One of the fastest-growing niches in eCommerce is online grocery shopping in the year 2021. According to Nielsen’s study, by the year 2024, about 70% of the users will shop for groceries online. And surprisingly, the consumers in the US alone will spend $100 billion on online food and beverages, which equals spending $850 from every household.
To cater to the requirements of people, many businesses are growing by three-folds per year. Some top players that are inspiring the growth of these businesses are Instacart, Amazon Fresh, Amazon Pantry, Tesco, etc. If you wanted to become a part of these top players and to have the most prominent name, then selling groceries online is the best business you could ever choose.
Developing an online Instacart Clone business may sound like building a rocket to you, but when you know what your steps are, everything is easy. Moreover, if you would have thought about it some years ago, it would have perplexed you to no extent, as earlier it was nearly impossible. So, as the first step to planning to build your own business, you have to choose the business model you are going to follow.
Business models of an online grocery app
Listed below are the business models that businesses follow. Either one of them will be chosen, or they will choose a hybrid.
Inventory model: Here, you will stock up the items or products from different suppliers. With the app, when a customer places an order, you will receive it and deliver it to their doorstep, either by your in-house delivery network or outsourced delivery network. Though there might be many suppliers, the customers will receive the orders with your business’ branding. Most of the single-product stores follow this model to keep things simple—for example, dairy-milk delivery, vegetable delivery, etc.
Multi-vendor marketplace model: Here, you won’t need to manage the stocks. The app connects the customers with their nearby grocery stores. They place the order on the website, and the site will transfer the order to the respective store automatically. You can manage the shipping through your delivery network. The delivery person will collect the items from the store and deliver them to the customer. Amazon-like apps follow this model across many regions.
Shopping model: This model is the most prominent model when it comes to the global market. Every giant follows this model. Here, the customer won’t choose the store they want to buy. With the help of delivery personnel from your in-house Instacart Clone App delivery network, the shopping will be carried out, and the items will be delivered to the customers. This model is what is followed by Instacart. Many businesses have extended the industry in this model.
So, once you are done with choosing the business model, your thoughts will surely sway to a single question, and that would be the revenue model. So, let’s look at the revenue channels that have been followed by the food delivery models. You can also consider adopting a combination to maximize the revenue.
Commission: You can charge a commission from every store or seller for every sale that they get from your platform. According to the demand and supply chain, you can set different commission rates for various products in other regions.
Membership: You can offer some advanced features like priority delivery, delivery schedules, and zero delivery charges for the users who pay the subscription fee. You can also provide the subscription plan to the stores to offer them added benefits.
Subscription: Offer the customers some comfort by letting them subscribe to certain products for regular Instacart Clone App delivery without them having to order them every time. For example, you can follow this model for developments like daily milk supply, vegetables, monthly shaving, etc.
Service charge: When you follow this model, you can charge an additional service charge for every sale from users who haven’t subscribed. This will encourage them to purchase the membership plan to avoid service charges. Both ways, you will win.
Promotions: To get their visibility boosted and to appear on the top of relevant searches, you might charge additional fees from the stores. The advertisement may include banners in the app. You can club this fee to the store-membership plan to increase subscriptions.
Merchandise: You can sell your merchandise and some relevant products to your business, such as shopping bags, bottles, kitchen tools, etc.
As a concluding thought,
Anyways you see, the grocery business is profitable. So tap into this online grocery industry by setting in motion the on-demand grocery delivery app like Instacart Clone. You can choose to either develop it from scratch or get a ready-made grocery delivery script and customize it. Anyways, the latter option is the smart option, as you won’t have to brainstorm yourself with coding and launch the app in just a few days.