The building materials industry has consistently proven to be an economically viable business option for entrepreneurs. With a global market share of a whopping $1.7 trillion in 2024, the industry has exhibited immense potential in all geographical regions. To begin with, we can take the example of the North American region, which is flourishing with the latest recorded market share of $319 billion, followed by Europe with $210 billion. 

Furthermore, the industry is estimated to expand by another $159 billion in the next 5 years, indicating the long-term value of timely investing in a building materials startup. In the digitally-abled era of today where technology is redefining traditional business models, launching a hyperlocal building materials marketplace emerges to be a lucrative venture. 

Not only is the hyperlocal marketplace model asset-light, which means it does not require you to own any inventory, but it also helps you grow the entire hyperlocal market as a whole. Let’s take a closer look at everything you require to launch your own multi-vendor building materials marketplace, including its primary benefits, top players, business model, software technology, and more.

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Benefits of Launching a Hyperlocal Building Materials Marketplace

Online building materials marketplaces bring efficiency of scale with multiple vendors and a widespread product catalog. Due to this, they are able to provide the following benefits: 

• Provide customers with quick access to a diverse range of building materials and supplies
• Display product availability at multiple local stores
• Are highly reliable in case of providing emergency substitutes, for example in case of shortage and wastage of materials
• Provide customers with multiple discounts and promotional offers
• Help local vendors increase online presence
• Are more transparent and reliable in terms of invoicing, returns, and accountability

Leading Building Material Businesses in the Digital Era

The building materials industry is fragmented into various players. When analyzed on the basis of their digital capabilities, the following are the industry’s leading players:

Home Depot

Home Depot is the world’s largest home improvement retailer with a wide range of building materials and supplies. It operates via both online and offline channels and has local stores all across the US. In terms of hyperlocal operations, Home Depot provides same-day delivery and also has a returns policy. 

Estimated Revenue:  $153.7 billion

Value Proposition: Same-day delivery, next-day delivery, both self-pick-up and delivery options, return options 

Lowe’s

Lowe’s is another digital building material and supplies provider in the US. With over 2000 local stores, it provides same-day delivery services in all 50 states. Lowe’s product catalog ranges from home accessories, power tools, and HVAC to lawn & garden supplies, bathroom supplies, and flooring. 

Estimated Revenue: $86.3 billion

Value Proposition: Same-day delivery, bulk order discounts, return options, buy now pay later, credit programs

Menards

Menards is a big player in the building materials industry with over 300 stores in 15 states of the US. It also provides hyperlocal building materials delivery and has a wide catalog of hardware tools, paint supplies, garden equipment, bath fittings, plumbing, and flooring products. 

Estimated Revenue: $13.4 billion

Value Proposition: Same-day delivery, credit programs, self-pick-up, and delivery options

Materials Market

As the name suggests, Materials Market is a complete marketplace for building materials suppliers. It helps them sell their products to thousands of customers and expand business operations. The product catalog of Materials Market is also very wide as it sources its products from an array of suppliers. 

Estimated Revenue: NA

Value Proposition: Sources building materials from multiple suppliers, helps local businesses expand business operations, bulk deals and discounts

AMAST

In comparison to Home Depot and Lowe’s, AMAST is a relatively newer player that provides online access to over 200,000 building materials and products. With multiple vendors, AMAST is an online building materials marketplace that specializes in B2B sourcing operations.

Estimated Revenue: $4.9 million

Value Proposition: Community of over 400 vendors, provides custom price quotations, provides vendor name in listings

Exemplary Workflow of a Hyperlocal Building Materials Marketplace

Usually, four user types are involved in online building materials marketplace operations. These user types are:

1. The Admin: The marketplace owner and their subordinates who oversee and manage the overall platform. The admin is not necessarily required to own any of the listed products.
2. Vendors: Local building material suppliers and manufacturers wanting to sell their products on the marketplace. Vendors also have to maintain inventory and timely dispatch orders.
3. Delivery Staff: The on-field delivery personnel that take care of the delivery.
4. Customers: The hyperlocal target audience, which can be local contractors, homeowners, private offices, and concierges.

These four user types interact on the marketplace platform in the following manner: 

1. The admin configures the marketplace including webpages, logos, payment gateways, commission rate, withdrawal settings, and the master catalog.
2. Multiple vendors sign up on the marketplace and list their products
3. Customers select their preferred products, delivery slots, and complete the checkout process.
4. The admin commission is deducted from the order payment and the remaining amount is stored in the vendor’s eWallet.
5. Vendors fulfill the order as per the selected order fulfillment method, ie., delivery or self-pick-up.– In case of delivery, the admin or seller assigns the order to a delivery staff. Alternatively, the system can also broadcast delivery to all nearby delivery personnel.
6. Upon reaching the minimum withdrawal threshold amount, vendors can transfer their earnings from their eWallets to their bank accounts.

Necessary Features Required in Your Hyperlocal Building Materials Marketplace

Based on the aforementioned business workflow, your online building materials marketplace requires the following features:

• Delivery Time Slots: Ensure convenience to your customers by providing multiple delivery time slots.
• Self-pick-up Module: Allow customers to pick up building materials as per urgency or from nearby stores. Alternatively, this option can also be used as BOPIS payment method.
• Single Item Cancellation: Allow customers to cancel single items from already placed orders.
• Order Adjustment: Ensure a higher customer satisfaction rate by providing substitute products in case of out-of-stock or unavailable items.
• Order Management: Track orders in real-time including delivery status, vendor details, customer details, etc. You can also edit the status updates of in-progress orders.
• Subscription Packages for Vendors: Provide vendors with a satisfying selling experience by creating premium subscription packages.
• Vendor Catalog: Allow vendors to import, create, or request their own custom product catalog.
• Vendor Management: Get comprehensive vendor management options including registration request approval, sales history, order history, product catalog access, and more.
• Commission Settings: Set and charge your own commission rate and withdrawal settings, such as minimum withdrawal threshold and minimum withdrawal interval.
• Delivery Management: Manage delivery staff profiles, set delivery charges, and assign or broadcast orders. 

Mobile Apps for Customers and Delivery Staff

Along with these features, your entire technology infrastructure will also require separate mobile apps for customers and delivery staff:

• Customers Mobile App: Through the app, customers can conveniently browse all building materials and place orders. They can also access search filters, view order history, view rewards, and even track in-transit orders. For added convenience, they can create and access wishlists and save delivery addresses and payment details for quick checkouts.
• Delivery Staff Mobile App: Via the mobile app, delivery staff can easily view all broadcasted and assigned orders. They can select their delivery radius, access GPS navigation, and keep a record of all earnings and deliveries. 

Steps to Launch Your Online Building Materials Marketplace

Launching a new startup consumes substantial time and effort. It is highly recommended to invest those efforts in the right direction. For more efficiency, you should create a launch strategy for your building materials marketplace. To further help you out, we have outlined the major steps required to launch your hyperlocal business.

Step 1: Conduct Market Research

It is highly possible that statistical data for your target hyperlocal market may not be available. In such a situation, instead of statistical data, you rely on consumer surveys and feedback. Multiply the number of potential customers in the total number of respondents by the amount of money they are willing to spend on your online building marketplace. By scaling up this data to the target region’s actual population, you can estimate the market size. Additionally, focus your research on the pricing mechanics, key competitors, and consumer behavior.

Step 2: Prepare a Revenue Generation Model

For earning revenue, you need to solidify a working revenue generation model that you can easily set up on your online store. Your revenue generation model should focus on maximizing profit generation and diversifying the income streams. Some revenue streams that you can include in your hyperlocal marketplace are:

• Sales Commission: Flat rate or percentage commission on every transaction that takes place on your marketplace.
• Subscription Packages: To provide a superior experience to certain vendors, you can create and sell custom subscription packages with different offerings, such as lower commission rates and free featured listings.
• Featured Listings: Similar to subscription packages, you can sell featured listing spaces to your vendors. These listings appear in the most viewed sections of the marketplace, such as the homepage banner, at the top of search results, etc.
• Display Ads: You can also charge third-party businesses to display their ads on your marketplace platform
• Delivery Commission: You can levy your commission charges on paid deliveries. 

Step 3:  Choosing the Development Approach

There are two development approaches to develop your hyperlocal marketplace. 

