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The Virtual Grocer: Online Grocery Shopping
By Elena Anzalone

While we haven't yet reached the Jetson era, with Rosie the robot keeping the pantry stocked for us, grocery shopping has definitely entered the computer age. Across the nation, online grocers are attempting to woo us into the realm of the virtual grocery store. If you just want a quick nibble on this topic, then read the first section: Online Shopping Tips. Want the full-course article? Print out all sections for the full scoop!


 Sections

Online Shopping Tips in a Nutshell

When you make any online purchase, it's important to know your supplier. While the major online services, such as Webvan or Peapod, have established themselves in the area of customer satisfaction, some of the smaller more regional services may not have the same track records. To help ensure a positive experience, here are a few things to consider.
  • Terms and Agreements. Be sure to read and understand all the terms and agreements associated with the service. These include privacy and security statements, return policies, delivery terms and other customer satisfaction policies.
  • Privacy. Does the company have a published policy? Does it resell information about its customers or automatically include customers in unsolicited mailings? If you're concerned about the use of your personal information, make sure you receive and understand the company's policy on this issue.
  • Security. Does the company guarantee the security of your credit information? For example, Webvan and Peapod both offer detailed information about site security and offer to cover costs incurred as a result of misuse of the credit card information you provide through their services. If no guarantee is provided--or if no statement is even given--you might want to consider alternatives.
  • Delivery. All companies charge a fee for delivery and some require deposits on delivery totes/boxes that are left at your home. Some companies require a signature on deliveries, while others will deliver to an unattended residence and leave your groceries in a previously agreed location. But be aware: If you accept an unattended delivery, chances are the company will not be responsible for missing or damaged items. Similarly, most companies charge for re-delivery if you miss a scheduled delivery. This, however, doesn't necessarily work both ways: You may or may not be compensated if the delivery is late; so make sure you understand and can accept the company's delivery policy.
  • Quality Assurance and Returns. Most online grocers provide some degree of quality assurance on their items and will accept returns under certain conditions. Among the most consumer-friendly, Webvan's policy allows delivery staff to provide on-the-spot refunds for items that are deemed unsatisfactory by the customer. Other companies will only accept returns of nonperishable items or items that are clearly defective.
  • Price Guarantee. Many online grocery stores work in conjunction with local retailers rather than through their own warehouses. Because local vendors' prices may fluctuate on a daily basis, some companies will not guarantee their online prices. Make sure you understand your service's policy.
  • Substitutions. Because the Web site sometimes lags behind the warehouse, advertised items may be out of stock by the time your order is filled. Unless you specify otherwise, companies will attempt to fill your order with what they consider to be a reasonable substitute. If you're married to your brands, let the company know that you do not want substitutions made.
Your Shopping List. If your goal in using an online grocer is to save time, make sure you have a shopping list. While most sites let you browse the aisles, this method of shopping is extremely time-consuming, even if you have a cable modem or DSL. Despite the idiosyncrasies of some of the search engines, searching for specific items--either by type or by brand--provides a significantly faster route to the checkout.
 
A Peek at the Big Players

Still in its infancy, the online grocery industry is working through some inevitable growing pains, not the least of which is how to provide the best service at the best price.

Peapod. If convenience is your goal, there are number of companies ready to meet that need. One of the veterans of the online grocery industry, Peapod offers delivery to more than eight regions across the nation and continues to expand. Like many of these services, Peapod works in conjunction with area grocery stores, providing local products at local prices. While this model has its advantages, one disadvantage is the difficulty in keeping the Web site up-to-date on inventory and pricing. As a result, Peapod cannot guarantee product availability or pricing. However, Peapod's product line is extensive, including fresh produce, meats, dairy, frozen foods and other grocery items, as well as personal-care products, books and pet supplies. In addition to its store products, Peapod also offers recipes, menu ideas and product information. Deliveries are guaranteed within a two-hour window selected by the purchaser and in some cases can be made even when you're not at home. (However, if you miss a delivery, the next available delivery window may be two days away.) The $9.95 delivery fee is waived for purchases over $75.

