The commission fee is one of the most revenue models, and it is being followed in almost every on-demand service app. The entrepreneur will deduct a portion from the customers’ bill as a commission fee.
The supermarket owners will get profit for each product sold on the platform. The primary revenue source of on-demand grocery delivery business is from product sales. The store owners will determine the cost of products.
Marginal cost price:
It is an inventory model in which the provider will stock up the products in a warehouse. The entrepreneurs will add a marginal rate to the product before listing them on the application. However, not every grocery delivery service provider in the market follows this strategy.
Establishing a brand:
Most people love to buy things from a branded provider. The product’s cost will increase based on a brand’s popularity, and yet people will buy them. Advertisements on third-party sites and social media will increase your brand’s visibility in the market. Here’s how you can increase the reputation of your brand in the market:
Offer same-day deliveries:
Customers will love this feature, and more providers have started to adopt this strategy. Sometimes it is vital for customers to get a product delivered by the end of the day. There will be no need for driving huge vans around the streets with grocery packages, just a motorcycle or bicycle will be enough to get the job done.
You should offer more value to your products and services to sustain your target audience for a more extended time. Offer promotions and discounts regularly on the platform to attract more users. Offer premium quality service with a wide choice of products to capture the attention of your users. Pay attention to the operational activities and make changes as per the demand. Make sure that the workflow of your business is disturbed in any way. It is essential to take care of your stakeholders’ needs to ensure that your business runs in a butter-smooth manner.
No matter what business you start, you will have to conduct market research. It will be useful for you to identify your target audience, their needs, and business requirements. You can also decide on the range of products that will yield profit in the location in which your business is being operated.
Never miss out the basic features:
Take the idea of developing an app like Amazon off your mind. You will have more customization options and offer an outstanding shopping experience for your customers, even better than Amazon. You should determine the scope of your business precisely as this is a highly competitive industry. Here are some of the essential features that you shouldn’t miss on your e-commerce app.
Search for products
Seamless checkout process
Reliable payment gateway
Flexible shipping options
Focus on optimizing your app visually:
The app’s design is the first thing that your customers will notice. No matter how good your services are, the users will stop using your app if they are not pleased with the design. Create a logo for your brand as it will be your unique identity in the market. Reports indicate that almost 80% of users remember what they see visually, so make sure you have an attractive design and a minimalistic user interface.
Choose the platform:
Choose your app’s platform, depending on the geographical location of your business. iOS devices are more used in North America and Europe compared to the rest of the world. My advice is to develop your app for both platforms to make the most out of its potential.
Concentrate on optimizing your business:
After the launch of your app, it is time to improvise your services. It is a continuous process, and there is no end to it. Even market giants like Amazon keep optimizing their services to sustain in the market. Keep collecting user feedback to analyze your drawbacks, and additional research will help you decide the list of modifications that should be made to your platform in the next update.
There is no doubt that Google’s recent move is going to revolutionize the food delivery industry. In addition to this, several startups worldwide have announced that traditional delivery vehicles will soon get replaced with e-vehicles. This move comes as an initiative to raise their voices against global warming and pave the way for a cleaner environment. Some providers plan to offer innovative delivery options, like sending food packages to the customer’s location on wheeled robots. Discussions are going on to take Drones as alternatives to delivery executives as they can deliver food efficiently in city traffic, especially at peak hours.
Revenue models in on-demand grocery delivery business:
Commission fee is one of the highest sources of revenue for any on-demand service app. You can offer a common platform (marketplace) for grocery delivery. Supermarket owners can enroll on your app to sell their products. You can charge for every product a customer buys from supermarkets via the application. The commission fee will be charged based on the number of products bought by the customer and the bill amount.
Increase in product sales:
Modern shoppers prefer to get essential things delivered to their doorstep. Thereby, customers will order more products from your supermarket if you have an online platform that offers door deliveries. Hence it boosts your overall revenue and adds value to your brand in the market.
Marginal cost price:
In the bigbasket clone app you can also choose to sell products directly from the warehouse. You need not have a brick and mortar shop to sell groceries online. Hence you can add a small marginal price for every product before selling them. You can also categorize products as organic, fresh, hybrid, etc., to attract your customers. You can also choose to offer occasional discounts and promotion to catch the attention of your customers.
Advertisements are a strong strategy to earn money especially for online based businesses. You can allocate a space in your app’s interface for third party ads and charge for them. You can also offer various options for the supermarket owners to boost their visibility in the app. The customers will get a particular supermarket name at the top of their search results every time they look for a product. Thus it is a win-win situation for both parties, as the supermarket owner can increase his sales and you can charge for it.
Having an on-demand app for your grocery business is essential to strive in the market, especially during this pandemic situation. On-demand grocery delivery companies are reporting a massive surge in their user engagement. Experts predict that the sudden increase in usage of grocery delivery apps is a positive sign for these platforms. They conclude that the trend is here to stay and will increase in the forthcoming years.
Before starting the development process, you need to do marketing research so that you can get an idea about the operations of the market. Ask yourself the following questions for getting more clarity.
What kind of mobile application is demanded by your business model?
Which sectors are your primary focus?
How well do you know about your target audience?
Your app is going to run on Android, iOS, or both platforms?
What type of products are you going to sell?
What are your revenue streams, and how feasible are they?
Do you have an in-house delivery team or plan on hiring a third party delivery team?
Who determines the product’s price on your platform?
You will have your clone app development team by your side to make the process easier for you. But it does not mean that you won’t have anything to take care of. There are some tips on how to oversee the development process:
Ensure that your app is not complex for users to navigate as they won’t prefer it.
Get inspiration from the market giants and study their business strategies.
Devise a unique marketing strategy to get ahead of the competition.
Look for the drawbacks of your competitors’ apps and avoid them.
Decide on the workflow of your application, and analyze them carefully, make changes if necessary.
Acquire a piece of in-depth knowledge about the vendors, stakeholders, and customers.
Choose your ideal platform before starting to develop your application.
Every SAAS will have its own pros and cons, so make your decisions wisely.
Keep in track with your budget and make changes accordingly.
Make sure that you don’t make any compromises with the quality of your application over the development cost.
Get in touch with a highly skilled development team to build a future-proof app. Discuss your requirements with the developers to integrate your ideas. The cost of developing your app will depend on factors such as developers, app size, and functionality of your application. The integration of advanced features like chatbox, reviews, ratings, push notifications, social media plugins, search filters, multiple payment methods, etc., will increase the cost. Make your decisions wisely to get your slice of the market.