Last updated: 7 online grocery trends for retailers to watch

7 online grocery trends for retailers to watch

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The adoption of online grocery or e-grocery shopping habits has skyrocketed in the US. For example, between March 2020 and March 2021, Amazon increased the capacity of their grocery delivery service by more than 160%.

The traditional retail market was affected by the pandemic more than any other commerce segment as people tried to avoid face-to-face contact by purchasing basic consumer goods online.

Previously, such purchases were made at corner stores or in weekly trips to supermarkets.

Of course, such rapid growth is unlikely to continue, but the trend of general e-commerce proliferation as well as the efforts of  online grocery players to retain initially reluctant customers are here to stay.

Online grocery trends will focus on retaining and developing relationships with customers who came during the pandemic, as well as  further technological improvements in business-to-consumer interactions.

E-grocery: What’s ahead for online grocery shopping

Top online grocery trends for retailers to watch:

    1. Artificial intelligence will optimize sales and drive personalization
    2. Delivery by drones
    3. Sustainability
    4. Ready-to-eat meals
    5. The rise of in-house brands
    6. Voice recognition
    7. Data security and privacy

Let’s take a closer look at these online grocery retail trends.

1. AI-based tools drive personalization

The primary task of artificial intelligence in online grocery is to collect data about customers from various sources, including online channels, offline outlets, and user behavior on the site, then apply this data to better understand the needs of the target audience.

Artificial intelligence can be used to take into account such factors as weather, holidays, seasonality that have never been considered before and use them to optimize purchases and sales.

The use of Al-based tools will enable every customer to receive their own unique e-grocery offers based on personal preferences and behavior.

2. Online grocery trends: deliveries via drones

Expect to see more delivery methods, such as robots and unmanned aerial vehicle (UAV) delivery to increase the speed of delivery and avoid face-to-face contact.

The technological basis for drone delivery is already quite well-developed. Such innovation will reduce the time of delivery along with fuel and courier costs, leading to reduction in the price of goods.

This still needs a legal framework and regulation, but even the most conservative lawmakers won’t be able to resist this trend and will be forced to develop the right laws. Delivery by drones or robots will also maximize the speed of service, which is extremely important in today’s world.

3. Greener grocery shopping

Greenhouse gas emissions, environmental regulation, and reduction of plastic packaging will be major online grocery trends. For the new generation of buyers, the reduction of carbon footprint has become extremely important.

Retailers will have to work on reducing plastic packaging, as well as transitioning to non-vehicle delivery.

The use of AI will allow for more intelligent planning of purchases and product storage, leading to the reduction in packaging associated with long-term storage.

4. No time to cook? No problem; online grocers are on it!

Ready-to-eat meals and subscription delivery: All over the world, people are cooking less. This is caused by a number of factors, but tightening work schedules leave people little time to cook.

People are happy to buy chilled, ready-to-eat meals, and this trend will only intensify if market players invest in restaurant-level meal preparation, as well as the development of special subscription models that enable customers to forget about the need to order food.

5. Private labels gain traction

In-house brands: development of private labels as a price-reducing factor People are eager to buy things produced in small batches as this allows them to feel unique.

In-house brands enable online grocery players both to reduce their costs and to pay more attention to their customers, taking their requests and wishes into account.

6. Voice order tech will lift online grocery

We’ll see e-grocers leveraging conversational platforms powered by voice recognition. There’s no doubt that voice orders are convenient, and once it’s possible to process them correctly, online grocery will receive an incredible growth boost.

This isn’t just about making voice orders, but also about getting audio answers to various questions that users might have.

7. Doubling down on security

Customers forced to leave private information about themselves and their purchases often doubt that this information will be used only for good purposes. Even with a certain amount of trust in the seller, there’s always the possibility of leaks or stolen databases.

Understanding this, sellers will continue to work on data storage security, guaranteeing their customers’ complete privacy. Those who win their clients’ trust will surely gain greater loyalty.

With the growth of e-commerce, the scope of online fraud is increasing. The way out of this for all online grocery market players isn’t just to keep working on the safety of online payments, but also to invest in raising their clients’ awareness, teaching them to distinguish scam websites from fair merchant sites, where to be careful, and where to be cautious.

Online grocery trends: Keeping up with customers

In general, all of the above online grocery trends aim to increase focus on the consumer. Following them should provide the e-grocery market with the ability to keep growing and survive the inevitable growing pains, maintaining customer loyalty in the process.

Trends like unique offers for each customer, speed of delivery, and ready-to-eat meals will become real engines of growth for  online grocery, enabling the market to truly take off.

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