Why In-House Delivery May Be Costing Independent Grocers More Than They Realize
In today’s razor-thin margin economy, every hour and every dollar counts—especially for small and mid-sized grocery businesses.
If you’re running an independent grocery store or regional chain, you’re already juggling enough: rising supply chain costs, labor shortages, and customers who expect fast, seamless delivery. Managing delivery in-house may seem like a cost-saving solution, but more often than not, it’s burning valuable time, draining resources, and pulling your team away from where they’re needed most.
The Grocery Industry is Under Pressure
Despite a slowdown in inflation, grocery prices remain stubbornly high. According to the USDA’s 2024 Food Price Outlook, food-at-home prices rose 5.0% year-over-year. Meanwhile, operating costs—from labor and fuel to energy and insurance—continue to rise, eating into already narrow margins.
Grocery retailers typically operate on slim profit margins, often around 1–3%, according to industry estimates. For independent grocers without the economies of scale enjoyed by national chains, even small inefficiencies—like delivery delays or a short-staffed store—can have an outsized impact.
The Hidden Cost of DIY Delivery
Many grocery owners try to handle delivery in-house, thinking it’s cheaper or simpler than outsourcing. At first glance, it seems logical: ask your existing team to make local deliveries and avoid third-party fees. But this often creates more headaches than it solves:
- Reduced in-store performance: When employees leave to deliver orders, customer service suffers, shelves stay unstocked, and checkout lines get longer.
- Increased liability and overhead: Delivery vehicles bring added insurance, maintenance, and compliance risks—especially when transporting perishables.
- Poor labor ROI: Your team is most valuable when they’re serving customers in-store, not driving delivery routes.
- Missed customer expectations: A 2023 survey found that 68% of Canadian consumers expect same-day or next-day delivery options when shopping online. Falling short on delivery speed or reliability can quickly drive customers to competitors.
You Shouldn’t Have to Choose Between Great Service and Efficient Delivery
Your team already wears many hats—serving customers, keeping shelves full, and creating a great in-store experience. Adding a full-scale delivery operation on top of that can stretch your resources thin and make it harder to excel in any one area.
So what’s the smarter option?
A Scalable, Reliable Delivery Solution—Built for Independent Grocers
That’s where Ziing comes in. We help independent grocery businesses meet modern customer expectations—without the stress, staffing, or capital required to build a delivery fleet from scratch.
With Ziing, you get:
- Cold-chain compliant delivery: Delivery vehicles equipped for both ambient and refrigerated goods, ensuring every order arrives fresh and on time.
- AI-driven route optimization and real-time tracking: Advanced logistics technology reduces costs, shortens delivery windows, and gives you and your customers full visibility.
- Scalability on demand: Whether you're fulfilling fifty orders a day or five hundred, Ziing’s tailored solutions adapt to your needs—no fleet investment required.
- More time on the floor: With delivery off your plate, your in-store team can focus on what drives revenue: upselling, merchandising, and customer satisfaction.
Ziing proudly partners with innovative grocery retailers across the country who are ready to elevate their customer experience without compromising on delivery performance.
Let’s Make Delivery Work for You
Looking to streamline operations, lower delivery costs, and keep your team focused where they add the most value—in-store with your customers?
Let’s talk.
Book a meeting with one of our experts and learn how Ziing can support your store with smarter delivery solutions.
