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Guide to Start an Online Grocery Delivery Business in India

A Guide to Start an Online Grocery Delivery Business in India

The way people shop for groceries in India has changed drastically in recent years. Gone are the days of physically visiting stores and markets. Instead, online grocery delivery services have become increasingly popular due to their convenience and time-saving benefits.

With the adaptation of modern technology, there has been a rise in the online grocery delivery business in India. 

And the reason behind it is crystal clear. 

It saves time and people get their desired items at their doorstep within a few taps. 

Wise are those entrepreneurs who know when and how to enter the market. If you’re one among them – this blog is the right place to get all the information to make your online grocery business a success. 

So without any further delay let’s get into the details! 

Market Analysis 

The online grocery market research data shows that India is expected to generate a revenue of $73.89 billion by 2029. 

Factors like customer preference due to convenience, express delivery, availability of organic & locally sourced products, and digitalization have played a significant role in the increasing demand for grocery delivery business. 

Let’s take a peek into India’s online grocery delivery and beverage shopping by store brands as of December 2023 –


Chart: Market share of Popular Indian online stores based on online grocery and beverage shopping

Steps to Start an Online Grocery Delivery Business in India 

You can follow the steps below to start your dream online grocery delivery business in India. Each of these steps is required to be checked in your to-do list if you want to launch a full-fledged business.

Research the Market & Define the Target Audience 

Market research should get the prime focus before anything. In the online grocery delivery space, this means researching existing players, and consumer preferences in your city and identifying a gap you can fill. 

Finding out the needs and wants while determining the target market would help you deliver exactly what they need. 

For this, you will need to analyze the – 

  • Market trends 
  • Consumer preferences
  • Regional demand

After analyzing, you will need to define your target audience based on the – 

  • Demographic data
  • Shopping behavior
  • Preferences

This insight guides your marketing strategies and product selection, ensuring relevance and appeal to potential customers.

Identify Delivery Location

Delivery is key in the online grocery business. Selecting the right delivery locations is essential for operational efficiency and customer satisfaction.

Choose a strategic location for your warehouse or partner with local stores to ensure quick deliveries within a defined area. You can always start serving a small area and gradually expand your business zone to perfect your operations. 

Remember, fresh produce requires a tighter delivery radius to maintain quality.

Choose a Business Model

Decide how you’ll source your products. There are four different types of grocery delivery business models- 

  • Inventory-based business model
  • Multivendor marketplace business model
  • Hyperlocal grocery business model
  • Click and collect or buy online pitch up in-store ( BOPIS) business model 

You can ask yourself questions like – Will you maintain your own inventory or partner with existing stores? 

Each model has its advantages and challenges, so carefully evaluate them to align with your business goals and operational capabilities.

Business Registration to Ensure Legal Compliance 

Every business needs a legal foundation. Obtaining the necessary licenses and permits for food safety, data privacy, and taxation is essential.  You can either register your business as a sole proprietorship or limited liability partnership based on your business’s goal and operational method. 

Depending on your business type and chosen model, you will need to obtain various licenses like – 

  • Shop License
  • FSSAI License
  • Trade License
  • GST Registration 

This protects you legally and allows you to open bank accounts and obtain necessary permits.  The Food Safety and Standard Authority of India (FSSAI) license is crucial for selling food products. 

By following the industry and government rules, you show that your business is trustworthy and legitimate in the market.

Partner with Suppliers 

Reliable suppliers are essential for the success of your grocery eCommerce. For this, you must look for wholesalers or distributors who offer competitive prices, a wide range of products, and timely delivery.  

Negotiate fair prices and delivery terms to keep your stock fresh and available. Having strong ties with suppliers helps your business run smoothly and keeps your customers happy. All over, it ensures consistent product quality and availability.

Investment Sourcing 

Launching a business requires investment. Consider your initial costs for inventory (if applicable), website development, delivery vehicles, and marketing. Assess your capital requirements and explore various funding options, including personal savings, loans, investors, or crowdfunding.

To secure financing from potential investors, you will need to develop a comprehensive business plan and financial projection.

Build Online Platform

Today’s consumers expect a seamless online experience. Choose a reliable e-commerce platform or engage a skilled web development team to build and optimize your digital platform. 

So good business owners would invest in developing a user-friendly website or mobile app for browsing products, placing orders, and securing online payments. 

But wise business owners often seek good ROI for their one-time investment into a complete solution with all the essential panels and mobile apps required for running the business. Take 6amMart as an example. It is a multi vendor eCommerce solution that serves multiple business modules under one platform. 

So you can build your online grocery store using this solution with always a chance of expanding your business into different zones and adding another business module in your business growth journey. 

Set Up Delivery Logistics

Reliable delivery is your lifeline. Decide if you’ll manage your own delivery fleet or outsource it to a third-party service. Ensure your chosen method offers timely deliveries that meet customer expectations.

Making sure orders are delivered on time and reliably makes customers happy and more likely to return. This also encourages them to tell others about their positive experience.

Implement Marketing Strategies

Executing effective marketing strategies is key to attracting and retaining customers. After all, you need to – Spread The Word!

For this, you can use channels like – 

  • Social Media
  • Local Advertising 
  • Email Marketing 
  • Search Engine Optimization (SEO)
  • Google Ads 
  • Content Marketing 

Highlight what sets your service apart and offer promotions to attract customers in your initial launch phase. For promotional offers for your business, you can use tactics like – 

  • Discounts 
  • Loyalty Programs 
  • Referral Incentives etc.

Benefits of Online Grocery Delivery Businesses

The online grocery business in India is booming, and for good reason!  This business model offers a wealth of benefits for you, the entrepreneur, and your customers.

Be your own boss

Building your own online business offers the exciting opportunity to be your own boss. You will be able to afford a level of independence that you won’t get working for others.  You’ll be free to make key decisions, shape your brand identity, and watch your venture flourish.

Offer convenience to customers 

Imagine the ease of grocery shopping from your couch! Your customers will love the time saved by skipping crowded stores and long checkout lines. In fact, many Indians prefer to stay inside and use their smartphones instead of going out in this scorching heat.  They can order fresh produce, household essentials, and more delivered straight to their door. Ultimately as a grocery delivery business owner, you’re gaining a profit. 

Reduced Costs

Believe it or not, online grocery delivery can help customers save money. When you showcase this advantage to your target market, they’ll avoid impulse purchases at the store and can easily compare prices online. Plus, with efficient delivery routes, you can potentially offer competitive pricing.

Scalability for Growth

Unlike a physical store, you’re not limited by location when you own an online business. As your customer base expands, you can easily scale your operations to reach new zones, neighborhoods, or even different cities.


The flexibility of online grocery shopping is unmatched, with the added benefit of being able to order groceries anytime, day or night. 

The ability to access the online store at any time is a perfect fit for today’s fast-paced lifestyle, where people often juggle multiple responsibilities and don’t have the time to visit physical stores during the day.

Challenges and Considerations to take into account 

Starting an online grocery delivery business comes with its own set of challenges and considerations.   The online grocery delivery world is exciting, but there are hurdles to consider before you launch.

But that doesn’t mean you won’t even take your first step toward this blooming industry. Knowing what needs to be done before launching your business will put you way ahead in this competitive market.

Table: Challenges and Solutions for Starting an Online Grocery Delivery Business in India

Final Words 

Starting an online grocery delivery business in India offers immense opportunities but comes with its challenges.

While challenges exist, careful planning and focusing on customer satisfaction can position your business for success.  Remember, exceptional service, a unique product selection, or competitive pricing can help you stand out.

See you in the next blog!

How can I market my online grocery business on a budget?

You can use social media marketing methods, local advertising, and partnerships with complementary businesses to market your online grocery business on a budget.

What legal stuff must I handle for an online grocery store in India?

Register your business and obtain an FSSAI license to ensure food safety compliance. It’s always best to consult with a professional for legal advice.

Is this a good business opportunity in India?

The online grocery market is booming!  You can build a successful and rewarding business with the right planning and a commitment to great service.

Mehrin Jahan

Meet Mehrin!  A technical writer with a Computer Science background. She combines her academic knowledge & creativity to transform complex facts into engaging content. With a sharp eye for detail, she keeps readers updated on tech trends. Outside of writing, she’s a visual storyteller, capturing life’s moments through photography.

online grocery delivery business plan india

How to Start a Grocery Delivery Business in India?

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The pandemic has hugely impacted the on-demand grocery delivery system in India. This unexpected growth in the online food market has accelerated the shift from store shopping to home shopping. According to market researchers, this new food purchase behavior (home delivery) will gradually become a new habit among all people. Customers are likely to adopt such home delivery facilities with more tech-enabled and omnichannel options. Here are some tips to start your grocery delivery business in India:

Undertake Market Research

Prior to embarking on the creation of your online grocery delivery business plan, it is essential to assess the viability of your venture. To ascertain the feasibility, engage in thorough local market research to gauge your potential for success in comparison to existing competitors.

Through market research, identify gaps in the market that your services can effectively fill. Armed with this valuable information, gain a clear understanding of your target market and formulate strategies to fulfill their needs optimally.

Identifying location and target audience 

This is the first step in opening a supermarket. Fruits, vegetables, milk, pulses, and other food staples have a short shelf life and a tiny delivery radius if delivered fresh. So you must organize your delivery strategy properly to ensure that your customers’ orders are delivered fast and of the finest quality. It’s also vital to identify their eating and shopping habits. It will help you detect hot things and upcoming trends, allowing you to stock up on hot items and reduce waste.

Also Read: Tips To Maintain The Best Mix Of Stock In A Grocery Store

Putting backend in order 

You may need a warehouse to keep the goods you will be selling online, preferably within your jurisdiction. This would ensure fast delivery of the merchandise to awaiting clients. You can also establish partnerships with trusted suppliers and wholesalers. They can keep you well-stocked with the supplies and items you require regularly. In most cases, you may negotiate a volume discount because you would regularly buy in quantity.

