Since 2020, the community experienced a rise in demand for online services. Grocery purchase is not an exception. Walmart International is anticipated to reach 31.4 billion US dollars in e-commerce net sales, which increased by 40% from 2021, according to StatsUp. But what’s so special about online grocery stores? How can they be profitable? We’ll answer these questions and provide a step-by-step guide on grocery mobile app development. So, stay tuned.
Why Invest in a Grocery Shopping App?
According to Statista research, the Grocery Delivery market is anticipated to reach a revenue of US$940.96bn by 2025. From this point, the robust compound annual growth rate (CAGR) is expected to demonstrate a marketing volume of US$1.38tn by 2029 based on the 10.07% raise between 2025 and 2029.
Benefits of Online Grocery App Launch
Developing an on-demand grocery delivery app will depend on the benefits you can provide your clients that will increase your business revenue in return. Let’s clarify some of them:
Optimized Financial Deliverables
While setting up an online grocery application, you can offer discounts, coupons, memberships, and cashback opportunities so that the customer will return to your online store based on improved financial decisions.
Improved Marketing Possibilities
The online store mode enables you to collect data on the client’s preferences, dislikes, interests, and purchase histories to make personalized recommendations based on the client’s specific needs. This benefit refrains from the one-size-fits-all advertisement approach, motivating the customer to purchase items they truly need.
Amazon Fresh: A Case of Success
Amazon Fresh is a successful investment in grocery application development. The organization provides Prime members with free delivery service for the +$100 purchase threshold by bringing the advantages of same-day delivery and delivery schedules.
Amazon Fresh is included in the Amazon Prime membership, so the clients don’t have to overpay and can enjoy a broad range of perishable, nonperishable, and Amazon-branded items. Due to its cost-conscious shopping paradigm, Amazon Fresh is an example of a successful investment in grocery app creation, based on the demographic research by eMarketer, around 52% of responders prefer this service over the alternatives.
Types of Grocery Apps
Can’t wait to move towards the details on custom grocery delivery app development? To maximize your project’s chance of success, the primary task is to decide what exactly you are about to create. The classification you’ll find below should definitely facilitate the overall process, helping you define the type of grocery app you’d like to design.
Grocery Marketplace Apps
This type of online grocery application serves as an aggregator or hub that comprises multiple stores and supermarkets and connects them with clients. The grocery marketplace application does not own the inventory or warehouses, but it provides different vendors with opportunities to sell their items online. Let’s find out what advantages it proposes:
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Price Comparison.
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Collaboration with Delivery Services.
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Multiple Vendors in App.
Grocery Store Apps
By contrast to the grocery marketplace, an online grocery store is an application dedicated to only one store, displaying only its items, special offers, and self-products. The clients can review, pre-order, purchase online, and schedule delivery or pickup times. Here is a list of a few benefits of this online grocery app type:
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Brand Recognition & Loyalty.
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Personalized Discounts for Regular Clients.
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Availability of the Delivery and Pickup Options.
Grocery Delivery Apps
The grocery delivery app represents an independent service, as it does not cooperate with the store. The delivery representative will pick up your order and fetch it for you. The client will have to pay for this service. Some of its core benefits:
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On-Demand Service (same-day delivery or scheduled).
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Fast Delivery (from ro minutes up to a few hours).
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No Long-Term Commitment.
Subscription-Based Grocery Apps
A subscription-based grocery application works on a subscription model, usually specializing in in-bulk purchases for businesses and recurring deliveries of groceries or meal kits within specific time intervals. Here are some of its advantages:
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Subscription Plan Delivery (monthly, weekly, bi-weekly).
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Predictable Deliveries.
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Usually Specialized in Organic Food.
Key Features of a Grocery Shopping & Delivery App
Speaking about the grocery store shopping app development, it is important to discuss its main features by grouping them into the following categories: client side features, admin panel; and the delivery elements.
Client Side Features
The client side features refer to aspects that make customer online journey convenient and effective from both technical and shopping standpoints.
Account Creation
Registration and personal info editing and updates are the basis of account creation. This feature matters for customizing preferences and optimizing settings for convenient app use.
Search Option
This client-side feature implies the possibility of looking for items per keyword search. The client can type the name of the product, category, or brand name.
