The internet and cell phones have completely changed how we live today. Almost anything we can conceive of can be purchased online, including clothing, furniture, and household goods. Moreover, due to customers’ change in attention from physical retailers to the e-commerce sector during the COVID-19 epidemic, the same has increased to a brand-new next degree. As a result, there is a considerable increase in demand to open an Online Grocery Store in India. Additionally, Indians refer to grocery stores as the “heart and soul” of the town because they serve as the main economic drivers and offer jobs, a source of food, financial assistance, etc. In this article, we will discuss how to start Online Grocery Store. 

Why you should open an Online Grocery Store

The following are the reason to open Online Grocery Store:

• Only needs a minimal start-up cost.
• Offers a good potential for earnings.
• Offer flexible hours for work.
• Provides competition.
• Ensures industrial expansion.
• A change in consumer behavior.

The procedure to start Online Grocery Store in India

The following are the steps needed to start Online Grocery Store in India:

1. Chose Delivery Location

Choosing the delivery area or location is a crucial stage in the process of opening an online grocery store in India. The same is true because groceries and fresh produce can only be delivered within a certain radius. Therefore, one must consider this while choosing the site of the office, warehouses, and partnerships with neighborhood supermarkets.

Additionally, it is important to note that the following criteria must be taken into account when choosing a location:

• Geographic customs.
• Cultural Customs.
• Eating patterns.
• Quantity of households.
• Youth population counts.
• Families in suburbs.
• The populace with education.
• Families in cities.
• Seasoned singles, etc.

2. Obtain various Licenses

• Trade license 
• Shop License 
• FSSAI License
• GST Registration

The applicant must first register his or her business with the appropriate authorities before moving on to the next step. In other words, if a person intends to launch a firm, he or she needs to register as a sole proprietorship. However, if partners choose to launch a firm, they will need to register as a limited liability partnership.

Trade License 

The prospective owner must seek a trade license from the Municipal Corporation and Health Department in order to open an online grocery store in India.

Shop License

To defend and protect the rights and interests of the employees, delivery boys, and personnel employed by the business, a shop and establishment license or shop license is required.

FSSAI License

Food and other culinary things make up a sizable component of the goods offered for sale in grocery stores. As a result, any business owner who wishes to launch an online grocery store in India must first purchase the FSSAI License. Additionally, in order to protect and defend the health and interests of the customers, FSSAI imposes many compliances and limits on the grocery shop through this license.

GST Registration

The Online Grocery firm must register for GST under the GST Act in order to pay taxes, just like any other new business venture. Dealing with the selling of commodities also necessitates the same criteria.

3. Inventory and Stock

There are often two methods for maintaining and organizing stock and inventory, which are as follows:

• The proprietor is able to maintain inventories at the company’s warehouses;
• can establish partnerships with neighborhood grocery stores throughout the early stages of operation;

Of the two options, creating a list of the goods the owner wants to keep in the warehouse is advised as the best course of action. He or she must also collaborate with grocery stores that are enthusiastic about the multi-vendor business model.

4. Implement local delivery modules

An online food store typically uses the idea of home delivery. However, if the delivery cannot be performed immediately due to unforeseen circumstances or a lack of cars, it can occasionally cause concern. Online food companies already use their cash to finance and hide shipping costs. Additionally, shipping fees often range from Rs 40 to Rs 50 for every delivery. Hiring delivery men with two-wheelers is the finest way to carry groceries to your door. However, it is necessary to choose the city’s delivery zone.

5. Create a Website 

This is the most essential phase and serves as the foundation for the entire process of opening an Online Grocery Shop in India out of all the other steps. The cause of this is that the user interface serves as the foundation for all objectives, expectations, and business opportunities. As a result, each potential entrepreneur must devote some quality time to the creation of an application and website.

6. Options of Payment

Since every order is delivered right to the customer’s door, the company may collect payments primarily via COD, or Cash on Delivery. Additionally, COD ensures same-day payment, whereas other online payment methods require a delay while the remittance from payment gateways is processed.

Things to Take into Account Before Opening an Online Grocery Store in India

When a budding entrepreneur intends to launch an online grocery store in India, the following factors must be taken into account:

• To release mobile applications for both iOS^[1] and Android.
• Both the website and mobile application must have an integrated Google Translate feature and multilingual capability.
• Must provide the phone number of an appropriate and authorized person whom customers can call when placing an order or if they have any questions.

Conclusion

Conclusively, we can say with certainty that the COVID-19 pandemic has profoundly altered our lives, but it has also created opportunities for anyone who wants to launch an Online Grocery Store in India. Additionally, everyone needs groceries and other necessities on a daily basis, but because of the lockdown, the majority of individuals chose to stay at home and shop online.

Consequently, this is the ideal time for an Indian Online Grocery Store to launch. Reach out to Bizadvisors.io if you have any questions or concerns. Our professionals will help you with the registration process for the necessary licenses.

Read our article:Step-by-Step Online Process to Register Food Business Online with FSSAI