Online Grocery Shopping Is Our New Normal
These days online grocery shopping has become increasingly popular, suggesting that consumers are getting more comfortable ordering not just cosmetic essentials but also food. Grocers are rushing to take advantage resulting in a highly competitive market. Both established and newcomers in the grocery space are expanding their offerings such as curbside pickup and home delivery. In this video I'm going to focus specifically on my experience with Whole Foods and how it leans on the behemoth e-commerce and fulfillment capabilities of Amazon Prime.
Believe it or not, the overall size of the grocery market is an astounding 632 billion dollars. But the overall size of the online grocery market comprises only about 26 billion dollars but with plenty of room to grow as more and more consumers are not thinking about shipping anymore - they're thinking about convenience. The barriers to adoption and growth are coming down and grocers are investing heavily in technology, supply chain and partnerships that will make for a seamless experience for those who have already adopted other forms of online shopping.
I was inspired to create this video when I first proposed this statement on my Instagram and Facebook - Convince me that online grocery shopping isn't the wave. The overwhelming response was positive which isn't surprising considering many of my friends and family are tech savvy and seem to adopt the latest trends. But for the rest - it seemed as if online grocery shopping is simply a fad - that nothing beats the good old-fashioned shopping experience and buying local. Many choose brick and mortar retail locations as they love the touch and feel and social part of shopping. The instant gratification of shopping in a store is a real thing. But I've recently cut down on my spending - and you can check out my video - How I Survived Bad Debt - on the channel if you want to learn more about why. Now I view online grocery shopping with Whole Foods and Amazon as a way to manage my time and cost savings more effectively. Here's a few reasons why.
Free shipping within 2 hours
As it's done before, Amazon wants to change your shopping habits - in this case getting consumers more comfortable buying perishable products like dairy, vegetables and meat. And the best way Amazon has been doing that is by offering its free 2 hour delivery service right within the Whole Foods tab within the Amazon app. It's avoided one of the big barriers of adoption by not requiring you to download the Whole Foods app. Shipping is simple, you choose which 2 hour block time you will be home and that's it. The free 2 hour shopping is very transparent as Amazon will notify you when your order is being worked on and will also allow you to track it once its on its way. I'll often add or subtract various items from my cart throughout the day and choose the 4-6pm delivery window which is when I usually arrive home.
Fulfillment and easy to find sale items
Fulfillment is usually really good depending on the item that you're trying to find. Some niche brands like Beyond Burger or Oatley Oat Milk trend really high at a place like Whole Foods so occasionally those will go out of stock. But if you're into more generic brands, you should have no problems with inventory. If there is an item that's out of stock you have the option of automatically rejecting the item out of your cart or having a Whole Foods rep text you a suggested replacement item which you can approve or deny. Also Prime members get special weekly deals, plus an extra 10% off hundreds of sale items throughout the store. Sure you can see these deals while physically shopping but having all the sale items organized within the app makes it much quicker to find.
Maintain consistent grocery lists
I've never been really consistent with grocery lists when I shop and often find myself just winging it which is really the worst way to shop. With a grocery list you'll be able to make smarter decisions and properly evaluate the types of food that you and your family are consuming. By having a history based shopping list in Amazon, I can easily make micro adjustments depending on what's in my fridge. Rather than buying in bulk and guesstimating how many meals I can make, I can easily track exactly what ingredients I'll be using throughout the week.
Less impulse buying, replenish only what you need
Another benefit of creating an online grocery list is less impulse buying. By eliminating the opportunity to roam grocery store aisles or stare at snacks in the checkout line, online grocery shopping lets you get only the items you need. A recent study by HealthDay shows that shoppers who went to grocery stores that didn't have snacks by checkout areas made 76 percent fewer purchases of those items.
Convert shopping time into cooking time
Time is probably the most essential ingredient in better eating and spending. Typically those who spend the least time on food preparation also spend the most money on food away from home and are more likely to eat at fast food restaurants. A lot of time is spent driving to the grocery store, shopping, checking out, and driving back home. By converting shopping time into cooking at home, you'll end up choosing healthier options and getting more creative with meal prep. Because I'm able to choose only the ingredients I need, I find myself reverse engineering my favorite restaurant meals at home.
Ability to review your total before purchase for deeper insight on budget awareness
Making a budget is like doing homework, no one wants to do it. This is why online grocery shopping works for me. I can add items to my cart based on my gut instincts but the ability to review my cart before purchasing lets me realize that maybe I don't really need that giant bag of lime seasoned cassava flour tortilla chips. If you want to reduce grocery spending you shouldn’t buy extras or complicated items you really don’t need. Visually looking at my cart before hitting that purchase button removes the pressure you typically feel when you're at the grocery store. After a certain amount of time, you need to get out of there and that's the kind of mental state that pushes you to make impulse purchases.
Flex delivery via cars, not trucks
Now I'm not sure if this is common in every city but in mine, Whole Foods uses Amazon Flex Drivers who are really just random folks who use their personal vehicles to deliver groceries. The groceries come in sticker sealed paper bags and are often left outside on the porch. There is a debate about Amazon using Flex Drivers versus DSP's or Delivery Service Partners. DSP's are your typical large cargo van service that delivers hundreds of packages in one shift. For drivers, DSP's and Flex both have their pros and cons along with wage laws which I won't get into in this video. My perspective is strictly as a consumer. But as someone who works in the local tech industry, I definitely support independent contractors who are part of the gig economy and tip more than the recommended amount.