Online food retail again tops the agendas of grocers as more shoppers surf the Web to buy fresh foods and packaged products. The leaders “deliver the goods” using smart, customer-friendly strategies.When e-commerce was first recognized as a sea change in business, many companies tried to enter the realm of online grocery. But many of these pioneers failed when the Internet bubble burst, and in the decade since, online grocery sales have grown much slower than the overall e-commerce market.For the most part, customers in India continue to shop for their groceries by going to stores. However, the online market is growing quickly in some countries. India has a particularly vibrant market, with Internet grocery sales comprising .015 percent of total grocery sales in 2010. In other countries with similar characteristics, however, growth has been slowThis paper examines the business models for online food retail, discusses why food shoppers are often hesitant to purchase groceries online, and outlines the factors that will help grocery retailers succeed online.
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