Archives for May 2019

The online grocery delivery business is booming across the globe. That’s because ever-increasing numbers of people are opting for purchasing their groceries online. So running an online grocery store is a significant business idea.

In fact, online grocery shopping is catching on rapidly with customers in developed countries like the US, UK, Japan, France, and elsewhere. One-fourth of online shoppers are already doing their grocery shopping on the Internet. What’s more, more than half of online shoppers in developed countries say they wish to do the same soon.

For this reason, the numbers of online grocers increases by three times year over year. Moreover, grocery delivery services accounted for significant growth in the food and beverage industries in last few years.

The food retail industry is a high-volume, low-margin business with cutthroat competition. However, starting a grocery delivery service business could be just the business venture for you. This is especially the case if you’re an entrepreneur with tech smarts who is good with details.

This guide will provide you with a brief idea about how to start an online grocery delivery business. It will also help you decide whether the business is a good match for your skills.

In this post, you will learn about developing an online grocery delivery business plan. You’ll also read about the costs to set up your online grocery delivery store and much more.

Steps to Starting
Your Own Grocery Delivery Business

1. Plan Your Grocery Delivery Business

The first thing you need to do is develop your online grocery delivery service business plan. It can make a difference in your overall success to find a niche that’s right for your store. Also, get to know your customer base before you begin your grocery delivery business.

To this end, identify your target customers and get acquainted with their needs. Additionally, plan your delivery periphery well. Ensure that items with shorter shelf lives will reach customers in a timely fashion. For example, be sure you can deliver fruits, vegetables, milk, and other perishable items while they’re still fresh.

Also, pinpoint the eating habits and buying patterns of your target customer. This will help you to sell your products faster and minimize wastage.

There is a lot to keep track of when it comes to grocery delivery. For instance, you’ll need to continuously coordinate with customers and maintain their ordering records. Therefore, you’ll need a clear plan.

Naturally, you’ll also need to consider your initial costs. Also, estimate how long it will take you to reach a break-even point.

2. Use a Business Model Like Those Used by E-Commerce

The business model for an online grocery delivery store is based on a marketplace model that’s used by nearly all e-commerce stores. Many of the leading players like Instacart, Amazon Prime, Peapod, and others set up their online grocery store this way. Follow their lead by taking these steps:

1. Connect with local grocers, wholesalers, and distributors.
2. Build a strong grocery delivery network to ensure timely delivery to your customers.

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3. Monetize Your Grocery Delivery Business

Within the marketplace for grocery delivery businesses, there are business owners, vendors, wholesalers, customers, and delivery partners.

Therefore, you’ll have both primary and secondary revenue-generation streams for monetizing your online grocery delivery business.

Primary Revenue Stream

There are multiple models in the primary business stream. For example:

Commission Model

This model is used to accelerate business growth and has the potential for maximizing profit. That is, you can set different commission rates for different products. You can also change the commission rate for different sellers and monetize those through your online platform.

Subscription Model

This model relies on discounts, additional charges, and so on to provide customers with better service. Under this model, customers sign up for monthly or yearly subscriptions. In return, you give them certain additional benefits such as exclusive offers and discounts.

For example, Thrive Market offers 25-50% discounts to its customers who sign up for an annual subscription.

Hybrid Model

The hybrid model, as the name suggests, is a combination of the other two models. In other words, your business model is a blend of the commission and the subscription models. Operating in this way could allow you to make higher profits.

For example, Amazon Prime uses the commission model with its sellers. However, it uses a subscription model with its customers, to whom Amazon provides value-added services.

Secondary Revenue Stream

Your secondary revenue stream can come from:

• Featured promotions for merchants on your website
• Hosting banner ads
• Charging an additional amount for faster grocery delivery
• Selling user data to market research companies

4. Establish a Web Presence for Your Grocery Delivery Business

To ensure the success of your online grocery delivery service, you’ll need to establish an online presence. This involves developing and starting a website. Your website will be the face of your business.

Having an efficient and functional website is critical. This is the case even if you plan to stick with a limited niche with your grocery delivery idea.

Finally, it’s imperative that you create an impressive and descriptive domain name for your brand.

