Wednesday, April 18, 2012

Wait, you buy your groceries online? What is this, 1999?!

Where did all these online grocery stores come from?

If you’re like most of us, you assumed online grocery shopping got squelched in the bursting of the original dot-com bubble.

Think again; shopping for groceries and other household items via the web is making a HUGE comeback.


What changed in the last 10- to 15-odd years that makes the e-tailing of peanut butter and dryer sheets sustainable?

Time; the natural progression of life.

Shopping for necessities in personal health and hygiene is a less-than-glamorous task – universal to adults everywhere.

While our parents had years of practice doing so in traditional brick and mortar storefronts, we can right our own way.

And, as the first generation to grow up with computers and more specifically, the internet in the classroom, we are all too quick to delegate tasks to the web in the name of efficiency.

Online grocery shopping was always a good idea; it just needed to bide time while tech-savvy consumers entered into the real world.

(Sophistication around intuitive website UI and additional scalability around logistics didn’t hurt either).

Routine can be a powerful barrier to exit, even in online retailing.

While we believe the moniker, “competition is just a click away,” we feel it applies more rigorously to one-time/event-specific purchases. These are unique situations where one has no previous “in-store” experience to compound their store-selection process.

When it comes to shopping for routine groupings of undifferentiated necessities, traditional rules of loyalty via routine apply. Be it physical aisle ways or virtual site navigation, one has a tendency to shop and stay with “store” layouts they are familiar with.

And so, differentiation remains crucial.


Getting a Lay of the Land…

The industry remains spotty and fragmented; regional players in the East and Midwest and a few outfits boasting complete, national coverage. 

For the sake of a simple comparison and light industry overview, we’re narrowing our review to just two key players, one regional and one national.

Peapod.com

With its roots in Chicago and the surrounding area, Peapod has recently increased its foot print through partnerships in Philadelphia, Boston, DC, NYC and greater New England.

Their website is simple, but unpolished:

Highlights: Of all the reviewed sites, Peapod offers one of the widest arrays of brand choices and product sizes.

With this promotional spot, front and center - it’s clear they see cultivation of early adopters as crucial in winning at e-tailing groceries.


Bonus features:
Mobile app including browsing, ability to save and reuse lists. “Browse by aisle” familiar functionality.

Shortcomings: Website UI - Product images are small with varying quality. Navigation is a little clunky and feels about 5 years behind the times.

Soap.com

With coverage across the entire United States, Soap.com is powered by online retail juggernaut Amazon.com, and it shows:

Highlights: Definitely the most beautiful site design of all the major players, Soap.com boasts bright, hi-res product photos and an intuitive, ultra-simple UI for browsing by product or category. No doubt thanks to momma Amazon’s expertise in logistics and well-established network of distribution centers, Soap.com lures first-timers in with “free shipping” promos that activate at a lower price point than competing alternatives.

Bonus Features: Intuitive mobile app, list-saving functionality, top navigation gives access to 5 sister sites/departments (Infant, Pets, Toys, and Housewares) all with the convenience of 1 shopping cart.

Shortcomings: Speaking groceries, Soap only offers consumer-packaged goods (CPGs)  - no fresh produce – fruits and vegetables, meats and cheeses. Less choices in terms of product size, flavors and access to established brands.

Cart-to-Cart Comparison:

As a down and dirty test of pricing, we selected 4 items at random: 2 grocery, 2 household. Let’s see how they measure up – against each other and alongside brick and mortar alternatives:

Key Takeaways:

Peapod’s pricing is competitive?! We were surprised. Summing all items together, the $2.30 premium over Target is a bit much, but only a dime more than Jewel-Osco?  Impressive; proof Peapod has applied competitive pricing tables to combat local traditional retailers.

Soap is higher priced with less variety. A bit of a surprise as well. We expected the cutting-edge web interface to come at a slight premium, but at $1.16 more than both Peapod and Jewel and a full $2.31 over Target, it’s not a viable candidate for our grocery budget. (And bear in mind, that disparity in cost just covers 3 of the 6 items!) Soap.com could only compete on half the products – driving home the fact that their selection – brands and size/flavor variety alike – remains quite limited.

While Soap.com wins for “in-store” experience and market reach, Peapod.com delivers a more complete line of products at a better price.
To establish market dominance, Peapod.com should: 
  • Focus on steady growth via partnership – identify attractive, downtown/urban areas where consumers are tech-enabled and more open to the concept of buying groceries online.

  • Increase Promotional Efforts based on Price – consumers already get the “convenience” side of the equation – time to erode the perception it comes at a HUGE premium. Devise taglines and identify legitimate product price comparisons against traditional stores.
There’s something to be said for shopping in a physical store, meandering aisle after aisle, you are more likely to stumble upon new categories you might not otherwise seek out on your own.

