E-commerce is one of the fastest-growing industries in Australia, and the good news is that it’s for virtually all types of industries, including groceries.
Compared to other Asian countries such as Indonesia and India, the adaptation of online shopping in Australia is slow. It still represents less than 5% of the total sales. It doesn’t mean that it’s not growing. According to the data from Australia Post, not more than 10% of people used their smartphones to purchase a product online. By 2017, the percentage increased by around twofold. By 2020, it’s possible that 14% of the goods people buy will come from the Internet.
Skipping the Fresh Produce Aisles
While most products are now available online, not all of them have high demand. One of those lucky enough to break barriers is the grocery.
Two of the most popular products to purchase online are pet supplies and beverages. Overall, the number of households that prefer to have their groceries delivered went up to 403,000. That’s about a 24% increase from 2016 to 2017, according to Nielsen research.
Fresh produce has a different story. Its growth has been minimal over the last few years, but almost 300,000 more households are already buying them since 2017. Of the different types of produce, the popular choices are fresh fruit, fresh convenience produce, and fresh salad, which has the highest value online at 75.1%. All of them, though, accounted for nearly 67% growth of new produce shopping in the country.
Capitalising on E-commerce with These Options
Analysts consider a couple of factors that affect the growth of fresh produce in the e-commerce market. One of these is the customers’ need to guarantee the freshness of the product. They still prefer to see and touch fruits and vegetables by themselves. It doesn’t mean that retailers cannot overcome that challenge. Here are some possible solutions:
1. Dome Shelters
One of the options available is to set up container sheds that can speed up the delivery process. Retailers can set these up closer to their target market to reduce both transport and delivery times. These structures can also preserve the quality of the goods by preventing them from environmental exposure.
2. Money-back Guarantee
A money-back guarantee tells the customers retailers to stand behind the quality of their products. It also helps create a win-win situation for both parties. Adding a clause like “no questions asked” can further make this offer more attractive to buyers.
Retailers can also assure the safety and quality of their products by being transparent on their supply-chain processes. How do they choose the produce? Where do they buy them? What are their methods of preserving them?
Being transparent also boosts the credibility of the retailers and improves their relationship with their customers. It makes the latter feel they are part of the journey, which only enhances the value of the goods.
4. Customer Reviews
Social proofing is a powerful marketing tool. A Nielsen research in 2012 revealed that over 90% of people trust the recommendations of their friends and family. About 70% will believe reviews from strangers.
It may take a while before Australians break their shopping norms when it comes to fresh produce, but these solutions can quicken the process.