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Get Software Solutions

Your website needs to have every possible feature that an online grocery delivery store could have. Therefore, look for a technology-enabled solution. For one thing, your online grocery delivery business will need a multifaceted approach. Consider the following software solutions:

Develop from Scratch

If you have a strong online grocery delivery business plan and want to start from scratch, gather all your requirements. Then hire a team of software developers. However, this approach is a time-consuming process that requires a huge investment.

Besides, starting an online grocery delivery business requires a good deal more groundwork than other online businesses as it is.

Purchase a Turnkey Solution

If you want a speedier and more cost-effective software solution, a turn-key approach will better suit you.

There are many ready-made solutions available online. Many of these are open source, customizable, and self-hosted. This means you can personalize the features according to your requirements. You can buy the Instacart clone script, for instance, or the Amazon clone script for your online grocery delivery business.

Instacart clone scripts come with multiple ready-made features. This will shorten the time you’ll need for set-up. And you won’t need to go to the trouble of developing from scratch. You can purchase these scripts enabled for both iOS and Android apps.

5. Build the Brand for Your Grocery Delivery Service

Big players like Amazon and Instacart have already established their brand names on multiple fronts. So you also need to develop marketing strategies on your own for your business.

Therefore, be proactive about marketing your goods and services. To this end, center your marketing strategies on reliability, fast grocery delivery, and great customer service.

Your Online Grocery Delivery Service Can Become Your Customers’ Best Friend

The primary thing for entrepreneurs in the online grocery delivery industry is to know the challenges from the beginning. They also need to have some idea about leveraging the required technology. If you are aware of the strategies and trends, you can become a valuable online presence. Soon you’ll be serving your target customer with an online grocery business.

If you should become injured in an accident, you might need to understand how to negotiate a settlement in a personal injury claim. This might also be the case if an employee is injured in an accident while driving for you. Read on to find out more.

Florida is a no-fault insurance state. No-fault means that regardless of who caused the accident, each driver’s own insurance company will cover medical bills up to $10K. In other words, each driver’s own auto insurance pays these bills through PIP benefits.

For property damage, a driver can file a claim against the at-fault driver’s insurance company. Property damage, of course, refers to the repairs or replacement of your vehicle.

Once you have determined all of your economic and non-economic damages, you can then pursue a settlement. In a settlement, an injured person agrees to a payment or settlement amount from the at-fault driver’s insurance company. Also, the injured person agrees to not bring further legal action against the at-fault party in connection with the accident.

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Determine Your Damages

Examples of economic damages are injuries, medical bills, and lost wages. Common non-economic damages include pain and suffering.

For example, if you have missed time from work as a result of injuries sustained in a car accident, you will need to have medical documentation as evidence that you were placed on off-work status. In addition, you will need your employer to produce a letter that states the time you missed from work, the amount you are normally paid, and the date you returned to work.

If you are self-employed you will need to produce tax returns for up to three years prior to the accident.

Once you have completed all medical treatment you should begin to assess your economic and non-economic damages so you can determine damages for your settlement demand.

Gather All Supporting Documents

The initial offer made by the insurance company is commonly their starting point and not their final offer. For this reason, the starting point almost always tends to be a low offer.

However, how low the offer is will depend on the evidence you provide the insurance company. Documents that are helpful in pleading your case are the police report, witness statements, pictures of the damage to the vehicles, and pictures of your injuries.

In addition, you should include all medical records and medical bills related to your car accident injuries. Also, if your car accident injuries have re-injured a prior injury, you will need to obtain prior medical records and supply those as well.

Create a Convincing Demand Letter for Your Settlement

Once you have gathered all of the necessary supporting documents, write a demand letter for your settlement. Demand letters prepared by Florida car accident attorneys are thorough summaries of the events surrounding the car accident. They also contain a descriptive explanation of the injuries their client sustained which necessitated medical treatment.

Above all, demand letters should depict the injured party in the most favorable light. They should also outline the at-fault driver’s negligence as the sole proximate cause for the collision.

