Currently, the online grocery market is at a nascent stage in India. Usually, the Indian consumers have a habit of buying grocery products from trusted local stores and big brands. The awareness of online grocery is yet to gain the mindshare of consumers, with only 1 to 1. 5 per cent of the total groceries which Indians purchase online.The market has seen the entry of many emerging players over the years like Bigbasket, ZopNow, Localbanya, Aaramshop etc, and in the recent past some new players have made its penetration like Pinkcitykirana, Grofers, PepperTap, etc. But none of them have been able to gain a significant market share.
The reason being that online grocery business is a very capital intensive business and maintaining an inventory model of perishable goods involves high handling, packaging and delivery costs per order which the customer is not willing to bear.Margins are below 10%. The companies are trying different business models to differentiate themselves but so far, have not been successful. In this report, I will do secondary research on how to improve online visitor and how to convert visitors to shopping. For this, understanding customer behavior is important which will be done by doing primary research i. e.