• Using a Readymade Software:

Readymade software are tried and tested business solutions that are developed after thorough research of market scenarios and various use cases. Due to this, they come with all essential features to facilitate hyperlocal operations right out of the box. To provide a superior user experience, readymade hyperlocal delivery solutions also have shorter workflows. Some benefits of using a readymade solution to develop your building materials marketplace are:

1. Coding or programming knowledge is not required
2. Shorter time-to-market
3. Come with all essential features right out of the box
4. Already tried and tested
5. Highly cost-effective

• Bespoke Software Development

In the bespoke development approach, you need to develop the marketplace from scratch. Either you can write the source code yourself or hire a software developer. While bespoke software development is a feasible approach, it lacks the benefits provided by readymade software. For example, the development time frame in bespoke development can range from several months to years and you will also need to pay hourly development costs to the development firm. Some benefits of using bespoke software development are:

• Can be used if you want your marketplace to be developed on a very specific technology, for example, Laravel and Koka
• Can help you follow any business model

Step 4: Market the Platform

After developing and configuring the marketplace, you can start your hyperlocal building materials business operations. Prioritize local SEO to attract a hyperlocal audience and also connect with local contractors, engineers, plumbers, and other service professionals. To build your product catalog, you will need to onboard several vendors. There are multiple ways to do so including introducing lucrative offers, building a personal network, email marketing, paid campaigning, and more. For more assistance in attracting vendors to your hyperlocal building materials marketplace, check out this blog. 

Lastly, you also need a wide range of building materials to meet the diverse requirements of customers. Some building materials that you can sell on your marketplace are:

Building Materials:- 

How Growcer Can Help

Growcer is a readymade hyperlocal delivery solution that supports numerous marketplace operations including building materials. It has been carefully developed after years of research to help you with daily hyperlocal business use cases. Perfected with native Android and iOS mobile apps along with different admin, vendor, customer, and front-end interfaces, Growcer is fully equipped to power robust marketplaces. 

To further streamline your business, Growcer automates several operations such as inventory, invoicing, returns, cancellations, commissions, payments, taxes, discounts, promotions, user management, analytics, and even shares real-time order status with customers. With automated workflows, Growcer is also able to reduce your overall operational costs. 

Lastly, marketplaces built with Growcer are completely white-label and fully scalable. Meaning, that not only you can rebrand Growcer and promote your marketplace under your own brand name but also provide your vendors with unlimited listings and transactions for limitless growth. 

Reasons to select Growcer to build your online building material marketplace:

• No coding required to launch your marketplace
• Complete white-label software that you can rebrand 
• No monthly or annually recurring charges
• Free 12 months of technical support
• Native Android and iOS mobile apps
• Fully scalable and customizable
• Comes with multilingual and multi-currency support
• Complete source code ownership 
• Thorough documentation and tutorials for easy onboarding

ShortA: A Building Materials Marketplace Built with Growcer

ShortA is an online building materials marketplace with operations in New Zealand and the United Kingdom. With over 7000 delivery partners, ShortA delivers a wide range of construction supplies, including power tools, plumbing tools, electrical supplies, etc. With the help of Growcer, ShortA is able to simplify operations between vendors, customers, and delivery partners. Moreover, it also uses mobile apps to deliver superior service to contractors and homeowners.

Conclusion

The increasing convenience of online shopping apps is revolutionizing diverse industries. However, the revolution is still much awaited at the hyperlocal level in many states and cities. In the building materials industry, you can take the initiative and gain the first-mover advantage by launching your own hyperlocal building materials marketplace. To launch a reliable marketplace, you will need to focus on several factors such as market research, consumer behavior, software technology, and onboarding vendors. After launching your marketplace, build a strong supplier network and focus on local SEO to grow your business.

Last Updated: 02 April, 2024

The online grocery industry is on a robust upward trajectory and is further poised to grow considerably in the coming years. In a recent grocery shopper survey conducted by Mercatus and Incisiv, online grocery shopping will account for 20.5% of total grocery sales by 2026 or an estimated $263 Billion whether it will be doorstep delivery or curbside pickup.

This presents a golden opportunity for entrepreneurs to capitalize. The key lies in harnessing the power of technology to build a cutting-edge online grocery delivery platform and accompanying mobile application. As it takes a lot of effort to launch a grocery delivery eCommerce platform, in this post, we look into the intricacies of building a grocery delivery platform and app – illuminating the key components that will contribute to the future success.

Table of contents

• Why Must You Launch an Online Grocery Delivery Platform and App?
• The Top Players in the Grocery Delivery Industry
• Important Things to Consider While Launching an Online Grocery Delivery Platform and App
• Essential Features to Have In an Online Grocery Delivery Platform/App
• How to Launch an Online Grocery Delivery Platform/App?
• How can Growcer Help to Launch Online Grocery Platform and App
• Growcer Powered Clients
• Final Words

Why Must You Launch an Online Grocery Delivery Platform and App?

There are a multitude of reasons that underscore the need for entrepreneurs/grocers to venture into the grocery eCommerce space by launching their own online grocery delivery platform and accompanying application. Listed below are some of them.

The Stronghold of eCommerce

The grocery industry is on the cusp of transformation with eCommerce penetration to be more than double in the coming three to five years. According to McKinsey research, consumers will continue to showcase a positive intent to buying groceries online even after the post-pandemic era. This is because eCommerce allows consumers to compare products, avail personalized promotions, get doorstep delivery and more.

Evolving Consumer Behaviour

Technological advancements have practically broken the shackles of geographical limitations catering to people from all walks of life like younger and elder generations, urban and affluent consumers. This has brought a global disruption in the grocery industry, where new and old players are changing customer expectations and behavior across propositions as they are increasingly seeking healthier and diverse range of products, convenience of doorstep delivery and value for money.

Expanding Business Reach

Online grocery delivery platforms and applications break geographical barriers, enabling entrepreneurs/grocers to tap into a wider customer base that might otherwise not be accessible through traditional brick and mortar stores.

Easy to Start & Time Efficient

Unlike traditional brick and mortar stores, you don’t need any physical space to start an online grocery business. It is easy to start and takes less time, i.e., you just need to  launch your online grocery business with an online grocery delivery solution that offers mobile apps.

Convenient for all Types of Users

An online grocery delivery platform is convenient for all users (admin, vendors, buyers). The admin can easily manage all the users, commission, go through reports and analytics for better decision making, and so on. Vendors, on the other hand, can easily list their products to reach a wider audience, keep a tab on the stock level, and more. For buyers, there is a wide range of products available, which they can buy just at the click of a button (as per convenience) and get the order delivered to their doorstep.

Building Brand Loyalty

A well architected grocery eCommerce platform and application can garner loyal customers and hence build brand loyalty with unparalleled customer support. This can lead to repeat business and can be a powerful driving force for sustainable growth in a competitive market.

Top Players Delivering Value in the Grocery Delivery Industry

The grocery eCommerce competitive landscape is rapidly changing with new players springing up. However, there are some prominent players. A few of them are mentioned below:

1. FreshDirect

It is an online grocery marketplace that delivers groceries to the doorstep and offers same or next day delivery. FreshDirect offers fresh and high quality grocery products with a lot of discounts to buyers, encouraging them to buy through their website.

2. Instacart

Instacart offers grocery delivery and pickup services across the United States and Canada. Instacart lets you shop from grocery stores listed on its website or app, then sends a personal shopper who picks, packs, and delivers the order to you.

3. Shipt

Founded in 2014 and owned by Target Corporation, Shipt is known to offer access to a variety of stores and product categories such as groceries, household essentials, wellness products, and more. Shipt provides personal shopping and delivery services and is functional in more than 5,000 U.S. cities.

4. Walmart

Walmart enables shoppers to order groceries online and have them delivered to their doorstep. It also offers pickup options.

Important Things to Consider While Launching an Online Grocery Delivery Platform and Mobile App

Launching an online grocery delivery platform and app requires careful planning, i.e. a holistic approach considering both business and technical aspects. Here is a detailed breakdown of things to consider while launching an online grocery delivery platform and application.

Competitor Research

The initial steps towards launching an online grocery delivery platform or application is to conduct comprehensive competitive analysis. This includes identifying your competitors, their strengths and weaknesses, their offerings, and so on. This step basically aids you to understand the market and find ways to stand apart in terms of your offerings. Competitive research can be of two types:

• Qualitative Research – Collects data that is non-numerical basically to understand customer behavior, opinion and attitudes. This can be done via conducting interviews.
• Quantitative Research – Is collection of numerical data. This is done to measure market trends and can be done via evaluating sales data, measuring website traffic, using analytics and more.

Business Model and Revenue Model

The next step is to determine the type of business model that aligns with your business vision, customer expectations and market trends. Different types of business models include:

• Inventory Based Business Model – The inventory is bought and stored by the grocery store that will provide online delivery services.

• Multi-Vendor Business Model – Multiple sellers come together to sell their grocery products on a platform.

