E-Groceries: A Channel Choice Analysis in Shanghai

E-grocery is becoming more and more popular, involving both pure e-commerce players and physical stores in its development and sales. As a consequence, the last mile delivery model has been heavily modified, with ambiguous final impact on the environment. This paper identifies the key elements germane to e-grocery (demand and supply), discusses e-grocery development and investigates the challenges ahead. In more detail, it presents the results of a stated preference survey on consumers' channel choices for the grocery market. The survey was carried out in Shanghai (China) in order to investigate different purchase attributes, such as product and delivery service price, product range, lead time, time window and travel time. The paper identifies heterogeneous reactions to alternative service configurations, which allows to estimate market shares for e-grocery, with the in-store option as a reference. Policy implications and operational solutions to improve the sustainability of this renewed last mile delivery model are thus proposed.

Automated summary

E-grocery market is becoming increasingly popular, but the last mile delivery model still faces challenges and uncertain environmental impacts. The study conducted research on the development of e-grocery and consumer channel choices, revealing diverse reactions to different purchase attributes among consumers.