Best Practices to Monetize A Grocery Application Development

In online clothes and digital gadget shopping, grocery is now also available at people’s fingertips.

After the pandemic, many on-demand food delivery companies are undergoing application modernization for promoting grocery app development to increase their customer base.

And various startups are coming into the competition.

However, many few know the accurate and reliable methods to monetize their application.

To clear this roadblock, you have to read further to understand how to earn a high return from grocery application development.

Strategies to follow for High ROI from Grocery Application Development

You can follow the below-listed top-notch practices to earn high revenue from the grocery app development.

Let’s get discover all the master plan procedures.

Premium Memberships

Offering different memberships or a single master membership is the most common mechanism for a grocery selling company to increase revenue.

You can offer multiple subscription models to your customers.

For instance, if all your users have the feature of ordering groceries online, they have to wait for some time to receive their order. Then, you can offer a premium membership at an affordable price, through which they will get their products within a fixed time limit.

In addition, you can offer more cashback and discount coupons to users with premium subscriptions.

As a result, more users will avail of advanced features, and the company capital will assuredly increase.

You can modify this approach as per your organizational standards and offer different levels of memberships with contrasting benefits.

Delivery Charges

An online grocery selling firm completes thousands and even lakhs of daily deliveries.

It leads enterprises to earn high capital and build a strong relationship with their customers. Let’s see how.

You can charge customers a fee for every delivery according to the distance between their location and the store. To precisely implement this mechanism, you must provide free delivery in a limited area and then charge a delivery fee for the extra miles.

Moreover, you can offer your customers to pay an additional delivery fee if they want their products before the expected time.

You can embed this strategy with a subscription model to improve your customer retention rate.

Furthermore, to build a strong customer relationship, you have to provide on-time delivery when the customer pays extra charges. Complying with your company policies is the most effective way of monetizing the business.

According to Statista
Best Practices to Monetize A Grocery Application Development 4

Figure 1

According to Statista, companies in the grocery selling and delivering industry earn average revenue of 5.3 Billion USD.

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Ads Across Application

You must have seen ads of multiple companies on different websites, navigating between web pages, and most commonly while playing a YouTube video.

You can also display ads on your grocery application to enhance the revenue.

Many companies will pay a hefty amount to showcase their ads on your application. However, you must fulfill some criteria before collaborating with other enterprises for ad displaying agreements.

You can consider the below-listed points for it.

  • It would help if you had an extensive user base, as every firm wants to reach as many users as possible.
  • It would help if you considered which types of ads you will display, whether it will be static or video ads.
  • It would be best if you clarified at what step the user will see the ad and whether the user will see it directly after opening the ad or during the checkout procedure.

Once you complete all these checkpoints, you can contact other firms, provide them with your pricing, and you are ready to earn some additional funds.

Transaction and Convenience Fees

Nowadays, every online grocery store offers customers to pay online through digital wallets, credit cards, debit cards, and net banking.

But, what if I say, you can also earn by providing an online transaction feature. Let’s explore it.

You can collaborate with the online payment providers to earn a minimal fee for every transaction made through your application. It will be a win-win scenario for both parties.

Your customers will have a secure payment gateway, you will earn some additional funds, and the gateway provider will earn by offering its service.

Besides this, adding a convenience fee can efficiently use the app for monetization.

You can add a convenience fee in packaging charges or allow the customer to utilize a payment method of their preference.

Digital Currency

Providing your digital wallet on the application is an effective way of optimizing the user-retention and revenue.

To benefit from this approach, you have to provide cashback to your customers.

Whenever you provide a cashback, the amount will get credited to the digital wallet. Further, the user can utilize that amount on its next order.

You have to maintain and continue this cycle for better results.

Once the user gets highly engaged in earning cashbacks and using it on future orders, you will have a stable source of recurring income.

As a result, customers will perform transactions, will buy more memberships, and you will have the leverage to charge convenience and delivery fees, directly benefitting the company funds.

With minimum investment, it is the most reliable and authentic way of monetizing the grocery app.

Vendor Commission

You must have a lot of grocery stores as your partners, through which you buy and deliver the products to your customers.

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Setting up a commission-based work agreement can be an advantage in your journey to monetize grocery app development.