In addition, the demand letter for your settlement must explain the economic and non-economic damages you suffered. It should also include all supporting documents, including a copy of the police report, pictures of the property damage, pictures of the bodily injuries, lost wages documentation, medical records, medical bills pertaining to the accident, witness statements, and an impact statement from the injured party.

The impact statement should summarize how your life has been adversely affected by the injuries you sustained in the accident.

A Final
Word

The State of Florida prohibits insurance companies from engaging in unfair or deceptive practices. These include failing to pay valid claims and improperly investigating a claim. However, insurance companies are businesses. As such, it is their job to minimize risks and costs, not to give you the compensation you deserve.

So do not settle the claim until you are satisfied with the settlement offer. Be certain that it covers your damages, including future medical treatment (if applicable). For more information, call Friedland & Associates: Personal injury lawyer in Fort Lauderdale.

Featured image from Pixabay on Pexels

Using Facebook Marketplace for your business is all about getting the maximum benefits from that platform. In this article, we show you how to use Facebook Audience Insights to promote your online store.

Do you know that one out of three Facebook users in the US uses Facebook Marketplace every day? It’s no secret that this ecommerce platform has a greater influence on consumers’ decisions than any other social platform.

For instance, it has a conversion rate of 1.85%, higher than the conversion rate of any other social media platform. Plus, it also has the largest audience. 

The high conversion rates on Facebook Marketplace sound amazing. However, the real trick to using that platform for your online store lies in how you wield that massive Facebook audience. Otherwise, it’s as if you hold a ruby in your hand, but you think it’s just a stone. In other words, you need to know its worth.

In this article, we’re going to enlighten you with a great hack for using Facebook Audience Insights powerfully and effectively. With this hack, you’ll be able to find and target potential customers for your online business.

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What Are Facebook Audience Insights?

Facebook Audience Insights can help you to reach potential customers. You do this by analyzing the trends.

Most people think Facebook Audience Insights are like Page Insights, but the two are completely different. For example, Page Insights only give you the number of page engagements, such as likes and comments. You can learn so much more from Facebook Audience Insights.

How Do Facebook Audience Insights Work?

Facebook Audience Insights help a Facebook marketer to reach out to their most relevant target audience by looking at purchase behavior, demographics, and other factors.

That’s because the Audience Insights tool provides full details about people’s demographics, page likes, purchase activity, and page engagement.

First, get access to this tool. Next, decide on the audience you want to target. You’ll make your choice based on the history of your ads and your business’s current needs. For example:

• You can choose a broad targeting approach. This means you’ll be targeting a large audience, regardless of whether the people in that audience are relevant to your business or not. You might consider such an approach for the initial stage of marketing for brand awareness.
• Another option is to target your own page’s audience.
• The most effective option, however, is to target a custom audience. This is an audience you create based on data you’ve received about your previous ads.

At any rate, your choice will depend on your business’s current needs and the position of any ongoing campaigns.

4 Rules for Using This Hack for Audience Insights

There are four important rules you must understand before you begin using the hack we’re about to share with you:

Rule number 1:    The audience
size must be more than 30k and less than 300k

Rule number 2:    The top
categories must show relevant results.

Rule number 3:    The affinity score is directly related to relevancy, so it needs to be relatively high.

Rule number 4:    Check for good engagement on the relevant pages.

You will understand these rules better once you start applying them with the following hack.

Hack for Using Audience Insights with Facebook Pages

You only need three things to use this hack. That is, you need to know your niche; you need to know how to use Google Search; and you need access to Facebook Audience Insights.

To give an example, let’s suppose your niche is home décor.

First, find your targeted customer with a search query of “home décor + facebook pages.”

Next, pick one of the search results. For this example, we selected the page for “Freshome.”

Then, go to Facebook Audience Insights and type the page’s name in the box for “Interests.”

Now check your selection against the four rules we mentioned earlier.

Rule #1: Audience Size

The audience size is 30K–35K, which fits this rule.

Rule #2: Relevancy in the Top Category

The relevancy results are good, since Freshome falls into some of the top few categories.

Rule #3: The Affinity Score

Freshome’s affinity score is pretty amazing.

