What Is Grocery E-Commerce? 5 Ways To Drive Online Sales
Grocery e-commerce isn’t just for the big chains anymore.
A staggering 67% of U.S. households now shop for groceries online. If your independent grocery store isn’t capitalizing on this market, you’re not just missing out on a new opportunity — you’re actively losing customers to your competitors.
Smart grocers recognize this isn't about choosing between physical stores or online grocery — it’s about giving your customers the best of both worlds. But how are you supposed to manage two stores at once? The key is to master grocery e-commerce for your store.
So, what is grocery e-commerce, exactly?
In this blog, we’ll break down everything you need to know, from key market trends to expert tips for driving more online sales.
Let’s get started.
What Is Grocery E-Commerce? Online Grocery Tips & Trends
Before we dive into our tips for boosting online sales for your independent grocery store, let’s cover some basics: What is grocery e-commerce, and what are the online grocery shopping trends to watch?
Online grocery shopping has evolved from a niche convenience to an essential service. This shift is both a challenge and an opportunity, especially for smaller grocery operations trying to compete with the big chains.
The grocery e-commerce market reached USD 50.28 billion in the past few years and is anticipated to grow at a compound annual growth rate (CAGR) of 26.8% through 2030 — that makes it one of retail's fastest-growing segments. This explosive growth outpaces almost every other retail category. For grocery store owners, online channels are no longer optional — they're quickly becoming essential.
Related Read: 5 Challenges of Operating a Grocery Store (+ How To Overcome Them)
As we discussed earlier, two-thirds of American households shop for groceries online at least sometimes. Millennials and Gen Z are driving this trend. These younger shoppers prioritize convenience and grew up with smartphones and laptops — their influence is reshaping industry standards for everything from website design to delivery options.
There’s also a trend toward mobile delivery and ordering. Mobile grocery ordering has surpassed desktop, with over 58% of online orders now placed through smartphones and dedicated grocery apps. This shift toward mobile underscores the importance of mobile-optimized websites and native apps for grocery retailers looking to get in on the online grocery craze.
For grocery retailers still on the fence about offering online grocery, these trends reveal a market that's fundamentally changing how Americans shop for food. The question is no longer whether to invest in online grocery, but how to implement these processes effectively.
With this critical context in mind, let’s explore our top five tips for driving online sales for your grocery store.
1. Start With the Right Tools
Before you can launch online grocery for your store, you need the right tools in place. First, invest in a grocery-specific e-commerce platform and point of sale (POS) platform. The right technology makes all the difference in creating a better customer experience.
Look for essential features that address the unique challenges of grocery retail:
- Real-time inventory synchronization across channels
- Weight-based pricing capabilities
- Intuitive product search and navigation
- Flexible substitution options for out-of-stock items
- Perishable item handling protocols
- Mobile-friendly checkout process
Pro tip: Don’t just invest in a generic e-commerce platform. Without specialized features designed for food retail, you'll spend more time creating frustrating workarounds than selling food.
IT Retail's POS system integrates seamlessly with major grocery e-commerce providers like Mercato, Freshop, and Instacart. This integration maintains inventory integrity while giving you the flexibility to choose the platform that best fits your specific needs.
2. Market Your Grocery Store Online
Once your e-commerce platform is in place, it's time to spread the word. Effective marketing for your online grocery service requires a multichannel approach that reaches customers where they already are.
Here are a few grocery marketing strategies you can use to get started:
- Email marketing to existing customers: Start with a simple announcement campaign highlighting convenience benefits, then follow up with targeted promotions. Consider creating a series that gradually introduces different aspects of your online service, from browsing to checkout to delivery options — each with a specific call-to-action.
- In-store promotion opportunities: Train cashiers to mention online ordering during checkout, place eye-catching signage at entrances and register areas, and create QR codes on shelf tags or weekly circulars that link directly to your online store.
- Social media showcases: Use your social channels to demonstrate the online shopping experience through tutorial videos and customer testimonials. Rather than just announcing that you offer online shopping, show exactly how it works with simple walkthroughs covering order placement, produce selection, substitution options, and delivery scheduling.
- Segment-specific messaging: Different customer groups will respond to different aspects of online grocery shopping. Young families typically value time-saving benefits, working professionals appreciate convenience, and elderly customers often prioritize accessibility features. Tailor your marketing messages to address each target segment's specific needs and concerns.