For instance, you can set a fixed amount of commission on every order received through your application to the store. You can fix it to 5%, 10%, 20%, or whatever percentage your stakeholders agree upon.

Once you onboard the vendor and the store start receiving the orders, your account grows.

More the orders, more the commissions, and more income from convenience, transactional, and delivery fees.

In addition, if your app enables the users to order from the store they want, you can introduce a marketing scheme for your vendors.

Under this scheme, you can allow them to display their store name on the top by paying an additional vendor fee. If it aligns with company policies and market standards, you can test it for your platform and implement it.

Affiliate Programs

Affiliate programs let firms increase their user base without investing any significant money.

Under these programs, you can provide a custom link to every user and provide them cashback, discount coupons, and free products with every customer onboarding through it.

It will boost your user base and productivity.

Moreover, you can extend the programs for your vendors, delivery executives, and other staff members. It will help you save the recruiting expenses, and the probability of getting top human resources will also increase.

You can customize affiliate programs according to your business requirements and precisely achieve long-term goals.

Types of Marketing Practices you must consider

To boost the impact of monetizing strategies, you can implement the following marketing digital marketing practices.

It will lead you to grow your user base, productivity, and market capital. Moreover, you can also build a brand across the internet by performing these marketing operations.

  1. Email Marketing

Implementing the best practices is a seamless task, but maintaining their impact can be complex and time-consuming for an organization.

Here comes email marketing, which helps maintain interaction with customers and vendors and build a healthy relationship with them.

You have to send attractive emails with quick loading and lightweight graphics to attract users to your platform effortlessly.

As a result, you will have constant customer communication, retaining them and converting them into potential customers.

In addition, you can start feedback and suggestion by collecting emails to get a better insight into customer needs. It will aid in making appropriate modifications and be on the top of the charts.

  1. Influencer Marketing

There’s a high probability that your customers must follow some social media influencer, sports personality, vlogger, YouTuber, or any other famous personality.

You can collaborate with these personalities to promote your application to a larger audience.

Influencer Marketing
Best Practices to Monetize A Grocery Application Development 5

Figure 2

According to, Influencer Market has seen immense growth in recent years and has a market value of 13.8 Billion USD. It will surely increase in 2022. So, it would be best if you considered it for your brand awareness.

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Furthermore, you can see onboard a personality as your brand ambassador to accelerate sales, productivity, and revenue growth.

To successfully achieve milestones through Influencer Marketing, you have to make a more significant investment. However, its return would be higher than your expectations.

  1. SEO Optimization

By aligning your web app with SEO standards, you can rank among search engines’ top searches.

It is an affordable mechanism for reaching out to the target audience and establishing the company brand.

You can write blogs on different topics associated with the grocery industry. Whenever a user searches about that particular topic, it can open your blog. From there, you redirect the visitor to your application through different CTAs.

As it is a budget-friendly approach, you only have to hire content creators and SEO experts to accomplish monetization targets.

  1. Social Media Marketing

Whether it’s a working professional, a student, or a housewife, everyone utilizes social media platforms in most of their free time.

And you can leverage these platforms to show ads, which can help you engage and convert more users into potential customers.

You can use Instagram, Facebook, Pinterest, Twitter, etc., for advertising your services, customer reviews, and achievements.

Also, social media helps to directly communicate with the end-user about their needs and queries, improving your working approach.

digital headlines
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More than 50% of the overall population is available across social media platforms. You must consider it as a primary marketing tool and start implementing it.

Wrapping Up

Grocery app development is becoming a popular concept, and many companies are coming forward to provide online grocery stores.

You have to follow some marketing strategies and business best practices to monetize your application in the extensive competition.

Setting vendor commissions, providing premium memberships, charging a fast delivery fee, offering affiliate programs, and starting platform-focused digital currency are the best ways to improve user base, engagement, and especially the company capital.

Furthermore, you can magnify the effect of these approaches by including digital marketing strategies.

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Author Bio:

Jemin Desai is a Technical Product Manager and tech-savvy at Positiwise Software Pvt Ltd. He has more than 20 years of experience for implementing the latest technologies in designing top-notch products for multiple clients. He can do all with perfection, from market research to feasibility analysis and aligning the project with accurate methodology. By turning his writing hobby into a passion, he’s been providing scholarly articles to various audiences.