Era of Online Grocery Store
By Jessie Lin
Studies done in 2000 shows that two times more consumers have experiences in online shopping than there were in 1995. At the same time, there were more online-only grocery companies who sell their goods exclusively through internet attempting to replace traditional supermarkets ;yet many of them eventually failed. The article analyzes the pros and cons of online shopping site business model as well as consumer’s motives, and concerns towards online shopping as opposed traditional grocery shopping. The author concludes that online shopping has a comparable advantage on service, convenience and product variety while traditional supermarkets tend to offer a better price. In addition, privacy and security as well as limitation on sensation (Consumers can’t touch the product)are also reasons why pure online grocery companies have a hard time attracting new customers. Lastly, online grocery companies pay no less on fixed cost which they have to invest a large amount of capital on storage centers and to keep them in full operation all the time. With low brand identification, not very many shopping sites could survive through the early stage.
Part of the economics, or should I say all, is driven by buying and shopping. Therefore, when consumers start to make the shift onto the internet, the economic structure will also be changing as well. Although the study was done as early as 2002, many predictions and analysts proved to be correct in today’s market. Grocery shopping comparing to cloth shopping has more barriers to get across. However, when meat and egg could also be sold online , the nothing-can’t-be-sold-online era has arrived.