Business Ideas

How to Start Online Grocery Business in India [2022]

How to Start an Online Grocery Business in India [2021]

An online grocery business in India sounds very interesting. As everyone is now more inclined and focused on technology and shopping online, starting an online grocery delivery business is definitely a great business idea for 2022!

Online Grocery Market size surpassed USD 190 billion in 2019 and an estimated expansion of around 28% CAGR between 2020 and 2026 will be seen. Rising urbanization and the flourishing e-commerce sector in developing economies is a key factor driving the online industry growth.

So, here we are with very easy and accessible steps for you to grow and earn with the online world by letting you know how to start an online grocery business in India without investing huge amounts with great offers and tips only for you!!!

Steps to Start an Online Grocery Business in India

Step 1 – Firstly find your target customers and location

The first thing before starting a business, the basic and most important thing you need to know that who will be your customers and the region in which you are going to provide and deliver your products.

For a grocery business, most of the items included in it are perishable, and getting it delivered to the customers without quality degradation is to be seen and taken care of.

You need to consider analyzing your surrounding regions, geographical, cultural, and eating habits including the number of households, the population of young, urban, educated, suburban families, older singles, etc. where you are going to target your products.

Step 2 – Secondly, Registration of your business

Business Regirations | How to Start Online Grocery Business in india

The second and most important thing to be done in the process of starting your online grocery business is to get your business registered. As an individual, you better start with a sole proprietorship firm or (if you have partners continue with LLP registration).

Also, many have these questions while starting their business that if GST Registration is required or not? Well, GST Registration is not mandatory for business unless you’re selling outside your state or your aggregate turnover in a financial year exceeds Rs 20 lakhs. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.

For an easy-to-go way or for less workload you can take the help of any registered tax consultant or chartered accountant who will help you out with these formalities.

These formalities are very important for starting up any business and should be given utmost importance.

There are also many online legal companies like IndiaFilings, VakilSearch, and more…who can help you get your business registered in India.

Step 3 – Inventory Setup / Tie-ups

To run an online grocery delivery business it is very important to work on stock management. There are mainly two ways to manage your stock.

Firstly, either you can keep your stock ready in your warehouse or you can simply tie-up with a local grocery store initially which will lead to the formation of partnership agreements.

If you’re starting with low investment, then I’ll not recommend you to build your own inventory as it costs you a lot and though to maintain. Better you tie-up with your local vendors and only build your inventory once you have a large capital.

Also, as you’re going to sell groceries online through your mobile app or website, you also don’t need any physical presence. You can simply take orders from your local vendors and directly deliver to your customers, on almost the same business model on which Zomato works.

Step 4 – Working on delivery methods/services

The online consumer market as a whole depends on shipping and delivery methods. It plays a vital and crucial role in the success of your business.

In most cases, it is picked up when the consumer goods are delivered to the customer. To control the delivery time, you need to define the area range for products to be delivered.

65% of users claim that poor delivery method affects the quality of their products as the grocery items are perishable, so you should make sure to provide them with the best experience.

In most cases, the one-day delivery option is not available due to the non-availability of vehicles, which can confuse customers and lose their value and loyalty to your business.

The worst part is confirming your order and not delivering it. In Today’s time, most online grocery stores use their capital to cover shipping costs.

Hiring delivery boys with Motorbikes is always the best choice. By providing great customer service, you can grab the market’s attention and provide with utmost services.

Step 5 – Development of an app and website



Finally the start of the online world of your grocery business through an app and website. This step is the backbone of the whole process of starting to sell groceries online.

As this whole business idea works online, you need to have a great app/website which allows your customers to place orders online. If your app or website UI is not good, or not user-friendly, then you’ll lose many customers and users won’t like to browse your app.

You need to hire an agency that provides the best app or website development services within your budget. Make sure your website or app has a fast speed, clean design, easy to use, and has all required functionalities.

Developing an app generally costs you more than developing an eCommerce website, but having an app is much more effective and helps your customers easily browse products and place orders through your mobile app. If you can afford an app for your grocery business, then you should go for it.

But if your budget is initially low, you can go for an eCommerce website that will fulfill almost all of your needs.

You can in touch with Web Ninja Solutions for an app or website development. They are also providing a 10% additional discount. Just tell them you’re coming from Startup Sutra ?

Step 6 – Working on the payment methods

After the development of the website and app now it comes to the payment modes and methods. It’s always preferable and suggestive that you provide your customers with all the possible modes so that the customer gets a feeling of satisfaction and equity when they buy the product from your business.

Your app/website development company should take care of online payment gateway integration in your app or website. Also, you should also enable a COD option in your app/website.