Registration of business 

This is a critical step in creating your online food store. If you are an entrepreneur, you can register as a proprietary business or, if you have partners, as a partnership. You can hire a tax expert or a chartered accountant to help you with the registration and GST requirements. After completing the registration process, you can create a business account with any bank.

Also Read:  5 Clever Ways To Boost The Sales Of Your Ecommerce Store

Inventory infrastructure 

Stock management is critical to running an online food delivery service. Stock management can be done in two ways. Firstly, you can either have your product ready in your warehouse or just develop a connection with a local grocery store. 

Even if you have a little budget, building your inventory is not advisable as it is costly and time-consuming. Working with local sellers and building your inventory once you have enough money is better. You also don’t need a physical presence if you sell groceries online via a mobile app or website. You can purchase products from local merchants and distribute them to customers.

Also Read:  Why You Need To Add Multiple Payment Methods To Your Online Store

Delivery service 

The internet consumer market relies on delivery techniques. It is critical to your business’s success. It is usually picked up when the consumer goods are delivered. To regulate the delivery time, you must first establish the delivery area. Because groceries are perishable, many customers allege that inadequate delivery methods harm the quality of their purchases. 

The worst part of the delivery is not receiving the order on time. Nowadays, most online supermarkets employ capital to cover delivery costs. Hiring delivery lads on motorcycles is the greatest option. Great customer service can attract the market and deliver the best services.

Funding procurement 

To get started, online grocery delivery firms require a significant amount of capital, including raw materials, inventory, a delivery system, employee pay, and other expenses. Taking out a company loan may be the best alternative if you don’t have the cash on hand right away. Before applying for a loan, be sure you understand the eligibility requirements of your lender.

Also Read:  5 Costly Mistakes To Avoid While Launching Your Online Store

Developing website and app

This is the foundation of starting to sell groceries online. Because your business is entirely online, you will need an excellent app/website that allows clients to order online. If your app or website UI isn’t good or user-friendly, you’ll lose sales and users. You need to pick a company that offers affordable app and website development. 

Ensure your website or app is speedy, clean, and easy to use. An app is often more expensive than an eCommerce website, allowing clients to effortlessly browse products and place orders. If you can afford it, get an app for your grocery store. If your budget is limited, an eCommerce website can meet practically all of your needs.

Marketing strategy 

Invest in marketing to make your company visible and approachable. To be recognized and approachable, you need marketing. The marketing plan should define your company and products, create goals, choose digital marketing strategies, budget, and analyze results.

Use search engine marketing and optimization, affiliate and associate programs, email marketing, establish an opt-in email list, articles or news stories, and online press releases to promote your business. Email, social networking, display advertising, SEO, Google AdWords, and other online and digital platforms should be used to advertise your online business.

Also Read:- Become A Digital Business-The Way Forward For Retailers In 2019 & Beyond

Also Read:  Role Of Technology In Making Retail Stores More Meaningful In The Ecommerce Age

Deciding payment method 

It is usually desirable and suggested that you present your clients with all potential modes to feel satisfied and equitable when purchasing your product. Your app/website developer should handle online payment gateway integration. Also, include a COD option to your app/website. 

Cash-On-Delivery is preferred as your delivery is door-to-door (COD). Customers will learn about the quality and develop loyalty and trust for your store and items. Also, when you use COD as your primary payment method, you don’t have to wait for the payment gateway to process the money. Also, when your clients choose COD, you save roughly 2% of TDR that you would otherwise pay to the payment gateway firm if you accept online credit/debit cards, net banking, or other payment methods.

Today, the fastest-growing business is online. Why should your grocery shop be any different? Grocery is a basic human necessity that will never decline in demand. It is all about how you build your business. So, now is the time to get digital and keep up with the pace of the surrounding world. We hope that our tips to start a grocery delivery business provide some useful insight.

Pros and Cons of Operating a Grocery Delivery Business

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How to Start Online Grocery Business In India

Radha Dhaked | May 25, 2022 May 25, 2022 | Business Updates

Nowadays, smartphones and tablets have changed the world around us. From buying clothes to buying apartments, from buying food to buying furniture, almost everything that we think of having is available on the Internet to buy. Significant during the Covid 19 pandemic, customers have shifted their focus from physical stores to the eCommerce industry or online stores.

In India, grocery stores are considered the heart and soul of the community as they are the source of nutrition, tax support, and provide jobs. The online grocery market has crossed the 190 billion mark, and by 2026 an estimated rise of 28% CAGR is expected. So, In today’s article, you will be learning how to start online grocery business in India.

online grocery delivery business plan india

How to start an online grocery business in India?

While setting up an online grocery store, you must have the following things in mind:

Business registration

You can register your online grocery business as a partnership or a  sole proprietorship firm or have a private limited company registration . You will need the following permits and license to start the business:

  • Fssai registration and license : Via your online grocery store, you will be selling various food products and processing the item. So you must get an FSSAI Registration .
  • GST registration : This is an indirect tax that covers the goods and services that you are offering. All the existing online businesses, be it central or state, are now covered under GST and have to get GST Registration and do GST Return Filing
  • Trademark registration: Before starting an online grocery store in India, you also need to obtain a trademark registration to secure your brand and create a unique identity for your business.

Learn about your target audience

Before starting the business, you need to identify the eating habits of the local residents. This research will help you select the items with heavy demand, and you can stock them well in advance.

Select your delivery region

Nowadays, most customers are searching for ‘grocery delivery near me’ instead of going to supermarkets and grocery stores. So you must select your delivery location in such a way that the grocery supplies can be delivered quickly.

As most of the customers prefer same-day delivery, you also need to get hold of delivery agents and a fleet of vehicles.

Inventory management

To run a successful online grocery store, you must know how to manage your inventory. There are two ways: you can stock supplies in your warehouse, or you may tie up with other local grocery stores and wholesale supplies for your delivery.

Choose a mode of payment

If you are offering door-to-door delivery, then the best option would be to offer cash-on-delivery or card-on-delivery payment options. An additional benefit is that you do not have to wait for the payment.

Pick up at store facility

You may also offer to pick them up at the storage facility for your customers to order their groceries and select a pickup time. You have to keep the grocery bag ready so that the customers can pick them up at their convenient time. This will reduce your shipping costs and reduce a person-to-person interaction.

You can launch various online campaigns, offer discounts, and give vouchers based on surveys. You can consider putting an advertisement in the local newspaper or distributing pamphlets.

Develop a website and the mobile application

Nowadays, most customers prefer getting their products online from the comfort of their homes. So if you have an authentic and valuable mobile application or a business website development , then you will attract more customers. Additionally, the customers can make the payment online, so you do not have to worry about payment delays.

Steps to Start an Online Grocery Business in India

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How to Start a Grocery Delivery Business: Revenue Model & Key Features

How to Start a Grocery Delivery Business: Revenue Model & Key Features

Last Updated: 18th September, 2023

Consumers today continue to shift to a digital ecosystem with all ages going online to purchase groceries and having them delivered to their door instead of trudging around a brick-and-mortar store. This shift is creating new opportunities, broadening the grocery business landscape.

According to Vantage Market Research, the global online grocery delivery services market is expected to expand at a CAGR of 26.9% from 2023 to 2030 and is projected to reach a value of USD 1670.3 Billion by 2030. In this post, we describe in detail how to start a grocery delivery business, along with its revenue model, features and more.

Table of Contents

Prominent grocery delivery service businesses, future of online grocery delivery businesses, starting an online grocery delivery business.

  • Cost to Start an Online Grocery Delivery Business?

Growcer – An Online Grocery Delivery Solution from FATbit Technologies

When it comes to grocery delivery services, it is convenience that you are ultimately paying for. Online grocery delivery businesses not only offer doorstep delivery but they also provide items at a discounted price. Hence, you not only get to save time but might also end up saving money. With the information, let us take a look at a few prominent grocery delivery service businesses.

Grocery Delivery Business

Postmates is inarguably the most prominent player in this industry. With their service spanning more than 15 states in the USA, Postmates enjoys a massive presence and serves a huge number of customers every hour, every day, every year.

Since its inception in May 2011, they have delivered more than a billion goods and made an estimated $730 Million revenue.  

Instacart is a North American leader in online grocery as its delivery services are available to more than 85 percent of U.S. households and 70 percent of Canadian households. It has partnered with more than 350 national, regional, and local retailers,  to deliver from more than 25,000 stores. Instacart reportedly generated $2.5 Billion in 2022 and is predicted to reach $35 Billion by 2023. 


Founded in 2002, FreshDirect is an American online grocery delivery company that is headquartered in the Bronx, New York. The company sells fresh produce, meat, dairy and so on by finding the shortest route from dairies, fisheries and farms to the table. According to Crunchbase, it has raised $189 Million in funding.

Shipt is an American grocery delivery service that was founded in 2014. Headquartered in Birmingham, Alabama, US, Shipt provides access to a variety of stores and product categories including fresh produce, household essentials and more. It has raised $65.2 Million in funding according to Crunchbase.

Technological advancements are reshaping the grocery eCommerce landscape. From user experience to order preparation and last mile delivery, technology is disrupting several parts of the online value chain. For more information, watch the video below to know more about the future of online grocery delivery businesses and launching a grocery multi-vendor marketplace.

Since the market seems lucrative for online grocery delivery businesses for years to come, it is appropriate for entrepreneurs/grocery retailers to set their foot in this direction and start their own online grocery delivery business. In this section, we list the steps to start grocery delivery business.

Identify Your Target Market

The first step to starting an online grocery delivery business is conducting market research and figuring out the target market, which means finding out everything about the needs and wants of individuals. Once you have the understanding, you can delve deeper into their behaviors. Hence, if you are just starting out, having a defined target market will not only help you in starting your business, but will also help in creating effective marketing strategies. To define your target market, you can start by answering the following questions:

  • What is the need of your online grocery delivery business?
  • Who will benefit from your online grocery delivery service?
  • Who will be using the grocery delivery platform?
  • What will differentiate your business from the competition?

