Skip to main content

Online food grocery retail outlets in India rising USDA

The number of online food and grocery retail outlets has increased to 44 so far this year from 14 in 2013 on the back of growing Internet users in the country as per a latest USDA report

Sub Category:

The number of online food and grocery retail outlets has increased to 44 so far this year from 14 in 2013 on the back of growing Internet users in the country, as per a latest USDA report.

Online retailers are competing with kirana stores that a provide quick home delivery and credit to neighbourhood consumers. Compared to these stores, online retailers will need to overcome delivery challenges, it said.

Besides, maximum of these online grocery retail outlets are operating in Delhi, followed by Bangalore, Mumbai, Hyderabad, Chennai, Pune, Kolkata, Chandigarh, Trivandrum and Coimbatore and others.

"Online food and grocery retailing outlets have increased from 14 in 2013 to 44 as of September 2014. Growth in online retail use has been greatest among younger and professional population segments," the US Department of Agriculture (USDA) said in its latest report. The number of online grocery retail outlets is expected to rise in future with total Internet users increasing from 120 million to 213 million in the past year as well as a fall in mobile handset prices and a rise in smartphone penetration, it said.

Highlighting fast changing trends in the India's online retail sector, the USDA report said: "Indian consumers are overcoming biases against purchasing items without prior inspection and safety of automated and online transactions. This shifting tendency is brought about by competitive pricing and the convenience of shopping for groceries from the comfort of one's own home."

Consumers are seeing that online retail provides some benefits over going to kirana stores (independent small grocers) or store-based retailers' outlets, it said. The availability of multiple payment methodologies such as online banking, cash-on-delivery, credit cards and debit cards have meant that it is convenient for urban consumers to shop online while saving both time and money, it added.


Emphasising the opportunities for continued growth in online grocery retailing, the report said, "Presently, most online retailers limit their distribution to a particular city, but operations may expand quickly if some business models prove successful."

Domestic products dominate the product categories, but most online retailers carry some imported food items. Given the complexity of importing food products into India, online retailers currently rely on local distributors, it said.

Websites like aaloo.in, eemli.com, fishvish.com, dilligrocery.com, tazastuff.com and veggibazaar.com are among 44 which are selling both domestic and imported food items in the country.

Votes with an average with
For more updates, be socially connected with us on
WhatsApp | LinkedIn | Twitter | Facebook

Related Story

COVID-19: Centre promotes Direct Marketing to decongest agri mandis, Photo: Shutterstock
COVID-19: Centre promotes Direct Marketing to decongest agri mandis

In the wake of maintaining social distancing during the trade of agricultural produce amid COVID-19 pandemic, the Department of Agriculture, Government of India has written to the state…

COVID-19: KVIC procures cocoon from Tamil Nadu farmers
COVID-19: KVIC procures cocoon from Tamil Nadu farmers

At a time when the country is struggling hard with COVID-19 pandemic, Khadi and Village Industries Commission (KVIC), an autonomous body under Ministry of MSME, in collaboration with its Khadi…

FARMING BY SATELLITE launches ideas competition
FARMING BY SATELLITE launches ideas competition

Aimed at young farmers as well as trainees and students, principally in the fields of IT, mechanical engineering and agricultural sciences, European GNSS Agency (GSA) and European Environment…