new customer is delayed or misplaced by the delivery partner, there is a high possibility of losing a customer. 

Inventory Management

Real-time inventory tracking is crucial in this business. When a customer orders something, he is informed after some time that the item he ordered is out of stock, which decreases customer retention. 

Grocery store owners have many types of products and different sizes of each, which can make tracking each product confusing. The owners will also hesitate to use this platform if the inventory is difficult to handle. The store can set the alerts when the stock is about to end. 

Technology Investment & Integration

It is better to build strong technology for a grocery delivery platform. Many customers will be lost if the server crashes due to heavy traffic. So, finding a reliable and cost-efficient company that can develop a white label grocery ordering app can result in better performance and excellent customer satisfaction. The customer should be able to order seamlessly. 

UI/UX Issues 

The interactive user interface and user experience are important in online grocery ordering. A good user interface includes different sizes and colors of fonts, background colors, designs, and animations. If the customer makes an order effortlessly, the user experience will be good. 

When customers come to your app to order and find it difficult to search for their product, or it takes more time to process the order, they will be frustrated. Make sure the checkout process is smooth and secure, with multiple payment options, such as credit cards, debit cards, Google Pay, or other digital wallets. The app’s interface should be similar across all devices. 

Difficult to Enter in Small Towns

People are starting this business locally by examining the massive demand for online grocery ordering apps. People in small towns cannot adopt the usage of digital currency. It is hard to change their habit of shopping for groceries. It will take a lot of time to change the habits of small-town people. They don’t trust the app easily. 

One solution is for entrepreneurs to partner with localities to gain other people’s trust. Offering heavy discounts and referral programs can drive traffic to the grocery ordering app. 

Profitability in Small-Basket Orders

It is difficult for entrepreneurs to generate profit in small orders. If people want to order something fresh, then the order should be delivered within a given time. Entrepreneurs can not charge too much, as the customer will use another grocery ordering app, and the competition is too high. 

Understand the customer’s analytics to make strategies for increasing profit margins. Offer subscription models to reduce or neglect the delivery cost (according to the total order value). 

Price Volatility

There is so much price volatility in these businesses as commodities’ prices change daily. This creates problems for online grocery apps as well as offline stores, directly impacting the profit line. This challenge can be solved by integrating robust technology that allows prices to be adjusted in real-time. If the price varies and there is no effect on profit margins, this can be a massive success for the grocery ordering app. 

Read also:- Mold Damage and Insurance: When Are You Covered?

Increased Operational Cost

There is massive competition in the grocery-ordering platform! Grocery-ordering apps include many operational costs, such as branding and marketing, maintenance costs, and employee fees. The delivery boy also takes a big portion, and logistics salaries include operational costs. 

When the competitor offers heavy discounts to retain customers, the entrepreneur must offer big discounts to stay competitive in the market. Sometimes, they have to face losses while acquiring customers. 

Conclusion

To summarize, beating challenges with ready-made grocery delivery platforms needs a smart plan and strong will. Dealing with things like keeping track of products, delivering them on time, and making customers happy is important for success. Using tech to make things easier for everyone is really important. Also, good relationships with suppliers and delivery people can make everything smoother. 

And don’t forget, it’s super important to keep learning and improving. With hard work and new ideas, businesses can overcome these challenges and do well in the changing world of grocery delivery.