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Key Functionalities Required for Successful Food Delivery Mobile Apps

Ksenia Cheburova — Mon, 11 Dec 2023 11:00:00 +0000

Since January 2020, there has been a thirteen-fold increase in the number of users utilizing food delivery services. In recent years, the prevalent trend has been the adoption of food technology mobile applications. These include not only aggregators such as Uber Eats, DoorDash, GrubHub, but also individual food delivery applications tailored to specific restaurants and fast food outlets.

With two-thirds of global purchases being made via mobile devices, having its own mobile application has become a fundamental necessity for any food delivery business. This article will explore the essential functionalities that should be incorporated into a mobile application to ensure a user-friendly experience for both customers and restaurant administrators.

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Who Would Benefit from Having a Mobile App?

Two distinct business types stand to gain valuable convenience and advantages from the mobile application:

delivery services, encompassing logistics and transportation companies,
companies involved in the catering sector, including restaurants, cafes, sushi bars, and pizzerias.

For detailed insights into how restaurants can generate revenue online, we invite you to explore our article.

Essential Features for Customers

User Account and Registration

It is recommended to complete the registration and authorization process before finalizing the order, particularly after the cart has been filled. Provide the option for users to register using their social media accounts. The registration form should be brief and straightforward.

Enhance Search Functionality

Enhance search capabilities and incorporate convenient filters to enable users to easily locate their preferred restaurants or dishes. Additionally, please consider accommodating special requests such as vegetarian or allergen-free options.

Attractive Image and Comprehensive Description

The visual element holds significant importance: users first respond to the images and then delve into the description. The preview image should be sizable, visually appealing, and accurately represent the food. The absence of photos significantly diminishes the likelihood of placing an order. In the description, it is advisable to include the ingredients, weight, calorie content, and nutritional details — the more comprehensive, the better, to address any potential user inquiries.

Customization Options for Dishes

Delivery services often confine users to predefined meals and packages. If a product contains an undesirable ingredient, the user will likely opt not to place an order. Offer flexible dish customization: the ability to remove unwanted ingredients, add preferred toppings, select the degree of meat doneness, and so on, depending on the restaurant’s specifics.

Order Tracking

Enable users to track their orders in real-time within the app and through push notifications, promoting transparency in the delivery process and alleviating user concerns.

Upfront Delivery Information

Communicate delivery costs and minimum order amounts at an early stage, ensuring users have a clear understanding of the total order cost, including delivery, eligibility for free delivery, and whether the minimum order amount has been reached.

Timely Delivery and Multiple Address Storage

Offer various delivery options, such as expedited delivery or delivery by a specific time, and permit users to save multiple addresses for convenient ordering at different locations, such as home, work, or a friend’s residence, without the need for manual entry each time.

Reviews and Ratings

Incorporate a section for user reviews, ratings, and feedback, allowing for convenient submission. This section serves as a vital source of information for all parties involved, driving service improvement for restaurants based on feedback and aiding users in navigating the breadth of available options. Furthermore, motivating users to explore new dining experiences or eateries is another benefit of these features.

Encourage users to rate the app to enhance its ranking on App Store and Google Play, an approach that can be implemented through a post-delivery pop-up window, for instance.

Promotions and Discounts Banners

Highlight enticing offers and promotions through banners on the app’s home page or via push notifications.

Chat and Calls

Provide users with the capability to communicate with couriers via chat or phone. This functionality proves useful in scenarios such as delays in delivery or when customers urgently need to manage the delivery location. Additionally, incorporate a chat support feature for order clarification prior to placing an order.

Quick Options

Integrate one-click quick options for users to specify delivery preferences, such as “Leave at the door”, “Meet me on the street”, offering a streamlined approach instead of requiring detailed notes.

Repeat Order

Facilitate the quick repetition of orders through buttons in the user’s personal account or post-delivery.

Loyalty Program

Implement a customized loyalty program, considering the unique aspects of your business and user profiles. This approach can contribute to enhanced average spending and foster customer loyalty in your independent delivery application.

Essential Features for Administrators

Restaurant Control Panel. If you have an aggregator, the control panel should be straightforward and user-friendly for each restaurant. Restaurants should be able to view incoming orders, accept or decline them, and access all order details specified by the client, including the ability to modify ingredients if needed.

Real-Time Notifications. Ensure that notifications are promptly delivered to the restaurant’s end in real time, enabling swift responses to new orders or modifications to existing ones.
Menu Management. Empower restaurants to update their menus in real time to prevent inadvertent acceptance of orders for unavailable items.
Delivery and Coverage Area Configuration. Grant each restaurant the capability to define its delivery zone and set maximum distance parameters to mitigate issues with couriers.
Order Analytics and Reporting. Provide restaurants with accessible and intuitive tools to analyze key metrics through visually engaging formats such as graphs, charts, and summaries. A seamless visualization of statistics fosters restaurants’ confidence and trust in your service.

Customer Interaction and Feedback. In instances where direct inquiries are necessary, restaurants should have the capability to promptly contact customers to address inquiries or difficult situations. The most efficient method is through the phone number provided during order placement. For non-urgent queries, establish a centralized message center or incorporate a chat feature within the messenger.
Promotional Offers. Empower restaurants to craft and personalize special offers and discounts to drive customer attraction and foster application user growth.

How We Develop an Application

Phase 1: Planning

Initiates with preliminary analysis and project evaluation, involving a comprehensive review of the concept, a brief study of existing business processes and niches, and an evaluation of project complexity by a technical specialist.

Phase 2: Design

Involves outlining business processes and application logic, creating user journey maps, developing prototypes of application pages, and detailing technical specifications.

Phase 3: Development

Entails compiling a backlog of development tasks, planning sprints, and task distribution, designing the application interface, creating application pages for various use cases, developing a cross-platform application from the user’s perspective using React Native, building the Backend API, and integrating servers for data storage and payment gateway.