To find the answers to these questions, you can:

  • Conduct interviews with a group of people
  • Keep a tab on the competitors
  • Dive into the existing industry research
  • Demographically segment the market (age, education, income level and more)
  • Use research tools such as Google Trends, Google’s Keyword Planner, Facebook’s Audience Insights, and so on

Choose a Business Name and Form a Legal Entity 

Choosing a business name and forming a legal entity is one of the primary steps to give your idea a form. An authentic registration for name, a form of business, and compliances is a must. Furthermore, as online grocery delivery businesses need to pay taxes for the online sale of groceries, so registering under appropriate accounts to pay these taxes is a mandate.

Choose Your Business Model

In its true essence, an online grocery delivery business works on the principle of picking up an item from the vendor and delivering it to the buyer’s doorstep. Hence, several business models are available to start grocery delivery business. A few of them are listed below:

Multi-Vendor Business Model

Inventory based business model, hyperlocal business model, click and collect/buy online, pick up in-store (bopis) model, scheduled delivery model.

In a multi-vendor business model, multiple sellers get a technical infrastructure to sell their vast range of grocery products to the buyers. Furthermore, it is also known as the ‘zero inventory model’ as the owner of the platform does not hold any inventory of its own.

Using the inventory model, the grocery eCommerce business is responsible for storing inventory from various retailers in a warehouse, maintaining and keeping a track of it and providing on-time delivery of grocery orders to the buyers. 

As the name suggests, hyperlocal refers to a small geographical area. So, this business model caters to the needs of grocery buyers within a defined area. The main USP of this business model is that the grocery order deliveries are prompt. 

Click and collect or BOPIS model brings the benefits of online shopping while still retaining the charm of picking the grocery order from the brick and mortar store. It offers an omnichannel experience to buyers as they can purchase groceries online and as per their availability pick them from the store.

This model facilitates delivery of grocery orders as per the schedule that fits the needs of all the parties involved, i.e. the retailer, the delivery staff personnel and the buyer.

Launch A Grocery Delivery Platform as per Your Requirement

Decide the revenue channels.

Once the business model has been chosen, you need to decide the revenue streams. They will not only help you generate revenue but will also help in driving the overall growth and profitability of your online grocery business. Some of the possible revenue channels include:


Commission by far is the oldest and the most preferred revenue channel for marketplace owners. There can be two prominent ways to charge commissions with the sale of groceries online:

  • Commission on Each Transaction –  This is chargeable to the vendor/seller on every sale they make on the marketplace platform. This way, the marketplace owner can earn according to the sales happening on their portal.
  • Commission on Each Delivery –  Under this type of commission, the buyer and the driver are charged with some amount on their purchase and its delivery, credited to the marketplace owner’s account whenever an order is completed.

Vendor Subscription Fees

Also called membership fee, you can use this revenue channel to bring in vendors who are not comfortable with the commission model by paying a fixed subscription fee. These vendors can use your service for a fixed period of time (quarterly, bi-annually, annually, and so on).

Banner Ads and On-site Promotion

A good source of drawing revenue from the marketplace platform is allowing vendors to carry out their personalized ads via banners and schemes on the platform homepage. The admin can charge the sellers for the space and number of campaigns they want to run. Such advertisements can act as business-boosting elements for the website as well as for the vendors. A good amount of revenue can come in from certain independent product ads as well.

Select the Features

As more and more individuals are transitioning to online channels for grocery shopping, it is pivotal to make their user journey remarkable. This can be done via features of the online grocery marketplace. Discussed below are some of the pivotal features to have in an online grocery delivery platform.

Simple Signup

The signup process for grocery retailers and buyers should be simple. If multiple steps are there for the signup then the users may get discouraged and move to your competitors site. Hence, simple signup is a must.

Custom Search and Navigation

As a marketplace offers a lot of grocery products to the buyers, it is important to have easy navigation and a custom search feature so that the buyers can get the right product quickly.

Easy Checkout

Easy checkout with a reduced number of checkout steps is pivotal to decrease cart abandonment, boost sales and create more revenue.

Multiple Payment Options

It is crucial for an online grocery delivery service provider or any e-commerce store to have multiple payment options for consumers, making it easy for them to purchase.

Order Tracking

Using this feature, buyers can keep a track of the status of their order, i.e. they can review the real-time status of their grocery order.

Ratings and Reviews

Allow buyers to provide their feedback through ratings and reviews. This feature helps in trust building and also provokes new customers to complete their purchase.

Advanced Reports and Statistics

The admin should have full access to all the reports and analytics so that they can evaluate business growth and plan future strategies.

Seller Approval and Management

The admin should be able to approve the request of sellers to join the marketplace through a seller approval management feature.

Product Catalog Management

Every marketplace should have a clean and comprehensive product catalog enlisting essential information about the product. Product catalog management facilitates the same.

Launch a Feature-Rich Grocery Delivery Platform

Create a multi-vendor marketplace.

The next step is to create a multi-vendor grocery delivery marketplace. This can be done via following two approaches:

Custom Development

Custom grocery delivery marketplace development approach can be followed if you have custom requirements for which tailored functionality is needed. It is more time consuming and expensive because the development is done from scratch. 

Opting for a Readymade Solution

The second approach is to opt for a ready made solution to launch an online grocery delivery marketplace. As the features offered by a ready-made solution are time tested, this is a quicker and cost-effective way to launch the marketplace for the delivery of groceries.

Market Your Online Grocery Business

Once the marketplace is ready, it is pivotal to market it to broaden the horizon of the target audience by bringing awareness. Marketing can be done via following methods:

  • Search Engine Optimization
  • Content Marketing
  • Social Media Marketing
  • Pay Per Click Advertising
  • Email Marketing

Cost to Start an Online Grocery Delivery Business

Now that we have discussed the steps to start an online grocery delivery business, let’s take a look at the cost of starting one. If you choose to develop a multi-vendor marketplace platform then the biggest cost-driving factor is going to be its complexity, i.e. the features and functionality to be included. Cost of development depends on the time needed for the development of the platform and the availability of resources.

Moderate Time Needs

  • Online Grocery Delivery Platform with Simple Functionality (3-6 months) –   A decent grocery delivery platform with simple functionality will take approximately 500-800 development hours.
  • Online Grocery Delivery Platform with Medium Functionality (5-9 months) –   A custom grocery delivery platform with medium complexity will require approximately 800-1200 hours of development.
  • Online Grocery Delivery Platform with Complex Functionality (8 months above) – A grocery delivery platform that requires a lot of customization will exceed 1200 hours of development.

Hourly Rates (Region Wise)

  • North America – $150/Hr
  • Australia – $82/Hr
  • UK – $71/Hr
  • South America – $43/Hr
  • Eastern Europe – $40/Hr
  • India – $25/Hr

Hence, an online grocery delivery platform can approximately take 1900 to 2400 development hours. And, the development cost could be anywhere between $47,000 to $360,000. Instead, you can choose Growcer, a grocery eCommerce solution from FATbit Technologies that would cost you way less.

Growcer is a readymade, fully customizable grocery eCommerce solution that is equipped with all the necessary modules- admin, seller, buyer, and delivery staff. Enriched with user-centric features, platforms like Walmart, Peapod, FreshDirect, Instacart, and more, can be built using it. Growcer also offers pre-integrated APIs and robust ready-to-use mobile apps for buyers and delivery staff.

Being a self hosted-platform, clients do not need to have any technical expertise. Further, it is a white-label solution and offers a plethora of revenue-generating options to business owners. That said, Growcer has enabled many startups to do more. A few of them are mentioned below:

  • ShopExpress –  An online grocery delivery platform that delivers quality products to customers’ doors in Zimbabwe.
  • Superkiwi –  Is another online grocery platform in the USA whose mission is to provide quick delivery of groceries that are purchased online, using the platform.
  • Tap Retail –  Built using Growcer, Tap Retail is an online grocery marketplace that provides agile delivery of groceries that are purchased online using the platform.
  • Dhalmart –  Is a one-stop platform that is dedicated to selling organic vegetables, groceries, and home-cooked food to individuals with busy schedules.
  • RX Delivered – Is a drug delivery platform that enables patients, hospitals, and pharmacies to order authentic and high-quality drugs for delivery in Africa.

Start Your Grocery Delivery Business with Growcer

The grocery retail landscape is constantly changing with people shifting to online shopping channels. Hence, starting an online grocery delivery business is a good idea. So, if as an entrepreneur you are excited about starting your own online grocery delivery business in less time, then consider our ready-made solution Growcer. For more information, get in touch with us.

Q1. Is the online grocery delivery business profitable?

Ans : Online grocery delivery business is profitable as more people are ordering groceries online. The transition in consumer behavior is evident and the business is expected to remain profitable for the years to come.

Q2. How much can my business earn per grocery order?

Ans : Businesses mostly charge a fee of 10% to 15% depending on the order size. A fee of $15-$20 can be charged for a grocery order of $150. If on average 100 orders a day are received, then a business owner can make $1500 to $2000 per day. More orders will ultimately result in good profit.

Q3. How should I acquire grocery sellers on my platform?

Ans : Grocery sellers that are active on other marketplaces can be approached. You can research their expectations and provide them with exclusive offers and also have an approachable seller service support system. Implement useful guides and provide them with buyers on board. Further, you can ask grocery store owners to join your online marketplace and increase their sales/ revenue through your platform.

Q4. How should I acquire customers on my platform?

Ans :  Today’s fast-paced life with long working hours, hectic study schedules, and more does not allow employees or students living independently to go out and spend time shopping for groceries. In this context, customers who are looking for on-demand delivery services are ideal as a grocery eCommerce store solves their problem by providing them with flexibility. Buyers can shop any time, from anywhere, and get the order delivered to their doors. You can market your platform on various social media platforms to grab people’s attention.