• Hyperlocal Business Model – The delivery of grocery products is provided within a specified geographical area giving local retailers/grocers an edge to sell their grocery items.

• BOPIS Business Model – Buy Online, Pick Up In-Store or Click and Collect allows customers to purchase groceries online and pick them in store.

Once the business model is decided, it is pivotal to narrow down the revenue model as it will contribute significantly to the grocery delivery platform and app’s sustainability and financial resilience. A few of the revenue streams include:

• Commission – A common revenue stream to charge commission on every grocery delivery order or seller for each transaction through the platform.

• Delivery Fees – Charging a flat fee on delivery or depending on the order value or distance.

• Subscription – This is a recurring payment for premium services like exclusive deals, priority service or discounted deliveries.

• Advertisements – Displaying targeted advertisements within the app or the website.

Robust and Reliable Tech Stack

Choosing the right tech stack is critical as it can make a significant difference in terms of the success of your grocery eCommerce website or application. A tech stack consists of two primary components:

• Frontend Stack – This includes the technologies used to develop the user interface of the website or the application. HTML, CSS, JavaScript and so on come under this category.
• Backend Stack – On the other hand, backend acts as the backbone of the platform or the application. The frontend takes the data request and the backend executes the request through data retrieval from the server. Programming languages like PHP, Ruby, Python, Java come under this category.

• Database & Server – As the name suggests, databases store the data while servers deliver the data upon request. MongoDB (database) and Apache (server) are quite popular.

Flexible Framework

A proper framework is also needed to support programming languages and backend servers and a database to store the data. Choose a framework that can accommodate multiple niches apart from grocery such as dairy, pet food, supplements, online pharmacy and more.

Scalable and Customizable

Scalability and customization depends on the tech stack that has been chosen. Plan the platform and the application in a way that it is scalable and customizable so that the future feature additions and changes can be accommodated.

High System Performance

The platform or the application to be designed for grocery delivery needs to be responsive with quick load times and high performance, i.e. it should be capable of handling increased user loads. Thorough performance testing should be conducted to identify and resolve potential bottlenecks.

UAT and UX Testing

User Experience (UX) and User Acceptance Testing (UAT) is vital as if an online grocery delivery website or an application is released to the public without testing then it can negatively affect the brand image and may result in loss of consumers if there are bugs or usability issues. Hence, prioritizing a simple and intuitive UX/UI to enhance user satisfaction is important.

Time to Launch the Platform

This is another critical factor, ultimately the time needed to launch an eGrocery platform and an application will determine its success. If the launch is too late it will result in competitive disadvantage. Hence, there are a few factors to consider like availability of resources, regulatory environment, competitive landscape to determine the time for launch.

Budget

The budget will basically depend on the site’s and app’s complexity in terms of features and functionality, integrations, design, further marketing and so on. So, thinking about the budget beforehand would be better and wise. You can determine a realistic budget for the entire process from development to launch, ongoing maintenance and potential contingencies.

Essential Features to Have in an Online Grocery Delivery Platform/App 

Admin Features

• Commission Management
• User Management
• Delivery Management
• Order Cancellation & Adjustment
• Product Catalog System
• Analytics and Reports
• Tax Management
• Multiple Level of Administrative Access
• Subscription Packages Management

Seller Features

• Registration
• Reports
• Pin Shop On the Map
• Bulk Import/Export
• Delivery Slots Management
• Order Cancellation Management
• Refund Order Management

Buyer Features

• Easy Sign Up
• Search Filters 
• Auto-Detect the User Location
• Easy Checkout
• Real-Time Tracking & Updates
• Progressive Web Apps (PWA)
• Ratings & Reviews

Delivery Staff Features

• Define Radius
• Accept or Reject Order
• Click & Call to Sellers & Buyers
• Delivery Order Management
• Push Notifications
• Order Cancellation
• Route Navigation

How to Launch an Online Grocery Delivery Platform and App?

An online grocery delivery platform and app can be launched by following different approaches. A few of them are listed below:

• Custom Development
• Using Open Source Platforms
• Using an Off-the-Shelf Solution

Custom Development

This is a tailored approach to meet the specific needs of a business. The platform is built from scratch with custom features and functionality. The development time is longer and the cost is higher.

Using Open Source Solutions

There are certain open source solutions that are freely available to anybody, and can be modified with the help of people with technical expertise like developers. These can be cost effective solutions, but technical expertise is needed.

Using an Off-the-Shelf Solution

Choosing an off-the-shelf solution is a better approach as it is readymade and consists of industry tested features and functionality. It is cost effective and is quick to launch. You just need to buy, launch and get started.

How can Growcer Help to Launch Your Online Grocery Platform and Mobile App?

Developed by FATbit Technologies, Growcer is a readymade eGrocery solution that is designed for entrepreneurs and grocers who are looking to launch their own online grocery platform. It is a fully customizable solution that is 100% white-label. Additionally, Growcer also provides robust and intuitive mobile apps for buyers and delivery staff for both Android and iPhone users.

Furthermore, entrepreneurs can also use Growcer to build marketplaces that cater to several other niches apart from grocery. These include pharmacy, pet supplies, liquor/wine, dairy, construction materials, bakery goods and more. Moreover, Growcer also offers 1 year of free technical support and no additional cost installation.

Key Highlights of Growcer

• Ready-made eGrocery Solution
• 100% White-Label
• Fully Customizable & Scalable
• 1 Year of Free Technical Support
• Offers Buyer & Delivery Partner Apps (Android & iOS)
• Powerful Dashboards
• Reports & Analytics
• PCI Compliant for Secure Transactions
• Real-time Inventory Management
• Return & Refund Management

Growcer Powered Clients

ShopExpress

Powered by Growcer, ShopExpress is a Zimbabwe based online grocery delivery platform that provides quality grocery delivery products to the customers door. The platform is also supported by robust mobile apps for enhanced grocery delivery.

Superkiwi

A USA-based online grocery delivery platform that provides quick delivery of groceries is built using Growcer. There are several distinguishing features and integrations in the platform like CyberSource payment gateway for secure transactions, WhatsApp integration for customer support, and more.

Tap Retail

A tailor-made online grocery delivery platform that facilitates grocery delivery from local stores on the same-day within 2 hours. The platform is Ireland based and is built by customizing Growcer.

Dhalmart

A US-based grocery delivery platform that is dedicated to selling groceries, organic vegetables, and home-cooked food. Built using Growcer, the platform is equipped with several features that efficiently help with the management of delivery staff, inventory, and so on.

Final Words

In today’s age where people trudge around to make ends meet, convenience and efficiency in terms of grocery delivery cannot be overshadowed. Furthermore, technology acceleration has indeed brought online grocery delivery platforms and applications to center stage. Hence, one must seize the opportunity and catch the wave of profitable growth by launching an online grocery delivery platform and accompanying application.

The grocery industry is undergoing a digital transformation, with an increasing demand for online grocery shopping. According to Oberlo, the current value of the online grocery market is $160 billion and is further projected to exceed $235 billion by 2026. This substantial growth is largely attributed to the convenience it offers to the customers, allowing them to shop from home, saving both time and effort. Additionally, the COVID-19 pandemic accelerated this shift, resulting in a 43% increase in online grocery shoppers. This showcases it is the right time to either start your online grocery business or enhance the existing one.

However, with growing competition, it becomes vital to understand and pinpoint the areas where the other businesses are falling short. Hence, this blog presents a comprehensive list of indispensable features, all aimed at optimizing the grocery shopping experience and scaling your online grocery business growth.

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With the increasing popularity of online grocery shopping, there’s been a sharp rise in demand for hyperlocal grocery delivery platforms. Factors like growing preference for doorstep grocery delivery, discounts, multiple payment choices, and convenient access to diverse product ranges have significantly driven the adoption of online hyperlocal grocery platforms.

According to Research and Markets, the hyperlocal delivery market is expected to reach $5.6 billion by the year 2028. This signifies the opportunity for emerging entrepreneurs to tap into this market by building reliable and feature-rich hyperlocal grocery platforms.

Therefore, in this blog, we will explore the influential trends propelling hyperlocal grocery market growth, delve into popular players, and outline how to build an online hyperlocal grocery marketplace.

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Online grocery shopping is pervasive attributed significantly to the mobility offered by mobile phones. There is intense competition where businesses across the grocery industry are trying to provide customer oriented services, often through mobile apps. This presents an opportunity for businesses to tap into as they can build a connection with their customers via grocery mobile apps irrespective of time and place.

