At this rate of online expansion in grocery industry, small scale grocery store ( Kedai Runcit) may vanish, eaten up by innovative services provided by big companies. Keep reading till the end to know how you can take this opportunity to make money without ownings a grocery store. All you need is a website with a mobile platform.
Before going on further detail, having knowledge on the four main business models of the grocery store will be an added advantage for your own marketing strategy later.
1. Inventory Based Business Model
This business model is actually require huge investment and many of big companies has establish online platform to market their product. Tesco and Giant Hypermarket is actually a leading example that operates on an inventory based business model.
2. Multi-vendor Marketplace Business Model
This business model is actually the ideal option in your case. It’s can be referred as the’ Zero inventory model’, as the proprietor of the eCommerce platform doesn’t keep the inventory, no grocery store.
In a multi vendor marketplace setup, there could be several vendors (sellers). The eCommerce platform provider is able to deal with the delivery component though the inventory management is accomplished by the vendors.
In my opinion, this’s the ideal business model for you if you have the financial capacity. You need to develop a multi vendor grocery eCommerce shop and mobile app. happyfresh is a good example which works on multi vendor marketplace business models and delivery handle by them.
3. Hyperlocal Grocery Business Model
Grocery companies with this particular business model caters to the demands of the customer within a certain region, local area essentially. It really works on the’ Near Me’ idea. Tesco, AEON, and Giant are actually 3 industry specialists running on the hyperlocal kind of business model. The have stores in most of the city nationwide.
4. Click as well as Collect Or perhaps Buy Online Pick up In Store (BOPIS) Business Model
This business model is actually the great mixture of mortar and brick as well as eCommerce retailer. Tesco grocery giant has introduced order & collect grocery shopping service at it’s branch nationwide.
This’s the one other good choice for you, in this instance, you don’t have to control the inventory in case you yourself aren’t the vendor. But you has to collaborate with other store owners to this happen.
let’s say in the event that you’re currently thinking about the way to get rid of the inventory management component from the online grocery store, most likely you’re one step forward from others. Remember in case you’re a grocery store owner or a vendor, 99% of the times, you are going to have to control of the inventory. But in case you simply wish to act as a platform providing online grocery selling with delivery, inventory isn’t the headache of yours.
Now let’s come to the important part of this post, how you can make money without an inventory or owning a grocery shop.
In fact you can earn profit in 2 ways, profit in product sales and delivery charges. Here goes in detail….
1. Set up Virtual Grocery Store.
A) Set up your own online grocery store with mobile application.
For complete setup ecommerce platform with mobile apps will cost you from RM5K to 15K depends on your requirement. Actually developing web base ecommerce site is cheaper but mobile apps are quit expensive. Anyway it’s still consider cheaper option rather then setting up a grocery store, you at least need above 50K. We, GoDigital Malaysia can help you setup your online grocery ecommerce platform from RM2700 to RM9990. Click image below for more detail.
B) Source product from nearby hypermarket or do collaboration with your local supermarket.
Since most hypermarket has their branch nearby you, you can access their website for their pricing. Or collaborate with your local supermarket. Talk to supermarket owner a special price for you. All you have to do compare local supermarket pricing at your area and markup accordingly with profit margin 10% and above.
C) Select Area you plan to provide your service.
You need at least 100 regular customer to make profit
D) Set the Delivery charges
You have to set a minimum purchase to qualify the delivery option. You may offer free delivery for certain amount of purchases.
E) Distribute flyers to your neighboring residential area.
First began with people you known, relatives, neighbors and friends. Make flyers, distribute to residential area you plan to provide your service. If you choose our package 500psc flyers are included.
You need at least 100 loyal customer to earn a decent amount of income.
2. There are cost to consider before setting your price.
Payment processing system fees
a) Internet banking – RM1 flat rate charges for per transaction
b) Card charges – 2.5% to 3%
Earning forecast with 100 regular customer:
Average per family order grocery from you 3 times in a month, spending RM600 per month and you are making 5% profit margin. Delivery charges RM2 per trip.
RM600 x 100 = RM 60,000 x 5% = RM3000
RM2 x 3 x 100 = RM600
Total earning of RM3600 for the lowest profit margin. If you able to pull in 200 regular buyers, you can earn a decent amount of income with this idea.
Take Note of These:
– Make sure set minimum amount of orders to qualify delivery.
– You have transaction and card fees charges.
– The payment processor will only release your money after 3 working days.
– Delivery cost
Note: You also can make this idea with a friction of cost using free website making options available. But you may required some technical knowledge.
Well my advise to you, all these required hard work, determination and commitment to succeed. Otherwise don’t bother to think about this idea, skip it! All the best!