Rule #4: Engagement on Relevant Pages

Finally, the engagement on the relevant pages is great.

Since Freshome passed on all the selected parameters, we have a green signal to target its audience with complete confidence.

See how easy that was?

Similarly, you can search your niche with websites, blogs, magazines, and other categories as well. This gives you multiple ways to expand the target audience for your store.

Wrapping Up

Now that you have a better idea about how to find the potential audience for your niche, you can make sure your ads will be displayed in front of the most relevant audience.

Of course, you’ll continue to use the data you receive after running your ads to filter your audience further. By watching the data and using hacks like the one we share here, you’ll eventually find your way to an audience of people who always want to hear from you. In time, these folks could become your loyal customers, giving you traction for more and more conversions.

One question entrepreneurs in the West ask themselves is whether they should find a manufacturer in China and outsource manufacturing to that low-cost region.

A large number of them are convinced that manufacturing in China will lower manufacturing costs and increase profits. However, some hold back because of doubts about whether China can manufacture products that meet their standards of quality. But there are a lot of searches for “manufacturing China” and similar queries on Google already, so clearly there are people looking into it.

Times Have Changed

Admittedly, there is a background to the origin of such doubts. However, it is 2019 now and there is no reason to be apprehensive about quality control in China. In this piece, we will tackle two points:

1. Why you should set aside any doubts about the quality of manufacturing in China and begin importing from China
2. How to find a manufacturer in China

1. Why You Should Set Aside Any Doubts You Have About the Quality of Manufacturing in China

Over the last 20 years or so, Chinese factories have made a fortune by manufacturing products that sell for low prices across the world.

You may remember a time when almost every souvenir you picked up while traveling—that Eiffel tower key chain in Paris, the leaning tower of Pisa fridge magnet in Italy, a replica of one of NASA’s shuttles at the Kennedy Space Center at Cape Canaveral, USA—showed a “Made in China” tag.

Ditto with the contents of dollar stores across the world, and the world’s entire supply of Christmas decorations, from tinsel to Santa hats to Christmas tree ornaments and even Christmas trees themselves.

There’s a Problem with Cheap Goods

The problem with
cheap goods, however, is that they tend not to last very long.

Therefore, because of the profusion of cheap, mass-produced goods that were “Made in China,” the brand became associated with low-quality goods.

This perception gained traction not only because of poor quality-control processes in factories in China but also because of the common perception in the West that “cheap” equals “poor quality.” However, the latter perception is not necessarily true.

Fast-Forward to 2019

Today, China has upped its manufacturing game. For example, it now manufactures high-end smartphones, laptops and other electronics, highly specialized aircraft components, drones, and other high-tech gear. In short, it has now gained a reputation of being able to manufacture high-quality goods at a competitive price.

There are two main reasons for this:

• Its own burgeoning and aspirational middle class—a huge consumer market—has become more discerning and more quality conscious. In the process, they have begun to seek good quality, safe products. This is the case whether they’re purchasing electronics, home décor, apparel, or toys.

• The Chinese government’s desire to improve the perception of the “Made in China” brand. In a 2017 article on how China planned to focus on improving the quality of its products and services, Xinhua, the official press agency of the Chinese government, said: “With an insufficient supply of high-end products and services, great efforts will be required to improve quality, according to the plan released by the Communist Party of China Central Committee and the State Council. The focus of the plan is on improving the quality of services and products, especially farm produce, food, medicine, consumer goods, and equipment.”

Additionally, China is now capable of manufacturing quality goods that are also competitively priced. Though the cost of raw materials in China has admittedly increased over the years—as it has elsewhere in the world—its labor costs are still competitive. That’s chiefly because of the huge pool of labor in China and the extensive infrastructure its government has set up for exports.

This is why China
is still the best place for business owners or entrepreneurs who are looking to
outsource some or all of their manufacturing needs.

If you are
convinced by this argument, we now get to the second point:

2. How to Find a Manufacturer in China

Finding a reliable manufacturer in China might seem a formidable task for business owners who are attempting to import from China for the first time. However, manufacturing in China is really not rocket science.

