How to Start Online Grocery Business In India

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Nowadays, smartphones and tablets have changed the world around us. From buying clothes to buying apartments, from buying food to buying furniture, almost everything that we think of having is available on the Internet to buy. Significant during the Covid 19 pandemic, customers have shifted their focus from physical stores to the eCommerce industry or online stores.

In India, grocery stores are considered the heart and soul of the community as they are the source of nutrition, tax support, and provide jobs. The online grocery market has crossed the 190 billion mark, and by 2026 an estimated rise of 28% CAGR is expected. So, In today’s article, you will be learning how to start online grocery business in India.

How to start an online grocery business in India?

While setting up an online grocery store, you must have the following things in mind:

tasks_2021_2xBusiness registration

You can register your online grocery business as a partnership or a sole proprietorship firm or have a private limited company registration. You will need the following permits and license to start the business:

  • Fssai registration and license: Via your online grocery store, you will be selling various food products and processing the item. So you must get an FSSAI Registration.
  • GST registration: This is an indirect tax that covers the goods and services that you are offering. All the existing online businesses, be it central or state, are now covered under GST and have to get GST Registration and do GST Return Filing
  • Trademark registration: Before starting an online grocery store in India, you also need to obtain a trademark registration to secure your brand and create a unique identity for your business.

tasks_2021_2xLearn about your target audience

Before starting the business, you need to identify the eating habits of the local residents. This research will help you select the items with heavy demand, and you can stock them well in advance.

tasks_2021_2xSelect your delivery region

Nowadays, most customers are searching for ‘grocery delivery near me’ instead of going to supermarkets and grocery stores. So you must select your delivery location in such a way that the grocery supplies can be delivered quickly.

As most of the customers prefer same-day delivery, you also need to get hold of delivery agents and a fleet of vehicles.

tasks_2021_2xInventory management

To run a successful online grocery store, you must know how to manage your inventory. There are two ways: you can stock supplies in your warehouse, or you may tie up with other local grocery stores and wholesale supplies for your delivery.

tasks_2021_2xChoose a mode of payment

If you are offering door-to-door delivery, then the best option would be to offer cash-on-delivery or card-on-delivery payment options. An additional benefit is that you do not have to wait for the payment.

tasks_2021_2xPick up at store facility

You may also offer to pick them up at the storage facility for your customers to order their groceries and select a pickup time. You have to keep the grocery bag ready so that the customers can pick them up at their convenient time. This will reduce your shipping costs and reduce a person-to-person interaction.


You can launch various online campaigns, offer discounts, and give vouchers based on surveys. You can consider putting an advertisement in the local newspaper or distributing pamphlets.

tasks_2021_2xDevelop a website and the mobile application

Nowadays, most customers prefer getting their products online from the comfort of their homes. So if you have an authentic and valuable mobile application or a business website development, then you will attract more customers. Additionally, the customers can make the payment online, so you do not have to worry about payment delays.

Steps to Start an Online Grocery Business in India

Fssai license for supermarket


Take a call from Expert

Moreover, if you require any kind of guidance related to the FSSAI Registration, please feel free to contact our business advisors at 8881-069-069.

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