Capitalizing on this trend of online grocery shopping, several app development companies are springing up and are offering grocery app development services. But choosing the right mobile app development company is a must for the app’s success. Hence, in this blog, we cover the top grocery mobile app development companies, highlight the reasons to develop grocery ordering and delivery apps and the parameters to keep in mind while choosing a grocery app development company.

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Last Updated: 29 March, 2024

eCommerce technology has revolutionized the way consumers shop. From grocery, medicines and dairy products to stationery, supplements and flowers, consumers can purchase everything within a few clicks and get them conveniently delivered to their doorsteps. This change in consumer behavior has increased the business potential for launching an online hyperlocal marketplace business where consumers can get anything quickly delivered to their homes in a limited geographical area.

As per research, the hyperlocal market is expected to reach $3,634.3 billion by 2027. So, if you are an entrepreneur looking to start your own hyperlocal marketplace business, this is the right time. However, before venturing into the market, it is essential to identify the right niche that aligns with your business goals. Hence, in this post, we present the top 10 niches to launch your own hyperlocal marketplace business.

Table of Contents:

• Popular Niches to Launch Your Online Hyperlocal Marketplace Business
  ― Fruits and Vegetables Delivery
  ― Bakery Goods Delivery
  ― Meat Delivery
  ― Dairy Products Delivery
  ― Medicines Delivery
  ― Supplements Delivery
  ― Pet Food Delivery
  ― Flower Delivery
  ― Stationery Delivery
  ― Beauty and Personal Care Items Delivery
• How Can FATbit Technologies Help You in Launching Your Hyperlocal Marketplace?
  ― Key Highlights of Growcer
• Conclusion

Popular Niches to Launch Your Online Hyperlocal Marketplace Business

As mentioned, hyperlocal delivery has taken the eCommerce industry by a storm. But with increasing competition, it becomes pivotal to figure out a niche. In this section, we discuss the top 10 niches that you can consider to launch your online hyperlocal marketplace business.

• Fruits and Vegetables Delivery

Fruits and vegetables are an essential requirement for daily life. Hence, launching an online fruits and vegetables hyperlocal marketplace presents a remarkable opportunity to fulfill the essential needs while tapping into a rapidly growing market, which is projected to reach $81.5 Billion by 2032.

Major Players: Peapod, Amazon Fresh, HelloFresh

• Bakery Goods Delivery

With quick-moving lifestyles, convenient foods like bakery products are becoming popular. According to market research, by 2026, the global bakery market is expected to reach $436.91 Billion and the online bakery market is expected to reach $32.6 Billion for the forecasted period. That said, to make buying bakery products painless, launching a hyperlocal marketplace business for bakery goods is a lucrative business idea. It gives you an opportunity to get in touch with a wider audience, have 24×7 operation and grow the bottom line.  

Major Players: Frabelle MarketPlace, Shopbake

• Meat Delivery

The changing consumer behavior towards the on-demand services has put online meat delivery marketplaces in the spotlight. Modern customers want hygienic and quality meat products without any hassle. And, an online meat delivery marketplace eliminates the middleman and facilitates direct purchases, allowing customers to place orders with just a click. Thus, leveraging a competitive edge in today’s market by launching an online hyperlocal marketplace business for meat delivery is the way forward.

Top Players: Debragga, Meats by Linz, Meat the Butcher

• Dairy Products Delivery

Dairy has an intrinsic presence in a lot of consumers’ lives. Be it consumer end products (e.g. milk, curd, ice cream) or as a critical ingredient for items like cheese pizza. According to market reports, the global dairy products market is expected to grow at a CAGR of 2.5% until 2027. To meet the rising demand for dairy products, wholesalers are now looking for a D2C Go-to-market approach. To follow this approach, starting a hyperlocal marketplace business can be a winning proposition.

Top Players: Doorstep Dairy, Oberweis Dairy,  Pete’s Milk Delivery

• Medicines Delivery

In a digital-first world, where convenience and accessibility are paramount, customers want medicines from the comfort of their homes. This is where an e-pharmacy marketplace comes into play. It provides medicines to customers’ doorstep while maintaining patient safety, providing a wider selection, allowing comparison of drugs, and offering increased privacy.

Further, the demand for home delivery (contactless delivery) of medicines became a game changer during the pandemic days, and the steak is said to continue. According to Market Data Forecast, the global ePharmacy Market is estimated to grow from USD 57.73 Billion in 2023 to USD 125.56 Billion by 2028 at an estimated CAGR of 16.81%. Hence, if you are an entrepreneur who is looking to start an online pharmacy marketplace, this is the right time.

 Top Players: PillPack, Capsule, CVS pharmacy

• Supplements Delivery

As people are increasingly becoming health-conscious, the demand for health supplements is on the rise. From vitamins to minerals, individuals pop a supplement to either combat a vitamin deficiency, lower the risk of a certain disease, or for preventive health care. That said, with the rise of eCommerce, online supplement stores have gained significant popularity as they offer a wide range of products at competitive prices. So, if you are looking to start a hyperlocal business, a supplements hyperlocal marketplace business is a lucrative option.

Top Players: 1UP Nutrition, A1 Supplements, eVitamins

• Pet Food Delivery

To take care of furry friends, pet owners are spending more money than ever. According to reports, the annual household spending per pet is estimated to grow to $1909 by 2030. While pets get to enjoy extra treats, for owners it is about nutrition or a way to bond and take care of their pets. So, pet owners are switching to premium pet food which includes healthy, fresh, plant-based, frozen, and more. 

Further, demand for dry and organic food is also on the rise because of its convenience for busy, aged or families with young children. Hence, there is a transition to online channels that provide quick pet food delivery. That being said, the pet food delivery market is growing by every metric and this represents a lucrative opportunity in launching a hyperlocal marketplace business for pet food delivery.

Top Players: Chewy, petco, PetSmart

• Flower Delivery 

Amidst the sea of change, online purchases have become central in the lives of individuals. As eCommerce continues to disrupt the retail industry, the floral sector has therefore not been left immune. The adoption of eCommerce is happening in this sector due to the convenience, ‘round the clock services and simply the variety that online flower delivery marketplaces offer. Further, gifting flowers is an excellent way of communicating human emotions. From weddings to anniversaries, birthdays to formal events, gifting flowers is perfect. Hence, jumping into this bandwagon of starting a floral hyperlocal marketplace business is a promising move.

Top Players: proflowers, BloomNation, FTD

• Stationery Delivery

Technology has advanced significantly over the years, leading to digital transformation of almost everything. Be it to-do lists, maintaining a front desk calendar, planning schedules, and more, everything is now readily available at your fingertips. Despite technological advancements, the stationery industry is booming as everybody needs stationery supplies regardless of social or economic circumstances. 

Further, higher education and increase in employment have a major role to play in the growth of this niche market. Hence, stationery is a good niche to start a hyperlocal marketplace business as you will be able to cater to a wide range of customers by offering an array of products, all sealed and delivered to their doorstep.

Top Players: Mawasem, StationeryHut, The Stationery Box

• Beauty and Personal Care Items Delivery

Personal care items and beauty products have always had a market. They assist in enhancing the physical appearance of an individual, maintaining hygiene, and boosting the overall confidence. Some commonly used beauty and personal care products include shampoos, soaps, moisturizers, perfumes and more. At present, the beauty and personal care industry is growing rapidly due to urbanization and increasing internet penetration, which offer a wide variety of brands at competitive prices and hassle free shopping experience. 

As a result, the spending on beauty and personal care items has moved online faster than any other CPG category. Hence, starting a hyperlocal marketplace for this niche can be a lucrative idea, given the growing demand for beauty and personal care products. 

Top Players: Grove Collaborative, Beauty Bridge

How Can FATbit Technologies Help You in Launching Your Hyperlocal Marketplace Business?

Since its inception in 2004, FATbit Technologies has been a trailblazer in the field of software development. With years of experience and by embracing agile methodologies, our multidisciplinary team developed a hyperlocal marketplace software, Growcer that has been catering to the ever-evolving needs of clients across the globe, effectively and efficiently. Further, Growcer’s cutting edge features allow entrepreneurs to build a competitive advantage and accelerate business growth.

Key Highlights of Growcer

• Fully customizable 
• Multi-lingual 
• Multi-currency 
• Highly Scalable 
• Mobile Apps for Android and iOS 
• Multiple Payment Gateways 
• Powerful Dashboards 
• Return and Refund Management 
• 12 Months Free Technical Support
• Zero-cost Installment

Conclusion

In the ever-evolving landscape of eCommerce, Hyperlocal businesses are transforming the shopping experience. They not only offer immediate delivery of products, but also offer a fresh and personalized approach that resonates with the modern consumer. So, seize the opportunity by leveraging technology and create an online hyperlocal marketplace business for a specific niche. To help you get started, we have mentioned some of the most trending marketplace niches in the post. For more information, you can get in touch with us.