Add to Cart Option
This feature of is a must-have for any type of online grocery shopping application as it enables the clients to put their products on hold prior to paying for it. This is due to the client’s ability to make purchases in other stores, so add to card option enables the client to return to the online grocery store and proceed on their purchase.
Order History
Order history is a feature that enables the clients to repurchase an item within a specific period of time or within the selected store if it is an online grocery marketplace.
Payment Gateway
Payment gateway is another essential component of the client side feature of the online grocery store as ensure the purchase is complete so that the client can either wait for the delivery, if the store provides delivery service, pickup the items, or ordera separate delivery service.
The online grocery app payment gateway has to comprise multiple payment options such as debit/credit cards, digital wallets etc. and be compliant with PCI-DSS standards to guarantee safe finance transmission to the end-point (store) and ensure security of client’s personal data, like card information or account info.
Wanna know more about payment integrations? Just check out our guide.
Admin Panel Features
Unlike the client side elements, admin panel features refers directly to the store’s paradigm on handling, processing, and operating the client’s orders. Let’s clarify what are the features of this category and how they work.
Registration & Profile Management
This feature plays a significant role in online grocery marketplaces as the versatility of shops requires vendors to accept and process the client’s order. So, updating information about the store might be essential to boost the communication between the vendor and client.
Order Assignment
This feature is essential for the online store app and the subscription-based grocery application as the administrator can check the workload and assign the delivery workers with orders to ensure fast delivery.
Dashboard
The dashboard feature enables admins to monitor the inventory, proceed with the orders, and evaluate sales. The admins can check the product availability and restock items in the case of shortage. Additionally, dashboards are about handling orders, viewing disputes, and processing shipments. Finally, the admins can check sales and revenues by analyzing the best-selling products and seasonal top items to manage their promotion further.
Delivery Panel Features
Delivery panel features are designed to track the delivery process effectively and seamlessly. Here are a few of its features:
Order Assignment & Management
The drivers receive notifications about the delivery assignment and client’s location. Then, the feature is about marking the delivery progress with a status “in progress” or “done.”
Delivery Tracking & Status Alterations
Unlike the aforementioned feature, delivery tracking enables both customers and admins to check the driver’s real location. The delivery person confirms the delivery by photo proof, signature, or barcode scanning.
Payment Tracking
Payment tracking is a feature that refers to the grocery delivery apps, as it enables clients and admins to check the payment status.
Advanced Features
Last but not least, it’s essential to review shortly about the advanced elements of the online grocery app:
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AI-based recommendations are based on the client's order history.
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Subscription-based reordering is about the monthly reordering of the selected items (relevant to grocery online stores, not only subscription-based grocery apps).
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AR product scanning with a detailed analysis of product nutritional value.
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AI-based discounts, based on the client’s behavior.
Step-by-Step Grocery App Development Process
So, now, it’s time to describe a step-by-step guide on the custom grocery mobile app development for you to make an exclusive or basic platform per your needs.
Marketing Research & Analysis
Marketing research is a pillar of your further application development as you have to analyze the target audience of your services. You have to consider demographic and locational factors in order to detect what products your app will promote to satisfy the customer needs per their age, gender, race, financial status, etc.
Then, conduct a competitor analysis to identify the markers of their success and weaknesses. Afterward, you have to define the core features of your online grocery app that will correspond to and satisfy the client’s needs.
Choosing Business Model
Prior to the practical process of grocery delivery mobile app development, you should select the business model as it can serve different market segments and end customers. There are the following models:
The Aggregator Model
The aggregator business model implies that you will operate an online grocery marketplace, where the application will serve as an intermediary between the vendor and the end user. You will not have full control over brand promotion or price setting, as by selecting this business model, vendors will set personal prices for the items.
The Single-Store Model
This business model refers to the online grocery store as it provides you with the opportunity to run your supermarket or chain, having full control over the brand promotion, price setting, marketing approaches, and delivery services (if you operate one).
UX/UI Design
UX/UI design in a grocery store app development is about ensuring a seamless and intuitive user interaction by maintaining an appealing visual look of the platform.
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Wireframing
As a basic skeletal architecture of the future app, wireframing is about proposing a basic structure and core features of the application, excluding the design elements.
