Update On :29 August 2015
Online grocers are looking to gain favour with customers by offering onions at about half the rate than market rate. They are proving a stiff competition to retailers by selling onions at cheaper rates, ranging from Rs 45 to Rs 68, per kilo, when the market price hovers around Rs 70 to Rs 80, per kilo. However some experts have raised doubts about the quality of onions on offer.
Rapidly mushrooming, online grocery firms say they are able to maintain a lower price point for onions by cutting down on profit margins, eliminating middlemen, and managing logistics better. The low pricing is a result of planned procurement and good marketing strategy said the co-founder of Localbanya Amit Naik. He remarked that the website has seen an increase in demand recently.
Seshu Kumar, head of national merchandising at BigBasket, said that the company sources its onions and other greens directly from farmers. As of now, we are working on cost-to-cost basis and although we do not stock onions, we are able to predict the demands of our customers, he said. Kumar also stated that the website does not allow any customer to purchase over 2 kg onion at a time to avoid bulk buys.
We have priced onions in such a manner that we do not make any losses or profits. At the same time, we assure quality to our customers and stock only as much as required, explains Mukesh Singh, founder of ZopNow, a self-funded online grocery delivery firm that has recently crossed 3,500 orders in Pune.
Zip.in, another innovative online grocery firm, has introduced combo plans for frequently bought items to reduce the overall pricing. Since prices of tomatoes have also increased to Rs 80/kg in various parts of the country, we are offering a kilo each of the three staples - onion, potato and tomato at Rs 104, if bought together, says Kishore Ganji, chief executive officer of Zip.in.
An online retailer remarked that onions, which are being sold at very low or near-wholesale prices, are not of the best quality and consumers will end up wasting or discarding most of their purchase. Another retailer pointed out that those selling onions at a low price would face losses eventually.
News Source From : http://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/online-grocers-offer-veggies-at-low-prices-increase-traffic/48707777