On the one hand, we must highlight some advantages that we can’t overlook. Indeed, online grocery shopping becomes more and more popular and attracts different consumer profiles. The first assetis the rapidity of the service, people like to offload the core of shopping in store, and moreover most of the sites provide a history of purchases to order very quickly. Then stock shortages arerare and the choice is often larger for consumers.
But on the other hand, this system is still unstable. First, it concerns mostly big cities, since the delivery prices are expensive, companies fail todeliver regions with low density of population. As the online shops don’t need several locals, sellers and cashiers, superficially it seems to be more profitable, but it’s clearly more complex. Infact this market is overcrowded with plenty of companies. For instance, a company like Ocado, putatively estimated around £1 billion, increasing its sales by 21% a year, yet barely manages to makeprofits.
Indeed there are many drawbacks in online grocery system. Logistical constraints are huge: dealing with the cost of the enormous warehouses, the specific refresh trucks, the delivery distances,and the crush of orders on week-ends, needs an advised management team. Besides, it’s really difficult to manipulate consumers’ behavior since the shelving strategies are absent. That’s why thesecompanies tend to open brick-and-mortar stores, to capture impulse spending.
For many reasons online grocery shopping doesn’t seem to be a good system, companies struggle to survive and often need torelate to real stores.
The internet as much as the brick-and-mortar businesses have both advantages and drawbacks.
Online shopping has become unavoidable nowadays. Indeed, it provides such alarger choice then real stores, we can access any product and non-French brand. As the web has really accelerated the globalization phenomenon, it permits to discover and integrate different cultures....