Here’s how to find a manufacturer in China:

Look on the World Wide Web for a Manufacturer in China

You need to give your initial search at least a month. Many people start out with a search on Google or Bing. However, you will save yourself time if you go directly to the several B2B websites such as Alibaba that help manufacturers in China to connect with buyers all across the world.

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Depending on what you are looking for, check whether the suppliers thrown up by the Internet are middlemen or manufacturers.

That’s because buying directly from a manufacturer lowers costs, since middlemen such as traders take a cut that will reduce your profit margin.

Also, it is advisable to buy from a manufacturer directly if you want a product that your company has developed. This is also true if you need components that are difficult to get off the shelf easily.

Additionally, remember that some of the smaller manufacturers may not be visible on these sites for various reasons. For example, they might not have the SEO expertise necessary to get picked up by Internet search engines.

Visit Trade Fairs to Seek out a Manufacturer in China

Visiting trade fairs in China and your home country will also give you some leads. China holds several such fairs through the year. For instance, the Canton Fair, held twice a year, in April and October, in Guangdong, is one of the biggest. It is so big that it is held in two or three phases each time.

The participants in this fair come from several industries: electronics and household electrical appliances, lighting equipment, vehicles and spare parts, machinery, hardware and tools, consumer goods, gifts, home decorations, and medical devices and health products. Plus, many more industries are represented.

Check out Other Big Trade Fairs, Too

Another big fair in China is the Yiwu commodities fair in Yiwu, Zhejiang. Yiwu also has a permanent trade market where buyers get good wholesale deals. You will find toys, sporting and recreation goods, office supplies, jewelry and accessories, household consumables, gifts and handicrafts, consumer electronics, apparel and clothing, hardware, stationery, and many other manufacturers at Yiwu.

Notably, the annual China International Hardware Show Shanghai has become the second largest exhibition in the hardware industry in the world. At this fair, buyers flock to buy tools, security systems, locks, and other hardware.

Several business owners from across the world visit these fairs to find suppliers, network with members of the industry, and even get new ideas for their businesses.

You Might Also Find Trade Fairs in Your Own Country That Feature Manufacturers in China

You could also see if your home country holds trade fairs that have exhibitors of the product you are interested in. For instance, in the US, the annual National Hardware Show, held in Las Vegas, usually has a number of manufacturers from China, as well as manufacturers from other countries.

Fall Back on Your Industry Network

You could find a reliable supplier in China through your industry network. This will include online and offline groups or your industry trade association. Also, sometimes word-of-mouth recommendations can be helpful and save you a lot of time. Why reinvent the wheel, right?

Rely on Sourcing Agents to Find a Manufacturer in China

Often, smaller business owners who already have their hands full running their companies prefer not to handle the China sourcing themselves. Instead, they conduct their business in China via an agent who acts as their representative throughout the manufacturing process.

Of course, such agents charge a fee to supervise everything for you. For example, they will find you a supplier, verify the supplier’s credentials, examine your designs, get a sample made, suggest improvements, supervise production, and handle problems that crop up on the factory floor. Finally, they will conduct the pre-shipment quality check and handle the shipping.

However, if you decide not to opt for a sourcing agent, you’ll need to shortlist a few suppliers, then contact them. When you do, list your key requirements and request a quotation.

These requirements should include:

• The type of manufacturing, such as die casting, metal stamping, or plastic injection molds.
• The raw material required and what the product is used for.
• Whether you have a design or need help with a design and whether you have a mold or you need one to be made.
• Your minimum order quantity or MOQ.
• How often you are likely to place the order in a year.
• Their prices for samples, a trial run, and mass production.
• How long it will take them to make your order.
• Their payment terms.
• Whether they have manufactured for a Western company before.

Shortlist Suppliers That Respond

Once the suppliers you have contacted respond, you must shortlist them. Besides taking into account the price quoted (obviously), also assess them on the quality of their response. For instance, did they answer all your questions? And did they respond within a reasonable time?

Their English doesn’t need to be impeccable. But you must get the sense that they understand what your requirements are. This is crucial, especially if you intend to have a long-term business relationship with them. Remember that you are dealing with people in a different country, which operates in a different time zone, and where a different language is spoken.

