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Over the last few years, the demand for grocery delivery services has surged – and as a result of the COVID-19 pandemic, its popularity has skyrocketed even further.
If you're looking to capitalise on this booming industry and launch your own grocery delivery business, we've outlined all the steps you need to take to get started.
A grocery delivery business sources fresh produce from wholesalers to resell to customers at a profit. Grocery delivery businesses generally market their service online using a website with product information pages.
A comprehensive understanding of the intricacies of running a business and how the grocery delivery industry works are essential. Having excellent problem-solving skills and being a strong communicator, so you can deal with any issues that may come up, are also important. To stand out from the competition, consider a niche market such as farmers market produce or organic fruit and vegetables.
While there's no set requirement to have a qualification to run your grocery delivery venture, understanding how to run a business is important. If you'd like to look into some extra study, a range of business courses are available in-person and online.
To keep your website up and running, you'll also need a quality web hosting platform.
Before starting your grocery delivery business, you'll need to decide on a business structure. These structures have different legal requirements and determine things like your liability and tax implications. The most common business structures in Australia are:
If you might expand your grocery delivery business throughout Australia and overseas, a Partnership or Company structure will be the best option for you.
Before launching your grocery delivery business, it's important to get all your legal documents in place. Here are some important documents to consider:
You'll also need to meet the requirements of the Australian Consumer Law while operating your grocery delivery business. You can find legal advice and services available online, as well as templates which you can compare below.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
To work out your pricing, factor in all of the costs involved with running your grocery delivery business. This ensures that the sale price of your products generates a profit while still remaining competitive with other businesses on the market.
Researching competitors will also help you get a ballpark figure for what customers will expect to pay.
For example, at the time of writing, delivery fees from some of the larger supermarkets in Australia can cost as little as $4 or as much as $20 depending on location, delivery speed and the value of your order.
Some companies will even waive delivery fees altogether for orders over a certain amount.
How can I find customers?
Tools you can use to create awareness for your grocery delivery business include:
Is a grocery delivery business profitable?
Yes, it can be highly profitable if you set up and run your business well. Keep a close eye on where you're spending money and ensure that you implement efficient processes. For example, delivering orders to the same postcode in the same time window minimises travel costs.
How can I increase my profits?
Besides the profit margin on groceries, you can generate revenue through other avenues. For example:
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