How to Start a Grocery Supermart
Business In Singapore?
A grocery store or a convenience store is one of the few things that everyone needs because everyone has to buy groceries every now and then. It’s a business that can generate steady revenue and will not go out of style any time soon too. It can grow into a profitable business and help you earn a comfortable living.
Keeping these factors in mind, you might find it a good idea to start a business in this industry. Nowadays, it’s trendy and convenient to order your groceries online and deliver them to your home. This is becoming increasingly more popular. Seeing the tide of events, you might want to start a grocery delivery business in Singapore.
If you’ve decided, you’re probably wondering how to get started. We’re here to help! We have prepared a guide you can follow on how to set up your own grocery delivery business. Follow these steps and become a successful business owner!
Step 1: Choose a Business Model
First things first, to start a business, you have to choose a business model that works for you.
There are the following business models in terms of grocery delivery in Singapore.
Model 1: Multi-Vendor Marketplace
In this online grocery delivery business model, you provide the connection between grocery stores and customers through an app or website where customers can log on, select a store to buy grocery in Singapore from and then order their groceries.
Once the order has been placed at the respective grocery supermart in Singapore, the order will be picked up by a delivery person and then transported to the location it was ordered to.
Model 2: Shopping Online
This is another popular business model similar to the Multi-Vendor Marketplace model. However, the difference between these models is that once the customer places an order, the app or website gets to decide where the groceries will be ordered from, depending on the convenience of the location. So instead of the customers picking the stores, the app picks for them.
Model 3: Inventory
This business model is most convenient for those that already own a grocery store.
You will find many grocery stores also switching to selling online in addition to selling in stores. This business model involves having your own stock of groceries either kept in a warehouse or sold in your grocery store. The only thing you’ll be doing is registering on an app or website to start selling online or creating your app or website where people can order online. For this model, you may or may not have your delivery staff depending on how you choose to sell. If you already have a grocery store business, this might be a convenient next step for you, widening the scope of your reach and increasing profits.
Step 2: Get the Legal Work Sorted Out
Once you have decided your business plan sorted out, it's time to sort out the legal work.
First, you need to get your company name registered and obtain all the necessary licenses you will need to start your grocery delivery in Singapore. You also need to register for any taxes on sales and services.
Step 3: Decide How to Collect Commissions
There are a few standard methods through which you can charge your customers and among them are
Charging a Vendor Subscription Fee
In this model, all the vendors selling on your site have to pay a fixed monthly revenue in exchange for selling on your platform.
Charging for On-Site Promotion and Ads
In this revenue model, you allow your vendors to advertise on their own banners and run personalized campaigns on the site homepage. You can also benefit by charging them for the campaign based on the space it takes up.
Charging by the Delivery
When you charge by each delivery made, you charge the buyer and the delivery person upon completion of the order and then credit the charged amount to the account of the marketplace owner.
Charging on Each Transaction
In this revenue model, you charge your vendors a certain amount on each of their sales. This means you can earn depending on the number of transactions that take place in your marketplace.
Step 4: Set Up Your Site
This is one of the most crucial steps because your user interface will determine how popular your site will become and how many sellers will want to register on it.
Some popular features you might want to include are...
This is necessary for your customers to be up to date about their groceries and aware of when they will be arriving.
This is the most important feature to add. The user-friendliness of your platform is determined by how easy it is to navigate. The simpler it is to understand, the better and the more you will attract customers and sellers.
Flexible Payment Options
You must keep in mind that one or two payment options may not be suitable for the vast majority, so having various payment options is also essential if you want more customers to use your app.
Product Catalog and Info
Another thing you should include is detailed information about each product so your customers can have as much knowledge about the product as they would if they picked it up in a store. A good product catalog is also vital because it will help your customers be aware of all their options.
Discounts and Coupons
Who doesn’t like a good save? Make sure to include discount features for your customers, so they choose your platform over others.
This is an important one, and you need to ensure that you have good customer service because if you cannot tend to the complaints and queries of your customers properly, your site is bound to get bad reviews.
Speaking of reviews, it is also a good idea to include customer reviews so future customers can determine for themselves whether or not it is worth it to buy the product based on them.
Step 5: Start Retailing
Now that your grocery delivery business platform has been set up, you are ready to embark on your retail journey and start delivering!
Did you find this article helpful? Share your thoughts with friends...