In recent years, the grocery and food ordering industry has undergone seismic changes, paving the way for online, with small businesses such as bakeries launching websites to expand their customer reach. Further, the rising urbanization and modern lifestyle changes have led consumers to ready-to-eat convenient food items, steadily increasing the demand for bakery items. According to research, the global bakery market is expected to reach $436.91 Billion by 2026 and the global online bakery market is expected to reach $32.6 Billion for the projected period.

In this blog, we discuss all about creating an online bakery website, but first, we talk about the trends driving the popularity of bakery products in the age of eCommerce, reasons to go digital, working of an online bakery platform, revenue generation streams and so much more.

Trends Driving the Popularity of Baked Goods in the “Age of eCommerce”

From ancient civilizations to modern times, baking has played a significant role in the history of food, curbing the hunger of countless people. It can be traced back to 2600-1200 BC when the Egyptians baked the first bread. Today, with the emergence of eCommerce, there is a transition in the behavior of how consumers shop baked products. In this section, we discuss a few trends that are driving the popularity of baked goods in the age of eCommerce.  

Growing Demand For Convenience

Convenience drives the bakery market, i.e., in today’s fast-paced lifestyle, convenience is the foremost thing that an individual craves. Long working hours make it difficult for people to spend time cooking. Hence, a hectic lifestyle boosts the consumption of convenient baked products like bread, cookies, frozen pizza, and more. So, a bakery marketplace proves to be a convenient place to order bakery products at the touch of a button.

Increasing Consumer Inclination Towards Healthy Baked Products

Since the outbreak of Covid-19, health has become a top priority worldwide. As a result, bakeries are reshaping their product strategies to meet new consumer demands, i.e. growing interest in vegan baked products. Certain bakeries are even incorporating superfoods such as chia seeds and matcha into their baked goods for added health benefits. Therefore, rising innovation in the baking industry and the launch of new products can be seen as an opportunity in the market to be capitalized. 

High Spending Capacity and Growing Urbanization

As a result of the fast-paced lifestyle, the rise of the global consumer class and growing urbanization are both mega drivers for the mounting popularity of bakery products. 

Reasons to “Go Digital” – Benefits of An Online Bakery Website

Given the changing scenarios, online shopping has become a norm these days as whatever consumers want or need can be obtained within a few clicks. Hence, going digital is the next logical step. Still, we discuss in detail a few reasons to invest in an online bakery platform.

Greater Reach

With an online bakery marketplace, you can cater to a much wider range of audience without having to make any additional investment in staff or infrastructure. You can even get new customers through promotions and deals and broader the overall reach.

Round-the-Clock Operation

You can operate your business round-the-clock with an online bakery website. There are no time issues which means that your baked goods are accessible to customers 24×7, thereby increasing potential sale opportunities.

Access to Real-Time Analytics

By using an online delivery software you can gain access to real-time analytics. Insights include – who are your regular customers, which is the best selling item, the time when the footfall is highest and more. The data is valuable since you get to send customers personalized promotions and offerings to entice them and have them back over and over again.

To Grow your Bottom Line

As per a survey, orders placed online are 20% larger on an average, this means more revenue. So, you can highlight specific items on the menu to influence the purchase as growing the bottom line is the end goal.

Working & Business Model of an Online Bakery Marketplace

The working of an online bakery marketplace is simple with the primary aim to bridge the gap between consumers and bakers by providing a door-step delivery of orders. The business model comprises of:

• Bakers
• Consumers 
• Delivery Staff 
• Admin 

1. Bakers create a profile on the website and the request is sent to the admin for approval.
2. The admin verifies and either approves or disapproves the profile. The approved profile gets listed on the website. 
3. The consumer signs-in and selects a bakery/baker or the baked item(s).
4. The order is placed and the consumer pays. 
5. Once the order is placed, the baker/bakery accepts the order and approves it. 
6. The delivery staff hand-delivers the order to the door-step of the consumer
7. The admin deducts the commission and transfers the amount to the baker/bakery.

Revenue Generation Streams for an Online Bakery Marketplace

As an entrepreneur, generating revenue is critical to not only stay afloat but to stay ahead of the curve. A few possible revenue generation streams for an online bakery marketplace include:

Commission

You can generate revenue by charging a commission on each sale made through the platform. 

Subscription

The marketplace can offer a subscription model where consumers can pay a subscription fee to access benefits such as free delivery, discounts and so on. 

Promotion/Premium Placement 

The bakery vendors who want to showcase their bakery goods more prominently on the marketplace can be charged a fee to have their listings appear on the top, also known as premium placement. 

Advertisements

This is a popular revenue generation method. Here, the online bakery marketplace can partner with other businesses to showcase their ads. 

Commission on Delivery 

For every delivery, a commission can be charged based on the distance or order value from the bakery store/baker.

Listing Fees 

For listing products on the online bakery marketplace, the bakers can be charged a listing fee. 

Creating an Online Bakery Website

The world is increasingly becoming digital and so are businesses. To capture the mind space of the target audience it is essential to create a business website. But before that you need to know the essential pages to have. Below mentioned are a few website pages to have in an online bakery marketplace. 

Homepage

Homepage is the first page that the visitors will see when they will arrive on the website. Hence, the homepage should be able to entice the visitors and give them an overview of the bakery stores and the products available. It should also include geographical radius, filters and so on. 

About Us

An about us page is a pivotal part of the website as it includes your story and gives you an opportunity to introduce yourself. You can also highlight any accomplishments or awards received. 

Stores Page

An online bakery marketplace should have a page consisting of all the bakery stores (listing) so that the consumers can choose according to their preferences or requirements.

Products Page/Menu

The menu page  of an online bakery store should list all the products along with their prices.

Contact Page

This page should include the contact information such as email address, physical address (if you have one). 

Policies Page 

This is another important page and should include information about refund policy, terms and conditions and other information potential customers should need to know.

Privacy Policy 

There should be a separate page that outlines how your site collects, stores and uses customer data. 

Blog 

By publishing engaging content through blog posts you can attract customers and drive traffic to your online bakery marketplace. It can also help to boost the site’s ranking. 

Must Have User-Level Dashboards

In addition to the above mentioned pages, there are a few user-level dashboards that are a must-have in an online bakery marketplace platform. These are:

User Dashboard

Displays the wallet balance, total number of orders placed, messages (read/unread), record of latest orders and more. 

Bakery Vendor Dashboard 

Showcases the earnings of the vendor, inventory of baked goods, top selling items, and so on. 

Admin Dashboard

The admin dashboard showcases the collective information of sales stats, recent orders, customer activity, top selling products and much more. 

Essential Features to Have in An Online Bakery Website

When creating an online bakery platform, it is important to have a set of pivotal features so that the end-user experience is seamless. Key features to consider include:

Easy Registration

This feature allows users to create their profiles easily and simplifies future transactions.

Product Catalog

Using this feature, bakery vendors can display an extensive list of bakery goods with detailed descriptions, quality images and prices. 

Easy Checkout 

Enables consumers to add products to a cart, review selection, apply discounts and proceed to seamless checkout. 

Multiple Payment Gateways 

To accommodate various user preferences, this feature offers various payment options such as digital wallets, credit cards, and so on.

Ratings and Reviews

Allows customers to provide ratings and reviews for bakery vendors and their baked goods. This feature helps in trust building and aids consumers in making informed decisions. 

Delivery and Pickup Options

This feature allows consumers flexible delivery time slots. In addition, an in-store pickup option is also provided. 

PWAs

Progressive web apps provide an app-like seamless experience across various devices. 

Reports and Analytics 

This feature allows an online bakery marketplace to evaluate the growth and make informed future strategies. 

Order Cancellation 

Using this feature, the users will be able to cancel their order. 

Refund Management

In case, there is an issue with the bakery order, a refund can be issued using this feature. 

How Can Growcer Help in Creating an Online Bakery Platform?

Developed by FATbit Technologies, Growcer is a readymade hyperlocal marketplace software that is designed for entrepreneurs looking to launch their online bakery website. It is aesthetically designed with rich features that provide a seamless user experience. In addition, it encapsulates powerful dashboards for swift operations. Growcer also comes equipped with intuitive mobile apps for vendors and delivery staff (Android and iOS). 