Q5. How can FATbit Technologies help in growing your business?

Ans : The team of digital marketing experts at FATbit will help you to grow your business online and enhance its online presence through various digital marketing services offered. This includes social media marketing, PPC, and so on.

online grocery delivery business plan india

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Vibha Sharma is an accomplished senior content writer and marketer at FATbit Technologies, where she brings her passion for storytelling and digital expertise to create compelling narratives. With a Master’s Degree in Computer Applications, Vibha successfully blends creativity with technical acumen. Outside of her professional pursuits, Vibha is a voracious reader, an avid traveler, and a lifelong learner.

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How to start a Small Grocery Store in India

How to start a Small Grocery Store in India

The eCommerce market in India is on a sharp rise and the onset of the pandemic in 2020 has fueled the digital shopping boom significantly. In fact, the grocery and everyday essentials online market has grown exponentially since 2020. According to a research report , the Indian online grocery market is estimated to reach US$ 18.2 billion by the year 2024.

Greater smartphone penetration and easy access to the internet are amongst the key drivers of eCommerce growth in the field, making the online grocery store business plan a lucrative opportunity for entrepreneurs. 

Hence, if you are a small physical grocery business owner or want to start your own grocery business online, this is the ideal time to start.

However, with lots of opportunities to explore in the digital space, you might need to identify the right business model, the market fit, the product offerings, and the capital investment needed before you start an online grocery business. An effective business plan and clear objectives will help you target better and achieve business growth in a more efficient way.

How to set up an online grocery store — 7 Things to Consider

To give you an understanding of how to begin the preparation of your online Kirana store we have listed down for you a step-by-step guide to crafting a powerful business plan for your online grocery store set up . So, let’s get started!

Understand your scope of operation

scope of operation

The first and foremost step in creating a business plan is identifying the level of operation that is largely guided by your investment capacity. Analyze the various financial and other resources available to you to fix the level of your online grocery store. 

Based on the same, you should be able to answer the following questions to make decisions:

  • What will be the scale of operation, i.e. small, medium, or large-scale?
  • Will you have your own products or will it be a multi-brand product shop?
  • Will you deal in luxury grocery products or only the essential items?

Once you have clarity of the business scope only then you can move ahead to the next part of the planning process.  

Shortlist your product categories and list

product category

Finalizing the right products is essential to grab the attention of your audience and drive sales. 

Your selection of the products should majorly depend on the demand, availability, and competition for the same or similar products in the market.

Especially, when it comes to the grocery business, you might have greater competition. So it becomes mandatory to come up with better deals, combo offers, discounts, and other incentives to engage the audience more. 

Identify target audience

Target audience

Who are your potential customers? What are their likes and interests?

Understanding your target audience is an integral part of building a business plan and it requires a systematic approach and a careful analysis of your potential customer base. How do you do that?

Well, here are some key tips to knowing your target audience better:

  • Build the customer personas that you are targeting.
  • Research about their income levels, their buying behaviour and other key demographics.
  • Analyze the types of customers that are engaging with your competitors
  • Conduct surveys and encourage your customers to share feedback.

Store Location

Store location

The location of the store plays a major role in how efficiently your business can actually run. Choosing a place in such a shopping complex where people like to shop or in the middle of town can make a huge impact.

Despite its small size, your store location will play a major role in drawing customers to your grocery store. Even if it’s not centrally located, it should be located near residential areas as proximity to customers and easy accessibility can be a game-changer for businesses. 

Thus, having the right location is crucial to succeeding in business, as you will need people walking through your door every day to be successful.

Complete your legal requirements (Licensing & Registration, Taxation)

Getting a license and legal formalities are important if you intend to set up a grocery store in India. The list includes food licenses, entity registration, establishment registration, and GST registration, among others.

If your Kirana business turns over more than Rs 20 lakhs annually, you will have to register for the GSTIN or the 15-digit unique identification number. It is advisable to get in touch with a Chartered Accountant to help you guide properly with all the legal requirements before setting up. 

In order to fulfil the legal requirements, a grocery store license must also be obtained from the licensing authority for the location where you want to open your store. 

Build an online web store 

Online web store

Apart from having a physical grocery store, you must consider selling your grocery products online as well. Or in fact, you could just start selling your products online instead of having an offline store – it will help save money on rent, salary, and other variable overheads. 

Well, the first step would be to develop and launch an efficient and functional website. From ideating the website design template to writing the content to integrate payment and shipping options to collaborating with logistics partners,  a lot goes into developing a website. However, e-commerce builders like Shopmatic have made the entire ecosystem of selling online quite easy and affordable. 

The website should have a quick loading time and most importantly, have a mobile-friendly interface for users to keep coming back. 

Plan out an effective marketing strategy 

marketing strategy

The products that you offer can be the best but if not marketed properly, it’s only a half job done. You can try various traditional methods to promote your grocery store like an advertisement in the local newspaper or distributing pamphlets in the area the store is located. If you have a big budget, you can also put up hoardings in the locality to promote your grocery store.

Along with it, you can take the online route to promote things like running a social media campaign or sending out newsletters. With Shopmatic, you can set up your online grocery store and sell through various options like Chat, Social, Webstore, and Marketplaces. 

Apart from the aforementioned points, having a strong logistics network is super helpful t o balance your inventory correctly. For instance, if the inventory is not selling well, it is easy to return it and so on. 

An increasing number of people choose to shop online due to today’s fast-paced lifestyle, exhausting commutes, and long working hours. For these customers, online grocery shopping makes life a whole lot easier by saving them the physical effort and the time it would take to go grocery shopping.

Starting a grocery business in India is a great way to offer people in your neighbourhood another convenient online shopping option and hope the comprehensive guide will help you work on your Kirana store business plan and kickstart your entrepreneurial journey.

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How to Start an Online Grocery Business in India

Table of contents, steps to start an online grocery business in india, challenges in the online grocery business, the bottom line of how to start an online grocery business.

Introduction of how to start an online grocery business

In this article, today we are going to learn how to start an online grocery business in India . Online selling, better known as e-commerce, has truly hit its pace. Fortunately, getting started is easier than you might think provided you have basic information about the business and you have a team of e-commerce website store solution experts to get the things implemented.

A guide on how to start an online grocery business in India

For almost everything, our generation is completely dependent on technology. It has changed the way we live and interact with each other. With our changing lifestyle, it is making a greater impact on our daily needs. Then why grocery shopping should be left behind? To be honest, a few years back, the only outing that happened every weekend, used to be a grocery store. The long billing queues made it worst. But with time and technology, everything changed for good. Thanks to the e-commerce industry for making online stores for selling groceries. It saves both time and effort.

Let me give you a step by step guide to starting an online grocery franchise . From fresh fruits and vegetables to rice, spices, seasonings, packaged products, beverages, personal care products, meats, and everything we get in one place nothing but an online grocery store.

  This article’s objective is to help you with planning to start an online grocery store in India .

These are the steps involved in starting an online grocery business :

  • Decide the delivery region
  • Register your business
  • Set the inventory
  • List known grocers in the area and discuss partnership opportunities
  • Find a delivery system
  • Choose an e-commerce platform
  • Multiple payment options
  • Make a marketing plan

Steps involved in setting up a online grocery business in india.

This is a major factor that determines the popularity and success of your business. If you are planning to start an eCommerce business , then you should determine the delivery regions you will be serving. This crucial decision has to be made based on a lot of factors like social preferences of people who reside in that particular area, their initial response to your online grocery and market competition. A true business genius will always find opportunities in the market. After all, running a successful grocery store and managing large inventory is not a child’s play. In order to make your grocery store successful, you must think like a successful entrepreneur.

Once you have decided to start an online grocery business , you should register your company, take necessary permissions from the authorities, and get all the different types of tax submission. You can start your grocery business with a sole proprietorship firm or if you have a partner to continue with LLP registration. To complete the registration process successfully you can get in touch with any tax consultant or chartered accountant. They will help you complete these formalities and guide you throughout the process.

The licenses and permits required for starting an online grocery store in India are

Shop Act Registration: Every store or shop and retail counter requires a Shop Act license . The Shop Act is a mandatory registration and is designed to regulate the payment of wages, hours of work, leave, holidays, terms of service, and other work conditions of people employed. It is to be applied for within 30 days of business commencement. This license is state-specific regulated by the Department of Labor, and hence, needs to be registered with the respective State Government.

In case if you are interested in this: Profit in Food Processing Business .

FSSAI License & Registration: Acquiring an FSSAI License is crucial. You can obtain this license by filing an application with the Food Safety and Standard Authority of India (FSSAI) itself.

The stores sell food products and processed items and must, therefore, obtain an FSSAI license . The FSSAI is responsible for protecting and promoting public health through the regulation and supervision of food safety and is a mandatory registration/ license for business entities that engage in food and related activities.

FSSAI abbreviated as the Food Safety and Standards Authority of India. The FSSAI license is of 3 types:

  • FSSAI Registration
  • FSSAI State License
  • FSSAI Central License

GST Registration: GST is an indirect tax that is levied on goods as well as services such that all the existing state and central indirect taxes are subsumed under the GST.

Trade License: A grocery store also requires a trade license in order to carry out the business and to conduct trading of the goods. A trade license is a document that gives permission to the applicant that seeking to open a business to begin a particular trade or business in a particular area or a location.

Income tax: Every business, including the food industry, shall have a PAN and TAN in the name of the business or in the name of the individual in whose name the transactions are to be made. PAN and TAN are two ten-digit unique alphanumeric numbers issued by the Income Tax Department. As per the recent changes, AADHAR can be used in place of PAN for filing IT Returns but PAN is still essential when it comes to making payments exceeding Rs 50,000.

Labor law registration: There is more than 20 labor law legislation which is in force in India.  The government of India has introduced a unified code of wages and a code of social security to unify the central labor laws.

Inventory is the soul of any grocery business. The arrangement of inventory can be done in two ways – either you can stock up the products or tie-up with local grocery stores initially. The best way to start is to prepare a list of products and make arrangements for that.

