Online grocery penetration in the U.S. is expected to reach 55%. How can retailers maintain growth momentum?

According to Forbes, in the year of the global outbreak , grocery e-commerce has quickly pivoted and moved forward. In the first few months of the outbreak, the US government issued a lockdown order and consumers began shopping online . During this period, US online grocery sales increased by about 40% .

Grocery e-commerce penetration rises

The coronavirus has pushed consumers to shop for essential items online , which has rapidly accelerated the adoption of online grocery services in the United States.

Insider Intelligence predicts that online grocery penetration will reach 55 % for U.S. consumers by the end of 2024. However, if the pandemic lasts longer, it will climb rapidly, reaching 66% by 2024.

Shifts in consumer habits were a boon for grocery e-commerce in 2020. Now, as the new year approaches and vaccines are rolled out, retailers may be considering how to maintain the momentum.

How retailers can maintain their growth momentum

While today’s grocery e-commerce players are benefiting from shifting consumer habits, they must offer services beyond pure e-commerce to stay competitive. In 2021, grocery retailers will have to find new ways to invest in their businesses.

1. Improve e-commerce fulfillment capabilities

In 2021, in addition to driving profitability, grocers will need to work hard to improve their ability to fulfill e-commerce orders to maximize revenue and meet customer demand.

2. Improve shopping experience

As shoppers become more comfortable with online shopping, e-commerce is expected to become the norm, and consumer expectations will continue to rise, grocery retailers need to provide a user experience that truly makes consumers’ lives easier.

Building an online shopping basket of 40 to 50 items is not efficient enough for the average grocery e-commerce business today. Consumers will also want to be able to easily filter items by dietary preferences and expect category pages and search results to be tailored to their personal browsing and purchasing history.

3. Change the payment method

As the economy recovers, unemployment and underemployment will continue to plague many Americans. EBT will become a payment method on most retailers' e-commerce platforms. Similarly, in order to build loyalty among young consumers, some avant-garde retailers may introduce alternative payment options such as cryptocurrencies.

4. Clarify positioning

The retailers that thrive amidst the growing competition seem to have one thing in common: a clear sense of purpose. As a result, in this industry, retailers with a clear sense of purpose are expected to continue to gain market share.

USA

Grocery e-commerce