Why Aren't More People Shopping For Their Food Online?
For many of us, the majority of our purchases are made online these days. It's estimated that for Americans, at least 51 percent of their purchases are made online; spending billions of dollars every year. Consumers are buying everything from artwork and jewelry to clothing, food, electronics, and a lot more. Over the years we see that consumers have become more comfortable buying across a number of different categories online.
There are many different subscription services available that can offer convenience to the consumer by providing their most needed items on a regular basis for them, without them ever having to even leave their home.
Millions of people have embraced these shopping subscription services and opting to buy more of their items online. If these services do provide more convenience to the consumer then we can expect that they will stay around for a long time; we vote with our dollars for the services and the products that we want to see succeed.
But one area where consumers have been rather reluctant to embrace online shopping is with their groceries.
It's reported that grocery sales make up a small portion of the overall food retail market but many well-known corporations are still heavily invested in exploring this space. Businesses like Target, Amazon, and Walmart for example.
And they aren't the only ones,...
there are also a number of other independent and smaller grocery subscription services, thousands of them in the US and around the world that are competing with the bigger chains to get consumers their favorite food products in a timely and convenient matter via their delivery service.
One new startup in Australia for example, Sprout Market, is looking to offer consumers organic groceries at competitive and affordable prices; membership with them is said to provide a savings of anywhere from 16 to 60 percent on many of the products that are sold by the chain.
Yet, aside from the many options that are out there, shoppers still seem reluctant to opt for getting their groceries online.
British shoppers are said to currently rank at the top when it comes to buying their groceries online. They buy more of their food online than any other country in the world, according to a recent assessment by Kantar Worldpanel. When it comes to how much shoppers spend on occasion, every visit to the online grocery store, following the UK was France, then Portugal, Spain, and Taiwan. In many countries, online grocery purchases still only make up a very small portion of the market.
The big food players aren't giving up though, they're looking to innovate their way to success. Amazon has recently launched their curbside pickup option, they've opened a drive-thru grocery store pickup location in Seattle, Washington. And this allows consumers who are a part of their AmazonFresh grocery program (roughly $14.99 per month), to pick up their order rather than wait for it to be delivered.
Walmart isn't far behind, they too are now going to be testing a 24-hour automated pickup kiosk that serves the same purpose, allowing shoppers to pick up their order rather than wait for delivery. It's reported that Walmart is testing this kiosk in Oklahoma at only one of their locations.
This year it's estimated that online grocery sales will only make up about 1-3 percent of the overall grocery market.
There is a lot of room for them to grow still and it's clear that many shoppers are reluctant to start getting their food this way, but it is expected that the trend will see a lot of growth in the coming years.
A variety of reasons have been suggested for the disinterest in opting for online grocery shopping: perhaps some people just enjoy the social shopping experience, others are worried about perishables, many want to inspect the quality of the food for themselves in person before they buy, the added cost to pay for the delivery or food delivery program service, and so on.
The more that Amazon and others can look to innovate in providing a better price to consumers and an improved shopping experience in the way of efficiency, then it might only be a matter of time before the majority sway in the direction of going online for their grocery shopping.
Pics:
Pixabay
Sources:
http://fortune.com/2016/06/08/online-shopping-increases/
http://www.marketwatch.com/story/more-shoppers-are-saying-yes-to-their-wedding-dress-by-clicking-buyonline-2017-05-23
http://business.financialpost.com/news/retail-marketing/customers-not-yet-sold-on-buying-groceries-online-but-retailers-still-see-revenue-opportunity
https://steemit.com/food/@doitvoluntarily/amazon-looking-to-carve-out-a-bigger-space-in-grocery-delivery-services
https://www.broadsheet.com.au/national/food-and-drink/article/sydney-start-making-organic-groceries-affordable-2017
http://cdn2.hubspot.net/hubfs/544043/2016_Webinars/Food_Beverage_Consumables_Webinar/White_Paper/4th_Annual_Food_and_Beverage_Consumable_Study.pdf?t=1476820089888
http://www.telegraph.co.uk/business/2017/06/02/british-shoppers-top-table-buying-groceries-online/
http://www.businessinsider.com/amazon-launches-curbside-pickup-for-groceries-2017-5
http://www.fooddive.com/news/grocery--walmart-testing-24-hour-automated-pickup-kiosk-for-groceries/444211/
https://www.forbes.com/sites/richardkestenbaum/2017/01/16/why-online-grocers-are-so-unsuccessful-and-what-amazon-is-doing-about-it/#56be3d447f56
http://www.cnbc.com/2017/01/30/online-grocery-sales-set-surge-grabbing-20-percent-of-market-by-2025.html
I recently started buying most of my (dry) bulk foods from Amazon.
Soon, I'll probably get my potatoes, too.
But you know where this is going...
Amazon Pizza delivery!
Do you think it's good??
As a university student with limited cooking knowlage or skills I have been doing the Sun Basket meal subscription service. Every week I get 3 meals that take 30 min to make and are fantastic and way healthier than I would get on campus or make myself. Beef stir fry gets really old after a few months.
I think more people are going to use services like Blue Apron and Sun Basket because we are moving to a future were delivery is very inexpensive. It really is convenient.
I just love the atmosphere of the local markets. So, no online shopping for food for me ;)
Ordering my food is not very convenient for me. I'm not always home and I don't want my neighbor to accept my groceries when I am not there. My fresh food will be ruined after I have time to pick it up.
My supermarket is close and is open 7 days per week. Perfect.
I think you will see it grow, even if slowly at first consumers will eventually evolve (as a matter of fact one of my business models is counting on that) Like buying shoes, it took people a some time to get used to buying something without seeing, touching and trying on, then Zappos came along and eliminated hesitation with exceptional customer service and no obligation cost free returns. Eventually consumers will overcome their doubts and then like with so many other technology driven conveniences, become addicted. - Chef Mickey
I could see that. Last time I bought shoes I was a little hesitant of not being able to try them on but the price was unbeatable. I got them and they were perfect. Now I'm in the same position looking at shoes.
when i think of food i want it to be fresh which isnt what i think of when mailordering live produce....
The reason why online grocery never works for me is:
I like to go to the local market, I can see the streets, and I can walk.
I'm on board with buying normal groceries online in the near future... But fresh groceries, like produce? Give me one dented, soured apple and I'm all done.
I eat my food. I'm picky. Most low paid workers are only picky about their hours, not how well they choose to do their jobs.
I might give it a try sometime, though.
I love getting groceries online. I buy off of Amazon Pantry regularly. In my town our grocery store lets you order online and has curbside pick up so you don't have to go in the store. It's amazing. The only thing I like to shop for myself is meat and fruits/vegetables so I get the best deal. I wish there were more grocery services online where I live.
Right on, you're one of those "early adopter" types! :)