Delivery on Demand - A Low-Risk Way to Sell Grocery, milk, vegetable, and more from your small godown
There are many businesses now that are functioning purely on an online basis. E-commerce companies like Amazon, Flipkart, Myntra, and other websites and applications sell a variety of products in India as well as internationally.
But there are certain types of products that are required to be delivered either the very same day the order is placed or are needed to be delivered within 30-60 minutes after the customer places the order.
These types of goods involve prepared food items, grocery items, milk and milk products, fruits, and vegetables. They are perishable goods that get spoiled in a very short period.
The on-demand delivery of food items started a few years back with the launch of certain food delivery applications such as Zomato, Swiggy, Uber Eats, and delivery apps of the establishment itself like Dominos, Pizza Hut, Mcdonalds, etc. These apps deliver food items within 45-60 minutes of the order confirmed.
Delivery apps came into existence which sold fruits, milk, and vegetable on-demand. The few top players in this space are Grofers, Amazon Pantry, Big Basket, Nature’s Basket, Naturally Yours, and more which delivered grocery and other items at customer’s doorstep.
How COVID Effected Delivery on Demand
Now after the onset of COVID, many other small businesses also started selling their But as grocery, milk, fruits, and vegetables are the most essential products for people, no matter where they are living, a lot of businesses ventured into this space.
They either started their grocery on-demand delivery app or partnered with other e-commerce platforms to sell their grocery produce. Most of the businesses felt it to be a low-risk and low-cost investment endered high profits.
Delivery on Demand as the name suggests means the delivery of product or services is done to customers after they place the orders or when the demand arises. It is an upcoming trend of the delivery business.
The on-demand delivery business has considerably increased over the last few years. It is proved to be the lowest risk business. Some various websites and applications support on-demand delivery, business models.
The Risk Involved In On-Demand Delivery Business
Major risks involved in starting an on-demand delivery business especially in the case of groceries, milk, fruits, and vegetables are pretty similar to when selling these items offline. The most common risks are -
Product Quality and Safety -
Either you are selling your products offline or roduct quality and safety is a must.
But in case of delivering these products to customers at their doorstep, it becomes even more important as they expect fresh fruits and vegetables and that too of premium quality.
If the items are not up to the expectation for the customers, they tend to return them and then the groceries often get spoiled or damaged which leads to losses for you.
App Safety Risks -
While opening an on-demand delivery business you need to make sure your App is secured.
No data of customers should be hacked or any way. A trusted App is a key to success in any online business.
Damage in-Transit -
The most important risk of delivering groceries and ables can be damage of a product in transit.
While the drivers are delivering the products, if the products are destroyed mid-way then you only have to bear the loss.
Driver safety or negligence -
Driver’s safety also falls on the owner as well as he mistakes are done by them.
Customers only pay if they receive properly t products as per their expectations.
As said by Ashok Soota, an Indian IT entrepreneur “Technology evolves continuously with solutions getting richer. For example, many of the earlier e-commerce ventures failed because of weak technology infrastructure. “
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Key Factors For On-Demand Delivery Business
Application design is very important if you are starting a grocery delivery App. The application should be easy to navigate, easy to use. It should have a clear listing of products, an easy to navigate shopping cart, multiple options of payment, and customer support.
For making customers stay on your app you need to provide an easy search option which they will use to search for groceries, milk, and vegetables, an easy add-to-cart option, and also provide them slots for delivery. Also, provide tracking options so that the customers are updated with their scheduled delivery.
Transportation and delivery is the most important aspect of the on-demand delivery business. Every customer expects their products to be delivered to them at their opted time. Delivery partners are the most common opted way by businesses. They partner with third-party logistic companies which save costs in terms of driver maintenance, transport maintenance, etc.
Methods To Start An On-Delivery Business
One who is planning to start an on-delivery demand delivery business such as for groceries, milk, fruits, and vegetables, can collaborate with an already existing platform that delivered products to customer’s doorstep.
This means you will need to list your products on someone else’s application or website, which may evade the cost of developing an application, but does require membership fees for associating with that App.
For instance, HUL, P&G, Godrej, Dabur, Marico, Cipla, Vishal Mega Mart, Adani Wilmers collaborated with Swiggy to deliver groceries through its App. Vishal Mega Mart and other FMCG companies also partnered with Zomato for grocery delivery.
Opening its App
The other way to start an on-demand delivery business is to develop your website or mobile application and sell Groceries, milk, vegetable, and more from your home or your small godown.
This involves creating your business presence in the market and establishing your business individually. It involves the cost of development of the Application but also gives you complete control over what to show, and what to sell, and all the other operations.
For instance, JustMyRoots is a startup that was launched in 2016 by a Husband-Wife duo. This sells fresh fruits and vegetables in many cities such as Delhi NCR, Kolkata, Jaipur, Bengaluru, Chennai, Hyderabad, Mumbai, Pune, Ahmedabad, and Kashmir.
Other apps have started their delivery app to sell groceries and other food necessities from their home.