ONDC Starter Guide - Give India's offline sellers the online power

The Frustration The Online Consumer Faces Today

What pushes the average consumer to order groceries online?
What pushes the average consumer to order groceries online?

Is it only convenience, or is there something more?

Convenience’s a small part of the pie. Pricing is the real deal.

That is what the Amazons, eBays and Flipkarts of the world have gotten us used to.

Like, to buy electronics, at first we discover products online and then visit retail stores to explore them in depth. And once we decide which one to buy, we place an order online to enjoy a better price and free home delivery.

But what if after doing all that research and adding the products to the online shopping cart, the consumer finds out they need to pay more than expected?
They will feel cheated, and will simply close the app and discard the purchase.

It causes loss of time, interest and sale.

Recently, an online grocery store made consumers feel the same way. For every extra unit of the product beyond two in numbers, the company charged consumers at MRP.

So, if a consumer wants to buy four packs of biscuits worth Rs.32 at a discounted price of Rs. 23, for every unit beyond the first two, there won’t be any offers applicable.

It might be legally right but sounds fundamentally wrong.

If consumers shop for groceries online for a better price, wouldn’t they want to buy in bulk to get the most out of the offer?

Are they supposed to place another order to get the remaining two packs of biscuits at the discounted price? And again, another time if they want more?

Wouldn’t it be easier for them to switch to a different grocery app, find a similar offer and buy in bulk?

Such experiences drastically deteriorate the consumer buying experience and retail brands’ profitability.

The consumer who researches and decides to buy a retail product will delay their purchase to find a better deal somewhere else.

The retail companies who signed up with such online grocery stores to increase channel sales will see low value and low volume sales.

Most importantly, such opportunities give consumers a quicker excuse to switch brands.

That’s why traditional retail is and will continue to be ahead in the distribution game.

Here, the experience is always consistent. The trust is always intact. And the value created always increases.

Consumers will always be more accepting of buying at MRP rather than being lured by lucrative prices that turn out to be fake.

Also, the changing prices between online and offline for the same product only create more chaos amongst channel partners.

So, unlike the common notion, the first step to building sustainable retail businesses is not to start selling online. Instead, it’s to strengthen the roots of your trade so that the volatility of the online environment doesn’t cause a fall.

And today’s retail technology makes this easily possible.

Sales managers can sit in offices and monitor the price and performance of each product that’s selling in the market.

Retail companies can get an app exclusively for shopkeepers to let them place orders directly and quickly.

And most importantly, brands can always ensure a great buying experience for consumers.

But this is just the start. There’s a vast area of possibilities to grow with retail tech. If you would like to explore such opportunities, drop a mail at marketing@mobisy.com to connect with our team for more information.
If you enjoyed reading this article don't forget to share with others!

Related Articles

Request for a Personalized Demo
This site is registered on wpml.org as a development site.