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Comprehensive Information on Grocery App Development: Business Models and Feature Sets, Costs!

Since mobile apps began to influence our daily lives, grocery delivery apps have been a very popular on-demand app category. Groceries apps have become a popular choice for global consumers due to their convenience. They allow you to order online, avoid long lines at physical stores and receive home delivery of your essentials with just a few taps. Groceries apps have seen a surge in popularity due to the rise of social distancing during the pandemic.

These are some market statistics that will help you understand the adoption of grocery apps. As per a study conducted by the online portal,

  • “The market value of online grocery sales in the US is expected to hit 243 Billion USD by the year 2025!” 
  • Walmart Inc. is the top-selling online retailer in the US in the category of online grocery sales, closely followed by Amazon and Kroger.”

Consumers are clamouring for grocery apps. To capitalize on the growing demand for grocery apps, many entrepreneurs have invested in their development. This article will cover many aspects of grocery app development, including cost, functionality, key features, and business models. This quick guide will give you helpful information to help you prepare for your next grocery app development project.

What does the On-Demand Grocery Mobile App do?

On-demand grocery apps offer a virtual grocery shop where customers can order products online and have them delivered right to their door. Online grocery stores work with local delivery partners and retailers. This is how an app for grocery shopping works:

Step # 1

The app allows users to register by entering their name, address, phone number, and password. After entering the required details, such as name, delivery address, contact number, and password; the user logs in to the app with a mobile number/email ID.

Step #2

To find the item they are looking for, the user can browse the products available at the online store. You can use filters to make the search easier and find products or brands that you are looking for.

Step #3

The app allows the consumer to choose the items and then determines the number of items required. Finally, the app will add them to the virtual shopping cart.

Step #4

After confirming the order and delivery address, the user can make the payment via any of the available online payment gateways. Consumers can choose to pick up or have their orders delivered to their homes. Some grocery apps allow customers to select the delivery date and time that they prefer.

Step #5

The request is received by the admin. The request is sent to the manager of the grocery shop.

Step #6

The manager of the store responds by accepting or declining the request.

Step #7

The order is then generated by the store manager who notified the admin that delivery has begun. The order tracking link is generated. It can be accessed in the customer’s profile.

Step #8

The products are delivered to the customer by the delivery service.

How does an online grocery store work?

On-demand Grocery Application Development: Business Models Types

Stock Model

This model allows entrepreneurs to purchase groceries or products from multiple sources and third-party suppliers. The platform accepts orders directly from online buyers and then delivers the orders via an internal or external delivery network.

Big Basket is an example of a business brand that follows this model. They purchase grocery items directly from farmers, retailers, or other providers, store the products in their warehouses, and then they sell those products under their labels.

Businesses that adopt the inventory model manage all aspects of the business, from product consistency monitoring to product distribution management to customer service. The profit margins for this model are higher than other ones because they control the supply chain without any intermediaries.

This model requires more infrastructural investment and higher operational costs. Because the business must manage warehouses, quality control, customer order transport, and set up warehouses, it will need to invest more in infrastructure. Perishable products must be washed if not used within a specified time.

Online Marketplace with Multiple Vendors

This model means that the online platform doesn’t handle stock directly but connects customers to nearby grocery stores. Multiple options from different stores will be displayed to the consumer when they search for a particular item. The logos of the brands are displayed on orders sent to consumers. Multi-vendor models have been one of the most successful grocery app models. This business model is followed by Amazon in all regions.


This model allows app users to connect with local grocery stores. These store owners manage the delivery operations and receive orders from consumers. These aggregators work with local grocery store owners to list their names and offer details. The store is responsible for shipping the order to the buyers. The online platform acts only as a facilitator between the buyer, and the store owner.

Grocery Shop Self Model

The business brand hires a service to develop a custom app for its brand. The brand has an IT team that manages all aspects of the app, including updating menus, collecting payments, and delivering orders to customers.

On-Demand Grocery App Development: Must-Have Features

Here are the top features you need to add to your grocery app.

Panel Features

Registration: Users register with the app by using their contact number or e-mail ID. After successful registration, users can create their profile with a username and password.

Login: Users should be able to log in with their social media credentials. This will allow them to quickly login.

AdvancedSearch: Users can use advanced search options with filters to quickly identify specific brands and product categories. They can also choose a price range to aid their search. It makes shopping easy and smooth.

Delivery Date and Timing Customers have the option to choose the time and date that suits their schedule and availability.