Key Highlights of Growcer

• Fully Customizable and Scalable
• Real-time Inventory Management 
• Offers Buyer and Delivery Staff Apps
• PCI Compliant for Secure Transactions
• Multiple Payment Gateways
• Powerful Dashboards
• Reports and Analytics 
• Return and Refund Management 
• Zero-cost installment 
• 12 Months Free Technical Support

Platforms Powered by Growcer 

ShopExpress

ShopExpress is a Zimbabwe based online grocery delivery platform that provides seamless delivery of baked goods that are purchased online. Powered by Growcer, several features present in the platform, amplify its scalability for present and future growth. For enhanced delivery, mobile apps were also provided.

Tap Retail

Built using Growcer, Tap Retail is an Ireland based hyperlocal delivery marketplace that provides consumers a platform to purchase baked goods from local stores. The enhanced features available allow delivery of baked goods on the same day within a given time slot.

Conclusion

The bakery industry is a significant player in the global food market. With a diverse range of products, customization options available, and a growing demand for healthier options, the online bakery industry will continue to grow. Hence, if you are an entrepreneur who is looking to start your own online bakery business. This is the right time. Give bakery vendors the opportunity to display their gorgeously baked goods online and whip the magic of delicious creations.

The shift in consumer behavior has resulted in market volatility where customers are transitioning to eGrocery channels for grocery shopping. This has resulted in the continued maturity and scalability of eCommerce in the Grocery industry. Keeping in line with the advancements, Growcer, a leading hyperlocal marketplace software has been refined with advanced features and functionalities in its latest Version 2. Have a look at the post below, for more information.

What is New?

1. Delivery Management- In Growcer V2, the admin and sellers get advanced options to manage deliveries on the platform, giving them added control for fast and scalable fulfillment.
2. Self-pickup Management- This functionality lets sellers win additional revenue from the CPGs as customers can conveniently choose to pick up the order themselves from the store.
3. Order Adjustment/Order Modification- In Growcer V2, there is a comprehensive order management system that is equipped with robust functionality to efficiently manage order adjustment/modification from the buyer’s side. It facilitates a mutual consensus and reduces order cancellation. 
4. Single Item Cancellation- This feature in Growcer V2 allows sellers to manage single item cancellation requests from the buyers. It reduces the chances of complete order cancellation and increases buyer satisfaction.
5. Auto-completion of Orders- The functionality aids in automatically marking a grocery order as completed after a set period. Not only does this positively affect the customer experience but also the conversion rates, as the user can reorder a product or a grocery item.

Growcer V2 – Other Enhancements

1. Enhanced Checkout Process- To manage the vital aspects of the user journey, the checkout process in Growcer V2 has been enhanced, thereby, leading to an increase in the cart conversion.
2. SEO Feature- The admin can now update the alt and title attributes of an image to have a positive impact on the search engine ranking.
3. Control to Configure Tax- In Growcer V2, the admin has a configuration available to calculate taxes either after discounted amount or before applying discounts. This makes tax calculation hassle-free and more optimized.
4. Special Characters Support- Growcer V2 supports certain special characters in various global languages (like Spanish, French, and more) in the product’s title.
5. Order Enhancements- Operations such as order cancellation, single item cancellation, display of all discounts, and so on have been centralized with real-time inventory updates.
6. Improved Reports and Analytics- To enable better decision-making, reports and analytics have been improved.

Other Highlights

1. Performance and Security Updates- To internally boost the performance, Growcer V2 supports PHP 7.4 version.
2. Addition of New Categories- Keeping in mind the diverse end-user demands, a few more categories like Frozen, Pharma, and Flowers have been added.

Conclusion

Online grocery shopping is growing substantially and consumers will increasingly shop for groceries online in the years ahead. To keep pace, entrepreneurs/retailers must have a grocery hyperlocal delivery marketplace software that can meet consumer demands as there is no prevention to this seismic transformation. For more information regarding how Growcer V2 can assist you in gaining wallet share in the online space of the grocery industry, consult experts.

As the world slowly pivots from managing the impact of Covid-19 crisis to reopening economies, consumer behavior has been changing radically from brick and mortar stores to eCommerce platforms. And, the transition is evident with grocery being one of the nascent categories (of eCommerce) that is on an upward trajectory.

According to a report shared by Winsight Grocery Business, the expected growth for grocery eCommerce in 2022 is 21%. Riding on this wave of higher consumption in the growing market and maturing supply-side dynamics, FreshDirect, an online grocery delivery platform has historically thrived and achieved significant success, dominating the space of fresh food delivery.

Covered in this blog are insights on critical areas in the field of strategy, execution, and how an app like FreshDirect can be made.

Table of Contents

• Business Model of FreshDirect at Glance
• Operating Model of FreshDirect
• Alignment of Business and Operating Models
• What are the Revenue Channels of FreshDirect?
• Key Drivers Behind the Success of FreshDirect
• FreshDirect in the Community
• How to Build an App Like FreshDirect?
• Conclusion
• FAQs

Business Model of FreshDirect at Glance

FreshDirect describes itself as a leading innovator in the grocery eCommerce industry. Founded in 2002, the company has a team of skilled professionals who carefully select organic vegetables, fruits, dairy products, meat, and more. The delivery is done from a sophisticated warehouse in Bronx, and a separate facility in Prince George’s Country in Maryland – finding the shortest distance from farms, fisheries, dairies to the table. The produce delivered to the customers is fresh and the grocery items are from popular grocery brands, all for less price. That said, the business model of FreshDirect comprises of:

• Ordering through Digital Sphere
• Warehouse Processing
• Transportation and Delivery

1. Ordering Through Digital Sphere

The app and website of FreshDirect let users browse and buy a variety of grocery items based on their location. To make it more interesting, users can log on to the FreshDirect app and browse through categories like top-rated products, fresh deals, or buy products with available coupons, round the clock. The payment for the order can be done by debit cards, credit cards, Paypal, and EBT (Electronic Benefit Transfer cards).

2. Warehouse Processing – The Complete Cycle from Buying to Dispensing

The skilled merchants of FreshDirect, purchase fresh products from the suppliers. This stock is then taken to the company’s warehouse and is kept in a temperature-controlled environment. As FreshDirect emulates the just-in-time manufacturing so the order is sorted, prepared, and packaged only when it is placed. This keeps the supply fresh and wastage is considerably reduced. Once the packaging is complete, the order is dispatched for delivery via their refrigerated trucks.

3. Transportation and Delivery

The transportation and delivery of FreshDirect is impressive. It owns several temperature-controlled vehicles. Shipments are sorted and packed on a daily basis, the delivery fleet delivers the order to the destination. The global positioning system, notifications and alerts, safety warnings, and more, make sure that the items are delivered safely to the customer’s door.

Operating Model of FreshDirect

The distribution hub and “food hive” of FreshDirect (Source- Business Insider)

As FreshDirect has no physical grocery stores, it combines retail and wholesale functions into one unit. The orders are fulfilled from the distribution center of FreshDirect and in regard to perishable products, FreshDirect has created strong ties with local producers to make sure of an adequate supply of goods. The freshness of every product is monitored and assessed throughout with the help of a quality control app.

Alignment of Business and Operating Models

As earlier mentioned, the business and operating model of FreshDirect capitalizes on the lack of physical grocery stores. Being an online grocer, FreshDirect does not have the same amount of overheads as other grocery chains (regional and national). This is the reason that the company is able to offer products with cost-effective pricing to its customers – the first instance of alignment.

The other significant instance of both the models aligning can be seen in FreshDirect’s seafood department. Here, the business model achieves the goal of providing high-quality products by shortening the supply cycle through the help of the operating model. FreshDirect has employees stationed at the docks in lower Manhattan to place the seafood orders.

At 11:00 PM, FreshDirect stops taking orders for next-day delivery and specifies the quantity of seafood required. By 3:00 AM, the specified quantity reaches the distribution center. As a result, the customer receives seafood from the dock to the door in less than 24 Hrs. When compared from a quality perspective, the seafood from the traditional supply chain carries seven to nine days of inventory. Hence, in this case, the business model of FreshDirect perfectly leverages the unique qualities of the operating model.

What are the Revenue Channels of FreshDirect?

FreshDirect mainly earns money through delivery fees. The customer is charged a minimum fee on the delivery of every order. Delivery charges are based on the location of a customer. Unless the customer has a DeliveryPass, then the service offers free home delivery.

Industrial Analysis of FreshDirect

In an era of smartphones, the space of grocery eCommerce is not just trendy but is becoming crowded. FreshDirect, however, has been able to establish itself, boasting the fastest delivery of fresh produce where the threat of rotten products is minimized to zero. Considering the industry environment and the geographic market where the company operates, assessment of various factors is a must. In this section, we share insights on various methods of analysis done to meet the high-quality and demand standards of the market.

