As Amazon continues to dominate the eCommerce space, Amazon sellers remain on the lookout for the next big product, category, brand, or shopping trend. With the ever-present Coronavirus making its way into 2021, online grocery shopping is pegged to be the next big thing in the eCommerce industry. The threat of the COVID-19 pandemic has drastically changed the shopping behavior of consumers to lean towards online grocery shopping instead of brick-and-mortar stores.
In view of the current marketplace situation, Amazon sellers should capitalize on the transition of shoppers towards online grocery shopping. By venturing into the Amazon Grocery category, improved store engagement and profitability is attainable while riding the current eCommerce shopping trend.
Evolving Towards Online Grocery Shopping
Online shopping has been on an uptrend ever since eCommerce stores opened their doors for consumers worldwide. In a survey conducted in 2018, it was revealed that only 23.1% of consumers bought groceries online.
However, with the current COVID-19 pandemic, a 2020 survey revealed that this number increased up to 52% and is expected to increase further in 2021.
To further cement the growing popularity of online grocery sales, BusinessWire reported that E-commerce specialist, Mercatus and Incisiv projected an online grocery shopping revenue of around $250 billion by 2025.
Top COVID-19 Related Reasons for Online Shopping
To give Amazon sellers a better understanding of why online grocery sales could be the next big thing, here are some of the reasons why shoppers choose to shop online for grocery items, as per Digital Commerce 360 and Bizrate Insights survey.
Safety
Since the onset of the pandemic, consumers tend to limit their activities outside. The survey revealed that 54% of online grocery shoppers chose online shopping because they do not want to go outside due to the COVID-19 pandemic.
Save Time
Another 47.3% of shoppers made online grocery shopping their thing during this pandemic because they want to save time.
Avoid Queuing
Similar to the previous reason mentioned, 43.9% of consumers chose online grocery shopping to avoid long lines in the store. Hence, saving time in the process.
Simpler Transaction
26.5% of consumers would rather purchase groceries online because of the simpler shopping experience. With just a click of a mouse, grocery items can easily be searched and sorted.
Deals & Coupons
A population of 13.2% of the surveyed individuals would rather do online grocery shopping because of the accessible deals and coupons, such as Amazon deals and coupons.
24×7 Shopping
Another reason why 37% of consumers choose online grocery shopping is for convenience. Unlike malls and grocery markets that have limited operational hours, online platforms offer a 24×7 shopping experience.
Selling Groceries on Amazon: Things To Know
If you are planning to expand your Amazon business this 2021 and follow the predicted trend, here are some of the important things to know about the Amazon Grocery category.
Amazon Grocery: Seller Requirements
Amazon has made requirements for selling groceries on their platform simple and easy to understand. The requirements are based mainly on seller performance, such as:
- Order defect rate: < 1%
- Pre-fulfillment cancel rate: < 2.5%
- Late shipment rate: < 4%
Product Requirements
Amazon has laid down the following requirements to be followed by sellers –
The top product requirement to remember is that food products must be properly prepared, packaged, sealed, and labeled for Amazon to admit them into their Grocery & Gourmet Foods category. Additionally, a license or approval from the relevant agencies may be required for certain products included in seller listings.
A pretty obvious one, but included nonetheless is that all items must be new or fresh. Amazon will not allow sellers to list grocery items as “USED.”
Perhaps one of the most important grocery product requirements is the adherence to all federal, state, and local laws, including “FDA Food Labeling and Nutrition, FDA Pet Food, and USDA Label Approval.”
To know more about the product requirements to sell grocery items on Amazon, CLICK HERE!
Amazon Enforcement Actions
Since grocery items are regarded as consumables, Amazon is quite strict with the implementation of their rules and guidelines. If you repeatedly fail to meet quality standards and performance targets, Amazon will not allow you to sell items on their platform and they may even remove selling privileges.
Grab the Opportunity
The traditional catalysts for customer purchases, such as store proximity, item value, grocery product quality, and shopping convenience have not changed during the pandemic. Amazon sellers can easily take advantage of such reasons for purchasing grocery items.
Additionally, some shoppers are price sensitive and do not only care about product availability. Thus, suggesting the necessity of a dynamic repricing strategy for Amazon Grocery product listings.
With that in mind, 2021 offers a great opportunity for sellers to venture into the Amazon Grocery category and start their online grocery shopping store. Along with proper marketing and a reliable Amazon repricing strategy, you will be able to succeed in this competitive space.
