Online Grocery is the most successful business model in today’s lifestyle. As everyone is busy with their own routine, going to buy groceries seems to be time-killing work. 

This online grocery business is the best solution to resolve this problem. People can sit inside the home and order what they want. It is highly comfortable for the old people who live alone. 

The Business model of Online Grocery Marketplace:

As we discussed above, the online grocery business is the most useful business for the public. Let me explain the business model of the online grocery Marketplace.

In this business model, there are 3 people who communicate with each other to complete the business. The Buyer, Vendor, and the Admin are those 3 people. The set of tasks involved are:

  •   The Vendor Register themselves and list the available products with them.
  •   The Registration process and listing are all created by the Admin.
  •   The Buyer visits the application to buy their needs
  •   They Register themselves and subscribe to the channel if they are interested.
  •   Customers search for the product they were looking for..
  •   Choose the list of items they are interested in.
  •   The Buyer Makes Payment to the ordered items.
  •   Once the order gets confirmed, the Vendor receives the list to send, and the Admin  get the payment. 
  •   The Admin keeps the Commission and the subscription fees(if applicable) with them.
  •   The Vendor processes the order and makes it ship to the Buyer.
  •   The Admin pays the payment for the goods shipped to the Buyer.

 There are many types of Grocery markets available online. Most commonly established are, 

 Multi-vendor Business Model

Single-vendor Business Model

Multi-Vendor Business Model:

               The multi-vendor Business model is one where the companies tie-up with the existing grocery sellers. They collect orders from the public and make those items delivered to the customers. This model requires less investment. This is also referred to as the ‘Zero Inventory Business Model’. This model just orders to other sellers and manages the delivery by the delivery People. They don’t take the responsibility of stock maintenance and all.

Now let me explain the process involved in this kind of business model.

  •    The Buyer enters into the application and feeds their location
  •    The System searches the nearby shops according to their location and lists the available Products.
  •    The Buyer orders the items and makes payment.
  •    Once the order has been confirmed, the online grocery marketplace receives the ordered list of items.
  •      Those lists will be sent to the Registered vendor who sells the products in the nearby location to the Buyer.
  •      Admin Manages the entire portal.
  •      Admin gets the Payment and keeps their commission and subscription fee(If applicable).
  •       Admin Transfers the balance payment to the vendor.
  •     The vendor calls the delivery partner to deliver the products.
  •     The delivery Partner delivers to the customer.

This is how the multi-vendor business model runs.

Single-Vendor Business Model:

                  A Single-vendor business model is, as the name indicates, a single vendor that manages the above process except for the admin work. That is if a grocery shop owner wants to expand his/her business, S/He will make a separate online portal to get orders from more customers. This method is the simplest way to get into the online grocery business.

The process involved in the single-vendor business model is,

  •  The Grocery shop owner opens an online grocery portal with the help of an admin.
  •  Admin manages all the activities associated with the system like listing the products, making modifications of the list and price, displaying the offers, etc.
  •  The customer orders for the list of needed items and makes the payment.
  •   Admin transfer the list to the grocery shop owner and keep the commission from the payment
  •   The Grocery shop owner receives the items to be delivered and the balance payment after paying the commission to the admin.
  •   The grocery shop owner delivers the items listed with the help of the delivery person.

    On the above business processes, both business models are good in progress. The main thing to ensure is the right time delivery of the products. The best system doesn’t require any advertisement. Likewise, if your process and link between the vendor, buyer, and the admin are clear the workflow will be clear and uninterrupted. This only achieves on-time delivery. A clean system doesn’t lead to miscommunication. If this is achieved successfully, then your online grocery business hits its peak and sustains the top ever.

Contact Us Smarther
Contact Us Smarther