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  • Why Is It Challenging for Grocery Businesses to Operate Amid The COVID-19 Outbreak?

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  • Category: Food & Beverage
  • Published Date: September 23, 2020
  • Modified Date: September 23, 2020
  • Reading Time: 5 Minutes

Featured Image Caption: Gloves Coronavirus Public

The Coronavirus outbreak has adversely affected the global businesses. It has forced various businesses to shut down or look for another alternative to survive in the current situation. But, when it comes to the grocery industry, the effects of this virus outbreak are quite unusual.

The panic buying for daily necessities has forced people to buy more than their requirements. As per statista, the online orders for pasta, milk, and tomato sauce have increased around 699 percent, 287 percent, and 269 percent respectively in the United States. Due to this increased demand, on-demand grocery markets are witnessing a sudden rise.

What are the challenges faced by the grocery businesses?

Grocery delivery businesses are gaining popularity across the globe. But like any other business, the on-demand grocery businesses can also have some blind spots:

1. Fluctuations in the business model

The governments of all the countries have imposed strict lockdowns and safety norms to combat the coronavirus outbreak. Because of it, people started to look for contactless delivery options to avoid physical contact as they are hesitating to purchase groceries from their nearby brick and mortar stores.

The rise of on-demand grocery delivery apps is giving a tough time to the traditional grocery businesses. These businesses need to make changes in their business model by adopting the latest technology.

2. Lack of adequate Infrastructure

Technological advancements in internet technology, online payment security, and rapid delivery systems have revolutionized the on-demand delivery industry. But the inadequate knowledge of operating internet and digital payment methods is hindering the growth of an on-demand grocery delivery business.

Due to the decrease in the customers, physical shopping outlets like malls, book shops, toy shops, and electronic stores, etc., are struggling to continue their business operations. The demand for retail space will get reduced due to this.

Sometimes it also becomes difficult for an on-demand grocery delivery business to plan and execute their supply chain efficiently for meeting the growing demands of consumers amid lockdown.

3. Insufficient workforce

Since the drivers come into contact with multiple people during their job, they are avoiding getting in touch with unknown persons. The rising number of deaths due to the coronavirus outbreak has caused fear among the drivers. The lockdown and social distancing norms have also decreased the workforce in the administrative departments. The increased workload has adversely affected the capacity of the existing employees due to which they are unable to cope up with the increasing demands of groceries.

4. Change in consumer behavior

The lockdown and social distancing norms have drastically changed consumer behavior. Due to which people are unable to go out of their houses. Many of the longer-term changes in consumer behavior are still forming, allowing companies to help shape the new normal.

The sudden changes in consumer behavior may lead you towards an overstock or no-stock situation. Due to which the grocery retailers are suffering huge losses. An on-demand grocery delivery app will also help you to collect your consumer’s behavioral data. It will also provide you accurate reports, so you can make an informed decision to cope with the rising demand for your products.

5. Maintenance of proper hygiene practices

Consumers have become health-conscious to combat the coronavirus outbreak. But they still have a skeptical attitude towards the deliveries of fruits and vegetables as they believe that they are made up of harmful chemicals. That is why they want to shop for their groceries personally.

Make sure that your staff is following all the prescribed safety norms. You need to provide various safety tools like masks, hand sanitizers, hand gloves, etc., to your delivery persons. You also need to sanitize the packaging of your grocery items.

After understanding the challenges of the grocery delivery business, let us see why developing an on-demand delivery solution is the best deal for your business:

Why you need an On-demand grocery delivery app for your business?

Getting a faithful customer base for your on-demand grocery business is not an easy task. You have to put lots of effort into creating a loyal customer base.

Brand building is crucial for any business to sustain and flourish. An on-demand grocery delivery solution will help you to approach your customer directly. You can enable them to achieve your online store anytime they like. You can also integrate discount coupons, cashback, reward points into your on-demand grocery app to increase your customer loyalty.

Sometimes the visit to the nearby supermarket will be troublesome as the customers have to find things on their own. On-demand grocery apps simplify the shopping experience of your customers by letting them purchase their items in just a few clicks.

Sometimes the customers would buy unnecessary things while shopping from the physical stores. An on-demand grocery delivery app can help you to avoid panic buying, as your customers can only purchase those items which are available in stock.

Thus, these are the benefits of an on-demand grocery delivery app.

Wrapping Up

The on-demand grocery business is still in its emerging stage, but it would be going to witness more innovations in the future. You need a remarkable on-demand grocery delivery application to leverage the benefits of the changing grocery delivery landscape. An efficient on-demand grocery delivery app can help you to overcome the above-mentioned challenges and, it will also offer you an early bird advantage. You can extend a dedicated software development team, or you can hire a software development team.

Mushahid Khatri

By Mushahid Khatri
who is a Chief Executive Officer of Yelowsoft which is one of the leading on-demand grocery delivery solution. He believes in sharing his strong knowledge base with leaned concentration on entrepreneurship and business.

Member since September, 2020
View all the articles of Mushahid Khatri.

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