You need to have diverse products to attract new customers. And for that, you need a solid inventory management tool that has unique inventory management tools that will help you in database management with ease and proper flow for finding each product in your grocery store. For example, StoreHippo gives you the freedom to list various categories and sub-categories in a multi-tier hierarchy in an organized way for your store.

If you are planning to start an online grocery business , this strategy is best suited. Here you can try and cater to a diverse audience. It can be done by replicating the business model made for an online marketplace. Here you will tie-up with multiple shops that are offline and will process the order based on the presence towards the customer. If your online grocery store receives an order from a customer then you can reach out to the physical store in that locality and can ask them to deliver the products.

Your business is connected to your customers via delivery services. Make sure you choose a reliable one. It plays a crucial role in running your business successfully and it can make or break customer relationships. The delivery service you choose should be prompt in the areas where you operate. Go for an e-commerce solution that integrates with your grocery delivery partner. It must-have features that update the clients on their order status via text. Some advanced features can also help you track the delivery live.

Business owners planning to start an online grocery store should figure out the options for delivery. Some customers may need same-day delivery while some others might look for next day delivery for groceries online. Make arrangements for the delivery timelines for all the orders. Before starting your business, you would also need to decide the range of delivery areas like 5km, 10km, or 15km radius within the city. You also need to hire a few delivery boys with bikes to manage deliveries. By providing great customer service, you can grab the market attention and provide with utmost services.

The major step to set-up your online grocery store is creating an e-commerce website . You have two options to proceed with this one. You can either go for the conventional site making the process that will be lengthy and costly. Or you can make a smart move that partners up with an expert e-commerce service provider to save your time and money. You can easily log in to the platform and set up your own store. You can choose from their existing theme library or try your hands at designing with the easy drag-drop functionalities and simplified back-end.

A good website and mobile app development agency can help you achieve your business goals. Online presence helps your business to grow and empowers you to connect with more and more customers. It helps you maintain a healthy relationship with your customers while bridging the gap between you and the consumers.

When it comes to payments, customers look for multiple options. Some are comfortable with payment through their cards while others prefer payment wallets to avail cash-back offers. Look for a platform that provides a flexible yet reliable payment solution. Make sure your grocery store can integrate your site with online payment wallets and payment gateways.

What payment methods are used on your website or app for accepting payment is important. Along with debit or credit card, you can provide an option of Cash On Delivery (COD) also to make it easier for the users to place online orders. You would be able to save money on payment gateway costs by accepting COD.

By adding payment methods we provide our customers with multiple choices. It allows the customer to choose their preferred payment method and bring them the utmost convenience.

If you want to make your online grocery business successful it needs solid marketing. Your store’s online presence must be felt by your target audience. You can go for on-page and off-page SEO of your site. Make sure you also use offline marketing at local places. Discounts and offers are the most tested and used method of marketing. Go for an e-commerce partner that has a dedicated marketing based module for your grocery store. This will help you manage heavy traffic in an organized way and you can enhance your business visibility while increasing your customer base. This is the marketing strategy for the online grocery business .

These are the ways that can help you to promote your online grocery business :

  • Putting an advertisement in the local newspaper
  • Distributing pamphlets
  • Running a social media campaign
  • Sending bulk SMS
  • Putting up hoardings at prominent locations in your locality
  • Doing door-to-door visits
  • Attending society meetings

You may also check this: Profits in Spirulina Powder Production .

Challenges in the online grocery business.

Technology is taking our life beyond imagination. It’s drastically changing it to the core. Now, you can get everything online from household cleaning products to beauty, and makeup, everything you need for your daily needs is now available online.

Here we have listed some of the challenges in the online grocery business :

  • The biggest challenge for the Grocery business is storage
  • Unwillingness to pay delivery charges
  • Low-profit margins
  • Most of the shopping is done by housewives and they are not good at technological
  • Missing Inventory management
  • Keeping fruits and vegetables fresh
  • Huge marketing cost

There’s no doubt that food and beverage e-commerce will not only grow in the near future but will grow at a faster clip than e-commerce on the whole. It’s only logical that this industry will follow in the growth footsteps of so many others when it comes to online sales.

Food and beverage companies both large and small must find ways to support online ordering, pickup, and delivery. It’s about meeting the shifting preferences of customers, and every business can and should find its own way to make it work.

In case if you are interested in this: Organic Terrace Gardening .

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Start Your Own Online Grocery Store Business with this Guide

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The online grocery store business is booming in India, thanks largely to an ever-increasing number of people opting for the convenience of using their smartphones to purchase their groceries online.

It is also one of the biggest success stories of India’s fast-growing e-commerce sector which is set to be valued more than $100 billion by 2020.

The online grocery market in India operates on a highly-competitive platform with multiple players fighting it out for the $900 million pie.

Yet as per a report by consulting firm Praxis Global Alliance, this market is expected to grow at 70% CAGR to reach $7.5 billion by 2022.

It’s a growth trend driven mainly by large, pan-India corporate players with deep pockets which include the likes of Big Bazaar, Grofers and more recently Amazon.

Having said that, this online business also offers many opportunities for smaller, individual players who wish to set up their own grocery store online to cater to a more localised customer base.

So how does an individual go about setting up his/her online grocery store business in India?

Well in response to this question we have listed below a complete set of guidelines and handy tips that will be useful to you if you wish to become a part of this booming industry.

How To Start Online Grocery Business in India?

1. identify a target location/audience.

This is the first thing you need to do to start a supermarket business.

Fruits, vegetables, milk, pulses and other grocery staples being highly perishable items have a limited shelf life and a small delivery radius – if they are to be delivered fresh.

Hence you need to plan your delivery periphery accordingly, to ensure that the items ordered by your customers can be delivered quickly while maintaining the highest quality standards.

Identifying the eating habits and buying patterns of the people who stay in this zone is also equally important.

It will enable you to identify which items sell faster and spot emerging trends well in advance thereby allowing you to stock fast-moving items in advance and minimising the chance of wastage.

2. Get your backend in place

Now that you have your location and potential customers mapped out you may need a warehouse to store the products/produce which you will be selling online.

Opt for a space located within your territory or as close as possible – to ensure prompt delivery of items to waiting customers.

Alternately you can identify, initiate a tie-up or partnership arrangement with reliable suppliers and wholesalers. They can keep you well supplied with the products and items you need on a regular basis.

Since you will be buying most of the items in bulk and on a regular basis, you can easily negotiate the rates and ask for a volume discount.

3. Register your Business

This is a crucial step in the whole process of setting up your own online grocery store.

If you’re an individual, you can register your company as a proprietary concern, or opt for a partnership registration in case you have partners.

You can take the help of any recognised tax consultant or chartered accountant to help you complete the registration and relevant GST formalities.

Once your registration formalities are complete, you can then open a business account at any bank of your choice.

Refer :- 160 Business Ideas and How to start a business

4. Set up a Delivery System

The success of an online grocery business relies heavily on how fast you can deliver the items to your customer’s home/office.

This makes setting up an efficient delivery system a critical factor in the entire start-up process.

In India most customers prefer the same day delivery – more so in the case of food and grocery items – and any untoward delay in this particular segment is usually frowned upon.

However many times this is not possible solely due to a lack of human resources or the unavailability of vehicles to transport the goods.

Deliveries also tend to come at a vast cost-to-company, accounting for nearly 30-40% of the overall business expenses.

So what is the best option for you to pursue under these circumstances?

If your delivery radius is within 5-8 km from your base of operations, your best bet would be to use delivery boys with their own two-wheelers.

Yes, it’s the same model followed by a host of popular pizza delivery chains too. Its’ fast (given the horrible traffic conditions during peak hours), usually dependable and works out quite reasonable in terms of the cost and fuel expenses.

To be successful an online grocery business has to rely heavily on the efficiency of its home delivery system.

Confirming an order and then not being in a position to deliver it to the customer on the same day can cause irreparable harm to your online grocery startup – so it’s best to avoid such pitfalls if you can.

5. Start an Online Grocery Website

Now that you have all the delivery-related issues under control, we come to another crucial link in learning how to start online grocery business in India.

This involves developing and starting a website – which will be the face of your online grocery business.

To get this done, you need to first mould your ideas and refine your concepts well enough to fit into a digital format like an online website.

Having an efficient and functional website can help you save money on multiple fronts including office rent, power bills and staff salaries.

This makes it a win-win situation for both you – the business owner and your potential customer – since you can afford to sell him stuff on lower margins.

So do invest some time to think about it and entrust the development of your grocery website to experienced web design and development company only.

Make sure you are a part of the entire process right from ideating about the website design, finalising the content to choosing the best e-commerce template for your grocery website.

From a customer convenience perspective, besides, being quick to load, easy-to-use and mobile friendly, a smart and efficient grocery website can also emphasise on several extra features.

Here are a few examples:

  • The ability to search for products using generic keywords like potatoes, mustard powder, cooking oil, milk etc.
  • Allow customers to filter products on specific parameters like; offers, quantity, brand and expiry dates.
  • List the best-selling products across categories based on past trends.
  • Contain relevant, high-quality content like cooking recipes for example and offer loyalty programs, discount coupons and reward points from time to time.
  • Announce lighting deals and special offers regularly to boost customer retention.

If your budget permits it, you can even consider developing a mobile app for both Android and Apple devices. Don't forget to give Rs 100 to Rs 200 for first time customer.

Just make sure it has a user-friendly User Interface and is clutter-free – to encourage customers to use it more often.

6. Choose a Method of Payment

If you do have a reliable doorstep delivery system in place, the best option for you would be to stick to the COD or Cash on the Delivery system for accepting payments from customers.

Your delivery boys can collect the payment for the items they deliver at the time of delivery itself. This will also ensure a hassle-free flow of cash for you from Day One of your business.

An added incentive here is that you will not have to wait for the payment as is the case with many online/credit/debit card payment gateways.

