Are food ordering services too expensive for your local business?
Online ordering services such as Just Eat, Deliveroo, and Uber Eats were doing pretty well prior to the pandemic but, from March 2020 their popularity has positively rocketed, along with their profits, as more and more local businesses rush to get their products online and deliverable.
That’s all very well but, in a market where profit margins are already tight, online ordering services are expensive for local businesses and that’s not sustainable in the longer term. What you pay to be on these ordering platforms varies dramatically; some have sign-on fees of several hundreds of pounds and all will take a percentage of the total order value. On average, we estimate the total costs to be around 25-30% of the order value so, for an order of £30 to the consumer, you’ll be receiving only around £22.50 into your bank account.
In addition, unless you’re in a large city covered by contract delivery drivers, you’re going to have to provide your own driver(s) to service and fulfill the orders, shaving yet more off of your already-squeezed margins.
Not just food & drink
The Pandemic has forced many different businesses to go online from butchers, bakers, and even candlestick makers, all are finding that putting their products online and offering delivery and/or click & collect is a great way of doing business. Basically, if you have a product, you can sell more by offering the consumer the option to buy online and have them delivered.
Consumer habits have changed forever
We saw it happening well before the Covid-19 crisis hit; an increasing move towards buying online and the inexorable rise of the mighty Amazon. Some said Amazon would kill local businesses and, to some extent, that is true but one thing Covid-19 has taught us is that given the incentive, even small local businesses can trade and thrive online in markets never thought viable such as pet food delivery, greengrocery deliveries, etc.
The stumbling block for local businesses has always been the initial cost of taking a business online and the time & effort required to process orders, pack, ship, and do stock control.
We have a solution
In fact, we don’t quite have it yet but development is well underway and we hope to be able to “soft launch” by the middle of July 2021. This is what we’re aiming to deliver:-
- An affordable ‘app-like platform with ease of use for consumers that they have become familiar with, avoiding tedious, multi-clicking, site navigation. Our solution will take the consumer from selection to checkout in one easy step.
- An easy way to allow consumers to select products and customise them – think pizza delivery menu and think about how that flexibility might be used with your products?
- Easy up and cross-selling – Would you like to add fries to that order? How about a drink?
- Single, sensible, and affordable monthly fee depending on the number of products you have available. No percentages, no sign-up fee, and a minimum commitment of just 12 months.
- Easy back-end order processing with SMS alerts, email confirmations, stock and order management.
Want to know more?
Get ahead of the game by registering your interest below and get on board ahead of the competition at a reduced price. You really have nothing to lose and everything to gain – including getting your profit margins back on track post-Covid!