There are mainly three types of delivery:-
1. Most local online grocers have their own drivers.
2. The most common type of personal delivery involves storing grocery inventory in a warehouse to deliver to customers once orders are placed.
3. Another type of personal delivery which is less common is based on just-in-time business in which there is no warehouse or inventory. In this type of delivery, customers place orders for next-day delivery. The online grocer shops for the groceries on the morning of the delivery day.
The biggest advantage that online grocers have vis-a-vis brick-and-mortar stores is more accurate data. Online grocers can use AI and machine-learning models to provide a more personalized experience for their customers. There are four main ways to utilize data for online grocers: creating smart shopping lists; personalizing discounts; personalizing the way items are shown to users, and providing contextualized recommendations. All these are intended to increase up-selling and cross-selling options as well as increase the customer's lifetime value.