Phase 4: Testing and Publication

Comprises testing the application and publishing it on Google Play and Apple Store.

Phase 5: Technical Support

Involves ongoing technical support and maintenance of the application.

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What Factors Influence the Cost

The expense of creating a mobile food delivery application is contingent on its complexity and unique development requirements. Based on our experience, the initial cost of developing a mobile application starts at 700,000 rubles if a web version is already accessible. This estimate encompasses design development and its integration into the application, minor personalized modifications, and the process of publishing the application on Google Play and Apple Store. If you’re contemplating the development of your own online food store, our UX/UI designer offers guidance on constructing an effective conversion interface.

The post Key Functionalities Required for Successful Food Delivery Mobile Apps first appeared on Cart-Power.

Boosting Revenue: Effective Monetization Options for Restaurants Expanding Online Presence

Ksenia Cheburova — Thu, 07 Dec 2023 10:06:00 +0000

Based on Statista forecasts, it is projected that by 2027, approximately 2.5 billion individuals will be utilizing food delivery services, representing about 30.8% of the global population. This suggests that approximately one in every three individuals will be placing orders for food through online platforms.

In recent years, the prevailing global trend has been omnichannel, wherein a brand engages with its customers through various sales channels, including offline, websites, applications, and social networks. This trend has had a significant impact on the restaurant industry, particularly evident during the 2020 lockdown. Restaurants that successfully adapted and implemented delivery services were the ones able to survive.

Food delivery is not the only option for restaurants to generate income online. Below, we will offer effective monetization options for restaurants expanding online presence and how they can attract new customers.

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Benefits of a Restaurant Going Online

Expand audience reach: By going online, a restaurant can appeal to customers who are unable to visit the physical location due to factors such as distance or time constraints.
Enhanced competitiveness: In today’s market, having an online presence can be a critical differentiator in the competition for customers, particularly as many consumers prefer the convenience of ordering food for home delivery.
Customer flexibility and convenience: Online ordering offers customers time-saving and effortless options, eliminating the need to physically locate the restaurant, wait in lines, or prepare meals themselves. Customers can select and pay for their orders at their convenience, contributing to improved customer loyalty.
Access to customer feedback: Online platforms enable restaurants to gather and utilize customer reviews to enhance the quality of their services.
Transparent analytics: Online platforms and aggregators compile order information, presenting it in user-friendly reports, allowing restaurants to access valuable analytics for decision-making purposes.

Online Ordering via Delivery Platforms

The most straightforward choice for a restaurant is to collaborate with a food delivery service like UberEats, DoorDash, or GrubHub to deliver food from the restaurant directly to customers’ doors. The service lists the restaurant’s products and dishes available for home delivery. Restaurant staff access a dedicated application where orders placed through the service are shown.

Drawbacks include:

High service commissions.
Loss of brand uniqueness, as customers only see product cards.
Inability to maintain control over the final dish quality, as delivery is handled by the service's employees.
Challenges in swiftly updating the menu due to service moderation constraints.

Online Ordering via Restaurant’s Own Ecommerce Platform

Operating its own delivery service gives a restaurant full control over orders, from the kitchen to the customer’s hands. This allows for direct monitoring of dish quality, freshness, and timely delivery, consequently shaping the restaurant’s reputation and fostering trust with customers. This model can be realized through the functionality of an online store or a dedicated showcase on the restaurant’s website.

A client can visit the website, choose a dish based on visual and descriptive information, and select pickup or delivery. The administrator then reviews the order, confirms details with the client via phone, and subsequently forwards the order to the kitchen.

CS-Cart contains over a dozen delivery add-ons and integrations with external services. This empowers restaurants to exercise full control over delivery operations, including setting different tariff zones, offering free delivery, or disabling delivery for pickups. Additionally, the platform supports the implementation of various loyalty programs, coupons, gift certificates, and promotions.

Meal Kits and Semi-Prepared Food Items for Delivery

Offering semi-prepared food and meal kits for delivery can serve as an extra revenue stream for a restaurant. Recent research indicates a consistent rise in the demand for semi-prepared food. In fact, some studies project that the market for such meals is set to expand at an annual growth rate of 7.5% between 2021 and 2028.

A meal kit business model involves delivering pre-portioned ingredients and recipes to customers who want to prepare healthy and easy meals for themselves, families, or coworkers. The business can offer a variety of meal plans, from dietary restrictions like vegan or gluten-free to specific culinary preferences such as Italian or Mexican cuisine. The business likely operates through an online platform where customers can order and track delivery, with the option to customize their meal selections or skip orders if necessary. Meal kit companies often have a subscription model, but one-time purchases are also possible. They usually charge a fee per meal.

This approach involves incorporating an additional catalog section in the online store, where customers can add products to their cart and place orders as they normally would. Restaurant staff can then view and process received orders from the administrative panel.

What it should look like online food store to bring in more orders, said our UX/UI designer.

Meal Subscriptions

Provide customers with the opportunity to enroll in a meal plan in which they receive a predetermined number of meals weekly, delivered directly to their doorstep. The Recurring Subscriptions add-on enables clients to subscribe to products and receive regular billing for these products. This subscription model offers a valuable resource: time. Customers save time by automating recurring orders, while the store benefits from loyal customers, aiding in product stock planning. CS-Cart offers the Recurring Subscriptions add-on to facilitate this business model.

Food and Beverages for Takeout

It’s essential to cater to customers who prefer picking up their food and drinks in person. Offering take-out options not only serves as a form of advertising for the restaurant if orders are packaged in branded containers with the logo and contact details, but also provides convenience to customers.

Implementing this is straightforward. In the online store, you simply need to include pickup as a delivery option and provide the necessary pickup address details. By leveraging add-ons in CS-Cart, you can configure Google Maps to display pickup locations in a more user-friendly format.

