Amazon bought Wholefoods. How to the Mom & Pop Shops Pivot?

[Gigi Rodgers]

Hey everybody!

Heard the news that Amazon bought out Whole Foods yesterday, and I just bought a LOT of grocery store-like items from a company called iHerb (one of the ONLY U.S. companies that ships to China - my current location - without exorbitant shipping and import fees).

If you are a mom & pop shop that sells groceries or a refrigerated product, how do you compete? How do you pivot into the online industry?

I was specifically thinking about the shipping costs of refrigerated items like fruits, flowers, yogurt, etc.
I looked at the FedEx Cold Shipping and the smallest box is $46 (?!?).

Even though, I know, you can make the consumer pay the shipping cost - the price would be massive if you're doing B2C. And you're a mom & pop, so you have yet scaled your business to handle the volume of B2B.

Does anyone know how companies sell refrigerated products, B2C, without making the buyer choke over the price of shipping?

And I think we've all been in the situation where you will have $100 worth of products in your Amazon cart, you're ready to place your order, but you will pause and scoff at the $7 shipping.

 

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[G-Man]

If you are a mom & pop shop that sells groceries or a refrigerated product, how do you compete?

You don't.

 

[MitchM]

Hey everybody!

Heard the news that Amazon bought out Whole Foods yesterday, and I just bought a LOT of grocery store-like items from a company called iHerb (one of the ONLY U.S. companies that ships to China - my current location - without exorbitant shipping and import fees).

If you are a mom & pop shop that sells groceries or a refrigerated product, how do you compete? How do you pivot into the online industry?

I was specifically thinking about the shipping costs of refrigerated items like fruits, flowers, yogurt, etc.
I looked at the FedEx Cold Shipping and the smallest box is $46 (?!?).

Even though, I know, you can make the consumer pay the shipping cost - the price would be massive if you're doing B2C. And you're a mom & pop, so you have yet scaled your business to handle the volume of B2B.

Does anyone know how companies sell refrigerated products, B2C, without making the buyer choke over the price of shipping?

And I think we've all been in the situation where you will have $100 worth of products in your Amazon cart, you're ready to place your order, but you will pause and scoff at the $7 shipping.

You have to do things differently, meaning you work locally. After sourcing locally and getting a consumer base maybe you can scale/franchise and start competing.

 

[Millenial_Kid5K1]

When everyone is digging for gold....

Start a cold shipping service.

 

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[JAJT]

I'm ASTOUNDED that not a single grocery store I've ever been to has put together "dinner boxes" like all those subscription based companies out there.

They are literally in the best possible position to do this, likely even better than the food subscription box companies, and they don't do it.

 

[MJ DeMarco]

You don't.

Somewhat disagree here...

IMO, the SCRIPTED populous would rather deal with a local community entrepreneur than a big corporate oligarch. Make that part of the brand build and someone might have a chance.

 

[G-Man]

IMO, the SCRIPTED populous would rather deal with a local community entrepreneur than a big corporate oligarch. Make that part of the brand build and someone might have a chance.

This is definitely true. The other possibility is to build a brand so strong people are willing to pay a premium.

Could be that I misunderstood the question. I understood the question to be: How can you be price competitive with Amazon when shipping B2C?, to which my answer is.... you can't

 

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[CareCPA]

I'm ASTOUNDED that not a single grocery store I've ever been to has put together "dinner boxes" like all those subscription based companies out there.

They are literally in the best possible position to do this, likely even better than the food subscription box companies, and they don't do it.

Completely agree with this.
Even if I didn't want to spend time putting together a shopping list and planning meals, I would still be wary of ingredients being shipped to me and arriving in good condition (something about shipping raw fish or chicken just makes me squeamish). Why isn't this being offered at a local level? Stop by the store on the way home from work and grab a box - good to go. No need to worry which days you want the subscription for, just buy it the day you want it.

 

[Gigi Rodgers]

Somewhat disagree here...

IMO, the SCRIPTED populous would rather deal with a local community entrepreneur than a big corporate oligarch. Make that part of the brand build and someone might have a chance.

Thank you for saying that. I've been pondering on this for a few days, and just like you said, it seems like a smart idea to double down on the local community than playing 'the shipping game'.

I was thinking that they can structure themselves like Amazon Groceries for delivery.
Stan the stock boy is now Stan the Delivery Guy.
The local store gets an app where the customers can order their food online.
They have 5 minutes, after they put their order in to cancel it, add on to it, or edit it.
After that time frame, the delivery is made within <1 hr.
There's a tracking system that comes with the app so the customers can see how close Stan the Delivery guy is to his destination.

Also, a part of the "doubling-down" locally as @JAJT said above - dinner boxes or some other specialty.
Communities have food competitions all the time - Best BBQ Ribs, Best Gumbo, Best Apple Pie, etc.
Enter into the competition with your Great Grandma's Finger Lickin' Good Baby Back Ribs.

Even if you don't win - let's say that you placed 3rd - ONE, you can now say that it's award winning.
SECOND, usually at these food competitions the community gets to taste test the goods. That's free advertising to a lot of people, in one location.

And if they ask, "Where can I get me some more of this"? Boom.
Tell them to "Order it online, from our store, and we'll deliver it to you - hot and juicy in - under an hour.
Get them to sign up for your grocery store app RIGHT THERE.

If they're super smart - they'll have people sign up by QR Code.
It's fast and insanely easy.
(Though the US is slow to jump on that market)

This could actually be an opportunity for an app developer, UX/UI Developer.
Convincing local grocery stores to go this route.
If they can convince them on the costs to transitioning to this archetype (I'm sure the savings would be quite large), hit up one local shop at a time developing local grocery store apps.