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Grocery, which represents a quarter of retail sales in the United States, has been mainly untouched by Americans switch to online shopping. However, since Amazon and Walmart along with other major retailers have entered the arena, the playing field is about to change.
“We are seeing an increase in mobile shopping and price transparency, both disrupting traditional grocery selling models. The question facing today’s grocery retailers and CPG manufacturers are: ‘What to do online, when and how?’” says Jenn Markey, VP of marketing for price intelligence vendor 360pi.
U.S. grocers can look to Amazon’s struggles in the U.K. grocery market in order to make adjustments in strategy and succeed in online sales in this country. Markey offers several suggestions for successful digital grocery retailing:
- Survey the landscape – Know who is selling what and for how much. This will help you set prices that allow for incremental margins and sales opportunities.
- Strategically pick online categories – Know what is selling online today. Current hot products include breakfast foods, snacks, coffee and pet food.
- Package and price for online sales – Amazon wins at this because it packages products in larger sizes and at higher price points to offset shipping costs. Grocers typically do the opposite and must rethink the strategy.
For more tips and suggestions, download 360pi’s free report.