On-demand grocery delivery is the most promising business in recent days. Tremendous demand has been recorded for online grocery platforms that have made the minds of entrepreneurs start their own grocery store business that can get them greater returns.
There are many leading grocery eCommerce platforms like Instacart, have set a milestone in the grocery industry and have inspired many budding entrepreneurs to build a platform like Instacart. Before you start building your marketplace you need to know more about Instacart, how it works, its business model, and many more.
Let us have a detailed study about the on-demand grocery delivery app in this article.
A Brief about Instacart:
Instacart is an American-based grocery pickup and delivery service provider. Customers can order their groceries either through the website or Instacart mobile application. Instacart was founded in the year 2012 and launched in San Francisco and the platform serves customers in the United States.
The company partners with multiple large grocery stores and offers products to customers and assures same-day delivery to them. Customers can also subscribe to services from Instacart Express and can get unlimited free deliveries and also can get service fee exemption.
How Does Grocery Delivery Instacart Work?
Instacart has gained massive customer response mainly because of its same-day delivery assurance. Customers can view all items listed on the platform either by visiting their official website or by downloading the mobile app.
Customers can search and find products, can add them to their cart, and finally can pay through their credit or debit cards, or through net banking option and can get their products at their doorsteps.
Customers are charged certain delivery charges when they order below a certain order value. Also, if they prefer a fast delivery then additional charges are charged. Customers can pay and get a membership and can avail of free delivery on all orders.
Business Model for an On-Demand Instacart Grocery Delivery App
Choosing an effective business model for your grocery eCommerce business will help you to reach your business goals. Instacart has the best revenue-generating business models that have made it a great success in the market.
- Commission model – in this model different commission charges are set on different order values and sellers will pay the respective commission value to Instacart on each order they sell. This benefits the grocery platform as it can earn money whenever an order transaction is made.
- Subscription model – users are allowed to subscribe and become members of the platform that will allow them to access any feature of the marketplace. The platform will get a recurring amount through this model.
- Delivery and service charges – customers are charged delivery and charges for each order they make with the platform. The platform has set a certain minimum order value and according to the order value and the distance, the delivery charges are calculated by the grocery platform.
What is Instacart’s Pricing Strategy?
Instacart’s pricing will be almost 15% higher when compared with in-store pricing. But still, customers prefer to buy through Instacart mainly because the platform promises value for your money and doesn’t compromise on customers’ satisfaction.
Features Required for an On-Demand Grocery Delivery App Like Instacart
Building an online grocery app like instacart requires more determination and market understanding. Also, you need to be more focused on the features you are going to integrate with your platform. Every grocery platform will have buyers, admin, and the delivery agent or the supplier. Your features should satisfy all the user groups. Now let us check out the cool features that are considered to be more essential for each user category.
Grocery Delivery App Features – User panel
- Registration and profile management – this is the basic and foremost feature that any user would prefer. Make sure you have a simplified user registration process and allow them to set their own profile page that can be viewed by sellers.
- Review and rating system – to enhance your platform performance you need to know how your customers feel after purchasing from your marketplace. And for this, you need to allow them to rate and review your product quality and your platform service.
- Advanced search option – every grocery platform will contain thousands of products that will be displayed on the home page. Users cannot go through each product. You need to offer them an advanced searching option that will help them to find their products easily.
- Real-time order tracking – buyers will show more interest in knowing the status of their orders. You need to offer them an order tracking option that can facilitate them to know where their orders are currently moving.
- Multiple payment options -online payment processing should be more convenient for buyers and your platform should support multiple payment modes. Users can use their credit or debit cards or any other payment gateways and transfer their amount online and get their products at their doorstep.
- Multiple delivery slots – when it comes to grocery items, delivery time is very important. Certain products are perishable and should be delivered on time to use them effectively. You need to allow your customers to choose a convenient delivery slot.
Grocery Delivery App Features – Admin Panel
- Dedicated admin dashboard – this will give a brief view of the sale value, transaction details, inventory details, and many more to the admin. A quick view of the performance of the grocery platform can be monitored.
- Simplified order management – orders need to be streamlined and processed effectively. Hassle-free order management will satisfy customers and will help you to retain them with your platform.
- Effective inventory management – grocery stocks should be closely monitored and they should be cleared before they perish. Only with the help of an effective inventory monitoring system, this is possible.
- Customer-centric features – platform should provide exclusive offers and discounts to customers that will attract them to buy products again and again from your platform.
- Push notification – this is one of the must-have features you need to integrate when you plan to build a grocery app like Instacart. Customers need to be reminded about their orders. And also, they need to know about new arrivals and the latest offers that will increase your sales value.
- Analytics and reporting – the admin should be clear with the figures about his grocery business. This is attained through reports. The platform should support the admin with analytics and reporting that will help to understand customers’ buying behavior.
Grocery Delivery App Features – Delivery Panel
- Geo-mapping – this is a default feature that any delivery agent will require to have. They need to track the customer’s address and for that they need this feature’s support.
- Accept or reject delivery requests – it is not necessary that all orders should be processed and delivered by the delivery panel. Some orders may seem to be difficult to deliver on time. In those cases, the delivery panel should have the right to reject the delivery request.
- Real-time notification – once the order is placed, the store manager should receive instant notification about the order and should get ready for the delivery. So notification is the key feature for any delivery agent.
- In-app chat – the seller and the buyer are needed to communicate with one another as this will avoid unnecessary confusion regarding their orders and will reduce returns and refunds. Multiple communication channels are needed in your platform.
- Get delivery confirmation – once the order is successfully delivered, a delivery confirmation notification should be sent to admin from the delivery panel. This will confirm the delivery process for each customer.
How Do I Start An Grocery Business Like Instacart?
When you plan to build a grocery app like Instacart, there are certain considerations to be made that will help you in building a successful grocery application. Let us check those considerations in detail.
- Business model consideration – business model you choose for your grocery app has a vital role in making your platform a grand success. While choosing the business model, you need to streamline your revenue channels also.
- Feature consideration – features can be categorized according to your business requirement. If you are a startup then you can start your grocery app with the basic features else you can go for an advanced one.
- Design consideration – the UI and UX have a major role in attracting the audience to your grocery platform. Make sure you have a device responsive design that will support mobile users to have comfortable access to your platform.
- Software consideration – if you find it difficult in building a grocery app from scratch then you can think about going for readymade software. Today there are several Instacart clone apps available in the market. You need to check the demo and should finalize the software.
How Much Does it Cost to Develop an Instacart Clone?
To know the exact cost estimation to develop an on-demand grocery app like Instacart, you need to consider many factors that have a crucial role in filling your budget.
- Number of users going to use the platform
- The platform under which you are going to develop your grocery store.
- Features that are required to effectively run the platform
- Domain and hosting support to launch the platform
- Expected customer support after the delivery
You need to consider all the above aspects and then you can start calculating the cost accordingly. Always never stick to cost alone as you may tend to give up on the quality of the platform. Make wise decisions in choosing the elements for your grocery marketplace by keeping the cost factor aside.
Finetune your business goals and set your mind to building an excellent grocery delivery app like Instacart. Build trust among your audience as it will be reflected in your business growth. If you utilize each opportunity to delight your customers then you can seek their referrals which is one of the perfect ways of getting visitors to your app without spending more on marketing and other promotional activities. Always keep your app updated with the latest trends and technologies.