Booking Tables and Catering Offerings

To streamline order management and reservations at your establishment, consider integrating a reservation system into your online store. This feature is beneficial not only for regular restaurants looking to facilitate table bookings, but also for those specializing in hosting banquets and catering. Additionally, you can utilize the restaurant premises for events, offering all these options in a dedicated section of the online store for swift and easy customer bookings.

It’s essential to provide comprehensive information on prices, terms, and available dates to preempt unnecessary client queries. A booking form and calendar can be designed for visitors’ convenience, ensuring they can swiftly access the required details without searching extensively.

For Event.top, we devised a timeline system that offers clear, concise visibility into all bookings. This automated calendar populates based on placed orders, streamlining the process and transparently presenting order statistics in the administrative panel. Moreover, the multidimensional price calendar functionality enables the restaurant to implement a flexible pricing strategy based on various factors such as the time of day or day of the week.

Gift Certificates

Restaurant gift certificates serve as an effective method to boost sales and entice new customers. They enable individuals to effortlessly offer gifts to their loved ones, while providing the restaurant with additional revenue.

The standard edition of CS-Cart features gift certificates and promotional codes.

Branded and Digital Products

In addition to food, the restaurant has the opportunity to sell other products online.

If the restaurant has established a strong following, there may be a demand for branded merchandise, such as items adorned with the restaurant’s logo. These can serve as promotional tools for the establishment, encouraging customers to revisit for their preferred dishes.
If the restaurant offers specialty food and drinks that are suitable for delivery, they can be listed as products in a dedicated section on the website. For instance, the restaurant could offer sweets, jams, and liqueurs for sale.
It is also feasible to sell items such as master classes and recipe collections. These products can be showcased on the website like regular goods, and upon purchase, the buyer would receive a link to download or access the file.

With CS-Cart, it is possible to commence the sale of digital products, including master classes, e-books, images, 3D models, online courses, software, music, games, and applications. This presents a cost-effective and straightforward method to generate additional revenue.

Proprietary Mobile App

A proprietary mobile application for a restaurant serves as a convenient platform for engaging with customers and enhancing their loyalty. It facilitates the following capabilities:

Swift and convenient ordering for delivery or pickup.
Access to the menu, ongoing promotions, and special offers.
Capability to leave reviews about the restaurant visit or communicate with the administration.
Receipt of notifications regarding new dishes, promotions, and events.
Creation of lists comprising favorite dishes and tracking of order history.
Ability to leave a tip and evaluate the performance of the server.

The mobile application can encompass all the features available on the desktop version of the restaurant website.

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Key Findings

Operating its own online store enables a restaurant to:

Gain independence from food delivery services and avoid paying commissions.
Foster customer loyalty and uphold brand reputation.
Attract customers and generate revenue around the clock by selling branded products, merchandise, and gift certificates.
Build a customer database using their contact details for sending out news and promotions.
Expand its business without the expenses of renting and renovating physical premises.
Increase profits through the use of a mobile application.

CS-Cart is an ideal solution for realizing various business concepts, including those tailored for restaurants. Connect with us to create a top-notch online store or grocery delivery service.

Read about other e-grocery business models.

The post Boosting Revenue: Effective Monetization Options for Restaurants Expanding Online Presence first appeared on Cart-Power.

A Comprehensive E-Grocery Guide: How to Run Online Business Successfully

Ksenia Cheburova — Thu, 30 Nov 2023 07:46:00 +0000

Launching a food delivery and trading venture online involves substantial initial investment. A clear understanding of the legal framework and adherence to all regulatory requirements is essential. For sustained profitability and a competitive edge, it is crucial to consistently optimize processes and rigorously monitor product quality.

Our comprehensive guide delves into the industry’s prospects, business models, and essential insights necessary to establish a lucrative e-grocery platform.

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What Is Online Grocery Shopping

E-grocery (online grocery) encompasses online trading of food, beverages, household essentials, and more. The demand for these products is constant, with farm-fresh and artisanal goods, as well as supermarket and restaurant deliveries, being particularly sought after.

While this niche presents significant potential due to diverse business models and monetization avenues, meticulous attention must be paid to legal considerations, sanitary standards compliance, and specialized production conditions. Product storage necessitates specific conditions, and arranging delivery to other cities and countries via delivery services may not always be feasible.

Is Online Food Business Profitable

According to Statista, the global grocery market experienced significant growth in online sales due to the COVID-19 pandemic. E-commerce’s share of grocery sales surged from 4.9 percent in 2019 to reach 7.2 percent in 2021.

According to Kantar e-grocery forecasts, the growth rate of this sector will amount to 9.2% by 2025.

As per Mercatus’ study, it is projected that grocery ecommerce sales will exceed 20% of the total U.S. grocery market by 2026.

In recent years, an increasing number of individuals have recognized the advantages of online shopping, such as diverse food choices, simplified dietary management, and enhanced product accessibility.

According to McKinsey’s research, grocery ecommerce is identified as the foremost COVID-era trend expected to persist long-term, driven by various practical reasons. Among these, health and wellness concerns are prevalent, with some individuals opting to continue staying at home despite the ongoing transition from the COVID-19 pandemic. Additionally, the allure of diverse food options available for online purchase contributes to the sustained appeal of ecommerce grocery shopping.

Furthermore, global supply chain dynamics play a role, as obtaining essential items online may prove more convenient than purchasing from local supermarkets in certain instances.

Regardless of the underlying motivations, the current period presents a favorable opportunity for retailers to contemplate transitioning their operations to the online sphere. Moreover, given the ongoing shifts in the economy, prospective first-time entrepreneurs may also be considering the establishment of an ecommerce food brand.

