{"id":22505,"date":"2020-02-14T13:05:11","date_gmt":"2020-02-14T07:35:11","guid":{"rendered":"https:\/\/www.fatbit.com\/fab\/?p=22505"},"modified":"2025-11-17T12:45:40","modified_gmt":"2025-11-17T07:15:40","slug":"guide-for-canadian-entrepreneurs-to-start-online-grocery-business","status":"publish","type":"post","link":"https:\/\/www.fatbit.com\/fab\/guide-for-canadian-entrepreneurs-to-start-online-grocery-business\/","title":{"rendered":"A Guide For Canadian Entrepreneurs To Start An Online Grocery Business"},"content":{"rendered":"\n<p style=\"text-align: right;\"><em>Last Updated: 3rd April, 2023<\/em><\/p>\n<h2><strong>Table of Contents<\/strong><\/h2>\n<ul>\n<li><a class=\"tb-scroll\" href=\"#us-and-canadian-shoppers-are-not-the-same\">US and Canadian Shoppers are not the same<\/a><\/li>\n<li><a class=\"tb-scroll\" href=\"#detailed-grocery-shopping-behaviour-of-canadians\">Detailed Grocery Shopping Behaviour of Canadians<\/a><\/li>\n<li><a class=\"tb-scroll\" href=\"#key-findings-from-shopping-behaviour-of-canadian\">Key Findings from Canadians&#8217; Shopping Behavior<\/a><\/li>\n<li><a class=\"tb-scroll\" href=\"#how-to-reach-canadian-grocery-customers\">How to Reach Canadian Grocery Customers?<\/a><\/li>\n<li><a class=\"tb-scroll\" href=\"#popular-grocery-delivery-businesses-in-canada\">Popular Grocery Delivery Businesses in Canada<\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With an impressive growth potential of the online retail sector in Canada, the real opportunity lies in online grocery sales. As per statistics, Canadians spend a whopping $6.4 billion per year on online groceries. Still, the online Canadian grocery industry lags behind the United States and the United Kingdom with a penetration rate of around 2% as compared to 3% &amp; 7% in the US &amp; UK respectively.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Primarily, the existing eCommerce grocery stores of the country are failing to understand consumer behavior as their focus is on why people say \u201cyes\u201d to online groceries and not on why they say \u201cno\u201d. Secondarily, they are not targeting the following major types of spenders separately:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Unconflicted (average spenders)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Spendthrifts (buyers that can spend more before hitting their maximum \u201cbuying pain\u201d)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tightwads (buyers that spend less before they hit their maximum \u201cbuying pain\u201d)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For more clarity, let\u2019s gain insights into the shopping patterns and behavior of Canadians that can help entrepreneurs to make an aggressive push into the online grocery industry.<\/span><\/p>\n<h2 id=\"us-and-canadian-shoppers-are-not-the-same\">Understanding the Difference between US and Canadian Grocery Shoppers<\/h2>\n<p><span style=\"font-weight: 400;\">Many US companies such as Walmart and Instacart have become very successful in the Canadian grocery industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is no doubt that Canada has been seen as an alternative by US retailers who want to enter its market due to the common language and Canadian consumer\u2019s familiarity with US brands (from advertising, TV, and cross-border shopping).<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to achieve success, both US &amp; Canadian entrepreneurs imitate the strategies designed and tested on the US consumers and execute them in the Canadian market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But they need to understand that the US and Canadian customers are not the same. Two critical differences between them are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Seeking out value:<\/b><span style=\"font-weight: 400;\"> According to <\/span><span style=\"font-weight: 400;\">Buxtonco<\/span><span style=\"font-weight: 400;\">, an industry leader in customer analytics with predictive analytics tools, only 55 percent of Canadians use coupons versus 68 percent of Americans while doing online shopping. That\u2019s not to imply that Canadian shoppers don\u2019t or aren&#8217;t searching for the lowest prices on the goods; they just have a different way or mindset of finding value.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Divided Shopping Preferences: <\/b><span style=\"font-weight: 400;\">Canadians may be one of the world\u2019s heaviest Internet users but they aren&#8217;t embracing online shopping the way Americans have. 22 percent of Canadians claim to never do online shopping while only 12 percent of Americans have made the same claim.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Moving on, it\u2019s important to understand the Canadian shopper\u2019s behavior in detail for achieving maximum effectiveness and efficiency of the business.<\/span><\/p>\n<h2 id=\"detailed-grocery-shopping-behaviour-of-canadians\">Online Grocery Shopping Behavior of Canadians<\/h2>\n<p><span style=\"font-weight: 400;\">Canadians make their online purchase by initiating thorough research about the product, analyzing its credibility through reviews, comparing the features\/characteristics across different websites, as well as locating businesses based on proximity searches.<\/span><\/p>\n<p>To draw the buying patterns of Canadian shoppers, it is important to list the problems they are known to face.<\/p>\n<p><b>Some of the issues that Canadian shoppers face while purchasing Grocery Online are:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Slow website<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Out of stock grocery products<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lack of user-friendly navigation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Unable to add grocery items in the cart<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The disparity between in-store and online prices.