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Prototyping
Prototyping is an interactive model that focuses on simulating real user behavior within the app. It assists in application visualization and shows interactive work with clickable buttons, etc.
MVP (Optional)
You should remember that the minimum viable product is a so-called draft of a basic application that will contain only key features of the online grocery app. Its purpose is to validate the platform’s concept prior to coding. The core features MVP can include:
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User Registration.
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Add to Cart Function.
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Product List; Categories.
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Order Tracking.
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Payments.
Development
The development process is about the practical process of on-demand grocery delivery app development. You should keep in mind that the process of coding requires alignment with your business needs because it will directly impact the overall crafting process and its final costs.
Cross-Platform Development
If you focus on keeping the core functions of the application with a minimalist design, excluding advanced features and sophisticated animations, you may consider cross-platform app development. This development type will cover the app’s functions via both iOS and Android operational systems. Consider cross-platform development due to:
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Cost and Time-Effectiveness
The single codebase economizes time and finances, promoting the simultaneous development of features via both iOS and Android applications. Consequently, it will economize the time for the marketing launch.
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Alleviated Maintenance
As cross-platform grocery shopping delivery app development covers both operational systems, the updates will touch both iOS and Android.
The limitations include lack of UX/UI sophistication, performance lagging, and complicated implementation of the advanced features, like AI for personalized recommendations.
Native Development
If you prioritize the highest levels of client experience and satisfaction, regardless of the development costs, then the native variant is for you. Native development is about:
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Proficient Performance
Native development ensures a seamless integration of the advanced features, like AI, gamification, AR, etc, ensuring their correct functionalities, minimizing bottlenecks.
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Improved Security
Additionally, native development improves in-app security based on the separate integration of the platforms’ security protocols, ensuring stronger data encryption.
The limitations may include the slower development process, increased development cost for hiring separate development teams, and complex maintenance/updates.
Testing
The penultimate stage of the grocery store delivery app development is conducting a spectrum of testing procedures to check whether the platform functions in a correct,secure, and seamless way.
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Functional Testing
Functional testing is applied to check whether the required features align with the requirements and run correctly.
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Performance Testing
Performance testing checks whether the application functions correctly under the peak load.
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Security Testing
This testing type aims to check the app for vulnerabilities and check its compliance with PCI-DSS standards to ensure client’s data are secure.
Marketing Launch & Maintenance
Launching a grocery shopping app on the market is about its delivery the end user by uploading it to the App Store or Google Play. Further maintenance includes continuous app monitoring and bug detection and fixing.
How Much Does It Cost to Develop a Grocery App?
Grocery delivery app development is quite a complex task as it requires considering factors like feature complexity, team selection, and platform specificity that will affect the final receipt for sure. Let us sort things out and clarify how much different types of grocery applications cost.
Basic Application
The basic application will require less financial input considering the relatively plain spectrum of the required features to support its core functions. The UI/UX design will involve minimalist design in order to maintain a moderate level of scalability. This platform will mostly suit startup businesses who take primary practical steps in exploring the grocery market.
The basic grocery ordering app development is usually cross-platform due to the single codebase that covers design, functionality, and security on iOS and Android. Here is a list of approximate costs regarding the basic grocery application. The approximate total price ranges from $20,000 to $50,000+.
The number of specialists required to create a grocery delivery app:
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PM - 1.
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UX/UI Designer - 1.
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Frontend - 1-2.
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Backend - 1-2.
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QA Engineer - 1.
Middle-Based Grocery App
The middle-based grocery app development option will be convenient for middle-range businesses and small grocery business supermarkets change. The applications expand on the degree of personalization, offering a boost in performance for the admins while preserving the basic features, admin panel, and delivery partner panel. The approximate final price shifts between $50,000 - $120,000+.
The number of specialists required to develop a grocery delivery app:
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PM - 1.
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UX/UI Designer - 1-2.
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Frontend Developers - 2-3.
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Backend Developers - 2-3.
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AI/ML Developers - 1-2.
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QA Specialists - 1-2.
Advanced Grocery App
The advanced grocery application shifts its focus from presenting the basic features to ensuring the highest levels of user experience via its supreme AI functions, blockchain security, and gamification strategies. This type of application will mostly suit large grocery market chains and on-demand delivery organizations. The final approximate price will range between $120,000 to $500,000+.