Online Grocery Shopper Statistics

43% of shoppers who have children under the age of 18 years purchase groceries online at least once a month.
Shoppers with young children are 95.5% more inclined to make monthly online grocery purchases.
41% of individuals aged 35 to 54 order groceries online at least once a month, rendering them the most frequent online grocery shoppers within the age groups.
When compared to shoppers aged 55 and older, individuals aged 18 to 34 are 119% more likely to engage in monthly online grocery shopping.

Superapps is the next step on e-grocery. E-Grocery superapps refer to apps that enable users to order groceries online for pickup or delivery from nearby stores. These apps typically offer a variety of features, such as product search, grocery list management, and real-time availability updates, to make the shopping process more convenient and efficient. Some popular e-grocery superapps in the US include Instacart, Shipt, and DoorDash Grocery.

Drivers of Growth

Factors fueling the expansion of e-grocery sales as per McKinsey’s findings:

Safety and convenience.
Ability to compare products and prices.
Expanded product variety.
Tailored promotions.
Home delivery convenience.
Flexible delivery alternatives.

Additionally, Chicory’s survey indicates that recipes featured on websites or social media platforms stimulate purchases. Furthermore, 51% of respondents highlighted the convenience of directly ordering necessary products from the same website where they access recipes.

Documents Required to Start Selling Online

In order to sell products online through an e-grocery platform, various legal documents may be required depending on your specific country and location. These can include a business license, tax registration documents, and proof of insurance. Additionally, you may need permits for selling certain products, such as food or pharmaceuticals. It’s always best to consult with local authorities or a legal expert to determine the specific requirements for your business.

It is possible to sell food online without a license, but the regulations and requirements can vary depending on the location and type of food being sold. In some countries or regions, there may be no requirement for a food license to sell online, while in others, you may need to obtain a permit or certification from the health department or local government agency.

Here are some items of advice

Ensure proper handling and storage of food. Familiarize yourself with appropriate food handling and storage procedures. Stay vigilant about food preparation methods to prevent potential foodborne illnesses.
Understand the supply chain. Inquire about your suppliers and gather references to ensure product quality and safety.
Collaborate with a laboratory to conduct product testing. Laboratories can identify and trace elements that may trigger allergic reactions.
Maintain comprehensive records. Track all incoming and outgoing goods within your facility.
Establish a positive relationship with the food inspector. Food inspectors provide valuable, no-cost guidance to guarantee the production of safe and quality goods.
Secure liability insurance. Protect yourself with liability insurance coverage in the event of any foodborne illness incidents.

In addition to the aesthetics of your packaging, different countries enforce specific labeling regulations. These may encompass best-before dates, nutritional details, allergen advisories, and product origin. If you intend to distribute your product internationally, particularly to retailers, it’s essential to thoroughly review the labeling regulations of the destination country.

Valuable resources:

FDA food labeling, ingredients, and packaging information (US)

FTC Fair Packaging and Labeling Act (US)

CFIA food labeling requirements (Canada)

Food Labeling Information System (EU)

Food labeling and packaging (UK)

Two Main Business Model: Produced vs. Curated

There are numerous methods to initiate a venture in the food industry, from supplying raw ingredients to manufacturers to establishing a restaurant. However, if your goal is to sell food online, there are two primary business models to consider.

Producing food products for sale

This model involves creating food in a home-based business or a commercial facility and directly selling it to consumers (DTC). You have the option to handle the entire supply chain and be personally involved in production, or collaborate with a third-party manufacturer who will produce and package a recipe according to your specifications. In this framework, you might also expand your sales channels and contemplate wholesaling to other retail outlets.

Several regions have cottage food laws, permitting the production of specific food items in a domestic kitchen without the same requirements as commercial kitchens. In the US, for example, it is crucial to research each state’s cottage food laws, as they can vary by location.

Curating and reselling food

This model entails reselling by curating other brands’ products under your own label. Your unique selling proposition (USP) might revolve around offering the best of a particular product type (e.g., mustards from various regions) within a unified shopping experience. Alternatively, you may explore drop-shipping to introduce another brand’s products to a new market.

E-grocery Food Production Model

1. Selling food from home

Certain food items can legally be produced and sold from your domestic kitchen; however, it’s crucial to research the regulations pertaining to your chosen product. In the US, FDA registration is required for home-based businesses, and upgrades to your home setup, such as improved ventilation, may be necessary. Obtaining the necessary license to sell food from home in your region is essential.

2. Renting from shared commercial kitchens

Numerous facilities offer shared or co-op kitchen space for rent based on your production needs. The benefits include reduced costs, less paperwork, and exposure to shared knowledge from other small business owners.

3. Setting up your own commercial facility

This approach provides full autonomy but is the most expensive option and requires extensive due diligence to ensure compliance with codes and licensing. This may be a future goal rather than the best option for new entrepreneurs.

4. Working with an existing manufacturer

Ideal for hands-off entrepreneurs, this option allows you to focus on the business while leveraging the expertise of manufacturers in food safety and regulations. This approach grants you the time to invest in other aspects of the business while entrusting the execution to professionals.

Some Ideas How to Choose Products for E-Grocery

If you’re still searching for a product to sell, consider the following recommendations:

Determine the logistics of product delivery to customers. Not all items are suitable for postal or delivery services, as some are perishable and require special shipping and packaging conditions. Your options include selecting products with a long shelf life for national or international shipping or focusing on selling fresh products within your local area, such as farm meat, artisanal cheese, or baked goods.
Avoid replicating supermarket offerings, as competing with them can be challenging. Instead, consider offering unique items, such as artisanal sweets or snacks, or creating customized products like sugar-free or soy milk.
Diversify your product range. For instance, if you’re selling farm meat, consider offering semi-finished products or sausages based on your own recipes.
Consider reselling shelf-stable foreign products, such as carbonated drinks, confectionery, spices, and coffee.

How to Start Online Food Business

Step 1: Formulate your business concept and assess your target audience.

