How to Start Online Grocery Business in India

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How To Start Online Grocery Business In India.
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Introduction

• Selling groceries along with daily-use products
  online can start a sales avenue for stores at
  little extra cost. Groceries sell no matter what
  the state of the economy. You can stop going
  towards cinema and restaurants, but theres no
  way you can live without toothpaste, soap and,
  well, veggies. Caught in the citys fast pace,
  tedious commuting and extended working hours,
  many consumers dont have some time to buy
  groceries or want to avoid the chore.In this
  post, we will discuss about How to start online
  grocery business in India.
• Buyers are actually quite comfortable ordering
  apparel, shoes, electronics, among others,
  online. Using improving comfort with online
  repayments, selling groceries online has become
  easy.

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RETAIL OPPORTUNITY

• With a significant customer base and increasing
  penetration of Internet connectivity (partly
  via smartphones) and growing popularity of online
  shopping, some entrepreneurs have witnessed
  the potential in creating e-stores with regard to
  groceries. If you understand the particular
  retail market, a bit of creative thinking and
  excellent customer service may help you build a
  great business.
• AaramShop. com, EkStop. com, BigBasket. com,
  AtMyDoorSteps. com, MyGrahak. com, ZopNow.
  com, Omart. throughout, LocalBanya. com,
  RationHut. com and SeaToHome. com are some on the
  online stores retailing groceries. The majority
  of the existing etailers offer their service in
  metros and major metropolitan centers.

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The spending on grocery and daily essentials is
the largest and most consistent share on the
wallet for any household. Nonetheless, it is
still out on the ambit of online shopping and,
therefore, represents a huge option, says Vijay
Singh, chief executive and managing director of
AaramShop. com, a network of neighborhood
retailers based in New Delhi. AaramShop. com
currently operates in 30 Indian cities
with increased than 3, 000 partner stores. Best
thing about grocery business is you are not
required to integrate payment gateway in your
website as COD is preferable in this business,
and not even you need a logistic tie-up as your
own boys are doing the delivery. And so their
charges are also saved. Next is, you get the
payment on the same day. And the most important
thing is flipkart, amazon, snapdeal etc. are not
in competition with you.
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How to start online grocery business in India
Steps

• Arrangement of Stock
• Either you can have your stock or you can do a
  tie-up with a present store initially. Prepare a
  list of products (with their margins) you want to
  keep in the store and arrange accordingly.

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2. Register your firm

• You will have to register your firm (proprietor
  or partnership will do in the start) and get a
  VAT i.d. for sales tax submission. Any Chartered
  Accountant will do this work for you.

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3. Development Local Delivery System

• You will have to decide the range of your
  delivery. For example 5km, 10 km radius or whole
  of the city. Then arrange a 2 or 3 delivery boys
  with bikes, for the start. (according to scale of
  business you forecast).

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4. Development of website

• Get your grocery website developed by any good
  professional Company who has experience in this
  field like Nationkart etc. Upload the photos and
  the rates of your products in the
  website. Showcase 2-3 good offers in your
  website.

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5. Payment Method

• You can give COD (Cash on Delivery) facility
  (this is preferable) to your customers this would
  be easy as your own staff will be delivering the
  goods to the customers house, so you will
  receive the payment same day unlike in other
  ecommerce businesses where the currier
  companies collect money on your behalf and then
  give you after a week after deducting COD
  charges. If you want you can even get the payment
  through debit card or net banking, but thru this
  payment method the payment gateway company will
  deduct their charges and then give you the
  amount after 5 days. So COD is preferable for
  Online Grocery Stores.

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6. Marketing

• You can market your service in local newspaper,
  through pamphlets, SMSes, hoardings, door to door
  meeting etc. And location based Online marketing
  is also preferable.

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Few Suggestions

• 1. Make an Android app of your website as most of
  the house wives are using smart phones now a day
  and so it will be easy for them to order as they
  will not have start your computer again and
  again.
• 2. Keep a English and Hindi website converter
  button at the top of the website, for those
  who dont know the English names of many grocery
  items, like jeera etc.

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3. Contact number in the top and facility to take
order on phone, as many would like order that
way. 4. Show different sizes of the packages in
the page of the product. Like 250gm, 500gm and
1kg sugar. 5. In second phase you can also
selling bakery items, fruits and orders from
restaurants. 6. You can take delivery charges in
the range of rs30 to rs80 on orders of below
Rs250 ticket size. 7. Nationkart.com, an
advanced eCommerce platform, has all the required
modules to start an online grocery store.
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Investment Heads

• 1. Stock
• 2. Delivery bikes or vans.
• 3. Store house with small office (on
  rent(preferable) or on ownership).
• 4. 6 months marketing expense backup.
• 5. 6 months salary and other expenses backup.

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Feasibility check

• If you earn rs80 gross profit (which you get from
  margins and delivery charges) in one delivery,
  then to earn rs8000 gross profit a day you need
  make 100 deliveries. Which will result in gross
  profit of Rs2,40,000 a month. And from that the
  salaries, electricity and other operational
  charges will be deducted. You can get a handsome
  profit of rs1,50,000 per month in this scale of
  business.

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According to my view, if you follow all the terms
which is well explained regarding How to start
online grocery business in India, you will have a
fair start in this business and you can even
expand your business in other cities through
online. Thank You