The Amazon Effect: Impacts of E-Commerce and Fresh Food Delivery

the impact of grocery e-commerce on fresh food delivery

The popularity of online grocery shopping is soaring, and with major retailers like Amazon and Walmart leading the way, analysts predict as much as one-fifth of all grocery sales will be made online by 2025. For consumers, the primary benefit is convenience: Instead of battling carts and impatient shoppers at your local grocery store, you can have your groceries delivered right to your doorstep with the click of a button. And you can do all of your shopping when it’s most convenient for you – even late at night. Shopping online also makes it relatively easy to compare prices, making it a budget-friendly option, too. What’s not to love?

From a consumer’s point of view, online grocery shopping seems like a major win. But for brick-and-mortar grocery stores, adapting to online sales is just one part of the battle. The biggest challenge by far is learning how to compete effectively with Amazon and Walmart.

Amazon: Poised for major growth

Right now, Amazon, Walmart, Target and major grocery chains like Kroger have the lion’s share of online grocery orders. But data shows that Amazon’s Fresh service is expanding at a much faster pace than its competitors, and analysts predict the online behemoth will eclipse other grocery e-commerce businesses in a decade or less.

In some ways, that makes the competition a bit easier; by narrowing the playing field, it’s plain to see that the one retailer to beat is Amazon. For retailers looking to carve out their own market share, learning how to capitalize on their own value propositions can help them capture local sales at a much more rapid pace and on a larger scale. So how do you do it?

Competing with Amazon: The key to success

Local grocery stores have a big advantage over Amazon right now in terms of their local loyalty and a smaller, more personalized presence. After all, customers put a lot of emphasis on both quality and value expectations when it comes to buying their food. And as a smaller retailer with a strong local presence, local stores tend to have a lot more going for them in terms of shopper trust and “built-in” loyalty.

Certainly, one way to compete with Amazon and grocery e-commerce sites is to make your brick-and-mortar experience as appealing as possible and having a strong and generous presence in the local community doesn’t hurt, either. To some degree, Amazon is viewed with the same sort of distrust as its major competitor, Walmart, which many communities view as being responsible for the decline in local business districts.

But as appealing as your business may be on a local level, consumers still want to maximize their budgets and their time. And that means if you want to compete in the ever-growing grocery e-commerce space, you need to position yourself for success right from the start.

ADC’s FreshIQ™: All-in-one solution for online grocery success

At ADC, we know that from a retail standpoint, it’s far better to be proactive than reactive. Our new online ordering feature was developed to help grocery retailers address the challenges of the emerging online marketplace, providing them with the tools they need to stay competitive. FreshIQ™ for online orders is designed to integrate seamlessly with your existing grocery e-commerce software and your store’s production plan workflow, eliminating compatibility and implementation hassles for truly simple execution.

In addition to streamlining the order fulfillment process, FreshIQ™ keeps you up to date with regulatory guidelines, including current fresh food labeling guidelines. The label function is designed to integrate with ADC’s FreshIQ™ recipe management solution, providing complete nutritional data, along with an ingredients list and allergen data on every label for greater consumer awareness and overall satisfaction.

FreshIQ™ for online ordering also simplifies and enhances your inventory process, providing automatic adjustments to supplies, materials and primals, so you can keep track of current inventory, plan for replenishment and cut down on waste. Active inventorying also ensures the products you deliver to your customers are as fresh as possible, for greater customer satisfaction and long-term loyalty to your brand.

And that’s just for starters. ADC’s ability to scale all of its products to your evolving needs is one benefit you can always count on, along with the support you need to grow your offerings and your brand, whether you’re doing business online or in a brick-and-mortar store. If you’d like to learn more about ADC’s FreshIQ™ Platform for grocery e-commerce software, we’d love to chat. Give us a call or get in touch using our online form, and get ready to learn how we can help you take your business to the next level of success.