Order Tracking:

In-app chatting or calling: Buyers can contact delivery personnel and communicate with them in real time.

Real-Time Tracking: Users can track the delivery status on the map in real time.

Referrals – Users can recommend the app to their friends and acquaintances, and users get special discounts for referrals that are successful.

Return/Replacement/Refunds: Customers are provided the option to replace items purchased and also return damaged items and get a refund for them. The return process must be initiated through the app within a specified period from the date of purchase.

Wish list: A user can add an item to their wish list to save it for later purchases. Customers can also add products to their wish list if they are not able to find the product in stock. When the item/s is back in stock, consumers will be notified.

Favorites – This section stores the most frequently purchased products for future reference.

Order History: This records order summaries, which are helpful for consumers who wish to repeat orders.

Push Notifications – Users can receive notifications about new arrivals and promotional offers, as well as discounted prices, stock clearance discounts, and other information.

Customer Reviews Ratings: Customers share feedback and ratings about a product. This allows you to attract more customers and expand your customer base.

Customer Service: This allows customers to ask questions or raise concerns about products, refunds, and payment transactions.

Admin Panel Features

Interactive Dashboard – It provides vital information regarding business insights, sales, and order tracking. Only the administrator can view such information. Administrators can monitor and manage all orders and deliveries made through the grocery app.

Admin Login allows you to access the back-end app. Administrators can perform tasks such as resetting passwords, managing campaigns, notifications, and so on.

User Administration: The admin can view all users registered to the app and manage them.

Return/Replacement/Refund Management: Once the consumer places a return/replacement request, the admin analyzes it and can approve or dismiss it.

Product Management/Content management: The admin manages all content and product lists on the app. Administrators have the power to modify, add/remove items to the app’s product list or disable/enable products already displayed in the app.

Order Management – An admin can assign orders for delivery to delivery people or partners at grocery stores. The order delivery is then tracked in real-time and information about how much each order earned is.

Payment Management: The Admin manages and controls all payments, refunds, and other matters relating to taxes and commissions. He also settles any payment-related disputes.

Inventory Management The admin verifies the availability of grocery products in real time to prevent product shortages. Administrators can then make informed and correct decisions based on this information.

Business Reports – It offers real-time, insightful business reports. The admin can set filters or attributes to view specific data. Administrators can monitor the performance and efficiency of their delivery network using this data.

Delivery panel Features

Delivery Notification: This notification is sent to the delivery vendor when a consumer order has been confirmed. It includes details such as an address, delivery location, and contact number.

Accepting/Rejecting Delivery request: The delivery vendor can accept or reject the delivery request.

In-app communication – Customers and delivery personnel can communicate with each other using voice or in-app messaging.

Route Optimization This feature uses Google maps to show the shortest route to consumers.

Live Tracking via GPS – This feature is very helpful for the recipient and the customer.

Digital Signature for Consumers: Some grocery delivery apps offer this feature. Once they have received their order, the consumer must digitally sign on to the app.

Delivery Completion Note: After the product has been delivered to the buyer the delivery person marks that the task is complete. The admin receives an email notification from the app confirming the delivery status and the order number.

Store Owner Panel Features

Store locator – Store owners can move their stores to the map. The map can be used to locate the store.

Store Pick-up: This option is available to customers who wish to avoid delivery fees and enjoy hassle-free shopping.

Store Profiles Management – The store owner can edit the profile of their store and make any necessary changes remotely from any place.

Tracking via GPS: This allows the store owner to track and verify the delivery status.

On-demand Grocery Application Development: Cost Considerations

The most important, but also the most difficult part of grocery app development is the estimated project cost. Estimating the cost of a project is not as simple as it sounds.

If the app is for one platform, Android or iOS, the average cost to develop a grocery app is between $10,000 and $30,000 Cross-platform app development can result in expenses up to $50,000

Entrepreneurs have found that outsourcing grocery app development services to experienced offshore teams is the most profitable strategy.

I hope you found this blog helpful in creating your grocery app. Groceries app development can be complex, and it can be difficult for both novice and experienced entrepreneurs. It is recommended to partner with a Grocery App Development Company. They will help you throughout the entire product development process, from ideation through deployment and support after deployment.


Smith Joe

Smith Joe, an experienced content writer, enjoys sharing his thoughts on various online delivery firms, eCommerce, on-demand business models, and so on. Furthermore, he has assisted numerous entrepreneurs by providing them with advice on Internet enterprises and their influence on the market.

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