Ordering grocery online has become a routine in metros, Tier 1 and 2 cities and is fast becoming a trend in Tier 3 and 4 cities as well, thanks to the convenience and value for money it offers. A LocalCircles survey has revealed that for 86 per cent of online grocery buyers, product quality is the most important criteria when buying groceries online and selecting platforms while value for money and delivery time are other important parameters that matter to 73 per cent of them.
Delivery Time/Speed was not a criterion of importance for online grocery buyers in 2023. This changed in 2024 with growing competition in this sector as apps started offering instant delivery.
However, the survey said that buyers are willing to wait if the delivery is free. The survey said that 67 per cent buyers want value pricing and no delivery fee and are willing to wait up to 24 hours while 17 per cent online grocery buyers want their grocery delivered within 30 minutes. Of these 17 per cent, 66 per cent were from a metro/tier 1 city and 30 per cent were from tier 2 city. The survey showed that GenZ buyers are willing to pay a fee for an instant delivery as 82 per cent of the ones willing to pay were under the age of 27.
The survey has also pointed to a shift from planned grocery ordering every month as more delivery apps offer same day delivery. The percentage of online grocery buyers who buy grocery as and when required as opposed to on a scheduled basis has risen from 23 per cent in 2023 to 57 per cent in 2024.
Meanwhile, 6 in 10 buyers want refunds automated without requiring physical inspections/product return with minimum phone interactions. This indicates that online grocery buyers value time and do not want to spend 15 minutes with a grocery platform’s customer service to request a small amount of refund for poor quality.
The survey also found that nearly 3 in 10 online grocery buyers use specific platforms to purchase exclusive products and end up buying other grocery items from them as well.
In Noida, Amazon Fresh led on quality, value and service while Big Basket on selection and exclusivity in terms of ratings. Quick grocery platforms like Zepto, Blinkit and Instamart improved their service and selection ratings in the past 12 months while delivering groceries within 30 minutes.
The survey in the 2024 study is based on over 70,000 responses from online grocery buyers located in 227 districts of India. While 62 per cent respondents were men, 38 per cent were women. A total of 51 per cent respondents were from tier 1 locations, 32 per cent from tier 2 locations while 17 per cent were from tier 3 and 4 districts. The survey also included a ratings pilot exercise done over a 6-month period, in Noida, where all platforms were operational.
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