1. Analyzing the External Influences through PESTLE Framework

PESTLE analysis gives a birds-eye view from different angles, assessing the macro-environment, critical while contemplating an idea/plan. Mnemonic for political, economic, social, technological, legal, and environmental, the factors are discussed below in detail.

2. PORTER‘s Five Forces that Determine Fresh Direct’s Industry Structure

Porter’s five-force analysis model helps businesses formulate their corporate strategy. It gives a global overview rather than a detailed business analysis technique and helps in determining the industry structure based on the key five forces. These are:

Threat of New Entrants

If the new entrants in the space of grocery eCommerce are strong then there is a chance that FreshDirect will willingly earn fewer profits to reduce the threat and have promotional activities along with better distribution. 

Bargaining Power of Suppliers

Suppliers can be vulnerable to the immense capability of merchandisers to put their groceries at low level-monetary values. But, if suppliers have strong bargaining power then they can extract a higher price from FreshDirect Steaks.

Bargaining Power of Customers

Any product that becomes standard or uniform, will have a lower cost of alteration giving more power to purchasers. This usually tends to drive the prices down, limiting the potential of FreshDirect to earn sustainable profits. 

Threat of Substitutes (Products and Services)

The nutrient industry is seen product-by-product. So, if a product is to be substituted, then the clientele of FreshDirect is in danger of toggling. If the threat of replacement is high then the stakes of FreshDirect either have to continuously invest in research and development or the company risks losing out to the industry disruptors.

Bargaining Power of Rivals

There has been a momentous expansion in the domain of grocery eCommerce. The increase in players makes the market extremely competitive, encouraging a degree of development. If the competition becomes severely intense it will become difficult for FreshDirect to earn sustainable profits.

Measuring the Business Performance through SWOT Analysis

The analysis of FreshDirect by its strengths, weaknesses, opportunities & threats is termed as SWOT Analysis. Here, strengths and weaknesses are internal factors, and threats and opportunities are external factors. Refer to the table below.

Key Drivers Behind the Success of FreshDirect

FreshDirect has been indispensable in terms of internal operational efficiency. Mentioned below are the factors responsible for making it a trailblazer.

Trade Name and Repute

FreshDirect serves with a strategic advantage and is a hallmark in itself. To smoothen the advancement of improved running – goods enlargement, inspection, and repair development of the company have been re-engineered. Besides capitalizing on its powerful trade name repute, the company has also advanced its ways to acquire better buyer shopping cognition by broadening the skylines of economic science.

Information Technology Integration

The operations of FreshDirect have become necessities as many young professionals living away from home work for long hours. They prefer the delivery of fresh produce at their doorsteps. But different perishables require different temperatures to stay fresh. For instance, the temperature for a banana is not the same as the temperature for a tomato so the distribution center relies on an intricate and specific set of temperature controls to keep separate spaces, sometimes within the same room but at different temperatures. This is facilitated by the seamless integration of sophisticated technology which lets the company manage its inventory, maintain stock records, forecast customer demand, and much more. 

Supplier Management

Staying true to their motto of keeping the food fresh and delivering it fast, FreshDirect has a scheme of having an exclusive relationship with providers, avoiding intermediaries, as a part of supplier management. With the support of a streamlined, efficient hub, FreshDirect is able to sophisticatedly add inventory, expanding their customer base while also improving the overall quality. The company also follows sustainable packaging practices and uses significantly less fuel than the distributed retail environment.

FreshDirect in the Community

Partnering with local organizations to make a positive impact is an important part of FreshDirect’s mission. It strongly believes in supporting the neighborhood and in giving back to the community.

How to Build a Grocery Delivery Services App like FreshDirect?

Building a grocery delivery services app like FreshDirect requires in-depth planning. Regardless of the size and project’s scope, it must be kept in mind to focus on the feature list. Moreover, the simplicity, user interaction, and functionality users are known to like should be incorporated. Mentioned below are the steps towards grocery delivery services app development like FreshDirect.

1. Strategy

The first step of building an app like FreshDirect is identifying the consumers and their needs. The goals and objectives of the application will also be determined in this phase through market research. Here it is also important to think about having a delivery app, other than the buyer app, and an admin panel for the overall management. 

2. Analysis and Planning

In this stage, the idea starts taking the shape of a project. Comprehensive functional specifications are also described in this phase. Post requirement identification and prioritization of features, the product’s roadmap is prepared. As a start-up or an entrepreneur, in this phase, you can decide the application development architecture. If cost, development time, and availability of resources are a concern, then you can build a minimum viable product. 

3. UI/UX Designing

The purpose of an application like FreshDirect is to offer a seamless experience to its users. UI/UX designers, in this phase, create mockups, wireframes, and prototypes of an aesthetically pleasing app. The polished UI designs ultimately help with early adoption and can increase the app’s engagement by offering an intuitive user experience.

4. Development

Developers in this phase put life to the design. Once the technical architecture is defined, the technology stack is decided, and the development milestones are defined. Then a team of developers starts writing the code as per the coding standard. As each milestone is completed, the code is passed to the testing team for validation. 

5. Testing

The next step includes testing the grocery delivery application. For comprehensive testing of the application, test cases are prepared. Here, the application is tested for stability, usability, and security. The testing results are recorded with tracking fixes for retesting and are shared with the developers. 

6. Deployment

When the bugs are fixed, the application is deployed on a testing or staging environment. Once submitted to the iOS and Apple store, it is reviewed as per their development guidelines. Then the application is released. 

7. Support

Post-deployment support is an important part to resolve issues reported by the users. Frequent patching with improvements, prompt support for end-users, is vital to keeping users engaged. Furthermore, a dedicated team that tracks the key performance indicators helps in measuring the application’s success.

Conclusion

Led by Covid-19, the rapid adoption of digital technologies has been a tipping point of historic proportions. While a few changes are going to be for the long haul, companies like FreshDirect who have encompassed digital strategies, a wide range of shelf-stable and fresh products, are constantly evolving to maintain a strong position in one of the most competitive markets, i.e. grocery eCommerce. So if you are an entrepreneur who is inspired to build a grocery delivery services app like FreshDirect, look no further, Growcer, developed by FATbit Technologies, is a readymade grocery eCommerce software that can aid in building an app like it.

Frequently Asked Questions

Q1. How does FreshDirect make money?

Ans. FreshDirect generates revenue by charging its customers a delivery fee. Unlike, AmazonFresh which charges an annual membership fee of $299, FreshDirect modestly charges a delivery fee on a minimum order of $30, based on the customer’s location. For example, for Manhattan and Queens a delivery fee of $5.99 is charged.

Q2. Which is the best software to launch an online grocery delivery platform like FreshDirect?

Ans. A software like Growcer, which has a proven track record, is equipped with well-engineered apps, is customizable and scalable, apart from being cost-effective, can be used to launch an online grocery delivery platform like FreshDirect.

Q3. What is FreshDirect’s business model?

Ans. The business model of FreshDirect is similar to any eCommerce shopping site. The prime aim is to bridge the gap between consumers and merchants by providing a door-step delivery of orders. The business model comprises:

• Grocery Suppliers – Partner with FreshDirect to supply their fresh produce like meat, seafood, poultry, and more. 
• Skilled Merchants (Buying, Warehousing, Dispensing) – The skilled merchants of FreshDirect check and purchase fresh grocery supplies. The purchased stock is taken to the warehouse and stored in a temperature-controlled environment. When an order is placed, the merchants prepare it which is later delivered by a refrigerated truck to the customers door.
• Customers – To purchase groceries online (24×7), customers can log on to the FreshDirect app. The payment for every order can be done through credit cards, EBT (Electronic Benefit Transfer) cards, debit cards, or PayPal.

Q4. What are similar apps like FreshDirect?

Ans. There are a number of competing apps in the grocery delivery segment. Instacart, Rappi, Burpy, Shipt, and goPuff, offer similar services to FreshDirect.

Q5. Is starting an online grocery delivery business like FreshDirect profitable?

Ans. Yes, as per research online grocery is expected to grow to $250 billion by 2024-2025 worldwide. This is because customers have started to buy groceries online due to the pandemic.

Q6) What are the USPs/ perks of FreshDirect?

The main USP of FreshDirect is to provide fresh products such as meat, vegetables, fruits & more. However, FreshDirect offers the following benefits to its consumers who are looking to purchase groceries online.

• 24×7 Availability: Buyers can place and modify grocery orders using FreshDirect from the comfort of their homes at any given time.

• Marking Favourite Orders: This feature allows buyers to shop from previous orders and mark them as their favorite for future purchases.