Are you involved in production or operate a brick-and-mortar store? Do you aspire to vend products under your own brand or initiate a delivery service? Perhaps, as a restaurant proprietor, you are seeking a fresh sales channel? Irrespective of the business model, the initial and critical step in launching any business involves identifying your target clientele. Understanding their needs, preferences, and how to engage them proves instrumental in selecting your product range and formulating your marketing strategy.

Step 2: Review the legal framework.

It is imperative to acquaint yourself with the legal framework and compile the necessary licenses for your business concept to evade potential penalties.

Step 3: Devise a delivery strategy.

Will you oversee an in-house delivery service or forge alliances with courier companies? Compliance with packaging and transportation standards also merits consideration.

Step 4: Establish a website and/or mobile application. Integrate diverse payment and delivery methods.

The success of your venture significantly hinges on a user-friendly and operational website and mobile application for order placement. The interface should be intuitive and user-friendly.

Step 5: Arrange order reception and processing.

Ensuring prompt and efficient order processing is paramount. With CS-Cart, you can exercise authority over your warehouses to effectively manage your stock and orders. Alternatively, empower vendors with an array of tools to oversee their personalized micro-stores.

Step 6: Devise a loyalty program.

Loyalty initiatives prove to be potent tools in fostering recurrent purchases and nurturing enduring customer relationships. Basic principles include transparent terms, value for the buyer, and simplified registration. Gain insights into various loyalty program models and how to maximize their efficacy by delving into our informative article.

How Much Does It Cost to Start E-Grocery Business

Small-scale producers initiating home-based businesses face fewer overhead expenses and can later expand into commercial spaces as their operations expand. By bypassing costly leases and staffing outlays, it is feasible to commence selling food online with merely a few hundred dollars budgeted for ingredients, website development, marketing, and packaging.

If your living space doubles as your business area, it may be possible to claim a portion of your housing and utility costs during tax season.

If operating from home is implausible, consider the monthly expenses of a commercial facility when estimating your startup finances. While production facilities can be costly, several co-ops and incubators provide shared kitchens to entrepreneurs at a fraction of the cost of a dedicated space.

The expenses related to the project will primarily be contingent on the business model: whether it be a marketplace, online store, delivery service, or application. Factors such as the size and structure of the catalog, integration with third-party services, and bespoke enhancements will be impacted accordingly. It is essential to ascertain if a pre-existing theme template suffices or if a custom design is imperative. Additionally, discerning the need for automating business processes is crucial. Our managers can assist in navigating these considerations.

Outlined below is a breakdown of the expenses encompassed in developing an e-grocery project:

CS-Cart License.
Procurement and configuration of hosting and domain.
Responsive design theme.
Add-ons and custom developments.
Adaptive mobile version or a comprehensive application.

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The costs also encompass:

Integration of payment systems and delivery services.
Procurement of goods and establishment of a warehouse (if necessary).
Packaging.
Acquisition of declarations and trade-related documents.
Website and domain maintenance fees.
Promotional and advertising expenses.
Logistics and product delivery.
Returns and delays.

The post A Comprehensive E-Grocery Guide: How to Run Online Business Successfully first appeared on Cart-Power.

Exploring E-Commerce in Southern Europe: Is Launching a Business Worthwhile?

Ksenia Cheburova — Mon, 27 Nov 2023 15:14:14 +0000

Southern Europe ranks second in e-commerce market volume, trailing behind leading Western European countries. However, the region holds greater potential for the expansion of online businesses. In this article, we will explore the fundamental statistics of the area, as well as the potential and distinctive features of the three largest countries: Italy, Spain, and Greece.

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Key Findings

The region holds the second position in B2C turnover within Europe, following closely behind Western Europe.
The rising popularity of omnichannel approaches is evident, as consumers increasingly anticipate seamless integration between offline and online channels.
The usage of mobile devices for sales traffic is on the rise, leading retailers to adjust their sales strategies to ensure a positive shopping experience on smartphones.
The significance of social commerce is growing, with social media platforms directly integrating online shopping tools.
Market leaders in the region include Amazon and Shein, with a combined total sales exceeding 6 billion dollars.

Comparison to Other European Regions

The region comprises several countries, namely Cyprus, Greece, Italy, Malta, Portugal and Spain.

Based on the 2022 report from the European Ecommerce Foundation, 89% of the Eastern European population utilizes the Internet, with 64% engaging in online purchases. These statistics represent average figures across European regions.

In 2022, Southern Europe contributed to 16% of the overall B2C turnover in Europe, ranking second only to Western European countries.

Regional Overview

In Southern Europe, the number of Internet users has been steadily increasing. Moreover, the percentage of online shoppers experienced continuous growth until 2021, however, a 2% decline was observed in 2022. This shift is attributed to heightened consumer wariness regarding expenditure, influenced by inflation and the European crisis. However, the European Ecommerce Foundation predicts a revival in the number of online shoppers in 2023, with an anticipated increase to 68%.

According to Statista’s projections, Southern European countries are demonstrating substantial growth rates in e-commerce volumes. Here are a few examples:

In Spain, the e-commerce market is expected to reach 42 billion euros by 2023 and 63 billion euros by 2027, with an annual growth rate of 10.62%.
In Italy, the e-commerce market is anticipated to amount to 55 billion euros by 2023 and 89 billion euros by 2027, boasting an annual growth rate of 12.63%.
In Portugal, the e-commerce market is projected to reach 6.1 billion euros in 2023 and 9.8 billion euros by 2027, exhibiting an annual growth rate of 12.52%.