But, in a pinch, it’s good to know online grocers have evolved and stand ready to deliver on the promise of the World Wide Web!

21 comments:

  1. very good post thanks for sharing we are providing the Buy online groceries in india

    ReplyDelete
  2. Thank you for sharing such an amazing article. Recently when i was searching for offers and deals website, i found Tracedeals. At Tracedeals we can get fashion accessories, electronics, hotel bookings and clothing at best prices with  Amazon Offers Amazon Coupons and Amazon Promocodes

    ReplyDelete
  3. You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this...Let make your blogs more plentiful on instagram with site
    instagram story viewer

    ReplyDelete
  4. There are many cricket betting strategies and markets when it comes to betting on test matches. However, one of the most popular and favored amongst those in the know is to ‘lay the draw.
    https://agustinwmartinez4664.amebaownd.com/posts/12743468

    ReplyDelete
  5. You can get lots of updates and betting tips online during the cricket match. During the live match you will be given a completely on cricket betting india online update on the website, within which you will be provided with new cricket betting tips and tricks for free. With this information, you can get the best betting tips in cricket.
    https://blog.sivanaspirit.com/author/onlinekhareedo136/

    ReplyDelete
  6. A right way of explaining and pleasant paragraph thank you. Visit here:Traditionally cricket betting in India

    ReplyDelete
  7. Hey admin, thank you for this wonderful post.. Keep writing The best Blackjack bonuses india

    ReplyDelete
  8. Hey admin, thank you for this wonderful post.. Keep writing How do Blackjack Bonuses Work

    ReplyDelete
  9. We give you access to comprehensive guides of online betting in India and around the world, including cricket betting tips and cricket betting terminology. Cricket betting india is the leading choice if you're looking for information on online cricket betting or cricket betting tips.
    https://gervaisjervis9.wixsite.com/tooltech/post/an-ultimate-guide-for-cricket-betting

    ReplyDelete
  10. Cricket betting india however, has made it very simple for you by offering up-to-date information on cricket betting India.
    https://my-blogging-channel-15.webself.net/blog/2021/03/11/how-can-i-bet-cricket-online-in-india

    ReplyDelete
  11. Why are you looking for someone else? When cricket betting india has made it even easier for you by keeping you up to date on all the latest cricket betting tips and terminologies. Stop right here and browse cricket betting india for free cricket betting tips.
    https://www.roleplaygateway.com/member/betonline/

    ReplyDelete
  12. It is the best blog I've ever seen. I considered all of the content on this site to be very unique and well-written. And I've wanted to return to it again and again.

    https://grabcad.com/neha.khan-3

    ReplyDelete

  13. Having read this, I believed it was rather informative. I appreciate you finding the time and energy to put this article together. I once again find myself personally spending way too much time both reading and leaving comments. But so what, it was still worthwhile! Check it now: https://my-blogging-channel-15.webself.net/blog/2021/03/11/cricket-bets-on-sports-betting-sites

    ReplyDelete
  14. dil juunglee movie watch online offers a wide spectrum of ways for carrying out online betting. You should choose an online betting sites that offers your preferred method of transacting money.
    https://www.teachertube.com/user/channel/jayabola123

    ReplyDelete
  15. This is really useful and intriguing for individuals who want to play online. Your post's suggestions are all excellent. Thank you so much for taking the time to share.
    https://www.bizcommunity.com/Profile.aspx

    ReplyDelete
  16. watch dil junglee full movie is an online betting website that offers a variety of guidelines and free betting tips that prove to be very useful for people just entering betting. It is among the top websites for betting in India.
    https://my.desktopnexus.com/Moviesblog123/

    ReplyDelete
  17. This is quite handy and exciting for those who desire to play online. The suggestions in your post are all fantastic. Thank you so much for taking the time to express your thoughts. https://malaysiabusiness.info/business/kjtaxconsultants/

    ReplyDelete
  18. This is really convenient and entertaining for individuals who want to play online. Your suggestions in your post are all excellent. Thank you for taking the time to share your thoughts. http://www.cruzroja.es/creforumvolint_en/user/profile/166361.page

    ReplyDelete
  19. Let our CPA in Surrey handle all the taxable activities of your firms in such a efficient way that will help in saving cost and precious time to focus on other aspects that will help in business growth.
    https://ko-fi.com/post/Accountant-Vancouver-V7V06GPQD

    ReplyDelete
  20. Our website provides facts and figures of famous celebrities for your essay, research or just simply be used for curiosity. Here we are https://www.celebswikipost.com

    ReplyDelete