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No Pickup option<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mandatory sign-in or log-in to complete the purchase<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No customer support<\/span><\/li>\n<\/ul>\n<p><b>Issues that are known to spoil the post-purchase experience of Canadian shoppers are:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No order tracking available<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Delayed deliveries<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Damaged items<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Confusing return policy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Long refund processing time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Paid return postage<\/span><\/li>\n<\/ul>\n<h2 id=\"key-findings-from-shopping-behaviour-of-canadian\">What We Can Surmise from Canadian Grocery Shopping Behaviour<\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Canadian Grocery Shoppers are on Mobile and are ready to buy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">They want their grocery items delivered quickly<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u00a0Flexible options for return attract Canadian Customers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">They are always searching for deals and always looking for recommendations based on what they previously purchased.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shoppers in Canada prefer detailed information on product specification and sizing.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">They want <\/span><span style=\"font-weight: 400;\">shopping to be faster, better and of course personal, and it should work across all devices and surfaces to create an intuitive experience.<\/span><\/li>\n<\/ul>\n<div class=\"cta_box\">\n<div class=\"cta_title\">\n<h2>Planning to Launch Your Own Online Grocery Business In Canada<\/h2>\n<\/div>\n<div class=\"cta_button\"><a class=\"button customBtn\" href=\"https:\/\/www.fatbit.com\/website-design-company\/requestaquote.html?=GCanada_1\" target=\"_blank\" rel=\"noopener\">Get in Touch<\/a><\/div>\n<\/div>\n<h2 id=\"how-to-reach-canadian-grocery-customers\">How to Reach Canadian Customers?<\/h2>\n<h3><strong>Connect in Micro-Moments<\/strong><\/h3>\n<p><b><br \/>\n<\/b><span style=\"font-weight: 400;\">As most Canadians go online to discover the products that they want to buy, this critical stage is a huge opportunity for retailers to win their trust and simultaneously influence their purchases. Now the bigger challenge for Canadian marketers is understanding the way consumers think when they turn to the web and how to act in those moments.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By anticipating what customers need and providing full assistance at every step of their purchase journey with relevant information, retailers can make the best impact of their connection.<\/span><\/p>\n<h3><strong>Add Value at Every Interaction<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Informed Canadian shoppers are also benefiting from value-added experience and options at the time of online grocery shopping. They prefer loyalty programs and are becoming increasingly proficient at redeeming points online.<\/span><\/p>\n<h3><strong>Invest in faster ways of payment for Grocery Customers<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The digitization of payments continues to influence and evolve rapidly in the online Canadian grocery industry. Shoppers are opting for more convenient and digital methods of payments such as in-app purchases, online transfers, and contactless.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most preferred method to pay online in Canada is through cards (especially debit cards) for a majority of online grocery transactions. Digital wallets such as Visa Checkout and PayPal are the second most-used payment methods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, online grocery retailers should adopt payment technologies that make Canadian shopper\u2019s experience smoother.<\/span><\/p>\n<h3><strong>Focus on Customer Experience<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Providing an enhanced &amp; personalized shopping experience is what sets online grocery retailers apart from traditional offline stores. But what does this actually mean for entrepreneurs and where they can start are the real questions.<\/span><\/p>\n<p><b>Personalization:<\/b><span style=\"font-weight: 400;\">. Around 78 percent say that they are ready to share choices or preferences when a personalized shopping experience is provided.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall, <\/span><span style=\"font-weight: 400;\">as the consumers in Canada are tied to excellence in terms of service and experience, retailers providing frictionless transactions and omnichannel shopping will rapidly increase their market share.\u00a0\u00a0\u00a0<\/span><\/p>\n<h3><strong>Free Shipping and Convenience<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">According to Nielsen, free shipping is one of the driving factors that entice around 55 percent of Canadian respondents to purchase groceries online.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Secondly, the freshness of products and one-day delivery are other high-ranking factors that encourage Canadians to shop.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, Canadians prefer to shop from websites that showcase descriptive product photos, come with relevant details, and are easy to navigate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As far as brand preferences are concerned, convenience and comfort are all that consumers need. A time-consuming checkout process in a physical store or an online shipment taking many days to arrive is not acceptable anymore.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<h3><strong>Sustainability &#8211; The Differentiating Factor in the Canadian Grocery Market<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">With the increasing awareness about natural products, Canadian consumers are highly attracted to sustainable consumption which is paving the way for the massive purchase of local, ethical or organic grocery products in the region. As the majority of Canadians are looking for sustainable and organic produce, focusing on sustainability is not merely a social responsibility rather a necessity for online retailers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the organic and sustainably produced items are highly popular among the Gen Z (18\u201324 year-olds), <\/span><span style=\"font-weight: 400;\">74%<\/span><span style=\"font-weight: 400;\"> of them prefer locally produced, 70% look for organic, and 49% want sustainable packaging. Moreover, Canadian customers are ready to pay a higher price if the food\/grocery items are sustainable. As per reports, around 33% of Canadian consumers are comfortable with spending a hefty amount over non-food items that are sustainably produced, followed by items that come with sustainable packaging (32%) or ecological offerings (32%).