Prospects

Limited competitive presence: Due to the relatively sluggish pace of digital transformation in comparison to other regions, Southern Europe offers substantial market opportunities for online merchants.
Cross-border online commerce: Consumers in Southern Europe exhibit a keen interest in advantageous offers from other nations, with Chinese trading platforms and online stores from the UK and Germany commanding significant popularity. Analysts attribute the predominance of Chinese marketplaces to the inflationary conditions in Europe.
E-commerce website quality: Local online retailers in Southern Europe continue to exhibit technological shortcomings. Aside from major corporations like Inditex (Zara, Pull & Bear, Stradivarius) and global marketplaces like Amazon, the majority of websites lack modernity, feature limited product ranges, and have a scarcity of shopping apps. For further insights on seizing these market niches, refer to our article “Comprehensive Overview of Vertical Marketplaces: How to Create”.

Italy

Statistics Overview

Italy, the third largest economy in Europe, is anticipated to achieve a total turnover of 75.89 billion dollars in 2023, representing 2.26% of the GDP, as per Casaleggio Associati’s e-commerce report. In comparison to 2022, the turnover experienced an 18.6% increase, with a significant portion of this growth attributed to the escalation in prices. The e-commerce sector is expected to sustain its expansion, with a growth rate of 12.63%, culminating in an estimated market size of 96.79 billion dollars by 2027.

In 2022, 86% of the population in Italy utilized the Internet, and 57% engaged in online shopping. Forecasts indicate a resurgence of this figure to pre-crisis levels, reaching 62% in 2023.

Most Italian online shoppers prefer purchasing from multi-channel retailers that integrate both online and offline resources, particularly within the fashion and beauty sectors. Statista reports that over 20% of Italian consumers utilized apps or websites to make purchases at physical retail outlets in 2020.

Furthermore, mobile e-commerce is on the rise in Italy. According to a survey by the advertising platform Criteo, over 50% of transactions are conducted via mobile devices, notably among individuals aged 35 to 44.

Popular Categories

In Italy, the fashion sector maintains its status as the leading product category in terms of e-commerce revenue. This segment exhibited the most substantial growth in 2022 and contributed to 22% of the total online sales.

As per a Casaleggio Associati study, although total sales declined across most sectors in 2023, the turnover saw a rise owing to increased prices.

Payment Methods

The bank card ranks as the most widely used online payment method, constituting over 33% of transactions. Following closely behind, electronic wallets account for 32% of transactions, securing the second position.

An esteemed payment service provider, Jiffy, boasts a user base exceeding 5 million. This service seamlessly links the bank account’s IBAN code to the user’s phone number. In addition, Bancomat Pay and Satispay rank as prevalent mobile payment systems in Italy. Both of these services provide mobile applications enabling users to link their bank accounts and conduct digital transactions for products and services.

Key Players

According to ECDB, the sales volume rankings of the top five largest online stores are as follows:

Amazon.it (5,202.7 million dollars).
Shein.com (887.4 million dollars).
Apple.com (862.0 million dollars).
Zalando.it.
Unieuro.it.

Trends

Consumer rights protection:

In 2023, Italy enacted the Comprehensive Consumer Protection Directive, imposing fresh obligations on transparency in information sharing for online payments, reviews, discounts, search result visibility on trading websites, and safeguarding against unfair commercial practices. Businesses are required to adapt their operations to comply with these new stipulations to avoid facing fines and penalties.

Product repair popularity:

The EU’s policy on product reparability has impacted the Italian market, fueling a heightened demand for repair services. This influence has prompted certain Italian e-commerce enterprises to prioritize product repairs and refurbishments over the sale of new items.

“Green consumption”:

There is an escalating demand for eco-friendly products and sustainability in marketing and delivery. This is evidenced by the use of electric vehicles and bicycle couriers in major cities, real-time route optimization, which not only aids in reducing carbon emissions but also alleviates traffic congestion and shortens delivery times in densely populated urban locales.

Technological investments:

Significant e-commerce firms are directing investments toward artificial intelligence tools to enhance delivery processes, analyze customer data, and develop more personalized products and services. In the fashion sector, companies are actively pioneering virtual fitting rooms. These technological advancements are poised to minimize the rate of product returns.

D2C growth:

The D2C (direct-to-consumer) model has gained prominence across various sectors such as fashion, furniture, food, and cosmetics. Even food startups are leveraging D2C strategies to directly offer organic and high-quality products to consumers.

Digital payments:

The adoption of digital payments is on the rise, with a growing number of consumers utilizing QR codes and digital wallets for transactions.

Preference for local brands:

Italian consumers exhibit a strong affinity toward their local culture and heritage, often favoring local businesses. This preference has given rise to the expansion of marketplaces and e-commerce platforms specializing in local Italian products and brands.

Luxury goods demand:

Luxury goods are in high demand, with numerous platforms offering upscale fashion, jewelry, and home decor from renowned Italian and international brands.

Spain

Statistics Overview

The e-commerce market reached an estimated 72 billion euros in 2022, marking a 25% increase from the previous year (as stated by CNMC). Spanish experts project further growth in 2023, anticipating a 20% rise in e-commerce gross sales.

In 2022, Internet usage was recorded at 95% of the population, with 72% engaging in online shopping. Forecasts suggest that this figure will surge to 76% in 2023.

Online trading significantly contributes to the Spanish economy, with consumer spending in e-commerce representing nearly 6% of the country’s GDP in 2022, marking one of the highest rates in Europe. Positive growth trends in e-retail revenue are projected through 2027, particularly with a notable surge in new customers observed among food retailers.

Small and medium-sized enterprises (SMEs) are integral to the Spanish economy, constituting 99% of the business landscape, totaling 2.8 million enterprises. Although 75% of Spanish SMEs have an online presence, only a third are actively involved in e-commerce. The government’s “Digital Spain 2026” initiative aims to foster digital advancement among SMEs through funding programs, training initiatives, and digital literacy workshops. The government is dedicated to elevating Spain’s global standing in e-commerce and fortifying economic sustainability.

Popular Categories

In 2022, fashion shopping gained significant popularity in Spain, emerging as the leading e-commerce category with a market share of 27%. Electronics and media products constituted a quarter of the e-commerce market, while food and personal care products accounted for 19%.