What’s more, you also get to save on the additional 2.5% deducted by them as transaction fees for facilitating the payment.

7. Make a Marketing Plan

While big players in the online grocery business like Big Basket and Amazon have the budgets to afford high profile celebrity campaigns on several media fronts, you don’t have to take the same route.

You can opt instead to market your online grocery store using local avenues, which are equally effective like;

  • Putting an advertisement in the local newspaper.
  • Distributing pamphlets.
  • Running a social media campaign.
  • Sending bulk SMS.
  • Putting up hoardings at prominent locations in your locality (if your budget permits).
  • Doing door-to-door visits.
  • Attending society meetings.

Also Read:  How to Make an Excellent Business Plan

The Final Thought

Today’s fast-paced lifestyle, tiring commutes and long working hours are among the key factors responsible for making an increasing number of people choose to shop online .

Online grocery shopping clearly offers a very convenient option for such customers by saving them both the time and the physical effort needed to shop for groceries.

By starting your own online grocery business in India, you can not only offer people in your neighbourhood another convenient online shopping option but also earn a lot of money and become rich in the process.

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How to Start an Online Food Business in India With No Experience

Online Food Business

India’s online food market has grown remarkably during the past several years. Starting an online food company has become a desirable choice for business owners due to the rising popularity of meal delivery platforms and applications. If you love food and want to capitalize on this huge industry, this blog will provide you with the necessary details of how to start an online food business.

This blog also provides step-by-step instructions and FAQs on how to start an online food business effectively and create your own online food company in India.

coworking space in bangalore

Cost Breakdown of Starting an Online Food Business

It is essential to comprehend the costs associated with launching an online food business before getting into the specifics. Here is a summary of the main costs you should anticipate:

*Kindly note that these are approximate average costs and the actual cost can vary based on factors such as location, the scale of your business, and specific requirements.�

Other Costs Involved in Starting an Online Food Business

There are other costs involved in starting an online food business aside from those mentioned above. These are:

1. Registration and Licenses

You must register your business as a legal entity to launch your online food business. Depending on the type of business structure you select, such as a sole proprietorship, partnership, or private limited company, the charges connected with company registration differ. You would also need to register with the FSSAI (Food Safety and Standards Authority of India), among other relevant permits. 

2. Technology Infrastructure

Building a robust technology infrastructure is very important for the smooth functioning of your online food business. This entails creating an intuitive website, mobile app, or both, as well as adding crucial elements like online ordering, payment gateways, and customer support services. It’s important to take into account the costs of web development, app development, and hosting services. 

3. Menu Development and Photography

Crafting an enticing menu is crucial for attracting customers to your online food business. You may need to hire a professional menu planner and photographer to create visually appealing and appetizing food images. Costs for menu planning, food styling, and photography services should be factored in. 

4. Kitchen Setup and Utensils

Depending on your company plan, you could need a commercial kitchen area furnished with the necessary utensils and appliances. Depending on the size of the kitchen and the particulars of your menu, the charges will change. Costs for installation, equipment leasing or purchase, and renovations should all be considered.

5. Staffing and Training

Hiring and training skilled personnel for your online food business is essential for efficient operations. Consider the costs associated with hiring chefs, kitchen staff, delivery personnel, and customer service representatives. 

6. Packaging and Branding

Packaging plays a significant role in the online food business as it ensures that the food reaches customers in excellent condition. Invest in high-quality packaging materials that align with your brand’s image. Factors in the cost of branding elements are logo design, packaging design, and marketing collateral. 

Documents Required to Start an Online Food Business 

The following paperwork must be ready for your online food company to function legally in India: 

  • Business Registration Documents : The necessary paperwork may include a partnership deed, memorandum of association, articles of association, or certificate of incorporation, depending on the business structure you select. 
  • FSSAI Registration : Obtain FSSAI license, as mandated by the Food Safety and Standards Authority of India. This license ensures that your business complies with food safety regulations. 
  • GST Registration : If your projected turnover exceeds the threshold set by the GST authorities, you must register for GST. This registration is essential for collecting and remitting taxes on your food sales.
  • Trademark Registration Protect your brand identity by registering your business name, logo, or tagline as a trademark. This step prevents others from using your brand elements without permission. 
  • Insurance Policies Consider purchasing insurance policies to safeguard your online food business against potential risks such as fire, theft, accidents, or food-related liabilities. 

Step-by-Step Procedure to Start an Online Food Business 

Now that you are aware of the charges and required paperwork let’s look at the step-by-step process for launching an Internet food business in India: 

  • Step 1- Set Up Your Business Model Decide the kind of online food business you want to launch, such as a cloud kitchen, a delivery aggregator, or a subscription service for meals. 
  • Step 2- Conduct Market Research Identify your target audience, analyze competitors, and assess the demand for your offerings. Gather insights into popular cuisines, pricing trends, and customer preferences.
  • Step 3 – Develop a business plan Make a business plan that details your goals, tactics, financial forecasts, marketing strategies, and operational procedures. Your decision-making process will be aided by a thorough company plan, which will also draw in possible investors.
  • Step 4 – Register the Business Choose a suitable business structure and register your company with the relevant authorities. Obtain the necessary licenses, such as FSSAI registration and GST registration. 
  • Step 5 – Set Up Your Kitchen and Infrastructure Secure a suitable commercial kitchen space and equip it with the necessary appliances, utensils, and storage facilities. Develop your technology infrastructure, including a user-friendly website or mobile app. 
  • Step 6 – Design Your Menu Craft a diverse and appealing menu that aligns with your target audience’s preferences. Ensure that your menu is well-balanced, caters to dietary restrictions, and offers a variety of options. 
  • Step 7 – Recruit and Train Staff Hire skilled chefs, kitchen staff, delivery personnel, and customer service representatives. Provide comprehensive training to ensure quality food preparation, packaging, and delivery. 
  • Step 8 – Create a marketing and branding strategy Make a distinctive logo, eye-catching packaging, and a unified visual language for your company. Create a marketing plan that incorporates collaborations, social media campaigns, and both online and offline advertising.
  • Step 9 – Launch and Monitor Performance Launch your online food business with a soft opening or a grand launch, depending on your strategy. Monitor key performance indicators (KPIs) such as customer satisfaction, order volume, and revenue to assess and improve your business operations. 

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FAQs on Opening an Online Food Business in 2023

How can I find a lucrative market for my food-related web business?  Take into account your target market, industry developments, and competition to find a lucrative niche. To understand consumer preferences and spot market gaps, do market research. Find a market with untapped potential by examining the demand for diverse cuisines, dietary preferences, or specialty diets. 

What are the key steps to build an online food business from scratch?  The key steps include identifying your target market and business concept, creating a business plan, obtaining required licenses and permits, setting up an appealing and user-friendly website or mobile app, establishing trustworthy food sourcing and delivery channels, implementing efficient marketing strategies, and making sure food safety regulations are followed. 

How can I effectively market my online food business?� To market your online food business effectively, utilize various strategies like social media marketing, search engine optimization (SEO), content marketing, influencer partnerships, email marketing, and online advertising. Build a strong online presence by creating interesting content, showcasing enticing food visuals, offering promotions and discounts, and actively engaging with your customers through feedback and reviews.

What are some challenges I may face when starting an online food business?� Common challenges include intense competition, maintaining consistent food quality and delivery standards, managing inventory and supply chain logistics, building customer trust, handling customer complaints or food allergies, and keeping up with changing consumer preferences. Additionally, adapting to evolving digital technologies and platforms, securing funding or investment, and navigating legal and regulatory requirements can pose challenges.�

Starting an online food business in India can be a rewarding venture if approached with careful planning and execution. By understanding the costs involved, preparing the necessary documents, following the step-by-step procedures, and adopting effective marketing strategies, you can successfully launch and operate your own online food business.

Remember to stay adaptable and responsive to customer feedback and market trends to ensure sustained growth in this competitive industry.�

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Top 10 Best Grocery Delivery Startups in India

Pratyusha Srivastava

Pratyusha Srivastava

The pandemic has made us shift entirely to digital. But there are few things that we often doubt in the digital platforms. Buying fruits and groceries have always been conventional when it comes to purchasing. But with such a dreadful pandemic across the globe, people have taken the initiative to bring this grocery service in your footsteps. Well, yes! That's right.

In India, dozens of online companies are established to facilitate grocery shopping online and delivering it to the customers with full covid-19 precautions. With such a rushing and demanding lifestyle, shopping through conventional offline methods has become very tacky. In such cases, grocery startups are founded, where you can buy anything with just a few taps on your smartphone.

Groceries play the most significant role in our lifestyle. We need food items and other household products daily. Grocery application makes it absolutely convenient so that we can buy all our grocery items any time we want, with no boundary of time. These applications facilitate purchasing and delivery of the grocery item to the customer's house. This article would help you in knowing the best grocery startups in India, available for you any time. Let's get started!

Big Basket Grofers Dunzo Nature's Basket ZopNow JioMart Licious Paytm Mall Country Delight Qtrove FAQ

Big Basket Website

The largest digital supermarket in India, Big Basket is widely known for its broad range of household and grocery products. Big Basket is considered the number one online grocery application in India. It provides a product range of around 14,000 items for customers to choose from. It offers absolutely convenient payments services and express delivery within 2-3 hours. Big Basket has formerly received the honor of 'Consumer Internet Company of the year' by VCCircle.

Big Basket is preferred by almost everyone, ranging from working professionals to school children. It offers various discount offers to its customers. It offers free home delivery for orders above Rs 1000. Big Basket serves majorly in the top seven cities that include Mysore, Pune, Chennai, Mumbai, Bengaluru, and Hyderabad.

Grofers Website

Grofers, a very prominent digital retail store that offers multiple categories of grocery products to its customers. The company's products range from organic stalls, beverages, snacks, vegetables, dairy products, and many more. Grofers was established in 2013 and headquartered in Gurgaon, India.

