The online grocery market is catching up with the shoppers rapidly. There are a lot of players fighting out in this high-competitive platform to serve the 1.37 Billion people across the country.
The grocery market is expected to grow at 70% CAGR to reach $7.5 Billion by 2022 – according to Praxis Global Alliance, a consulting firm.
And a recent report says - Online grocers are increasing at a 3x rate every year and the entire sector is growing at a 13% annual rate.
This growth trend has been driven mainly because of the Giant players like Instacart. Having said that, the grocery eCommerce business also paves a way for small and individual players who wish to build their grocery eCommerce store to cater the needs of the local customer base.
Instacart Business Model
| The users | The Stores | The shoppers |
|---|---|---|
| They are the consumers who will either use the website or the mobile app to order the groceries. They will choose the store and will place their orders. And also while placing the order they will give their delivery preference and the timings they want the goods to be delivered. | The instacart will have a partnership with numerous stores and they will be displayed to the consumers. The consumers can select their favorite store and order the items. Stores work with instacart under contracts and will earn high revenue. | The shoppers will take care of the pick-up and delivery of the items. They also work on a contract basis. They can also be part-time workers. A mobile app will be installed on their mobile and they will get order notification through their app. The company will assign them to work and they will work according to the schedule made by the company. |
Instacart revenue model
The success of instacart is mainly because of the revenue model it has framed. If you want to build instacart like the website then you need to clearly understand the revenue model of instacart. Instacart has several revenue generation options that help the platform to grow further.
- Delivery fee– there is a standard delivery charge of $3.99 for all orders above $35 and the products will be scheduled and delivered within 2 hours. If you need it within 1 hour then $5.99 will be charged. For all orders under $35, the delivery charge will be $7.99 for delivering within 2 hours and $9.99 for delivering within 1 hour.
- Membership fee– users can avail of annual membership offers. The annual membership costs $99 and once you become a member you can free delivery of groceries for one whole year.
- Mark-up prices – certain stores will sell their product by keeping a hike in the price of 15%. That 15% will be given to instacart by the stores.
How Instacart find customers?
Instacart has various marketing strategies to attract more consumers.
- Word of mouth– this is a grand old method but still, it has its importance and gives good results. By satisfying the existing customers, they will get more new customers as their existing customers will become their brand ambassadors and through them, the business grows.
- Internet marketing – focusing on all social media channels, instacart runs campaigns online and promotes their business by reaching the target audience.
- Free first deliveries – every new customer can avail of free delivery on their first order with instacart. This will delight the customers and let them buy again and again with instacart.
- Offers and discounts– instacart announces seasonal offers to its consumers and people can save more with these offers.
How to Build an Online Grocery Store Like Instcart
If you are looking on how to start a grocery eCommerce store, Zielcommerce is here to help you. Build your online grocery store with Zielcommerce white-label grocery ecommerce platform and launch your online store like instacart in less than a week.
Summing it up:
Now that you have an idea on how you can start your online grocery store and what are the factors you have to consider before getting started. By launching your online grocery business in India, you are not only offering a convenient online shopping for your neighbourhood, but also earn more money.
At Zielcommerce developed a readymade grocery eCommerce platform which enables grocery business owners to quickly setup a feature-rich online grocery website and a compelling mobile app for the users on the go.