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With an aim to streamline their business processes, retailers are focussed on cutting costs and promoting efficiency, thus, becoming more sustainable. The ideal balance between social, economic, and ecological values is not only beneficial for the planet but the ROX (Return On Experience) too.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<div class=\"cta_box\">\n<div class=\"cta_title\">\n<h2>Get a Readymade Grocery Platform With a Great User Experience<\/h2>\n<\/div>\n<div class=\"cta_button\"><a class=\"button customBtn\" href=\"https:\/\/www.fatbit.com\/grocery-ecommerce-store-software.php?q=demo-popup\" target=\"_blank\" rel=\"noopener\">Learn More<\/a><\/div>\n<\/div>\n<h2 id=\"popular-grocery-delivery-businesses-in-canada\">Popular Grocery Delivery Businesses in Canada<\/h2>\n<h3><strong>Costco\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Costco is one of the major grocers in Canada and has recently launched an online grocery delivery option. The option is currently available in Alberta, Quebec, and Ontario. In 2017, Costco expanded its Instacart same-day delivery partnership and launched 2-day Costco Grocery shipping.\u00a0<\/span><\/p>\n<h3><b>Loblaw Companies Limited<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It is the largest Canadian food retailer that offers the widest variety of inventory to its customers through its PC Express click-and-collect and delivery service. The company has more than 700 pick-up locations, GO Train stations and Shoppers Drug Mart locations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2017, like Costco, Loblaw partnered with Instacart to launch home delivery in 11 major Canadian grocery markets.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Instacart\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In Canada, Instacart has 5 retail partners, including Staples, Loblaw, Walmart Canada, M&amp;M Food Market, and Pusateri\u2019s. The best thing about Instacart\u2019s grocery delivery is that most of the deliveries can be made in as little as 1-2 hours. A customer can also order up to a week in advance. Furthermore, the personal shopper messages customers and suggests alternatives if the ordered items are unavailable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For more international grocery players and market trends, watch the video: <\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"Future of Online Grocery Business | Start Online Grocery Business in 2022 | Growcer\" width=\"625\" height=\"352\" src=\"https:\/\/www.youtube.com\/embed\/VcaC7xnXsVo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h3><strong>Metro\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Metro is a very popular brand in the Canadian grocery industry and is a leading grocery delivery provider in the provinces of Ontario and Quebec. The company offers same-day pickup and delivery of many of its 950 food stores through several banners such as Metro, Metro Plus, Super C, and Food Basics.\u00a0<\/span><\/p>\n<h3><strong>Walmart\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The king of Canada supermarket, Walmart has strengthened its relationship with Instacart across the country. Through Instacart\u2019s grocery delivery app, a customer can get groceries in an hour or even can schedule as many as 5 days in advance. The service is available in cities such as British Columbia, Ontario, Newfoundland, Labrador, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from Instacart, Walmart also offers grocery delivery when ordered from its grocery delivery website or mobile application.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are many other tested grocery players in Canada such as <\/span>Grocery Gateway, Fresh City Farms, Longo\u2019s, Sobeys<span style=\"font-weight: 400;\">, etc.\u00a0<\/span><\/p>\n<div class=\"cta_box\">\n<div class=\"cta_title\">\n<h2>Looking To Build Online Grocery Platform<\/h2>\n<\/div>\n<div class=\"cta_button\"><a class=\"button customBtn\" href=\"https:\/\/www.fatbit.com\/website-design-company\/requestaquote.html?=GCanada_3\" target=\"_blank\" rel=\"noopener\">Contact Us<\/a><\/div>\n<\/div>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Being one of the basic human essentials, the scope of <\/span><span style=\"font-weight: 400;\">businesses offering grocery services is increasing.<\/span><span style=\"font-weight: 400;\"> As people are increasingly relying on online shopping nowadays, the idea of starting an online grocery business in Canada is highly profitable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entrepreneurs who want to give fierce competition to established businesses like Costco, Metro, Instacart, etc,\u00a0 need to consider the right trends &amp; tactics of the Canadian Grocery Industry.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They need a website or marketplace that has a plethora of functionalities and readymade grocery mobile apps to cater to customer needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Growcer<\/span><span style=\"font-weight: 400;\">, an <a href=\"https:\/\/www.fatbit.com\/grocery-ecommerce-store-software.html\" target=\"_blank\" rel=\"noopener\">online grocery shopping software<\/a>, is well equipped with all the necessary features that are required to start a grocery delivery service in Canada.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canadian consumers spend an amount of $6.4 billion per year on online groceries which does not contribute to even 5 percent of the total household expenditure in the category. This presents a massive opportunity for Canadian entrepreneurs to make huge profits through the online grocery business. In this blog post, we will discuss some Canadian grocery business facts such as the shopping behavior of consumers, best grocery delivery services in Canada, and tactics to attract consumers to your grocery delivery website.<\/p>\n","protected":false},"author":68,"featured_media":22517,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2216],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Start Online Grocery Store in Canada<\/title>\n<meta name=\"description\" content=\"Canadian entrepreneurs who want to start an online grocery business in Canada should read this guide to understand the grocery shopping behavior of consumers, best grocery delivery services.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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