A startup is a small and young company that is at the initial stage of developing. In the early

stages these startup companies’ expenses usually tend to exceed their revenues as they are

working on developing, testing and marketing their idea. Since the company has no history

therefore it becomes difficult for the investors to invest in the company.

Today these online Grocery Startups in India are booming because they have come out as a perfect

alternative as people now lack to visit the stores after a tiring day of work. As everyday more

and more online grocery startups are coming in the competition, it has become important for the

companies to bring out more friendly options to pull the customers and stand above the others.

There are a lot of challenges that a young online grocery startup has to face which are as follows:

1) Thin Gross Margin:

Only grocery store is one such segment which works on very low margins. Their margins are

nearly 5%-7%. In order to save their startup they demand for delivery charges so they do not

land up in losses. Profits are far apart.

2) Infrastructure:

Infrastructure is a significant part in revenue. Every business follows its own model either

they own their store or make tie-ups with others. Own stores have a privelidge of their own

control, meet high demands, have higher degree of control over quality, but side-by- side it

also becomes expensive when it comes to transportation of goods from one place to another.

3) Competition:

Competition is not just a casual factor but a very crucial factor to online grocery stores.

People keep switching from one store app to another to cater the best offers and deals. Thus,

it online grocery stores have to keep a regular watch on their competitors move and counter-

attack it in order to maintain their customers.

4) Freshness of fruits and vegetables:

If the consumers are willing to pay extra delivery charges, they do not want any compromise

with the quality of their product. Since consumers are unable to test the fruits and vegetables

to their satisfaction rotten vegetables and smelly fruits adds on the dissatisfaction among

customers.

5) Customer Loyalty:

Customer Loyalty is a key factor when it comes to online grocery companies. To retain

customers is a biggest challenge as they keep swapping between different apps to avail the

maximum discounts and others best offers and deals.

6) Changes in buying behavior of customers:

People are different and so are their choices. Their choices also keep changing constantly

they are never stable with them. They are very particular regarding their buying behaviors, if

they do not find anything appropriate they may not buy anything.

One such online grocery startup is “Zaarvis” which is situated in Noida Extension. It aims to

provide the customers with best services by overcoming the various challenges faced in the

business. Also this startup is going to give a tough competition to all the established business in

the field by some of its USPs such as:

1) No minimum order cost

2) No extra delivery charges

3) Delivery within few hours of order placed.

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