How D2C delivery levels the playing field for grocery and convenience stores

With today’s consumers prioritizing convenience in every choice they make, direct-to-consumer (D2C) delivery is more popular than ever. 

Over the past few years, home delivery has moved from retail brands to restaurants, to fast-moving consumer goods businesses and grocery stores. Delivering products directly to consumers helps businesses increase their reach, create new revenue streams, and enhance the customer experience.

Not surprisingly, grocery and convenience stores around the globe have been strengthening their D2C delivery operations to tap into the booming Q-commerce industry, which sees operators delivering products to consumers in well under one hour.

What should you know about direct-to-consumer delivery for your grocery or convenience store? And how does the D2C model facilitate competitive advantages for both store types? Let’s explore.

The hurdles and opportunities of D2C grocery delivery

Cutting out the middleman and delivering goods directly to consumers has many benefits. It helps you meet customer demand, pads your bottom line and allows you to enter new markets and attract new audiences. 

One of the biggest strengths of the D2C approach is the amount of customer data you get access to and which helps you build a good CRM strategy.

But adding a completely new channel to your existing business model also comes with challenges. One of the biggest hurdles of selling online for grocery and convenience stores is keeping their product catalogs up to date. More specifically, the issue lies in managing fluctuating prices of thousands of items and making sure stock levels are accurate at any given time.

Fortunately, automating key processes (like order management, menu management, and inventory management) can help your store overcome this hurdle – and optimize many other aspects of your operation.

Speed (of delivery) becomes the number one differentiator

To fulfill their orders, stores that want to create an online offering can set up an in-house delivery service or team with third parties like Uber Eats, DoorDash, and Deliveroo. 

There is also a growing number of grocery-only delivery platforms to choose from, such as Instacart, Cornershop, and Everli. Stores working with those specialized delivery services even outsource the entire pick and pack process to their partners.

Whatever setup you decide on, on-demand D2C delivery levels the playing field for convenience and grocery stores, eliminating some of the biggest differences in both kinds of stores’ business models.

Main differentiators of physical grocery and convenience stores

While both convenience and grocery stores stock food and packaged consumer goods, their business models are significantly different when it comes to:

• Store size. Grocery stores typically have a much larger footprint than convenience stores.

• Location. While convenience stores are often located along the highway or in residential areas or urban centers, grocery stores are destination stores. 

• Opening hours. One of the biggest strengths of convenience stores is that they offer extended opening hours.

• Pricing. Grocery stores have a much bigger stock on hand, which they typically sell at lower prices than you’d find in a convenience store.

• Product range. Convenience stores work with a selected inventory, whereas grocery stores have a much more extensive product assortment on offer.
  

When selling online, it’s all about speed and convenience

All these differences fade into the background when you put up your store catalog for delivery.

Store size no longer matters. What matters is your inventory size and that it can meet consumer demand. On-demand delivery typically relies on a small, curated selection of goods. Some products will be more fit for delivery than others, so not your entire catalog will be included in your delivery offering.

Location becomes less relevant (for end consumers). However, customers will need to be in close proximity to your store to be eligible for fast delivery. Your warehouse must be easily accessible to on-demand delivery drivers and suppliers to guarantee fast delivery times.

On-demand grocery delivery is all about being available when customers want you. For grocery stores, that means extending their opening hours to compete with convenience stores.

Brands that deliver direct-to-consumer compete on speed rather than price. Especially in the Q-commerce segment, consumers are willing to pay a premium for ultra-fast delivery. A trend that both store types can capitalize on! 

Tech can help you thrive

To meet consumer demand and get goods delivered as fast as humanly possible, convenience and grocery stores need to maximize their delivery efficiency. That’s where technology comes in. 

Having the right tech solution in place can make the difference between surviving and thriving. Deliverect’s platform solution collates orders from all your online ordering channels and transfers them directly into your POS or ERP system. It also simplifies menu management across stores and platforms, facilitates automated stock syncing, and consolidates sales reports.

Do you want to make online grocery delivery a winning proposition by starting to sell direct-to-consumer? Get in touch with us and set up a free guided demo to see Deliverect in action.