Online grocery markets and food delivery are witnessing a boom time. Based on real success stories, we reveal how Magento ecommerce platform benefits food delivery services.
Following the latest online shopping trends in 2022, we have updated our article. Now, you get an opportunity to take a sneak-peek into the future of the online grocery market and learn useful tips for selling food using a Magento ecommerce solution.
Introduction: Online Retail Grocery Market In 2022
Online grocery retail and food delivery have recently gone from being inexistent to becoming a multibillion-dollar industry. Ordering food online has become a common practice for people all over the world.
According to the statistics review, ecommerce company and app, online grocery shopping is in the top 5 online shopping categories in the US with $432.1 billion turnover. Starting a grocery ecommerce platform is a good way to gain profit.
However, it is important to stay tuned with the market conditions and select the right ecommerce platform.
The United States Grocery eCommerce: What Does It Look Like?
Grocery ecommerce is among the fastest growing online retail segments. Statistical data provided by Statista proves the statement.
In 2022 the US online grocery business is estimated to generate sales worth about $135 billion. By 2023, this indicator is expected to reach $187 billion.
The number of people who shop for food on grocery ecommerce platforms keeps increasing in the USA. According to Statista, by 2024, the number of online shoppers of various grocery categories might reach 163 millions. The projection increased significantly compared to 2019. Indeed, before the pandemic the number of U.S. online grocery purchasers did not exceed 87 million individuals.
Despite the heavy crisis and the overall economic insecurity, the consumers still need to fulfill their basic needs. Online shopping has come in handy as a secure way of purchasing food, as it allows limiting unwanted contacts and doesn’t depend on curfews or other restrictions.
According to the infographic “The State of US Online Grocery Shopping” compiled by Invesp, an average online grocery shopper is a male born in the period from 1981 to 1996, the so-called “millennial”. Hexa Research, a market research and consulting company, shows that the millennials make the largest working population group in the US and the largest consumer group as well.
The less tech-savvy part of the US consumers appreciate the convenience of the services that food ecommerce businesses have to offer, including:
- Hassle-free check out;
- Selection of payment methods;
- Express delivery;
- Weekly discounts and deals.
How To Start A Food Delivery Service With Magento?
One of the most used ecommerce platforms among the largest online grocery retailers is Magento. Below we enumerate the advantages of the platform that help providing premium food delivery service.
Personalized eCommerce Customer Experience
Consumer mindset & behavior are different when online. Magento allows you to turn this difference into your advantage through customer personal profiles. They provide:
- Order editing;
- Product reordering;
- Notifications & useful reminders.
Customization allows for individuality when displaying products on a website. “How to get top sales at my grocery store” – online retailers wonder. To drive sales, we suggest paying attention to the following advice:
- Use filters and layers: To accommodate the process of searching products in the grocery list based on price, brand, or delivery options;
- Show products from many angles: To give your customers the feeling of holding a product in hands by providing multiple images, applying a 360-degree view, or adding a video;
- Give custom recommendations: Through using AI-based engines, to make quick, tailored, and to-the-point tips. Categories, like wine and cheese can be attributed with the “Best pairs with” offer.
Online stores facilitate the creation of strong, unique marketing strategies and promotional campaigns allowing to stand out in a crowd.
Consider the following options to engage the customers’ attention and provide excellent customer ecommerce experience:
- Strong loyalty program. Loyalty programs offering exclusive discounts and coupons, like a 10% off a purchase or a free food item every month, are the right way to earn repeat customers.
- Win-back emails. An email with the best selling products or a personal discount will help to gain customers’ loyalty and back them to your web store. Additionally, ask your customers for a small feedback on why they liked or disliked their shopping experience.
- “New” product services label. Items with a “New Arrival” label show that your business develops, grows, and attracts new suppliers. It works for services as well: a contactless delivery, new payment methods, or paperless packaging.
Order delivery is the last step in online shopping. It requires special attention.
Here are 2 main points that Magento facilitates:
- Various payment options
Having multiple payment gateways provides convenience to your customers. Two most often used payment options are the opportunity to pay upon delivery and to pre-pay the order on the website. In case of ordering goods sold by weight, go for a pre-authorized payment. It allows you to reserve the maximum possible cost on a customer’s credit card account and to withdraw the exact amount following the order delivery.
Related: How To Build A Marketplace Website?
- Delivery and order tracking
Remember that customers would always prefer online stores with fast shipping. Express, door-to-door, and contactless delivery are the three main options customers tend to choose most often. An online grocery store built on the Magento platform also allows to inform the customers about the current state of their orders. You can configure the system to send a message with the expected time of arrival or update the delivery tracker on the website.