According to Statista Digital Market Insights, the electronics segment is projected to dominate in 2023, amounting to over 9 million dollars. Concurrently, the fashion sector is expected to experience substantial growth in the coming years, ultimately surpassing electronics by 2027.

Payment Methods

Over 50% of buyers favor bank cards, while 40% opt for digital wallets, including PayPal, Bizum, and Buy Now Pay. The prevalence of e-wallet usage is anticipated to experience substantial growth in the upcoming years, as the proportion of individuals opting to pay by card is projected to decrease by 2025.

Despite the popularity of Visa and other international payment methods over local options, there is an emphasis on promoting the widespread adoption of Open Banking in the country in the near future. Online banking penetration in Spain reached 65% in 2021.

Key Players

According to ECDB, the sales volume rankings of the top five largest online stores are as follows:

Amazon.es (5,279.7 million dollars).
Elcorteingles.es (1,394.1 million dollars).
Shein.com. (1,142.2 million dollars).
Apple.com.
Carrefour.es.

Drivers of Growth

As per Statista, the primary factors propelling the growth of e-commerce in Spain are:

Convenient delivery is a key preference for the majority of consumers, who favor direct home delivery and the ability to shop at any time, particularly given the typical closure of supermarkets and hypermarkets on Sundays and during siesta on weekdays.

New technologies such as AI and virtual reality play a significant role. According to a 2022 survey on online shopping attitudes, approximately a quarter of respondents expressed a desire to physically interact with products before making a purchase, while 16% are open to utilizing augmented and virtual reality technologies if the opportunity arises.

Social commerce is also prominent, with over 50% of sellers in Spain anticipated to utilize Facebook for commercial purposes by 2023, along with 46% on Instagram. Additionally, merchants widely employ WhatsApp and YouTube, each being utilized in approximately 33% of cases.

Greece

Statistics Overview

In 2022, 84% of the population were Internet users, with 70% engaging in online shopping. The latter figure is expected to rise to 75% in 2023. In 2021, Greek e-commerce achieved a revenue of 3.6 billion dollars, demonstrating a growth rate of approximately 20%.

The majority of Greek consumers (91%) favor purchasing goods from domestic online stores. Furthermore, over a third of individuals engage in cross-border transactions, with the majority occurring within the EU. Among Greeks who made online purchases within the last three months, 27% did so at least once, while 38% did so on a regular basis (six or more times).

Popular Categories

Fashion accounts for 33% of e-commerce revenues.
Food and personal care products make up 24%.
Electronics represent 21%.
Toys, hobbies, and DIY contribute 12%.
Furniture and household appliances account for 10%.

Payment Methods

PPRO reports that in Greece, debit and credit cards are the most commonly used payment method, accounting for 49% of transactions. Following closely is cash on delivery at 24%, with e-wallets making up 16% of transactions.

Other payment methods, including installments and cryptocurrencies, collectively comprise only 1% of all online transactions in Greece. This stands in contrast to other regions where cash has largely been supplanted by new payment methods.

Key Players

According to ECDB, the sales volume rankings of the top five largest online stores are as follows:

Shein.com (162.7 million dollars).
Public.gr (129.0 million dollars).
Plaisio.gr (90.2 million dollars).
Zara.com.
Hm.com.

Trends

The prevalence of microbusinesses:

Greece’s economic framework is predominantly characterized by SMEs, particularly micro-enterprises with fewer than 10 employees, representing 94.6% of all enterprises in the country. To enhance e-commerce in the region, digitalization and support for SMEs are essential.

Gradual technological advancement:

Greece’s shift toward digital technologies aligns with broader pan-European trends. While the country has historically lagged behind more advanced nations, it is now making gradual progress.

Harmonization and disparity with the EU:

Greece shares strong ties with the EU in social and e-commerce aspects, including Big Data. However, it lags in the advancement and implementation of cloud services and artificial intelligence. The state supports e-commerce development through reforms, subsidized programs, and digital literacy training.

Shift to digital payments:

The popularity of e-wallets is progressively increasing, indicating a shift in purchasing behavior. According to a consumer survey, the most anticipated changes on websites include the introduction of convenient payment methods.

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IT Outsourcing: Advantages and Disadvantages

Nataly Komonova — Fri, 24 Nov 2023 08:52:38 +0000

Outsourcing involves bringing in external professionals to address your needs, either in part or fully. The outsourcing services sector is expanding and gaining popularity. A key factor behind this trend is the cost efficiency it offers compared to recruiting and employing in-house specialists.

Several driving factors for the growth of IT outsourcing include:

Shortage of qualified specialists within the company.
Enhanced security and accessibility in the outsourcing process.
Cost-effectiveness of hiring experienced specialists to streamline business processes.
Ability to concentrate on strategic business objectives by outsourcing specific tasks.

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Previously, IT outsourcing was mostly associated with technical support, but its scope has now expanded. The rise of e-commerce, new services, and cloud technologies necessitates greater automation of business operations.

What Services Can Be Outsourced?

Software development: platforms and systems for business processes.
Web development: ecommerce platforms, websites, marketplaces, their server and client parts.
Database management: automation of exchange processes between accounting systems and the website.
Website promotion: search engine optimization and marketing services.
Development and support of infrastructure: provision of hosting services.
Creation and maintenance of virtual assistants: chat bots, online consultants.

How Does Outsourcing Work?

Based on the level of collaboration with the company, there are different outsourcing options:

Project model. Engage with a project manager to connect specialized experts for specific tasks. For example, introducing non-standard payment methods may require a UX designer for a clear checkout, and backend/frontend developers for implementation on the site.

Dedicated team or specialist. Hire a specific developer or an entire team exclusively for your project. This option suits larger projects or startups.

