If you’re not buying your groceries online, you may be missing out – not only on a growing trend, but more importantly, time and money savings.
It’s taken about 40 years for grocery chains to pick up on something Domino's Pizza learned in the '80s when they did their iconic "30 minutes or it's free" delivery promise. Now, online grocery sales exploded to $7.7 billion in June 2024 – up 8% over a year ago.
That surge was mostly driven by aggressive promotions from major players like Instacart, Amazon, and Walmart, which adapted by offering cook-at-home kits, ready-to-eat meals, and in-store dining options, placing them in direct competition with foodservice providers, direct-to-consumer brands, and fast food delivery.
Interestingly enough, this increase was done without it costing the consumer more for an average order.
And there’s nothing but blue sky with this trend, too. “As companies innovate to meet demands for convenience, speed, personalization, and sustainability, the market will become more competitive – both global giants and niche players finding their spaces and the consumer will benefit from that” Mark Beyer, founder at Mybey Ventures, told ConsumerAffairs.
The wins vs. the losses
The shift toward online grocery shopping is driven by multiple factors – with convenience undoubtedly the primary factor. People – particularly millennials – are busy growing their careers and taking care of families that require rides to school, soccer practice, play time, etc. and can’t waste time.
There's also another advantage. Melissa Cid, the consumer savings expert at MySavings.com, told ConsumerAffairs that doing her grocery shopping online eliminates the temptation to buy things that she hadn’t planned to.
“Those last-minute splurges in-store for items I didn't plan for can really break a budget. When shopping online or in an app I can take my time and really think about if I need the item or not as well as compare prices to other retailers,” she said. “And time is money when you are a busy mom of four kids.”
There’s also a wider selection available online. Beyer said that online grocery stores often have a broader selection of products, including specialty items, organic foods, and products from different regions.
And like Netflix, or YouTube, or Spotify, Beyer says online platforms pride themselves on the efficiency of algorithmic suggestions. When an online platform uses algorithms to suggest items based on previous purchases, it simplifies the reordering process for the consumer.
“Some services offer subscriptions for frequently bought items, ensuring regular supplies without manual reordering, too,” he said.
And the downsides? There are several. “The minuses include additional costs, gratuity and service charges,” claims Mike Ford, the founder/CEO of Skydeo, an audience targeting company.
When ConsumerAffairs asked Beyer, he rattled off these hesitations:
Lack of Immediate Gratification: “Such as delivery wait time, which can be inconvenient if you need something urgently.”
Order Mistakes: “Mistakes in order fulfillment, such as receiving incorrect items or subpar produce, can be frustrating,” he added.
Quality Assessment: If you’re picky about how ripe your vegetables are, Beyer suggests that ordering online can be challenging to assess the quality of fresh produce or perishable items without seeing them in person.
Tricks you can use
If shopping for groceries online is new to you, there are a few things you can do to maximize your return on investment.
Do half in-store, half online: For one thing, Ford suggests that grocery shoppers split their in-store vs. online shopping based on food categories.
“Buy bulk items in person but get delivery for fresh vegetables and bread everyday instead of running to the store. Many consumers still shop in person for their big weekly shopping but use delivery to augment or fill in the gap on items they forgot,” he said.
Use digital coupons and cashback apps: The major grocery stores offer digital coupons through their apps, and those can provide significant savings that you might not otherwise know about. There’s also apps like Flipp and Ibotta that allow users to browse for coupons and earn cashback on purchases.
Get yourself a credit card with a high cash-back on groceries: Whether you’re going to buy groceries online or keep going to the stores, you’re leaving money on the table if you don’t get a credit card that pays you back for your vittles.
Sign up here, sign up there: Many grocery stores will give people who sign up a certain amount of cash back or promotional reward. For example, when you sign up for Kroger’s delivery service, you’ll automatically save $20, and when you sign up for Walmart’s delivery service, you’ll score a Paramount+ Essential plan which could save you $8 a month on that streaming service. Kroger currently offers added discounts or free items when you sign up for its Boost service.
Get a price comparison app: To save money and reduce your dependence on manually doing your cross-shopping, go to the Google Play or Apple app store and look for a price comparison app. These apps should allow you to compare prices of everyday products, find in-store unadvertised sales, coupons, and save 50% or more when shopping.
Plan your meals by the week: If you create a meal plan for the week, it can help you buy only what you need, but it also can reduce food waste and save money. Plus, if you plan meals with similar ingredients – say rice, chicken, or veggies – that can also cut costs.