As we shift from one of the biggest food-focused holidays of the year into the continued frenzy of holiday parties and feasting opportunities, more and more consumers are taking advantage of the convenience of online grocery shopping. According to this infographic from Internet Retailer, 23% of American households were buying groceries online in 2016, up from 19% in 2014.
Food and grocery delivery has become one of the nation’s hottest economic sectors. More than $1 billion was invested in 2014 with a further half a billion dollars invested in the first quarter of 2015, according to TechCrunch. With online penetration at roughly 1 percent, food and grocery delivery remains one of the largest consumer markets still overwhelmingly offline, but Amazon’s purchase of Whole Foods earlier this year shook things up for food subscription services like Blue Apron and Hello Fresh, and even had Wal-Mart and Google scrambling to align in partnership against this new grocery Goliath.
Another slam dunk collaboration? Allrecipes, which has 80 million users worldwide, said it is “one of the first major food brands to collaborate with AmazonFresh,” meaning that “users who select AmazonFresh as their grocery retailer of choice will have the option to send all of the ingredients and products required to prepare a recipe to an AmazonFresh shopping cart for same-day or next-day delivery.”
Simply Gum offers an example of the symbiosis that can exist between online sales and bricks and mortar site sales. Their organic, vegan gum is sold at retail sites Whole Foods, Urban Outfitters, and Anthropologie, helping new consumers discover the product and then driving future sales via the website.
As with any expanding markets, there are a variety of fulfillment issues to overcome when meeting the demand for online sales, even with onsite pick-up vs shipping. This article provides insight into assessing, addressing, and overcoming these obstacles to a smooth omnichannel experience, but people will always want convenience on their own terms, which is why they aren’t quite ready to trust in-house deliveries just yet.
Whether you’re launching the latest food subscription box, or wondering how to best save on getting your items from point A to B around the globe, partner with the experts at FDC and let us save you time and money. Contact us today for a free quote!