Both the project model and the dedicated team can, depending on the payment method, be based on the principle:

Fixed Price. The price for services is clearly stated in the contract, so you know what to expect in this and subsequent months. But for this it is necessary to clearly understand the scope of services and formulate technical specifications. So, for example, SEO promotion services can be scheduled monthly for the whole year and the amount indicated. But for the task of transferring an online store from one CMS to another, it is not advisable to use Fixed Price; Time and Material is better suited for this.

Time and Material. The price will depend on how many hours the specialists spent on the task. At the same time, tasks from month to month may vary in complexity and volume. From the example above, transferring a store to another CMS may be accompanied by difficulties with non-standard export/import of data from orders or with rendering the store design, because the current template is not suitable.

Where is Outsourcing of IT Services Used?

In 2022, the global IT services market, including in-house and third-party services, was estimated to be valued at approximately $1250 billion, as reported by GrandViewResearch.
The pandemic led to a surge in demand for virtual workplaces, collaborative document services, and data exchange, especially with geographically dispersed employees. Across various industries, nearly 60% of organizations engage in outsourcing app development. In the financial services sector, this figure increases to 72%, with retail and wholesale companies following closely at 60%. Companies in the healthcare sector, on the other hand, exhibit a comparatively modest engagement at 31%.

In Eastern Europe, there is a growing preference for outsourcing, primarily due to the availability of highly skilled IT professionals at more affordable rates. On average, the hourly rate for a developer in Eastern Europe falls in the range of $35 to $60.

Benefits of Outsourcing for Ecommerce

Cost savings play a key role in outsourcing, with 59% of companies citing it as the primary reason according to a Deloitte study. Outsourcing enables 57% of companies to focus more on core business processes. It eliminates the need to retain full-time employees and consider workload post-project completion. Hiring external specialists for short periods suffices for product development and implementation.

The global pool of specialists is a significant advantage. IT companies offer remote services, allowing businesses to select a suitable company based on budget and location, and facilitate remote development.

The number of specialists and companies is increasing. According to Statistica’s projections, the sector is expected to employ 62 million people globally by 2023. The expanding array of products and services is driving the demand for specialized skills, making it more feasible to outsource a specialist.

Quick launch of projects. When it comes to launching projects quickly, the time-consuming process of searching, adapting, and training employees can be impractical at the startup stage. It’s more effective to opt for an external team when there’s a need to implement a project within a short timeframe, rather than undergoing a lengthy search for the right specialists.

Increased profits. Boosted profits can be achieved without starting projects from the ground up. Frequently, companies require minor adjustments and enhancements to expedite operations, automate processes, and enhance the throughput of applications and projects, ultimately leading to increased profits. Maintaining an entire staff of programmers for periodic improvements becomes unnecessary.

Safety and guarantees. In addition, development companies typically offer guarantees for completed tasks and free bug fixes. When working with a development team under a Non-Disclosure Agreement (NDA), concerns about the security of confidential information are alleviated.

Disadvantages of Developer Outsourcing Services

Limited project management. Limited project management can arise when the development company operates in a different time zone, following its own 8-hour schedule. This time difference can lead to delays in issue resolution. Additionally, when working under the project model, the company allocates limited time to customer tasks due to other ongoing projects.

Problems with mutual understanding with developers. Challenges related to mutual understanding with developers often stem from language barriers. Difficulties commonly arise in aligning goals and describing the logic of work. Customers may struggle to articulate their requirements using industry-specific terminology. In such cases, providing official documentation, examples, and screenshots of the desired functionality can facilitate better communication.

Dishonesty of developers. The issue of developers’ dishonesty is a potential concern when seeking cost savings on their services. It can result in a low-quality product that may initially appear functional but conceals underlying issues that only professionals can detect. In our experience, we’ve encountered instances where a major marketplace project was entirely put together by freelance developers, and with only a week left before its launch, it became evident that the site was incapable of handling customer traffic and would likely fail.

How to Choose Outsourced Developers?

When selecting a company for outsourcing services, making the right decision is paramount. Otherwise, valuable time and resources will be squandered in search of a new developer, potentially delaying the realization of your business idea indefinitely.

What you can check before starting to work with a development company:

Expertise in your industry. Prior experience with similar projects accumulates unique insight. This facilitates faster project integration and reduces the need for extensive explanations of work logic and features. Shared understanding and collaboration with like-minded individuals are likely to enrich your experience.

Portfolio and recent projects. Evaluate the latest work; if the company’s portfolio primarily consists of projects from a year ago, it warrants consideration. Request a showcase of designs for thorough evaluation.

Adaptability in operations. Can the development team modify and update the project scope if the workload expands or in scenarios where the project vision is not fully crystallized? Are they open to providing various options for interaction and pricing?

Quality assurance and guarantees. Gain clarity on the testing procedures, the involvement of QA specialists during the process, and the company’s approach to error resolution and post-project support timelines.

Reviews and ratings. Customer reviews and ratings play a crucial role. While favorable reviews are typically featured on the company’s website, it’s essential to verify their authenticity. If verification isn’t feasible, referring to platforms such as G2.com and GoodFirms can provide valuable insights, as these are reputable sources for evaluating IT agencies.

Partnership. Consideration of strategic partnerships and industry affiliations is also vital. Such alliances foster the exchange of tools and expertise, ultimately enhancing the quality of development. Additionally, an extensive affiliate network portrays a company’s proactive stance towards business development strategies.

The IT outsourcing market is rapidly evolving, with an increasing number of companies looking to outsource at least one business process. According to Clutch research, around 80% of small enterprises are currently using or planning to outsource part of their IT processes. However, finding skilled developers who can deliver high-quality solutions is a challenging task, and when such developers are found, companies often prefer long-term business partnerships.

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Furthermore, companies worldwide are prioritizing integrated solutions, with cohesive teams that work seamlessly together. This integrated approach fosters a faster and more efficient development process.

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