The way Indians shop for groceries online has changed. Read what’s new

As the dust of the pandemic has settled, the way Indians shop for groceries has undergone a sea change. What started as a necessity has transformed into a preferred convenience that extends far beyond the metropolises and Tier 1 cities to the busy corners of Tier 2, 3 and even Tier 4 cities.

After the pandemic, convenience and value for money led many households to do their grocery shopping online. Now, even in smaller towns, more and more consumers are opting for the convenience of having their packaged groceries delivered to their doorsteps.

A survey by LocalCircles, based on over 70,000 responses from online grocery shoppers across 227 districts in India, reveals several key findings:

For 86% of respondents, product quality is the most important criterion when choosing an online grocery retailer. This is closely followed by value for money and delivery time, which 73% of shoppers prioritize.

An interesting development from 2023: 67% of shoppers now want low prices with no delivery fee and are willing to wait up to 24 hours. 17% would prefer to have their groceries delivered within 30 minutes, even if there is a delivery fee.

The share of shoppers who buy groceries on demand rather than on schedule has increased sharply from 23% in 2023 to 57% in 2024, indicating a growing preference for same-day delivery and away from monthly or weekly scheduled purchases.

Six out of ten shoppers want automatic refunds for unsatisfactory purchases, without the hassle of physical checks or lengthy interactions with customer service. Almost 30% of shoppers use special platforms for exclusive products and often end up buying other food products on these platforms. This loyalty depends on the quality and service offered.

For the 17% of shoppers who prefer all groceries delivered within 30 minutes, the study finds:

66% come from metropolitan or tier 1 cities and 30% from tier 2 cities. Of those who report their age, 82% are under 27, underscoring Generation Z’s demand for fast delivery.

The challenge for platforms like Amazon Fresh and Big Basket is to shorten their delivery times to keep these quick-commerce enthusiasts on board.

A pilot review exercise in Noida, involving over 4,000 consumers and generating at least 500 reviews per platform, revealed key insights:

• Amazon Fresh: Leader in quality, value and service.
• Big Basket: Top in selection and exclusivity.
• Quick commerce platforms (Zepto, Blinkit, Instamart): Improved service and selection while maintaining fast delivery within 30 minutes.
• JioMart and Flipkart: High value but long delivery times.

Responses to the study came from a diverse pool: 62% men, 38% women, 51% from Level 1, 32% from Level 2, and 17% from Levels 3 and 4.