How to Start a Profitable Online Grocery Business like BigBasket?

Profitable Online Grocery Business

How to Start a Profitable Online Grocery Business like BigBasket?

We all are living in a fast-paced world where time is pricey. For better management of the situation, people have started relying on the internet to get essential commodities on their doorsteps. The ecommerce platform successfully revolutionized the mode of business of almost all industries. The online grocery business is booming. Its groundbreaking growth has triggered many to start a grocery business like Big basket.

As per a research report, the online grocery market in India is estimated to touch a whopping $ 7.5 billion by 2022, increasing at a staggering CAGR of 70%. At the same time, the global online grocery market is forecasted to rise 23% CAGR between 2020 and 2030.

Top Reasons to Start Grocery Business like BigBasket

With time, the demand for online grocery delivery apps is ever increasing. The recent Covid pandemic outbreak has just expedited the momentum. BigBasket, during the lockdown period, has reported about a 2X growth – jumping from 1.5 lakh daily orders to 3 lakhs.

Is it not the right time to foray into the online grocery business? Take the right steps today and see your business flourish in this emerging industry. Read on to know the reasons to start an online grocery store.

1. Rapidly growing Industry

The online grocery business has become one of the fastest growing ecommerce industries and is an ideal place for grocery shoppers. People get their items without making a queue at shops.

2. Expanding Customer Base

Online grocery stores today become the talk of the town and the wide customer base is endorsing its groundbreaking growth that leads to extending the customer base.

3. Technological Enhancement

With the rapid transformation of technology, mobile apps are becoming smarter with time. It helps in enhancing the overall efficiency of the grocery business and facilitates the smooth run.

4. Value for Money

Getting everything in one store is making shopper’s work easier. Nowadays it has become tedious to go grocery shopping. With the aid of grocery apps, the whole process helps in running business activities quickly. Besides, it is also cost-effective in nature.

5. Recognize Opportunity

Opportunity comes with a great motive, identifying the opportunity at the right moment can be an ideal option for groceries. With the widespread use of smartphones, online grocery shopping is growing at a tremendous pace. Getting a great opportunity can enable business models to reach greater heights.

What is BigBasket?

BigBasket is an Indian online supermarket that offers doorstep delivery of all kinds of groceries and other household products in the kitchen. Tata Digital Limited, a unit of Tata Sons, has a majority stake in the firm.

The top competitors of BigBasket include Grofers, Freshtohome, Nature’s Basket, Amazon Pantry and Walmart Grocery. However, BigBasket is a dominant player in the domain having over 18,000 products from more than 1,000 brands. Moreover, the grocer, which entirely works online, delivers very high quality products at low prices.

Key Features of Online Grocery Business

  • Extensive product range

Ecommerce players perform their home delivery businesses through websites and mobile apps and at the same time shoppers are starting to trust them. People these days are switching to online marketing due to the availability of a wide variety of products at one store.

If you aspire to develop your business, first you need to fill your cart with a large variety of products that are very often sought by most shoppers.

  • User-friendly Apps/Websites

Today smartphones are widely used by all age groups. The devices are reckoned as an amazing innovation that is making a buzz all around the world. One thing found common among all the successful online businesses is their user-friendly websites and apps.

Thus big companies look for unmatched web development solutions to grab the attention of online shoppers. Easy interface apps are among the significant reasons behind the sudden rise in the demand for online sites.

  • Right Categorization of Products

Your grocery delivery app might hold a large variety of products. If they are not systematically arranged, it’s of no value as customers find it difficult to get them. Arrange the products based on their category and also employ a smart search method that eventually helps customers select the grocery product with ease.

  • Exciting Offers

Offers and discounts are the best way to grab the notice of app users and customers. Thus you must announce great discount deals to woo customers once in a while. Such a suite eventually increases sales of the e-tailer firm within a short period of time. Discounts especially for the first time purchasers and also during festive seasons get the attention of online customers very well.

  • Hassle-free Payment Option

Easy payment option is one of the most vital features integrated in the grocery delivery app. People usually make use of various types of payment gateway scripts that work smoothly on their device.

There are different payment modes such as credit/debit card, net banking, UPI, etc. available that you can easily integrate into the grocery delivery software. Security is the utmost factor in online transactions.

To make your online grocery business successful, you need to prepare a few out-of-the-box strategies that include

  • Spot target market

Without identifying the potential market, jumping into a business directly can make you feel sorry. Proper market research and maximizing resource utilization to meet the consumer demand allows you to receive the best possible results.

Being a modern entrepreneur, you need to take care of the things that make your business journey so vigorous.

  • Analyze market trend
  • Set delivery method accordingly
  • Minimize wastage
  • Decide the area of operation

Selecting an area of operation can be a challenging task, and the serving you want to cover up with complete dedication is a prominent feature to look up to. It becomes tough to match with BigBasket during the initial days without defining the operation areas.

The analysis includes the population, demand, accessibility and more. You make sure that the delivery in an area can add value to your business in terms of profit and reputation.

  • Get your business registered with Domain

You must choose a catchy name that can essentially give a hint to customers about the nature of the business. After that you must register your domain with the same name. This would make customers remember your domain name/brand quite easily.

Make ready all the legal formalities like company registration, GST number and bank account beforehand.

  • Set up Delivery System

There are so many ways in which you can set up your delivery system. You need to keep a secure and flexible delivery system in place depending on customer needs. You are free to opt for in-house delivery, cash on delivery or a third party as there are many ways to provide grocery services and stand out in front of others.

  • Top Monetization Techniques

It’s obvious that new businesses need investment and for this they discover a few strategies to bring profit by utilizing their grocery delivery applications. The significant ways are discussed below.

  • Delivery Charges

Online grocery delivery organizations in general charge for delivery services based on the ordering amount. If the total amount exceeds a certain amount, the home delivery is not chargeable. Particularly conveyance charges depend on the area, distance or the sum of the product ordered.

Thus, to motivate customers, you have to devise robust techniques that could boost your sales and revenue at large.

  • Advertising

Promotion is the most ideal approach to create a good income. Online grocery delivery business houses can get numerous promotional offers with an option to advertise. Most companies pay out a specific amount to display their ads, videos or photos on your app. 

Thus you can look for the opportunity to allow ads and also charge the ad providing company according to the industry standard.

  • Commission

You need to prepare a revenue model based on commission, which is fixed according to the size and area. To make your business more profitable and accelerate growth, make sure the revenue model is quite supportive and energetic.

Approximate Cost to Develop an App like BigBasket

To build an app like BigBasket, you must be aware that there are so many factors influence the total cost of the project, which include

  • The platform you choose – iOS, Android, or web.
  • App development company you employ
  • Size of the project
  • App functionalities
  • Geographical location

To get the right estimation, feel free to communicate with us.


Keep in mind, the sky is limit. Get your basics right before jumping into the online grocery delivery business. By starting your own online grocery business, you can not only offer people in your neighborhood another convenient online shopping option but also earn a lot of money in the process.

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