As your delivery involves door-to-door service most preferable will be Cash On Delivery (COD). Customers will get to know the quality and also a sense of loyalty and trust will be built towards your store and products. Also when you keep COD as a primary mode of payment you don’t need to wait for the remittance from the payment gateway to end and will receive the payment on the same day itself

Also, when your customers will opt for the COD option you will be saving almost 2% of TDR which you can be paying to the payment gateway company if you accept online payment via credit/debit card, net banking, or other payment modes.

Step 7 – Marketing Plan/Marketing Strategy

To make your business visible and approachable you must invest in Marketing. Marketing will help your online grocery business to get acknowledged and approachable.

The marketing plan should include the definition of your business and products, setting up your goals, choosing your digital marketing plans, setting up your budget, and analysis of your outcomes and results.

For the visibility of your business, you should indulge yourself in using Search Engine Marketing and Optimization, Affiliate and Associate Programs, Use Email Marketing, build an Opt-In Email List, get into Articles or News Stories, write Online Press Releases.

For the advertisement of your online business, it should include email, social media, display advertising, search engine optimization, Google AdWords, and more kinds of online and digital platforms.

CONCLUSION

As Covid-19, has already made the world turn into a technical one so why should we keep ourselves back from it, our growth and success shouldn’t stop by being not able to adjust ourselves to the techno world. It’s just our little efforts and ideas which can make us successful and our growth possible.

Online business is the most growthful one in today’s scenario. Every business is turning online so why keep your grocery store back from it.

How to Start an Online Grocery Business in India has been already explained to you in very easy ways which can let you grow and reach heights of success.

Grocery is the basic needs of every human being and its demand cannot decrease it’s just about the way and process you follow to grow your business.

So, this is the time when you need to realize that it’s high time and you need to get yourself into the online world and be with the pace of the surrounding world.

We hope that every point about “How to start an online grocery business in India”, mentioned and explained in a detailed way would make your understanding more clear.

FAQ’s

1). Is the online grocery business profitable in India?

The profit range of online grocery stores in India ranges from 2% to 20%. Thus, the online grocery business in India is profitable and has huge long-term returns.

Grocery is the basic needs of every human being. The demand of the grocery cannot decrease and the market doesn’t fall. And in today’s scenario i.e. the online world an online grocery business will be in high demand.

Online businesses are booming in India and worldwide so it is the best platform to grow and earn huge profits with minimum investments. The grocery items profit ranges from few rupees to thousands depending on the items.

2). How do I set up an online grocery store?

  • Finding/Identifying your target audience and area/region
  • Registration of your business
  • Setting up of stock/inventories/Setting up contracts with local business in target areas/Forming partnership agreements
  • Working/Developing good and efficient delivery service
  • Development of an app and website
  • Development of a suitable and effective payment method
  • Effective Marketing Plan/Marketing Strategy

3). How much money do I need to open an online grocery store?

Generally setting up an online grocery store can range from a minimum of Rs. 50,000 to 2 Crores in Inda.

The cost of an online grocery store in India includes various factors like:

  • App/Website Development
  • Marketing
  • Business Registrations
  • Delivery Infrastructure
  • Packaging
  • Inventory
    and more…

4). How can I sell my groceries online?

For starting selling online you need to create a website and an app for your business in which you have to take care of a lot of things which includes a listing of products of your business, Payment methods being provided and accepted by your business, Delivery methods, Quality of products, Valuable pricing of your products, Advertisement of your website, etc.

With the evolvement of technology and the online world now everything is done online. So selling online won’t be a hurdle for you now. As explained in detail in the above heading “How to start online grocery that the step of making an app and website was mentioned.

Creating awareness, brand value, getting loyal customers through online methods all these things also need to be taken care of.

5). How to make an online grocery app?

As getting yourself indulged and involved in the online business world lots of things are needed to be taken care of also it is time-consuming. So it is more preferable and suggestable to contact and hire an expert or an agency which can help you out with all the problems and can build an app and website according to your needs and convenience.

It is more beneficial as well as time-saving. Web Ninja Solutions offers you with best of the facilities of creating your own app and website according to your convenience and will. It helps you out with all the solutions related to your app and website development which is very much affordable as well as trustable.

Anujeet Shivam

Hey There! I'm Anujeet Shivam - the founder of Startup Sutra, a business and marketing blogger, a Website Designer/Developer and a WordPress Expert. I love creating good and informative contents which help people in achieving their dreams. Along with that, I'm also a Website Developer who is having over 3+ years of experience and created more than 100 websites until now. Thank You :-)

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