If you are thinking of selling those sweets that everyone envies you, if you want to expand the sales of your craft brewery, or if you have a restaurant and you are thinking about new ways of selling, this could be the right time to open food e-commerce.
How Many Types of Food E-Commerce Exist on the Internet?
Different types of online sales must be understood under the heading of food e-commerce. The big players in the large-scale retail trade have activated online sales methods with a collection of shopping at the points of sale or home delivery of food. These are initiatives usually located in large towns, where the logistic management of deliveries is simpler. Esselunga, Carrefour, Conad, and other large-scale retail chains have been offering this service for some time.
There are also online stores that sell gastronomic products (honey, sweets, and typical products) and/or drinks. There are realities known at the national level, focused exclusively on local products such as Bhortus and La Mattera.
Food e-commerce is also those that offer the so-called meal kits: boxes containing the ingredients already dosed and instructions for preparing recipes.
This sector has experienced great growth especially abroad (Home Chef, Hello Fresh), but also in the USA, there are significant realities. Finally, there are those online stores that sell ready-to-eat meals with pick-up at the brick-and-mortar stores (typically managed by a single restaurant) or home delivery, managed by subjects involving multiple restaurants (the most famous of which are probably Foodora and Just Eat).
Food E-Commerce, But Is There a Market?
In recent years, e-commerce in general has exploded. According to the data collected by the Netcomm School of Management B2c eCommerce Observatory, and relating to 2017, there are 167 million e-shoppers in the USA. For the Food & Grocery sector which includes food and Health & Care, the turnover produced last year was 6.7 billion dollars. The data that immediately catches the eye? The increase compared to the previous year: +43%, the highest figure in all e-commerce sectors (clothing +28%, IT +28%, Furniture +31%, Publishing +22%).
The growth trend, therefore, is positive: consumers are getting used to the idea of transferring online those expenses historically made in the store. As if to say, the moment is right if you want to open your food e-commerce. But how do you do it?
Food E-Commerce: an 8-Step Strategy that You Can Make Yours
The time, we said, is good. But there are a few things to consider before diving into the opening of a food e-commerce. Food products have particularities related to their nature: they are perishable goods (short or long-term) and to sell them (even offline) you need to have the necessary authorizations. Here are some ideas to help you define your business plan.
1. Find your niche
It is essential to define a niche in which to insert your business and to communicate with those consumers who can appreciate the value of your product. The product niches in which you could insert your food e-commerce are, for example:
- Gourmet, artisan production
- Dietary restrictions: gluten-free, allergen-free, hazelnut-free, etc.
- Organic or fair-market foods
- Ethical foods: vegan, vegetarian
- Meal-kit
- Ready meals
Within your niche, try to offer something different from the others. Do research to understand how to differentiate your product. For example, The Cookie Cups is a pastry shop that sells mini cupcake-shaped cookies online.
2. Define the sales method well
The selling methods you could consider are:
- Classic e-commerce: a consumer inserts the products in his cart, chooses the shipping method, and pays at the finished expense
- By subscription. For example, a service that weekly sends home a basket of seasonal fruit and vegetables, strictly organic. Or a subscription to climb for 20 pizzas delivered at home
3. Plan your supply and delivery flow with great care
Product delivery is the fundamental node that can determine the success or failure of a food e-commerce. The shipments must be quick, especially if you sell fresh produce and ready meals. Consider the method of shipping: are there legal aspects to keep in mind (for example for spirits)? Are you having difficulties (the product is fragile or requires constant refrigeration)?
Alternatively, you could consider the Pay and Collect mode: the customer orders and pays for the products online, and then goes to the physical store for collection, thus minimizing the time spent on shopping.
4. Pay attention to the legal aspects
There are legal issues regarding the sale of food (not just online), which should be considered when opening a food e-commerce. In detail:
- Make sure you have all the permits and comply with the rules applied to the sale of food. If the sale concerns particularly delicate categories (meat, fish, etc.), be well-informed about permits and restrictions
- Treat food according to the law
- Track the origin of the ingredients
- Trust a laboratory to test your products (especially regarding allergens)
- Activate insurance that will cover you in the unfortunate event that your products cause damage to someone
- If you intend to sell the product across borders, be sure to check the rules in force in the country of destination
5. Also consider the ethical aspects
According to 2015 Nielsen research, two-thirds of consumers are willing to pay more to buy food online with their ethical thinking. There is also a propensity for consumers to buy healthy and “artisan” food and a willingness to support small businesses, whose production is seen as an art.
It is therefore important to emphasize the origin of the ingredients and the production methods of what you sell. Do you buy eggs from the farm near your laboratory, where the hens run happily in the farmyard? Is your packaging produced with recycled paper? Tell it! To conquer consumers, the story of how you create your product becomes at least as important as the product itself.
6. Choose the most suitable platform
The platform you will use to manage your food e-commerce must be simple for you but above all for users. The user experience must be at the highest levels. Find a reliable technology partner.
7. Take advantage of the urgency and activate discounts and promotions to sell
Finally, some advice borrowed from what happens in “physical” food stores:
- Food is perishable: you could consider defining discounts for expiring products;
- Holidays or particular periods of the year, very centered on food (such as Christmas and Easter, but also summer barbecues) allow you to activate offers based on urgency. For example “If you want them in time for Christmas, it is better to order them now!”
8. Listen to your customers
The opinions of your customers are valuable: ask them what they would like to find in your store. You may receive interesting ideas to improve the assortment of your products.
You may have understood that opening and running a food e-commerce is not a breeze. But if you have enough passion and if you have the patience to adequately deal with the legal aspects, this is a road that can lead you to success. Happy selling! Conclusion: So above we have shared 8 Steps to Start Your Food E-Commerce Business in detail. If you are looking to start your food delivery business then you can build your food delivery app. To build a food-ordering app you will need to hire the right food delivery app development company. Octal IT Solution is the best food delivery app development company that delivers custom and quality food app solutions. Contact us for more details.
