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App Development

Business Models That Decide Online Grocery Shopping App

Online business is up scaling at a huge pace. The pace with which we are inclining towards digital space is commendable.The hype around profitable online business ventures offered by an android or iPhone app development company is proven to be true with each passing day.

Thomas Husson, Vice President, and Principal Analyst at Forrester Research says

Mobile is becoming not only the new digital hub but also the bridge to the physical world”.

Well, the hectic schedule and habit of getting a convenient service have spiked the need for the online grocery store.

Millennials today mostly do not have any idea of a list of products required for cooking.How do reach out to them?  It is a great idea to expand your services through online options available by connecting to top mobile app development companies.

It not only makes your service available at the consumer’s doorstep but hugely expands your reachability.

But before setting up an online grocery shopping store, we believe you need detailed information about business models that decide online grocery shopping app costs. So, here we are to help you out. Keep Reading!

Here, have a glimpse of statistics!

Furthermore According to Orian Research, the global online grocery market would grow with a CAGR of 23.7% in the period of 2020-2025.

Another research reveals that the grocery eCommerce business will be expected to reach $250 billion within the next five years.

How Is Online Grocery Application Favorable for Your Business?

When it comes to mobile app usage growth, online grocery store applications come under one of the fastest-growing mobile applications. An app has a list of unlimited advantages for businesses, as listed below.

1.Better Order Management

It becomes a little hectic for offline store owners to keep track of orders simultaneously. In that case, having a grocery application proves to be beneficial. It makes order management easier and hassle-free.

2.Build Loyalty Among Customers

Customer loyalty is a crucial factor when it comes to achieving business success. The process is quite time-consuming and takes endeavor to build consumer loyalty. This is where an online grocery app helps a businessman own customer’s trust with remarkable online services.

3.Improved Order Tracking

Nowadays, every customer prefers to track the product online to estimate the delivery. This is only possible with a grocery app in hand. This will satisfy the customer demands and help you track each order online while keeping you stress-free.

4.Saves Time

When it comes to offline shopping, more time gets consumed at both the customer and store owner’s end as people have to wait hours to get their turn. However, online grocery apps have reduced this concern to a great extent and are helping customers and business owners to gain profit. Overall, an app saves time, ultimately benefiting the business.

5.Understand Buyer Behavior

A grocery app gathers the user’s database, including their behavior and activity. This is really beneficial for the business owners as it helps them improve their business and results in better sales and improved ROI. What could be better than improving a business while sitting at home? We guess nothing!

So, these are some major perks of having an online grocery application that every business owner should be aware of.

Business Models That Decide Online Grocery Shopping App

Below mentioned description of business models will help you to identify which is the best fit in your business structure and gives you more profitability.

1. In-store Grocery Apps

In-store grocery apps developed by full-stack development services have complete details of products available on the app store.These apps help customers to assess the quality of the product and let them know about the product.It keeps users updated about upcoming offers and new product addition through push notifications.

2. The inventory Model

The inventory model is an expensive model but has great profit margins. It is operated on a large-scale as well as small-scale. On the small-scale, the grocery delivery app developed by an android app development company takes orders from customers and sells their own products via their delivery service providers. Due to this, it usually works for daily groceries.

The large-scale model supplies its products at different locations such as local retailers, small shopkeepers, etc. Although, here the product needs to be stored till it reaches consumers so companies following these models have to set up a warehouse at these locations.

In these warehouses, products are carefully stored at the required temperature. One of the prominent companies leveraging the benefits of the inventory model is Big Basket.The company offers its goods to farmers and distributors and makes required arrangements to store at these places.

3. The shopping Model

The shopping model resembles a lot to multi-seller models, where a hierarchy is built and adopted for the entire process. Approach to mobile app developers for hire. In this model, the website offers a plethora of product delivery services but does not actually own a product.

When an order is placed on the website it is passed on to vendors, who purchase the product from the market and deliver it to customers. One of the top grocery delivery companies using this business model is Instacart.

The order is placed on the Instacart application. Instacart notifies their shoppers to pick the orders from supermarkets and drop them at the customer’s location. Hire mobile app developers to develop an app like Swiggy and Zomato that follows the same model primarily for cooked food delivery.

4. The Online-selling Model

The online-selling model is one of the most profitable models, where different channels come together to accelerate sales. One of the best ways is by merchandising. Now, what is merchandising? Merchandising means selling your personal products.

To sell your own merchandise online, you need to build an online reputation, where your followers or fans adore you. Once you have created your strong personal brand, you can sell your branded items like your clothes, your appliances on your website. Hire dedicated developers to develop a website. This is the direct way to earn as users love to own products used by their favorites.

Some other channels are service charges, subscriptions, memberships, promotions, commissions, etc. You can integrate a subscription with the help of a mobile application development company by encouraging customers to pay at a go for daily or regular deliveries like vegetables or fruits delivery, milk, etc. Further You can add promotions in your applications to earn via ads.

How Can You Get The Best Web Development Company?

5. The Hyper-local Model

The hyper-local model preferred by any on-demand app development company refers to a model that is popular in a locality.  This is one of the most growing models. Online grocery apps can connect with all the local stores, and offer delivery services.This model has boosted the eCommerce structure immensely.

The range of services in this model varies from delivering groceries to personal care services and so on. It is like a one-stop solution developed by a mobile app development company for all local needs.

Since this hyper-local model is available for a small location, it has a super-fast delivery rate, making this the Unique selling point. In this model grocery delivery apps are register themselves with the local shops, these local shops have collaboration with delivery service providers.

Delivery service providers are connecting links between local shops and customers. Now, how does the cycle flow? Well, customers place orders on the online grocery delivery app. Hence, The app sends the notification to local shops and local shops further send it to delivery service providers.

Furthermore, Delivery service providers pick the order from local stores and drop it to customers. Customers can either pay to service providers or do the online payment via your on-demand delivery app development.


Here, In the blog above you can find all prominent business models that are practical and are profitable. To choose, which business model is best for you, do vigorous research about your target audience and the type of services you want to offer. For example, you have a reputable online presence then you can go for an online selling model. Grocery delivery app development is high in-demand.

Tarun Nagar

Tarun Nagar is the CEO of Dev Technosys a mobile app and web development company. Here you can hire dedicated developers. At Dev Technosys we deploy a vast talent pool of skillful and experienced Web developers with a strong command of contemporary languages and frameworks such as PHP, JavaScript, .Net, Open Source, etc.

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