Once you have finalized a few suppliers, ask them to make a sample before making your final decision on the basis of the quality of the sample.

A Final Word

Do remember,
however, that before you sign any agreements you must either verify the
credentials of the factory yourself or through a third party. You could ask the
factory for their business licenses and other certifications to verify whether
they indeed are legitimate and have the capacity and capability to manufacture
your product. As mentioned above, a good sourcing agent also does this for you.

Photo by rawpixel.com from Pexels

Staying in compliance with your tax and financial reporting requirements is one of the most significant legal obligations imposed on all Australian businesses. It is therefore essential to ensure that your business has all of the available information and tools required to fulfill your legal requirements. Read on to find our tips to help your business maintain tax compliance.

1.
Prepare for Single Touch Payroll Reporting

Single touch payroll (STP)  is one of the most significant recent developments in tax and financial reporting compliance. To maintain compliance with your reporting obligations you need to develop a firm understanding of STP and how it will modify your traditional payroll processes.

The first phase of STP reporting became mandatory July 1, 2018. However, that phase only affected businesses with 20 or more employees. The second phase will see STP reporting become mandatory for all small businesses. This means that companies with with 19 employees or fewer will need to be in compliance with STP reporting. And this becomes effective on July 1, 2019

Single Touch Payroll Changes Payroll Reporting

STP changes the traditional model of payroll reporting. Until now, small businesses could send all employees’ payroll information to the Australian Taxation Office (ATO) at the end of the year. However, STP utilizes payroll software. Further, it sends this information on a pay-by-pay basis.

Payroll and business management software already compile and record vital information including net pay, PAYG withholding, and superannuation contributions for each employee during every pay cycle. Now, however, STP converts this information into the required format. Then it sends it directly to the ATO for their records.

How to Prepare for STP Reporting

In order to prepare for STP reporting, contact your business management software provider and determine whether they are STP-enabled. Many will have the relevant program built into their system. Others will require you to download an update.

If your software is STP-enabled, speak with your provider about how they can support you through the transition to STP reporting. Fortunately, many will offer training and other support services.

2. Invest in
Accounting Software

One of the main benefits of accounting software is that it remains up-to-date with all changes to relevant regulatory and legislative provisions. That’s because leading accounting software providers ensure that their customers have all of the tools and platforms required to remain in compliance with their tax and employee entitlement obligations.

3. Keep Complete and Accurate Records

Tax compliance is heavily regulated and required by law. If your business fails to adhere to the requirements, you will be subject to heavy penalties. Therefore, it is essential to maintain complete and accurate financial records.

Fortunately, accounting software enables users to record and store all of their financial records in one central location. Additionally, intuitive features and integration with your other sales and business management software provide the required information to your accounting software. This allows the software to automatically update your financial reports with real-time data.

Take Advantage of the Easy-to-Use Templates

Accounting software also provides users with easy-to-use templates. These ensure that all financial information is recorded as required by legal standards. All of these tools help businesses to remain in compliance with applicable tax laws.

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4.
Remain Educated

Accounting software takes away much of the tedious work when it comes to maintaining compliance with regulatory requirements. However, it is still important for all business owners to maintain a thorough understanding of their tax obligations.

Fortunately, there are many education providers and resources available to help you understand your tax and financial reporting requirements. Also, there are numerous helpful resources online, including helpful information available from the ATO’s webpage.

What’s more, those who require more support with maintaining tax compliance can reach out to a trusted resource or financial professional for help along the way.

5. Conduct Regular Risk
Reviews

The most important step in maintaining tax compliance is ensuring that your business regularly conducts an internal audit and risk review. That’s because conducting a regular risk review is essential. It will help you to determine any gaps in your business’s financial reporting processes. This allows you to spot any areas of improvement and resolve issues before they are subject to the strict scrutiny of the ATO.

Take Steps to Remain in Compliance

Maintaining tax compliance is one of the most important obligations for any business. It is therefore essential to remain educated and to invest in the best products available. This will help ensure that your business is accurate and in compliance with the numerous tax and financial reporting obligations.