• Customer Support: In case of any query related to their grocery order, consumers can get in touch with the team of FreshDirect’s customer service.
• Scheduling Order Delivery: Buyers can schedule online grocery deliveries on the basis of available time slots.

Q7) How Much Does it Cost to Build An App Like FreshDirect?

The cost of building an app like FreshDirect will vary depending on the features and functionalities. Still, the development of a grocery delivery services app like FreshDirect can approximately cost anywhere from $20,000 USD to $50,000 USD. On the other hand, a readymade grocery delivery services app will cost less. Here, we would like to apprise you with Growcer, a readymade grocery eCommerce software that comes equipped with mobile apps for both buyers and delivery staff (Android and iOS) at a discounted price of $1999.

03 April, 2024

The accelerating technology has brought convenience offered by online grocery eCommerce platforms to the fore. As a result, there has been a surge in demand for grocery eCommerce platforms. Catering to the demand, many online grocery software are also available in the market. But with so many options to choose from, it can be overwhelming to decide which grocery software to use. Hence, in this article, we have compiled a list of the top 10 online grocery store software to build or launch a grocery marketplace in 2024. But first, let us have a look at the advantages of using online grocery software.

Advantages of Grocery eCommerce Software for Businesses

Grocery eCommerce software automate processes including accounting, inventory management, billing, and more. Moreover, they provide visibility, efficiency, flexibility, and predictive analytics. In this section, we discuss in detail, the top reasons why online grocery software are in demand. 

• More Potential Customers

An online grocery eCommerce software helps businesses garner potential customers, which otherwise would have been limited to a small geographic footprint. Additionally, good search engine rankings can help businesses better compete by allowing them to get in front of new customers. 

• Enables Informed Decision-Making

An online grocery software provides valuable insights into customer behavior and sales trends through analytics and reporting. Hence, it gives business owners the ability to make speedy and informed decisions. 

• Builds Better Customer Relationships

The basis of good customer relationships is a great user experience and online grocery software provides that. It helps businesses to know the buying patterns of their customers. So retailers can accordingly plan stock items and enhance their customer service.

• Reduces Operating Costs

By using online grocery software, businesses can reduce costs associated with manual processes. This includes automating and streamlining inventory management and ordering, which saves businesses time and money.

Best Online Grocery Software to Build Grocery Marketplaces in 2024

As discussed above, online grocery software solutions enable the smooth and efficient running of grocery businesses. In this section, we list the top 10 online grocery software to launch an online grocery marketplace in 2023.

1. Growcer – A Comprehensive Grocery eCommerce Software

Growcer is a turnkey online grocery software developed to help entrepreneurs launch various types of online grocery marketplaces. Built with agile practices, it is readymade and comes with hyperlocal functionality. Being feature-rich, this grocery eCommerce solution helps retailers/grocers to maximize their business profit by catering to their business needs. 

It is fully customizable, and several grocery delivery platforms like Rappi, FreshDirect, Peapod, Instacart, and more can be built using it. In addition, Growcer comes with readymade grocery apps for both delivery staff and buyers (iOS and Android).

• Growcer’s Buyer App – The multivendor buyer app of Growcer provides a personalized experience to buyers. Features include cart sharing, click and collect, delivery scheduler, order tracking, and more. 

• Growcer’s Delivery App – By using the application, delivery staff can accept or reject orders. Features include order management, wallet management, geo-location, push notifications, and more.

Explore Growcer Demo

– Front End
– Admin Area
– Buyer Dashboard
– Seller Dashboard

Key Highlights

• Robust & detailed admin dashboard
• Real-time inventory management
• Offers buyer & delivery apps (Android and iOS)
• Fully customizable and scalable
• Is multilingual to resolve any linguistic differences
• Offers multi-payment options, providing buyers with full convenience
• Offers advanced reporting capabilities and analytics
• BOPIS (Buy Online, Pick up in Store)
• Return & refund management
• Refined product search
• Tax management
• SEO management
• Unlimited products upload

Other Benefits of Growcer

• With 10+ years of industry presence it serves a global clientele including ShopExpress, Superkiwi, RxDelivered, and more
• Offers full source code ownership
• No recurring fee and zero cost installation
• 12 months free technical support
• Easy to set up and manage
• Offers free demo ( Front End, Admin Area, Buyer Dashboard, Seller Dashboard)

Furthermore, Growcer also supports alternative business niches like

• Meat delivery 
• Pharmacy 
• Board games
• Liquor and wine 
• Farmer marketplace
• Pet supplies

3. Mercatus

Mercatus is another leading online grocery software that makes it easy for entrepreneurs to build their online grocery eCommerce platform. It is a feature-rich grocery business solution that allows the admin to maintain full ownership of the platform built using it. The user-centric UI supports better customer engagement and the platform also enables good returns in sales and revenue through its holistic management tools. 

Key Highlights

• Highly scalable and configurable
• SEO management
• Catalog management 
• Order management 
• Kitting
• Performance Metrics
• Templates

4. Grobino

Helping retailers and grocers to provide seamless customer experiences, Grobino is a data-driven, innovative, and unique, online grocery software. It encapsulates all the latest features and offers mobile and web apps. It is a customizable online grocery software that allows business owners and retailers to either run a single-store grocery business or a multivendor grocery business. 

Key Highlights

• Admin and vendor dashboard management
• Easy order management
• Live order tracking
• Analytical insights
• Mobile and web apps

5. Yelo

Yelo is an online grocery store software that aids grocery businesses and retailers in launching responsive online grocery platforms. It has a user-friendly interface and comes equipped with a powerful inventory management system that allows grocery business owners to process orders, track stock levels, and easily update prices. In addition, this grocery eCommerce software offers a geofencing feature, which enables administrators to automatically detect customers’ locations and display the available stores in that area. 

Key Highlights

• Online order management 
• Inventory management
• Real-time tracking and updates
• Payment integration
• SEO management
• Email marketing

6. My Cloud Grocer

My Cloud Grocer is an online grocery software that is designed to help both single stores and prominent grocery chains grow their sales. It offers an in-depth analytics dashboard that gives data-rich insights on consumer behavior, inventory management, and trends in grocery product sales. My Cloud Grocer is also integrated with various payment gateways, making it easier for owners to accept payments and manage transactions.

Key Highlights

• Data security
• Catalog management
• Inventory management 
• Multi-store management 
• SEO management  
• Multi Payment options 
• Email marketing

7. Shopify

Shopify is an online grocery software that helps grocers and retailers to build and manage their online grocery platform with ease. It offers a wide range of features, drag-and-drop functionality, and easy customization that helps individuals to build their online grocery shopping platform. With added benefits of third-party integrations, built-in marketing tools, and the availability of a support team (24×7), Shopify makes for a popular grocery eCommerce software.  

Key Highlights

• Inventory management
• Reporting and analytics
• Marketing tools
• Supports multiple payment methods
• Is equipped with omnichannel selling features

8. ShopHero

ShopHero is an intuitive, affordable, grocery store software that offers a turn-key terminal system with native data integration. It has an intuitive and graphical user interface that can help generate higher sales. Most importantly, it is a unified platform that offers powerful analytics and reports and integrates inventory, security, payment, customer loyalty/rewards, and more into a single, simplified system.  

Key Highlights

• Powerful analytics
• Order management
• Payment system and loyalty program integration
• Marketing automation
• Supports online EBT (Electronic benefit transfer) and offers self-checkout

9. ZeilCommerce

ZeilCommerce is a readymade grocery eCommerce software that allows entrepreneurs and grocery retailers to build and launch their online grocery platforms with ease. The online grocery software consists of rich management and marketing features that help grocery businesses optimize their ROI. Additionally, business owners can fully customize the platform to provide their customers with a great shopping experience.

Key Highlights

• Catalog management 
• Commission management 
• Loyalty program 
• Seo management 
• Promotions management

10. ShopurGrocery

ShopurGrocery is an online grocery software that provides speed and agility to meet business needs and deliver a superior customer experience. It allows supermarket owners/retailers to keep their product listings up-to-date and push seasonal promotions with ease. It is a feature-rich fully customizable, white-label grocery eCommerce solution that fits the needs of grocery retailers/business owners.  

Key Highlights

• Order management 
• SEO management
• Inventory management
• Real-time tracking
• Social media integration
• Product cataloging

Conclusion

Technological advancement and a shift in consumer behavior have presented grocery retailers with an opportunity to evolve and provide customers with an exemplary shopping and delivery experience. This can be done via online grocery software. But, the market is full of such software solutions, as mentioned above. So, depending on your requirements, a grocery delivery software that works best for your business can be narrowed down from the list.