E-retailers position for an online produce push

Grocery e-commerce is on the upswing — and that is providing a solid foundation for the online purchasing of fruits and vegetables.

Online produce buying has declined over the last few years following a spike at the start of the pandemic, states The Power of Produce 2024 report, published by Arlington, Va.-based FMI—The Food Industry Association.

But the ability to support shoppers’ strong interest in convenience while reducing produce department labor expenses and leveraging a powerful marketing platform still makes e-commerce an increasingly attractive merchandising option, presenters said at the 2024 Organic Produce Summit in Monterey, Calif.

“We have the ability to entice shoppers by giving information about a product that makes it more interesting than they thought,” said Andrew McGregor, senior director of produce for Misfits Market, a Hanover, Md.-based online grocer. “There is an opportunity to take the shopper down a rabbit hole of knowledge sharing.”

E-commerce also provides the marketing “real estate” that is not available in brick-and-mortar locations, said Roger Brady, purchasing and category manager, produce, for Good Eggs Inc., an Oakland, Calif.-based online grocer.

“There is such a good in-depth story-telling opportunity,” he said, which includes enabling shoppers to easily garner information on growers and the different varieties of specific fruits and vegetables. “That creates an experience that is almost like walking through a farmers market,” Brady said.

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Such details can drive interest in a wider range of products, said Ryan Mulvany, a San Diego-based e-commerce advisor. “An apple is just an apple, and a peach is just a peach to many persons,” he said. “But there are many other things that are part of that story.”

While online merchandisers also can benefit from streamlined operations that eliminate the need for secondary warehouses, sales floors, and a large work force, it is crucial that they invest in technologies that make shopping more attractive and informative, McGregor said.

That can include systems which enable operators to automatically recommend specific selections to each customer in accordance with past shopping behavior, he said, and to automatically fill carts with the items that return shoppers purchase each week.

Simplifying their shopping gives consumers “more time to do website exploration,” McGregor said, which can include watching videos on product attributes and recipes. “There are efficiencies to having limited touch points, but the touch points have to be fantastic,” he said. “Customers are still challenged by time, so convenience is critical.”

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