Grocery eCommerce Success Stories
Magento is one of the best ecommerce platforms in the market. World-renowned food and beverages brands choose Magento as a reliable solution for their online presence.
Monin is a French company producing more than 200 beverage and culinary flavours, from syrups and sauces to purees and smoothies. Monin’s products are enjoyed in restaurants, coffee houses, bars, and home kitchens in more than 160 countries.
The company wanted a flexible, high-performing platform meeting the needs of a multi-national customer base.
- 2013: Monin launches its Magento Commerce 1 website. In 4 years the web store brings +53% to the company’s revenue;
- 2018: Monin website migrates to Magento 2 and gets integrated with email services.
- +400% sales revenue;
- +20% conversion rates;
- +10% increase in email-driven revenue.
- Content-rich customer experience;
- Constantly updated blog;
- Easy, clear checkout;
- Targeted email marketing campaign.
Burger King is the famous chain of fast-food restaurants. Founded in 1953, it has established presence in more than 100 countries around the globe.
Burger King needed to craft a scalable platform able to handle and process multiple customized orders, as well as having robust B2B functionality.
- Development of a B2B sales order platform based on Magento Commerce;
- Integration of the platform with Burger King’s tour planning system.
- 1,000+ orders at peak hours;
- 700+ branches integrated;
- 5,000 products.
- Detailed logistics and time management;
- Extensive access to help desk apps;
- New industry standard for B2B logistics.
CakeSupplies is the international wholesale partner and official distributor of over 40 high-quality brands and products for professional cake baking and decorating.
Cake Supplies wanted a B2B customer service and ordering portal to serve the existing customer base and attract the new ones.
- Launch on Magento 2 Commerce;
- Integrations with Enterprise Resource Planning and Warehouse Management Systems.
- 40 storefronts in 6 months;
- +7.7% of mobile traffic;
- +57% of new customer requests.
- Support for bulk ordering;
- Responsive mobile experience;
- “Pricing-per-customer” tool;
- Ability to set a minimum price.
What Tips For Selling Food Online Truly Work?
Growing sales is the primary goal of ecommerce businesses, large and small alike.
Below we have come up with some of the most effective marketing strategies for online grocery stores to help you boost sales and customer satisfaction.
Make Website Mobile-Responsive
People are increasingly using their mobile devices to search for and purchase food. To be competitive in today’s online shopping market, ecommerce businesses need a mobile-friendly website that provides intuitive navigation and seamless customer experience.
Suggest Free Delivery
Shipping costs and options are often where shoppers abandon their carts, rejecting the additional costs. Free delivery offer is worth trying as it increases sales, average revenue per user (ARPU) as shoppers tend to order more, and loyalty as the shoppers become likely to come back.
Save Customers’ Shopping History
One of the most important advantages of doing grocery shopping online is the opportunity to store the history of orders.
As a store owner, you can benefit a lot from this feature as it allows for:
- Analyzing what sells well, which products are less popular;
- Targeting ad campaigns through relevant messages;
- Improving user experience with a personalized approach.
Offer Surprise Rewards
Another approach to make your customers happy is through a digital coupon or reward program. Rewards and points can be utilized to get free products or free shipping. Adding a small gift into an order is a proven way to make customers return to your web store to purchase more.
Furnish Great Service
If your business activity is all about freshly-cooked stuff, make sure it is delivered hot, with napkins, forks, and all the necessary add-ons. Equip the couriers with insulated food bags that will help keep the dishes at the desired temperature.
Provide Proper Client Communication
Good communication is key as it impacts sales. To ensure a proper, open dialogue with your customers, here are the options to opt for:
Social CRM: Communication through social media channels. Moreover, it allows you to improve your products and customer service by analyzing the information available on social media.
Live Chats: Real-time response to the questions, conversations about products, and overall help in the web store navigation.
FAQ & Contact Us: Anticipate your customers’ needs by answering the most frequently asked questions. Provide a “Contact Us” button on the same page to enable your customers to reach out to your business with concerns.
Online groceries and food delivery services make life easier: customers can get food delivered to their door by dinner by placing an order using a smartphone or a web browser.
If you want to start an online grocery store or wish to add a web store to your existing brick-and-mortar shop, NEKLO can help. We specialize in providing custom Magento development services and have Magento certified specialists using the latest technology and able to provide your customers with the best shopping experience.
Contact us through the form on our website. Together we will build a profitable ecommerce solution.