Whatever marketing efforts you use, be sure to maintain consistent messaging and promotions across all channels.
3. Offer Strategic Promotions and Bundles
Creative merchandising works just as effectively online as it does in store — sometimes even better! You can take advantage of this by building meal bundles or recipe kits that make online shopping even more convenient than in-store visits.
For example: Create a "Taco Tuesday" bundle with all ingredients needed for a family meal, or seasonal bundles around holidays.
You can implement online-only promotions to drive the adoption of your online ordering options. Free delivery with minimum purchases, first-time order discounts, or special pricing on bulky items address new online shoppers' most common hesitations, like concerns about delivery fees or produce quality.
You can also take advantage of your point of sale data to send personalized offers and promotions based on purchase history. For example, you might send notifications to regular organic product consumers when you get new organic items in stock.
Cross-selling is natural online, too. You can program your online platform to suggest complementary items based on cart contents — recommending salsa when chips are added or marinades for steaks. These helpful suggestions boost sales while offering a genuine benefit to your customers.
4. Prioritize Your Fulfillment Processes
The quality of your fulfillment processes will make or break your e-commerce success. While your marketing efforts will bring customers to your online store, it's your ability to deliver on promises that determines whether they'll shop online with you again.
Focus on these online grocery fulfillment essentials:
- Staff training and quality standards: Develop comprehensive training for picking procedures with special attention to selecting quality produce and making appropriate substitutions. Your pickers need to choose items with the same care (or better) than customers would choose for themselves.
- Dedicated fulfillment space: Carve out a specific area in your store for order assembly that doesn't interfere with regular shopping operations. This space should include organized shelving for pending orders, accessible refrigeration for temperature-sensitive items, and clear labeling systems to prevent mix-ups.
- Strategic time management: Align your picking schedules with store traffic patterns, handling most orders during slower periods when possible. Create staggered pickup windows and delivery slots that match your staffing capabilities rather than promising timeframes you can't consistently meet.
- Continuous process improvement: Regularly track key performance indicators like pick accuracy, substitution rates, on-time delivery percentage, and customer satisfaction scores. The most successful online grocery operations treat fulfillment as an evolving system that needs adjustment over time.
Related Read: What Is BOPIS? (+ How To Offer It for Your Grocery Store)
Remember: Customers judge your entire operation based on the quality of items that arrive at their door. Make your fulfillment quality a competitive advantage by including personalized touches like handwritten notes or follow-up satisfaction checks. Word-of-mouth about amazing customer experiences will drive adoption faster than any marketing campaign.
5. Implement a Grocery Loyalty Program
By offering grocery e-commerce, you’re not only giving yourself another income stream, but another opportunity to build great relationships with your customers. You can capitalize on this by designing a loyalty program that rewards consistent online shopping.
A well-structured loyalty program should include:
- Basic points for all purchases
- Bonus points for reaching spending thresholds
- Incentives for referring friends and family
- Extra rewards for scheduling recurring orders
Enrollment should be simple, whether they sign up in person or online. Customers should be able to join during online checkout or at the register, and should receive consistent benefits regardless of how they shop.
The most effective loyalty programs go beyond simple discounts. Consider exclusive perks like early access to new products, online cooking demonstrations, or member-only virtual events. These special touches differentiate your program from competitors who only offer basic price cuts.
Pro tip: IT Retail's loyalty integration with AppCard uses artificial intelligence to learn customer preferences and deliver personalized recommendations. This targeted approach ensures shoppers receive relevant offers that match their buying patterns, rather than generic promotions that miss the mark.
How To Get the Most From Your Online Grocery Store
These five tips give you everything you need to start boosting online sales for your grocery store. From selecting the right e-commerce platform to implementing an effective loyalty program, these strategies will help you set your online grocery store up for success.
The most critical piece of the puzzle is having the right tools. Without the right tech, even the best marketing strategies and fulfillment processes will fall short. Your e-commerce solution must work seamlessly with your in-store operations to create a unified experience for both customers and staff.
In other words, you need an all-in-one point of sale and inventory management tool that works for online and in-store sales.
IT Retail offers all these features and more. With over 30 years of grocery industry experience and a point of sale system designed by grocers for grocers, we understand the unique challenges of food retail — whether you’re selling online or in store.
Schedule a demo of IT Retail and start crushing it with grocery e-commerce today.