Dubai: Forget battling crowds and lugging bags. Online grocery delivery is a convenience dream, but is it a budget buster?
“All of us assume online shopping saves us a lot of money. But with retailers working hard towards matching the prices online and offline, there’s still debate on which avenue offers us shoppers an edge,” Dr Khalid Essaye, an Abu Dhabi-based retail researcher specialising in consumer spending.
“Yes, online prices were once way lower than retail price, but over time the price gap between the two started to shrink, despite the cost of running a brick-and-mortar store being higher than for an online store.”
The global retail consumer study, cited by Essaye, revealed 70 per cent consumer products have the same price online and offline. However, when there is a price difference between the two, 65 per cent of the time online channels were cheaper than offline (in-store) channels, the study found.
Also, online shopping also may come with the chance to apply more discount codes so you can save even more money. This adds to your savings, and with price comparison websites ensuring you don’t get cheated out of your hard-earned savings.
Convenience at a cost?
“Unlike shopping in-store, shopping for groceries on a e-store allows you to research items, price-compare in real-time and see your order all in one place, including the cost, before parting with your money at check-out,” said UAE-based financial planner Andrea Barbara.
But doesn’t any convenience come at a cost? So how much more is ordering groceries online versus buying them in a store? To see if you might save money, in addition to time and hassle, by grocery shopping online, it’s time to “pull out your calculator and crunch the numbers”, Barbara added.
“Because of membership, delivery fees and tipping, you might think having groceries delivered is far more expensive, but when crunching the numbers, you would surely find that the final tallies would be remarkably close – as this is what research shows, too.”
Grocery delivery still a favourite for some
As choosing to buy your groceries online makes it just as easy as buying any other item online, some UAE residents still opt for the avenue, saying convenience trumps any add-on costs that come with having your groceries delivered to your doorstep.
“It takes me less than five minutes to do my grocery shopping. All I do is go to my previous order, click, click, click, and pay, and I’m done,” said UAE resident Melinda Cooke, a holistic health educator originally from the UK. Apart from saving time, e-buying groceries also spares her the heavy lifting.
“Back home I would always use Tesco or Waitrose because they have delivery. So, this service has made my life much easier,” said Cooke, 48, who estimates using UAE-based delivery services of online stores for the 13 years she has lived her. “The add-on costs never really bothered me.”
Prices online have dropped faster than offline
An American MIT (Massachusetts Institute of Technology) retail cost analysis compared online and offline prices in 56 large multi-channel global retailers, which made both online and brick and mortar store sales, in 10 different countries, by using an app that compared the prices of the same products.
In total, about 24,000 groceries, prices were analysed worldwide. The study found that in 72 per cent of cases, the prices were the same. When the study was conducted for non-grocery items, one area where the channel made more difference was electronics.
“For most grocery products, online prices have dropped faster, and that advantage has widened in recent years. For retailers, shipping can be a hassle that offsets the other benefits internet retailers enjoy, such as low overhead (ongoing or running expense of a business),” added Essaye.
One of the biggest perks of buying online is that you can buy directly from the manufacturer and eliminate the middleman. Thereby, avail the product at a very low cost.
Online shopping offers various discounts, coupons, deals, etc., every now and then. So, you just need to know when and where to look for the product online and save a lot of money!
E-commerce websites do not need to have their own shops, so no infrastructure cost is involved for them and hence the prices are comparatively less compared to offline stores.
Furthermore, online shopping websites directly import goods from manufacturers and save on the transportation and commission charged by middlemen, unlike traditional retailing.
Lastly, advertising and marketing switched to digital, implying greater returns at a lower investment. So, the products are cheaper.
Coupons, codes, and cashback!
Online supermarkets are treasure troves of discounts and deals. Clip coupons, snag referral codes, and watch the savings stack up faster than a shopping cart on a sugar rush. Plus, some platforms offer cashback programs, turning your grocery haul into sweet rewards.
But wait, there's more!
Say goodbye to impulse buys. With online shopping, you can stick to your list and avoid temptation lurking in every aisle. Plus, compare prices side-by-side to find the best deals. It's like having a personal price-checking genie at your fingertips!
The verdict? It can be a win-win (with a few asterisks)
Online grocery delivery can be a budget-friendly delight but remember to factor in delivery fees and minimum order requirements. Also, compare prices between online stores and your local brick-and-mortar options. With smart planning and a dash of savvy shopping, online and mortar groceries can be a delicious recipe for budgeting success.
“One growing trend among shoppers is to go to a brick-and-mortar store to check out and they buy it online at a lower price. This is known as ‘Showrooming’. Several e-commerce delivery apps are available now to help shoppers check competitors' prices both online and in-store.
"Studies also show that while many consumers who use a retailer’s app for online purchases, others use it to obtain a coupon or discount offer that can be availed at the physical store, ,” added Barbara. “So, the truth of the matter is that a huge number of shoppers shop both online and offline.”
So, which is the best option for you – shop for your groceries online or offline?
“The answer is to use a mix of both to your cost-effective advantage, as there is no one right answer that applies across the board. It is also true that online sales are growing and accounting for 20 per cent of retail sales worldwide, up from 15 per cent two years ago, so there will likely be a time e-commerce outpaces in-store.e savings
