India has emerged as one of the most promising market for online businesses. With steadily increasing internet penetration, Indians are buying a lot more than just electronics and books online.

In this progression, Food happens to be one of the major subdomains in this emerging e commerce market in India. Sellers are naturally attracted to selling goods that comes with frequent and recurring demand patterns.

According to retail consultancy Technopak, the online grocery retail market is growing at 25 to 30 percent in the metros and other large cities in the country. This is quite promising for aspiring sellers who want to expand their online footprints in this market and maximise their profits.

Grofers.com, Peppertap.com and bigbasket.com are the ones that are currently leading the online food selling marketplace in India.

If you also want to dive into this market, there are a few prerequisites to fulfill-

Registration with FSSAI-

A license from FSSAI or Food Safety & Standards authority of India is mandatory to sell your goods online. Merchants with FSSAI approval can only sell edible items online or offline.

VAT Registration-

Ensure you check eligibility for your product and obtain a VAT registration number from the local sales tax authorities.

CST –

CST will be levied when goods are moving from one state in India to another.

Important Parameters to consider when fulfilling online food orders-

1- Consider at what temperature the product needs to be kept throughout the fulfillment transit.

2- Invest in proper boxes, jars, dry ice, to ensure products are been delivered fresh.

3- Choose experienced fulfillment service to avoid late delivery, especially in the case of gifts.

Stock keeping and storage of food items calls for high-standard inventory management and well equipped physical distribution.  That is why it is essential to have an efficient inventory management software coupled with a capable logistic partner.

While physical infrastructure in still deficient in India with reference to Food storage and distribution, nonetheless, things are changing fast. Online sellers looking for greener pastures, can certainly rely on Food to be the next driver of growth.

Read the entire post in detail, and tips to come up with a great online store for your food business. 

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