Let’s break down the core elements of the advanced grocery application with their approximate price range.
The number of professionals required to build a grocery shopping app:
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PM - 1-2.
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UX/UI Designers - 2-3.
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Frontend Developers - 3-4.
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Backend Developers - 3-4.
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AI/ML Specialists - 2-3.
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Blockchain Developer - 1-2.
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QA Engineer - 2-3.
Monetization Strategies for Grocery Apps
One of the key aspects of grocery ordering mobile app development is selecting the monetization strategies that will enable you to receive revenue without losing marketing value for the clients. There are the following monetization strategies in the online grocery store application:
Commission-Based Model
This model is specifically beneficial for online grocery marketplaces, as you will earn a commission per any order made from all the vendors that will utilize your platform. It works through the charge per every vendor’s transaction.
Subscription-Based Model
This monetization strategy is appropriate for the online grocery store, as the clients can pay for a monthly or yearly subscription to get bonuses like free delivery, exclusive deals, etc.
Affiliate Marketing & Cashback
You can partner with brands or banking institutions, or cashback platforms, and earn a commission. This monetization strategy can boost your revenue as the cashback initiative will motivate clients to repeat purchases per the referral program.
Challenges in Grocery Shopping App Development & How to Overcome Them
Online grocery mobile app development requires you to pay attention to the potential challenges that may occur and countermeasures to overcome them. Let’s discuss the top 3 issues and solutions to make your platform’s service provision time and cost-effective.
Real-Time Stock Management
This challenge underlines the dilemma of product shortages and timely refills within the chain of supermarkets, not to mention the management of perishable items.
Solution
The solution to this issue is the implementation of a multi-warehouse management system and an automated inventory analysis. The first element can synchronize warehouses and physical stores, while the automated inventory analysis can ensure real-time updates on the item availability and quality status.
Logistics & Delivery Management
You should be prepared for the dilemma of effective handling of the delivery workers when analyzing how to create a grocery delivery app. It relates to the circumstances of the limited number of available workers or same-time scheduled delivery in different locations.
Solution
To solve the issue, you can consider the following options. You can consider implementing route optimization software, which will track the shortest route for the drivers which will economize the delivery time.
Securing Payment Transactions
There are challenges associated with fraudulent actions, such as scams or phishing attacks that aim to steal the client’s credentials and manipulate their financial data.
Solution
You should consider integrating secure payment gateways like Stripe or PayPal, paying attention to strict PCI-DSS compliance. Another point is to set multi-factor authentication, like face ID and fingerprint verification.
Best Grocery Store Applications
We’ve dedicated so much attention to clarifying how to build a grocery delivery app and make it profitable. So, now let’s discuss two most popular online grocery platforms and factors of their success.
Walmart
Since the store cooperates with manufacturers directly, it manages to preserve its low-price everyday strategy in omnichannel retailing, showing its success. Walmart considers locational factor as principal, which boosts the demand of its delivery services, since the target audience resides miles away, making pickups inconvenient yet available.
Flipp
Flipp is a successful online grocery store marketplace, which enables customers to check regular purchase offers, like coupons or discounts from the multiple stores. This affects favorably the final receipt, making shopping convenient, time-effective, and attractive for the recurring purchases.
Choose Agilie as a Reliable Partner
As a European IT outsourcing company, Agilie tailors customized from-scratch digital solutions fully aligned with business needs. For over 14 years, our dedicated developers maintain the values of best quality within the shortest time by applying an SDLC project development methodology.
Agilie can assist you crafting a unique and sophisticated online grocery application in particular by enriching it with our custom payment software solutions, ensuring the maximized safety of your and your clients’ financial data.
Learn more about our successful projects, challenges we encountered, and solutions implemented.
Conclusion
The article elucidated a detailed step-by-step guide on online grocery shopping app development, exploring its types and monetization strategies and much more. In order to make your platform profitable and recognizable like Flipp or Walmart, pay attention to the target audience, business model, features, and platform specificity, as these factors will pay off afterward. Hence, don’t forget about a development team to enliven your boldest ideas that will point out your vision.
