Online Shopping and Grocery - building consumer trust
Online shopping has skyrocketed in the past few years. While it will continue to grow, majority of consumers still prefer to shop in-store - especially when it concerns grocery shopping. It’s no secret that the grocery industry has been the slowest major retail sector to join the e-commerce bandwagon.
As grocers are investing their resources to move their businesses online, there is competition among them to provide the best customer experience.
There have been a lot announcements made recently in this space. Retail giants like Walmart, announced the pilot of a new robotic back-end which would manage online orders in its super centers. Amazon added curbside grocery pickup for online orders as a Amazon Prime membership perk at Whole Foods. Whereas Target, rolled out same day delivery for groceries and other categories.
Consumers are concerned
While there is a lot of talk about omnichannel and online efforts, research suggests that people today still go to grocery stores.
According to a Gallup survey of 1,033 US adults, 84 percent said that they would never buy their groceries online. About 11 percent order groceries online for pickup or delivery twice in a month or lesser. While only 4 percent order once a week or more.
The survey highlights the fact that people still use the traditional means to purchase grocery. To ensure that the majority of the purchases are made online, it is imperative for the online retailers to provide an incentive to engage and help users purchase groceries online. The incentives could be in the form of timeline delivery of goods, competitive pricing, trusted & reliable products.
The familiar feeling of a traditional store infrastructure cannot be replaced. Hence, the need of hour is to make the underlying technology for groceries feel human, comforting and intuitive.
Enabling technology for groceries
By investing in technology and infrastructure, along with access to instant delivery channels, online grocers can build trust among consumers.
Detailed product information
Consumers have often been able to verify the quality of groceries such as fruits and vegetables with stores. When not physically present in the store, the consumer is unable to verify the quality of the products, thereby, increasing risk and uncertainty.
In an online platform, the product page must provide the right data of the particular product in terms of the images, the product description, the product specifications (size or weight/volume) along with the date it has been manufactured and the expiration date to be clearly mentioned.
This helps the consumer get the right information to make a decision. When consumers gain more knowledge about the product, and gain trust towards the platform, their uncertainty towards purchasing decreases. Furthermore, products that are from familiar brands also help reduce the perceived risk as the consumer already knows what to expect from a product that he/she is already familiar with.
Making reviews count
It is important to engage customers and community to rate the service of online retailers - delivery of goods, the ease of ordering groceries through the platform, pricing, availability of groceries, etc.
Reviews are one way of building trust amongst existing users and new users alike to use the platform for their requirements. The more positive the reviews, the more users are likely to purchase through the online grocer.
Instant Deliveries to instant gratification
Unlike appliances, groceries are mostly perishables and need to be consumed as early as possible. Sometimes, the need for groceries is almost instantaneous and requires delivery at the earliest. One way to make it readily available is strengthening the supply chain and the underlying technology to ensure instant delivery.
While consumers today still prefer the traditional method of buying groceries, technology is fast catching up to cater to the needs and convenience of the consumer. There is tremendous scope for innovation and increase in grocery technology that can solve the problems for the retailers who want to move online and provide value to consumers.