How to Start an Online Grocery Delivery Business in Africa

Going out to local stores to buy groceries and standing in long queues for billing is challenging especially for working professionals due to their hectic schedules. In this technology-driven world where the use of smartphones is increasing as well as the access to the internet has become easier, the online grocery delivery business is surely going to grow more and more in the coming years. Also, innovations in the field of digital platforms and their convenience have transformed consumer behaviour drastically. Africa is one of the best places where the online grocery business model ( https://www.yourretailcoach.africa/fmcg-e-grocery ) can make its hold and surpass the offline business models in the retail segment due to its modern logistics.

How Online Grocery Delivery Business Is Growing Rapidly Across Africa

In the past few years, Africa has witnessed the increasing trend of eCommerce startups with several online business ideas coming in trend and amongst them is the online grocery stores. The online grocery business idea seems to be very catchy for aspiring entrepreneurs. As of now in Africa, numerous online grocery businesses have managed to establish themselves well, and are gaining the share in the grocery market.

According to the data published by the World Bank, the population of Africa is about 1.225 billion which makes 17 per cent of the total population. These statistics make Africa the potential candidate for getting the best returns in any business when compared to other continents. Also, with increasing urbanization in this region, the online grocery business ( https://www.yourretailcoach.africa/services/e-commerce-online-stores/ ) would grow rapidly in Africa including businesses related to grocery eCommerce. According to a survey by Brookings, the consumer expenditure in Africa is set to grow about 2 trillion dollars and henceforth makes Africa the best place to start an online grocery delivery business.

Steps to Start Online Grocery Business

Starting an online grocery business is a great opportunity, however, it is very crucial to take the right steps to see your business flourishing. Here is some step-to-step guide for those who want to start an online grocery business:

Shortlist Products and Categories

The proper categorization of products that you wish to sell before establishing the online store is a core task to pay heed to! In the long run, the type of products you wish to sell will decide your brand’s USP. Shortlisting your products and categories also gives you clarity in which way and manner you would want to plan your business ( https://www.yourretailcoach.africa/services/business-plan-development/ ).

Market Research

It is very important to complete your research about the business you are planning to do before executing your plan. Excellent market research ( https://www.yourretailcoach.africa/services/market-research/ ) is crucial for a successful business. Ask yourself the questions like, what is your target area, on what scale you wish to start your business, what grocery items customers are attracted to, what factors to look at before purchasing the stock, etc. A good analysis of the market will make you plan your business more efficiently and would help you make better decisions.

Logistics and the Delivery Process

Most of the products such as vegetables, milk, and fruits have a limited shelf life and need a smooth logistics operation to maintain freshness and availability at the right time at the right place. Therefore, you need a comprehensive plan to ensure that the groceries are delivered on time and of the purest quality. A well-managed delivery is a key factor in deciding the success of the business.

Find a Good Brand Name

Naming a business might seem like an easy affair but it’s one of the most challenging tasks to do before opening any business. Your brand name probably tells everything about your business and hence while naming your business, it is important to keep in mind your targeted audience. A good brand name is very catchy, meaningful, and original.

Get Your Company Registered

Business registration is one of the most fundamental steps that should be fulfilled by consulting the right consultant firm. It’s recommended to take care of all legalities and laws as per the area or premises where you would want to run your business operations.

A Robust IT System

An integrated IT system is very crucial for a business to perform well. The digital model of communication ensures a smooth flow of communication among the employees. The right app and website development are very important as they will be directly used by the customers and its backhand management should also be well managed.

Inventory Management

It is impossible to run a profitable, scalable online grocery store without good inventory management. Inventory management makes sure that the right thing is at the right place at the right time and there is no shortage of supplies when there is demand. It is necessary to gradually start working on your warehouse to stock up your inventory.

Marketing Strategy

It is very important to focus on marketing your USP, brand in resonance with your targeted audience. After all, a good marketing strategy is required to make any business big. Be it social media, SEO, google ads, you have to cover them all. It is advisable to take a look at your competitor’s strategy and then plan your operations to have an upper hand.

A Secure Payment Gateway

A payment gateway is a third-party service that enables transactions between the online store and the buyer. It must be safe and secure providing your customers with a hassle-free transaction service. As your business grows, you can also give the consumers an option of cash on delivery. The gateway must be well integrated with the IT system so that checkout problems do not arise.

Customer Feedback

Tracking your customer reviews and addressing their problems with your solutions in the least possible time is very essential to keep your brand name sustainable in the grocery business domain. Even with surveys and online campaigns, you can work upon your customer’s expectations and then strategize your operations accordingly.

Few Brands Which Are Making a Mark in This Space

In recent years, a rise in the popularity of online grocery delivery is seen in Africa. Here are some top performers in the field of the online grocery market that are providing excellent service to their customers:

OneCart

This Cape Town-based online delivery platform provides excellent delivery service in South Africa. They offer pharmacies, groceries, baby products, liquor, and wellness items online and promise to offer delivery in the shortest possible time.

Zulzi

Zulzi was founded in 2013 and started to function in 2016. The platform enables direct access to the end number of grocery items. Initially, Zulzi targeted the youth but later they started offering services to people of all ages. They promise to deliver groceries ordered online within an hour at the doorstep.

SnapnSave

It is a grocery shopping app that provides customers with cashback when they shop in-store. They don’t follow the policy of coupons or loyalty points, instead offer real-time cashback on items allowing the customer to buy more groceries of their choice.

Vassco Distributors

This wholesale company is located in Pretoria and Gauteng and is one of the market leaders in the groceries and beverage delivery business. It delivers fresh groceries to restaurants, catering, and hotels on their demand and in times of pandemic, it extended its services for common people as well.

GoPuff

GoPuff is a digital platform to buy groceries and its grocery delivery service is running successfully in more than 200 locations in Africa. It was founded in 2013 by Yakir Gola and Rafael Ilishayev and it is headquartered in Philadelphia, Pennsylvania.

How Can YRC Help?

Wondering how to start a grocery delivery service? At YRC, we have experience dealing with various online grocery startups across the globe. We have helped our clients evolve as big brand in the online business. Our team has expertise in SOPs ( https://www.yourretailcoach.africa/services/sop-development/ ), SEO, marketing, logistics, inventory management, market research, or everything that is needed to start an online grocery business ( https://www.yourretailcoach.africa/fmcg-e-grocery ).

We also have in-house consultants that would assist in setting up your online grocery store. By creating an extensive online grocery shop business plan, our team will help you in formulating the right business strategies to enable your business model to grow into a big brand. At YRC, we focus on every minute detail related to the online grocery business including the demographics factor. Contact Your Retail Coach if you want to establish a successful online grocery store in Africa.

Get advise for E-commerce retail business : http://www.yourretailcoach.africa/contact-us/

Source: https://www.yourretailcoach.africa/blog/how-to-start-an-online-grocery-delivery-business-in-africa/

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This release was published on openPR.