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86% of online grocery buyers prioritise product quality when selecting a platform, and for 73% of them, value for money and delivery time are crucial, according to a study by LocalCircles.

The survey highlighted a shift in purchasing patterns, with 57% of consumers now ordering groceries as needed, marking a significant shift from last year’s 23%. However, exclusive product availability on certain platforms also attracts nearly 30% of consumers, who then purchase additional items.

This change is largely attributed to the advent of quick delivery platforms such as Zepto and Blinkit, which promise delivery within 30 minutes, meeting the demands of 17% of consumers who prefer instant deliveries despite a fee.

Additionally, 67% of consumers prefer delivery within 3-24 hours at a convenient time with no fee, 5% within 30 minutes to 3 hours with a small fee, and 11% within 24-72 hours with no fee.

Interestingly, the Gen Z demographic, predominantly theose below 27 years of age and coming from metro and Tier I cities, showed a higher inclination toward paying for faster delivery, .

The study also reveals a strong consumer demand for automated refunds without physical inspections. About 60% of respondents prefer a photo upload system for refunds, minimising phone interactions and making the process more efficient.

Platform performance ratings

LocalCircles conducted a comprehensive ratings exercise among 4,000 consumers in Noida, evaluating platforms on service, quality, value for money, selection, delivery times, and product exclusivity.

While Amazon Fresh and Zepto led in quality with a score of 3.5 out of 5, Amazon Fresh and Flipkart received the highest value for money rating at 4/5. Bigbasket was rated highest for its wide selection at 4/5, and Amazon Fresh topped the service category with a 4/5 score.

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However, issues persist, with reports of near-expiry or expired products affecting consumer trust. Instances such as a user receiving atta with only 5% shelf life left and infested supplies in Blinkit’s Hyderabad warehouse highlight the ongoing quality challenges.

Future prospects and challenges

The study suggests that established platforms like Amazon Fresh and Bigbasket need to shorten their delivery windows to compete with quick delivery services. Conversely, platforms like Zepto, Swiggy Instamart, and Blinkit must improve their value and quality offerings to become the primary choice for grocery purchases rather than just last-minute or discretionary buys.

As the sector continues to grow and adapt, the real test will be for platforms to balance value, quality, service, selection, and delivery times to meet evolving consumer expectations.

The nationwide study with over 70,000 responses from online grocery buyers across 227 districts underscores the sector’s rapid evolution. It reveals a broad demographic participation with 62% men and 38% women, and adoption in Tier III and IV districts, reflecting a shift driven by convenience, wider selection, and value, initially spurred by the COVID-19 pandemic.