Online grocery ordering has seen a huge jump in use in the last couple of years, and although many expected it to level out again after things seemingly went back to normal: this is one digital plus that consumers aren’t letting go of.
Over 70% of American households ordered groceries online in 2021, and that number continues to grow.
Are you overspending when you buy online? This is the question that plagues customers and leaves businesses unwilling to answer. Here’s everything you need to know.
Are Online Grocery Prices The Same?
Generally, there is an online markup for groceries. This is thanks to the cost of delivery, the extra employee work, and what it costs to keep the website or app running. Although online grocery shopping makes everything easier for the customer, it creates a lot of work for companies behind the scenes, whether it’s 3rd party or owned by the store itself.
This can be small, ranging from a three to ten percent increase, but it will still make a big impact on the average consumer.
Using Third-Party Apps
Third-party grocery apps have had a huge boom in grocery news over the last few years. People use these because they offer a large selection of stores, easy fees to cover all of them, and often have sales or deals you can’t get in the store.
Unfortunately, they often have the largest markup. Many assume that this markup is by the app itself, but apps like InstaCart have stated that grocery stores are the ones that set the markup and are the ones that profit from it. On top of this five to ten-percent increase in cost, you’ll still have to pay for the delivery fee and any in-app fees.
Using Store-Owned Apps
Store-owned apps can be a mixed bag. On the one hand, many offer coupons that you can use in-store as well, and they give you a chance to save a lot of money. On the other hand: some request that you pay a monthly fee to avoid delivery costs. Although membership isn’t a big deal if you already only shop at that store, most Americans shop at multiple stores and don’t need the extra cost of being pinned to just one.
What Causes This Markup?
This markup is generally caused by the cost of labor, time, and website building. On top of that, grocery stores want you to come into their store to buy things, so prices are higher as an incentive to get you to walk into the store instead.
Unfortunately, since prices are always rising, and inflation has been at an all-time high over the last five years, many consumers are struggling to afford these price leaps. If you want to save money, remember to shop for deals and compare the in-person and online prices.
Everyone Deserves Grocery Clarity
Groceries are the one thing everyone needs to survive. When you buy food, you shouldn’t have to fear if you can afford it, or if the price has been doubled because of the platform you’re using. Don’t be afraid to compare prices.