Grofers is associated with several brands such as Pepsi, Colgate, Aashirvad, Dabur, and many others. Its mobile application is available on both platforms of Android as well as iOS. Its home delivery facility is available in Bengaluru, Delhi, Gurugram, Mumbai, and others, across India.

Dunzo Website

Dunzo is well-known for its incredible express delivery within 45 minutes. This grocery application holds a wide range of products including beauty products and vegetables.

They deliver items from your nearby grocery stores also. Its functions are accessible in Delhi, Mumbai, Noida, Hyderabad, Bengaluru, Gurgaon, Chennai, and Pune.

Nature's Basket

Nature's Basket

Nature's Basket is one of those grocery startups that are established by the Godrej Group, in India. Godrej Group offers the best quality of grocery products from a broad range of categories.

Its product is specifically manufactured from foreign countries such as Cheese from France and Italy, Spices from Asia, organic supplies from India, and many others.

ZopNow is a very well-known online grocery store which offers a wide range of products for its customers. They offer biscuits, pickles, sauces, frozen foods, vegetables, sweets, and many other beauty products. Moreover, it provides kitchen and home products as well.

ZopNow is widely famous for its customer's experiences and services . It offers a huge range of discounts and offers. Its services are available in Delhi, Gurgaon, Faridabad, Noida, and Ghaziabad.

online grocery delivery business plan india

Well, Reliance is known by everyone! And when it comes to Jio, it has brought some incredible deals for Indian. And among these, JioMart is one of the most incredible online grocery stores. Its mobile application is available on both iOS as well as Android.  

JioMart functions in almost every metro city including Ahmedabad, Mumbai, Bengaluru, Hyderabad, Delhi, Meerut, Agra, and others.

Licious Website

The very famous digital marketplace for meat and seafood is Licious. It provides absolutely fresh, packed, marinated, vacuum-sealed meat and seafood . Licious was founded in 2015, headquartered in Bangalore, Karnataka, India.

Licious functions on a zero inventory model and offers a subscription model for pre-fixed delivery products and dates. Its mobile application is available on both Android and iOS.

Paytm Mall is considered the fastest growing e-commerce marketplace that provides the service of grocery shopping and delivering from customers' houses. Paytm is counted among the most prominent E-commerce platforms after Amazon and Flipkart.

Paytm Mall offers a wide range of products such as fresh vegetables, dairy products, fruits, and many others at affordable prices. Its mobile application also provides FMCG products for online sales and other grocery items.

online grocery delivery business plan india

Country Delight

Country Delight Website

Country Delight is counted among the top online grocery stores in India . It provides a wide range of dairy products. The company is very significant with its services and delivery .

Country Delight was founded in 2015 and established in Gurgaon, India. The company also functions with some quality management systems with quality testing at the manufacturing level, farmers level, and with accredited food testing laboratories.

Qtrove is an online platform that offers various handicraft products for its customers. Its product range includes homemade chocolates, jams, ells sauces, home decor products, cold-pressed juices, skincare, and others.

Qtrove is headquartered in Bangalore, India with some very advanced investors such as Brand Capital, Navodya and K Ganesh.

With digitization in every sector, grocery and household products are also available on the Internet. Today, the life of every individual has become very tacky and hectic. That's why people search for an online platform that provides the required services.

Many prominent companies are established in India with great grocery services. Therefore, it has become quite tough to choose the right one. And for that purpose only, we have brought this article. Stay tuned for more updates!

Are grocery delivery services profitable?

Yes, Grocery delivery services are profitable ventures.

How do delivery companies make money?

Delivery companies make money by charging the customers a delivery fee that is fixed or depend on the distance travelled.

Which are the top grocery delivery startups in India?

Big Basket, Grofers, Godrej Nature's Basket and ZopNow are the top grocery delivery startups in India.

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Tata Capital > Blog > Loan for Business > Step-by-Step Guide for Starting a Food Delivery Business in India

Step-by-step guide for starting a food delivery business in india.

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Did you know that India’s online food delivery market is growing at a staggering rate of 30.55%? Food delivery ventures have become a billion-dollar-sized industry in 2021 due to hectic work schedules, work-from-home routines, and evolving lifestyle patterns. If you were planning to start your own food delivery business for years, the present-day post-pandemic scenario offers perfect timing.

Moreover, the demand for fast food, ready-to-eat (RTE) products, and home-cooked meals are surging, and your food delivery establishment can cater to a burgeoning category of foodies today. So, if you plan to enter the food industry, here’s a guide on how to start a food delivery business from scratch.

1. Secure a Financing Option

The first step in starting a new business is to develop a business plan that includes all the areas that need funding. Outline all the major requirements, such as setting up a kitchen, buying equipment, choosing a delivery method, and building a brand. You can choose to finance the business with your savings, find a business partner, or take a business loan from a trusted lender.

2. Research Your Market

After securing a finance option, the next step is to research your target market and identify the niche you wish to cater to. Is there a specific customer base that you can target, such as working professionals or college students? Nowadays, cooking food is a luxury, which leaves you with a wide pool of target groups to pick from: newly married couples working full-time jobs, senior citizens, corporate employees, or bachelors living on their own.

Find out the most profitable niche and the kind of food they prefer. You can create online surveys to get more information and create a business strategy accordingly.

Additional Read:   Tips & Tricks to Grow your Business

3. Curate a Menu and Choose a Delivery Method

Once you have completed your research on how to start a food business, it is time to develop a unique menu. Set up a menu that includes quality dishes that your potential customers want, and you can execute well.

Next, you must choose a method to deliver the food quickly and safely to your customers. Although you can hire drivers to do the job, using delivery apps like Swiggy, Dunzo, Zomato, etc., is also a viable option.

Additional Read:   How to Get a Business Loan for Setting up a Restaurant in India?

4. Create a Marketing Strategy

Now that you are ready to launch your business, you must get the word out to your potential customers. Digital marketing channels are the best way to reach your audience today. Create an attractive website, an appealing logo, and set up social media pages on Facebook, Instagram, Twitter, etc., to promote your company. You can also use traditional methods of advertising, like posters and flyers to, market your business.

Final Words

Are you planning to launch your own food business but lack the necessary funds? Finance your food delivery venture with Tata Capital. We offer business finance at attractive interest rates to help budding entrepreneurs achieve their dreams with ease. Make your application process hassle-free with our online services and manage your expenses with our business loan EMI calculator . Get in touch with us today!

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online grocery delivery business plan india

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  • With Grab since Apr 2019
  • Delivered Orders for Ecommerce
  • Earnings Rs 53,732

Bangalore With Grab since Apr 2019 Delivered Orders for Ecommerce Earnings Rs 53,732

online grocery delivery business plan india

Chandra Shekar

Bangalore With Grab since Jul 2019 Delivered Orders for Ecommerce Earnings Rs 53,466

  • With Grab since Jul 2019
  • Earnings Rs 53,466

online grocery delivery business plan india

Sandeep R Yadav

Mumbai With Grab since Mar 2019 Delivered Orders for Grocery Earning Rs 38,940

  • With Grab since Mar 2019
  • Delivered Orders for Grocery
  • Earning Rs 38,940

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Kaji Harunrasid Usmanbhai

Ahmedabad With Grab Since Jun 2018 Delivered Orders for Food Earning Rs 37,888

  • With Grab Since Jun 2018
  • Delivered Orders for Food
  • Earning Rs 37,888

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Orders Delivered Till Date

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Unit no. 8B, 8th Floor, The Summit Business Bay, Andheri Kurla Road, Andheri East, Mumbai, MH 400093

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301, Aurum Avenue, Law Garden Road, Nr Mithakali Six Road, Nr. Pantaloons, Ahmedabad 380006

West 2 Zone Office

609, 6th Floor, Fortune Ambience Business Park, South Tukoganj, Near Surya Hotel, Indore M.P. 452018

West 3 Zone Office

Teerth Technospace Office No. A/704, Near Mercedes Benz showroom, Mumbai-Bangalore Hwy, Baner, Pune 411045

South 1 Zone Office

Hustle Hub, No. 8/8, HSR Layout, 4th Floor, 17th Cross, Sector 7, Bangalore, Karnataka 560102

South 2 Zone Office

9-1-233/3,Behind Manju Theatre, Paradise, SD Road, Kalasiguda, Secunderabad, Telangana 500003

South 3 Zone Office

Office No. 32D, Sir Shanmugam Road, Lakshmi Ammal Layout, R S Puram, Coimbatore. TN 641002

South 4 Zone Office

Hygge Workspace Office No. 137A, No. 69, Jawaharlal Nehru Salai, Ekkattuthangal, Chennai, TN 600032

North Zone Office

Office No. 309 and 310, 4th Floor, CybizCorp building, Udhyog Vihar Phase 4, Gurugram, Haryana 122015

East Zone Office

16th Floor, Biowonder Building, 789 Anandapur Main Road, Eastern Metropolitan Bypass, Kolkata, West Bengal 700107

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Online Food Delivery Business Plan [Cost, Requirements]

Table of Contents:

1. How to Start Online Food Delivery Business?

2. food delivery business plan- how to fund, 3. marketing your online food delivery business plan, 4. tips for promoting food delivery business, 5. how to start a food delivery business- maintaining accounts., 6. types of food delivery business model, 7. food delivery business plan types.

Do you like trying out new cuisines but afraid to go out during the pandemic? Does recreating those dishes for your friends and family make you happy? Why confine your talent within the family? Use it to start an online food business and watch it grow by leaps and bounds.

In order to stay safe at home, people are now opting for doorstep food delivery services. What can be more exciting than turning your own passion for cooking and baking into an online business? Having your own food business set up can make you an entrepreneur, too.

For a food lover, what can be more comforting than earning money by exploring your passion for food? But before you start living your dream, it is very important to know that online businesses require research and planning. Make your food service different from the others, by establishing your uniqueness and getting a good grip of the market. Today, online businesses face stiff competition.

