October 16, 2021

A Guide For Canadian Entrepreneurs To Start An Online Grocery Business

Consumers’ behavior always keeps changing. They have started showing more interest in online grocery shopping. The current scenario has created a positive outlook on both grocers and consumers. Though all countries have shown tremendous growth in online grocery shopping, a big change has been noted in Canada in 2020 and a major enhancement is expected before 2024.

Candian Grocery Market Stats

Are you in a dilemma to start an online grocery business in Canada? Then you need to check these interesting stats about online grocery business and consumers buying behavior in Canada.

  • The retail eCommerce sales in Canada in 2021 are 29.9 billion U.S Dollars and expected to reach 40.3 billion U.S. Dollars by 2024.
  • The number of digital buyers in Canada is 27 million which is 72.5% of the Canadian population and this is expected to grow to 77.5% of the population in 2025.
  • 68% of Canadian respondents have stated that costing and saving are the major reason for preferring online grocery shopping.
  • During the Christmas holidays, 30% of Canadian shoppers spend more on online grocery shopping.
  • Around 57% of Canadian shoppers want their products to be delivered at their doorstep and around 17% prefer to pick up their groceries in-store.

Online Grocery Shopping Behavior of Canadians

Before you start an online grocery business in Canadian, it is very essential to understand the shopping behavior of Canadians. This will help you to frame your online grocery business effectively and will let you survive the market.

  • Canadians widely use their smartphones for shopping online. So you need to build your online grocery store as mobile-friendly.
  • Canadians prefer instant and quick delivery. Better provide multiple delivery options in your online grocery store.
  • They give high priority to products that contain offers and deals.
  • They expect a better return and refund policy that will simplify their returning process.
  • Shoppers in Canada need a clear description of the product they want to buy.

Always keep in mind the above-mentioned shopping behaviors of Canadians while starting an online grocery business in Canada.

Why Canadian Market Lucrative to Start a Grocery Delivery Business?

There is a greater scope in earning profit by starting an online grocery store in Canada. One needs to identify the user group and should set up the store that perfectly meets the audience’s demands in an efficient way. Let us analyze the key aspects that determine how the Canadian market is to start an online grocery business.

  • The major Canadian shoppers are millenials and Gen Xers.
  • The earning potential of Canadians is high as 1 out of 5 earn $100000 or above per year.
  • Current online Canadian shoppers shop online 5 times every month.
  • Canadians prefer to purchase non-perishable items rather than frozen products.
  • Most shoppers are from single or dual households.

Start An Online Grocery Business in Canada

To start an online grocery business in Canada, first you need to know how to get connected with Canadian shoppers. You need to make your brand visible to your target audience only then you will be able to hold the market share easily.

  • Connect with micro-moments – Canadians usually have a habit of surfing the net and going through reviews of products before they decide to buy. You need to make use of this opportunity to understand what exactly they want and should try to fulfill their demands.
  • Provide more convenience of payments – Canadians commonly prefer in-app purchases, online transfers, etc. The most preferred payment method is paying through debit cards. Visa cards and Paypal are the second preferred payment method. Make sure your grocery platform supports all these payment options.
  • Concentrating on customer experience – personalization is the crucial factor that makes online grocery stores stand apart from traditional grocery stores. Around 78% of respondents say they prefer to have customized shopping. So if you want to start an online grocery business in Canada, make sure you provide personalization to your users.
  • Free shipping and convenience – 55% of Canadian shoppers prefer grocery platforms that provide free shipping. They also prefer same-day delivery and pick up in-store. You need to prioritize these factors while building your online grocery store.

Popular Grocery Delivery Businesses in Canada

Canada market already has key players who are good in delivering online grocery services. It is very essential to know who your competitors are before you start an online grocery business in Canada.

Costco – one of the leading grocers in Canada that provides same-day delivery to its users. The platform is available in Alberta, Quebec, and Ontario.

Loblaw Companies Limited – this is the largest food retailer in Canada that has more than 700 pick-up locations. It has also partnered with instacart and has launched home delivery in 11 major Canadian cities.

Instacart – Instacart is the international grocery platform that has extended its operation in Canada by collaborating with 5 partners that includes Staples, Loblaw, Walmart Canada, M&M Food Market, and Pusateri’s. The special feature of instacart is instant delivery that delivers products within 1-2 hours on the same day.

Walmart – Walmart is the most reputed online grocery platform that holds millions of users and delights its customers in various aspects. Users can get their ordered products within an hour and also can schedule their orders 5 days in advance.

Conclusion

The scope of online grocery business in Canada is increasing day by day. Through statistics we can clearly understand how Canadians show interest in buying grocery items through online platforms. So the idea of starting an online grocery business in Canada will surely be profitable. We have also analyzed our competitors who have already proved themselves in this market. Now we need to build a perfect online grocery platform that inherits all necessary key features that will facilitate both grocers and buyers. By following a unique marketing strategy you can launch your platform and start the online grocery business in Canada.

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