Food E-Commerce is on the Rise and Cooking!

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The e-commerce itself is very broad and has been in existence for a long time. Bridging the gap between food and internet has taken a longer period (adoption of concept from the west) and is a revolution in e-retailing. Huge effort has been made on food e retailing in India by multinational companies like Rocket Internet GBMH and justeat. Many of the small entrepreneurs are investing in this kind of business because of low operating costs and large revenues it generates. Retailing of food and grocery is a major element of e commerce. Today a massive growth of food ecommerce is giving rise to new business models through which retailers conduct their delivery services. A large number of restaurant and food outlets have started outsourcing their delivery services to online food service providers that are known as third party distributors. These distributors come up with online business model like web portals to sell the products.
Consumer preferences play a very important role in purchasing on online stores. These preferences are formed when consumer comes across various attributes and features provided on web portals that will lead towards the intention to buy. There are seven most important dimensions that customer looks on online retail stores that are merchandise, convenience, reliability, interactivity, navigation, layout and promotional offers. Previously the entrepreneurs were involved in marketing and retailing of electronic items, books, CDs, DVDs etc. However nowadays we can see perishable items like food and grocery selling online that shows a great innovation in today’s market place. Apart from all the benefits, there is a great challenge of payment system being faced by online businesses. People feel somewhat reluctant ...

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... menu will be uploaded on the website. These companies generally works on a commission model - i.e. the restaurant pays them 5% to 20% of the order value for all the orders generated through the portal.
• Customers can choose from the various restaurants listed on the website. They can search by location, restaurant and cuisine type and place an order online. Customers can pay cash online or opt for cash on delivery.
• Upon receiving the order, the company representative calls the restaurant and places the order.
• The restaurant then fulfills the order, like they would do for a normal delivery order. They deliver the food and collect the cash.
• At the end of the month, the company sends an invoice to the restaurant listing all the orders placed by them with the commission that needs to be paid and collect the money/check from the restaurant. (Narayanan, 2011)

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