1- Assess the Demand in the Market

The food and catering industry is booming, contributing significantly to the economic growth of the country. There is always a huge demand for home-cooked food. However, it doesn't mean that you can simply jump into the business without gauging the market. An online business is still quite a new thing which requires some sort of technical help. You also need to set up your business in an area where people are used to ordering food online. Setting up your online food business in an area where people don't use their smartphones that often, is definitely not the best thing to do.

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2- Stand Out In the Crowd By Carving Your Niche

You might be an expert in preparing all sorts of food. No matter what the cuisine is, the ultimate goal of a food business owner should be to make people lick their fingers clean after having your dish. But does that mean you will make everything under the sun for your cloud kitchen services? No, experts always rock the market. So, carving out a niche is very important to get noticed and gain a competitive edge in the era of food online business. Here are some ideas:

  • You can prepare quick snacks and target teenagers and college students.
  • You can opt for full course homely meals for couples and families.
  • You can serve lunch tiffins for corporate employees.

If you are an expert in a particular niche in cooking food, then why not showcase yourself as an expert? And, remember who does not love to buy from an expert?

3- Get Reliable Delivery Persons

You need to realise that the online food business is all about home delivery. Just preparing delicious and lip-smacking food is of no use if you cannot deliver it to your customers. For this, you need to hire reliable delivery personnel who will be responsible and deliver the food to the doorstep of your customers so that they can enjoy the food while it is still smoking hot. Make sure you can trust your delivery persons who can deliver food in the perfect condition. It is good if they have a two-wheeler of their own. Otherwise, if funds permit, you can also buy a vehicle for your food delivery.

Customers want timely delivery of their food as hunger can create the nastiest emotions in humans. After all, who likes to wait for hours anticipating the arrival of their food? Take care to satisfy the demands of your customers. In this technological advancement era, you can even partner with food delivery agents who will take care of the delivery, menu handling, payment, and customer complaints on your behalf. This will not only reduce your responsibilities and also ensure that you get a regular flow of orders if you serve quality food.

While starting a new business, the first worry is always about the arrangement of funds and investment in the initial stages. Put all your tensions aside because all you need is your skills and food to cook. You don't even need to set up a restaurant and spend thousands of bucks on its maintenance. A cloud kitchen service is the latest trend which can transform your home into your workplace. You can do this with a minimum investment by cutting the cost of a new set up, hiring employees, etc. Even if you need some money, you can always take a loan from a trusted bank. However, try not to take credit by going beyond your capacity because the profits might take some time to flow in.

You may prepare the best food in the world but remember, just starting your business takes time to flourish. Be patient because it takes time for the customers to start coming in. You cannot expect the world to know about your food business as soon as you're listed on the internet. Proper marketing is the key if you wish to take your food startup to great heights. Having an attractive and consistent social media is the second step after entering the world of the online food business. These days, people spend a lot of time on various social media platforms. Maintaining an active presence on social media goes a long way in promoting your brand.

1.  Spend some money on developing your Instagram page and give regular updates about your food business.

2. Add pictures of the mouthwatering dishes that will make everyone drool.

3. It also provides you with the opportunity of keeping in touch with your existing customers while reaching out to potential new customers at the same time.

4. Indulge the viewers through some giveaways to attract followers.

The best thing is that you can do it at a minimum cost. Digital marketing can take your online food business to unimaginable heights. So, get started without further ado. As your business starts growing, you can consider other options for promoting your business. Spending a few bucks and getting a newspaper or television ad might give your business the much-needed boost.

online grocery delivery business plan india

When your food startup starts growing, it will be a daunting task to maintain all your records and accounts manually. OkCredit will help you in storing all the information conveniently in one place to prevent chaos and confusion. Keep records of your orders, revenues, and payments of your staff at one go and keep the headache aside. Staying organised also helps to take your business in the right direction of progress.

We know that the process is not simple but worthwhile. The online food business is one of the booming industries, and this is the right time to get hands-on. We at OkCredit, have helped numerous businesses get established and flourish in a few months' time. So, the time is ripe for you to transform your passion into a successful profession today. You can always take feedback from your customers, and when your food startup starts receiving good reviews from customers, it will give you immense joy and satisfaction. What is more, you will also become financially independent. Start feeding those mouthwatering dishes to the world and become a successful online food business owner.

Do you still have some questions about setting up your online food startup? Read out the FAQs to find all your answers.

While curating your food delivery business plan you must be clear about the type of deliveries you want to operate with. While brainstorming you might get over hundreds of food delivery business ideas but staying clear on your niche will help you manage the delivery gap between the restaurant and customers. The main aim of every food delivery business model is to market restaurant to the masses.

There are two phases in every food app business model which are:

  • For Delivery- A delivery boy appointed by the restaurant delivers food to customers doorstep, in case of communication, a mobile number is made available to the delivery boy.
  • For Order Allocations- Placing orders via app or websites, orders are received via fax, email or mobile notification. Order will be confirmed by the restaurant and send an instant message to the customers. With the help of POS, System orders are also printed directly into the kitchen.

The major types which work in India answering your question to how to start a food delivery business are:

  • The Order & Delivery Model- For this, you'll need the help of the most popular food delivery apps like Zomato, Swiggy, etc.
  • The Order Only Model- Works for direct restaurant websites and apps, for eg: Mojos Pizza, Oven Story, Behrouz Biriyani, Faasos, etc.
  • The Fully Integrated Model- This process mainly orbits around the meal delivery startups. For example, Food Darzee, Eat Purely, etc.

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more! Download OkCredit now & get rid of your bookkeeping hassles. OkCredit is 100% Made in India.

online grocery delivery business plan india

Q. How do I start an online food delivery business?

Ans- For starting an online food delivery business you need to follow these simple yet effective steps:

  • Understand Customers Food Needs
  • Figure out your Niche
  • Be Tech-Savvy
  • Market Research & Analysis
  • Hire reliable Delivery people
  • Manage Cashflow
  • Develop your App/Website
  • Choose the correct online delivery model

Q. How much does it cost to start a food delivery business?

Ans- For starting an online food delivery startup business an initial investment of anywhere between 4 to 7 Lakh Rupees will be needed for the Indian market. This will include your monthly operational costs, materials, and delivery boy salaries.

Q. Is online food business profitable?

Ans- Yes. Online food delivery business is a profitable business idea in India, especially since the pandemic. Online ordering and demand for the same have raised over 50% since 2020 and it has become important for every entrepreneur, restaurant, and brand to have a strong online presence.

Q. How do online food delivery make money?

Ans- Some ways that help online food delivery services make money are:

  • Charging a nominal fee for restaurants you're representing
  • By charging a delivery fee to customers
  • Can also charge convenience fees
  • Sometimes you can add packaging charges to the bill
  • Placing online ads to generate extra money
  • You can ask eateries for a share of every order placed over the food delivery system.

Q. How does online food delivery works?

Ans- Your customers can place their orders via your website, food delivery apps (Zomato, Swiggy, etc.) or use your restaurant's Facebook page. The order is instantly notified on your phone, tablet, or business laptop you're using.

Q. What are the benefits of online food ordering?

Ans- Some of the benefits of online food ordering are:

  • Makes ordering and decision making easier
  • Helps in managing customers and orders more efficiently
  • Real-time expense monitoring advantage
  • Cost-effective plus free business marketing
  • Transparent Customers data and transaction
  • The convenience of ordering via multiple gadgets
  • Staying ahead of your competitors
  • Grow your Finances via online ordering
  • Larger target audience
  • Contactless delivery options available

Q. How much does it cost to make a food ordering app?

Ans- To make a food ordering app plus website, the average costing can range from anywhere between 3,00,000 to 10,00,000 Lakh rupees in India. It depends on various softwares used and the web designers' charges along with taxes.

Q. How do I start a food business from home?

Ans- Online food delivery business a profitable business idea. These pointers will help you start a food delivery business from home:

  • Select a Business Model
  • Market Research
  • Create a Meal Delivery Business Plan
  • Obtain Valid License, Insurance, and Permissions
  • Gather Resources
  • Create a Marketing Plan
  • Assess Your Resources

Q. How can I sell my homemade food online?

Ans- Sell home cooked food online is a very popular trend since the Pandemic. You can use various methods like-

  • Flyers, Pamphlets of Food Menu and Offers put inside local newspapers
  • Word of Mouth Marketing
  • Offering attractive offers and discounts like buy one get one
  • Using food delivery apps like Zomato and Swiggy
  • Advertise online via Facebook, Instagram, Google Ads, etc.

Q. Which social media platform is best to promote online food services?

Ans: Choose Facebook, Instagram, and WhatsApp mainly for the promotion. People tend to use these frequently to find out the local food outlet near them.

Q. Can I use apps to accept online food orders?

Ans: Yes, you can. There are several popular apps that are now used by customers to order food online. These apps are convenient for the sellers as well as the customers.

Q. How can I register my business?

Ans: First of all, registering your business with MSME. After your company is registered, it hardly takes a few minutes to get online. You need to click on "Add your restaurant" in any app. Entering your mail ID is all you need to do. Add details to make customers interested in buying your food.

Q. Is the Shop Act License required for starting an online food business?

Ans: No matter what your business is, getting a Shop Act License is a must. You must apply for the license within 30 days from the day you start selling your products online.

Q. How to open a bank account for my online food business?

Ans: Opening a bank account for your food business is a must. You can do it fairly easily. Just visit your nearest commercial bank and fill-up the form for opening up a new current account in the name of your business. You can even fill-up the form online on the bank's website.

Nitesh Goswami

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  1. Your Cheatsheet To Create A Successful Grocery Delivery Business Plan

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    Gone are the days of physically visiting stores and markets. Instead, online grocery delivery services have become increasingly popular due to their convenience and time-saving benefits. With the adaptation of modern technology, there has been a rise in the online grocery delivery business in India. And the reason behind it is crystal clear.

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