Ecommerce. Online shopping. Etail. Whatever you choose to call the dramatic shift in shopping behavior affecting grocery, the consequence is the same: consumers are flocking to the internet to purchase groceries for curbside pickup or delivery to their doorsteps, and retailers who aren't giving them that option will soon be left behind.
How did eCommerce move from a "we'll get to that someday" wishlist item for independent retailers to a requirement for doing business without leaving dollars on the table? The simple answer is COVID-19 has changed what shoppers look for from a shopping experience. The more complex answer is this retail revolution was brewing in the background for some time.
Online shopping is far from a new trend. In fact, the percentage of shoppers who have made grocery purchases online more than twice a month has been growing steadily since 2017, and was expected to continue to grow more rapidly over the course of the next five years. But no one could have predicted the unprecedented acceleration seen during the pandemic.
According to a recent survey from Inmar, 57 percent of consumers say they had shopped for groceries online before the pandemic. Now that figure is closer to 80 percent, and retailers who jumped onboard early with eCommerce are reaping the rewards. A CNBC analysis of Walmart's earnings revealed their eCommerce sales rose 74 percent in the first quarter of 2020, with much of that attributed to grocery sales. And the same analysis reported Kroger's eCommerce use rose 92 percent in that same timeframe.
The opportunity is ours to lose
So what does the acceleration of eCommerce mean for IGA independents?
"If we all agree that the pandemic is likely only going to get worse before it gets better—and the events of the last month certainly point to that—then we also have to agree that we need to move on eCommerce right now," says IGA CEO John Ross. "As the virus continues to move into smaller communities across the country, shoppers' need for eCommerce is only going to increase. If you don't have it, they'll start shopping somewhere that does, even if it goes against their desires to support local businesses. It's that simple."
Moreover, Ross stresses that shoppers' desire for eCommerce isn't a fad that will fade away with the development of a Coronavirus vaccine. "Now that shoppers have a taste of the convenience of online shopping, they're going to want to keep doing it," he says. "No matter what happens with COVID-19, long term shoppers are speaking with their dollars that online efficiency and local quality is what they crave."
The good news is it's not too late to take advantage of the eCommerce opportunity. "You can launch now, catch up, and grow fast," Ross says. "But wait too much longer and you will miss out. Shoppers who create their first transaction with a retailer are seven times harder to switch by the time they have done their fifth transaction."
So how does an independent retailer already stretched to the max during a pandemic take on starting an eCommerce program? That's where IGA and your wholesaler AWG can help.
IGA retailers have stepped up to serve their customers and communities during the pandemic in so many ways. They've sourced meat, eggs, and produce from farms and restaurants when the supply chain had holes. They have waved delivery fees to shoppers who can't leave the house, donated food to senior centers, handed out free lunches to kids who were impacted by school closures, and pivoted fundraising plans to ensure local families needs' are met, to name a few. According to Ross, delivering a more convenient, easier, and safer way to shop through eCommerce is the next step for giving shoppers what they need during the pandemic and beyond.
"Translating our in-store experience to an online experience is extension of our commitment to outstanding customer service," he says. "Giving shoppers the option of shopping online doesn't lessen the impact of our service. It amplifies it."
Your wholesaler AWG has established strategic partnerships with leading online grocery shopping providers, including long-standing IGA Red Oval partner Freshop, to bring your store online. These eCommerce programs offered through AWG each offer benefits for IGA retailers to get up and running quickly. Learn more below and in this brochure and contact your AWG representative for additional information, including pricing.
With a wide range of features, integrations, and customizations, Freshop is a top choice for retailers ready to grow online. Retailers can manage their online store in one administration portal and leverage the store-branded website to strengthen customer confidence. The program increases efficiency across workstreams with seamless integration with major POS, loyalty, and coupon programs.
- Includes fully-integrated new website
- Integration with SEP
- No transaction fees
eGrowcery is focused on providing the an intuitive and enjoyable customer experience with simple, intelligent design and shopper-centric features in their custom-built solution.
- Online store linked from existing website
- Labor optimization
- Delayed monthly & transaction fees to help get started
Rosie’s comprehensive service enables retailers to avoid or reduce numerous expenses while acquiring new customers, increasing wallet share, and growing revenue.
- Co-branded to drive consumer awareness & marketing
- Customer support
- Starter pricing package
This membership-based marketplace enables retailers to offer same day delivery of fresh foods and household essentials.
- Third-party marketplace
- Labor and delivery provided
- No set-up fee
"AWG has a several programs that get our retailers online now and can also grow and scale with them in the future," Ross says, so there's no reason to wait another month or for the pandemic to slow before getting your store online.
"Average eCommerce basket amounts are running above $90, and the mix of products often includes higher margin items," he adds. "Plus, we have seen that shoppers are perfectly willing to pay for others to shop for them. A pick-and-pack fee of $5 hasn’t slowed eCommerce sales and has actually improved margin on eCommerce sales over traditional ones for many of our retailers. The lesson here is clear: Jump in. Connect with your shoppers digitally. IGA is here to help."
Join successful independent retailers across the world in this simple step toward the future of grocery and your business.
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