Webvan. Webvan and its recent acquisition, HomeGrocer.com, are probably the best-known online grocers. Currently serving Atlanta, Chicago, Sacramento and the San Francisco Bay Area, Webvan plans to expand into 26 areas across the United States, including Seattle and Baltimore. Unlike Peapod's local-affiliate model, Webvan stocks its own regional warehouses. This arrangement not only allows Webvan to keep its Web site current, it also enables the company to provide price guarantees and lower prices. In addition to an extremely wide selection of top-quality grocery items, Webvan carries fresh-baked breads, prepared meals, wine and alcohol selections, office and pet supplies and, in some regions, even mass-transit tickets and stamps. The Webvan site also offers menu ideas, recipes, interviews with food experts and feature articles. Delivery windows are 30 minutes, but the next available delivery is often a day or more away. The $4.95 delivery fee is waived for purchases over $50, and in some areas the fee is waived for new customers. Webvan also offers compensation for late or missed deliveries but, according to Amy Nobile, Webvan's public relations manager, the point is somewhat moot: Webvan boasts a 98 percent to 99 percent on-time delivery rate.

NetGrocer. Also among the early entrants, NetGrocer has been shipping nonperishable items nationwide for some time. Purchases are shipped via Federal Express and the price of delivery varies with the value of the order: $5.99 for orders under $60, $6.99 for orders between $60 and $100, and so on. Because items are limited to nonperishables, NetGrocer is able to ship virtually anywhere, including APO addresses. But with no milk, meat or produce and up to four days' wait for deliveries, it's only a partial replacement for the grocery store.

Shoplink. Serving parts of New York, Connecticut and Massachusetts, Shoplink offers an extremely user-friendly approach. To ease you into the online shopping experience, a customer service representative comes to your home and walks you through the entire shopping process--how to navigate the Web site, find coupons and sale items, place your order and check out, as well as figure out the best place to leave your delivery crates. Another bonus: For a small additional fee, Shoplink will install a refrigerator/freezer in your garage and unload your groceries for you, whether or not you're home. ShopLink's additional services include film developing, video rental, can and bottle redemption, dry cleaning, shoe repair, online recipes and feature articles. Delivery is $35 per month for once-a-week delivery, and $49 for the refrigerator/freezer option, which includes one additional monthly delivery. New customers may receive free delivery or other incentives during their first few months.

Streamline. Like Shoplink, Streamline also offers a refrigerator/freezer option and will deliver and unpack your purchases even when you are not home. Currently, Streamline serves the areas around Boston, Chicago, Washington, D.C., and parts of New Jersey. While the company offers a fairly wide variety of products, the price, selection and additional services can differ greatly by location. Delivery fees also vary, but in most areas run $30 a month for up to four deliveries. Additional services may include dry cleaning, shoe repair, stamps, film processing and bottle and can redemption.
 
Local Options

A Web search for "online grocery shopping" will turn up a surprisingly high number of offerings. In addition to the national and large regional companies competing for your attention, there are many small local stores and services ready to help you spend your money.

For example, Joe Porricelli, Sr., vice president of the Porricelli food stores of Connecticut, has felt the pressure to join the Internet revolution. To "compete with the big guys," he offers Internet-only coupons that can be used in the store and updates his Web site with weekly specials.

Geissler's Supermarkets, with stores in parts of Massachusetts, has opened an online grocery store with delivery service. Founded in 1923, the original Geissler's was delivering groceries long before the Internet was even imagined. An online store was seen as a logical progression. Geissler's charges $9.95 for delivery to customers in towns where its five supermarkets are located and in the surrounding towns. If customers want to order online and pick up their purchases themselves, the charge is $7.50. The store also gives discounts to senior citizens, who pay $5.50 for pickup from one of the supermarkets or $7.50 for ordering and delivery.

In California's Orange and San Diego counties, WhyRunOut has partnered with local retailers to provide shopping and delivery services. In addition to grocery purchases, the company can arrange for dry cleaning, film developing, package shipping, movie rentals and other merchandise purchases. Delivery fees are based on the number of stores visited and run $4.99 for the first retailer and $1 for each additional retailer.

On the island of Oahu, Hawaii Online Grocery offers point-and-click grocery shopping 24 hours a day, 365 days a year. Stocking over 5,000 items, Hawaii Online Grocery is the only service in Hawaii to operate its own warehouse. Deliveries are made to various areas in Oahu at specific times, as opposed to the open-booking models offered by the larger companies. But Hawaii Online is not the only player in the region. More like old-fashioned errand services, Akamai Grocery Shopping & Delivery Service and Online Grindz accept shopping lists online, go to the customer's supermarket of choice and purchase and deliver the desired items.

Finally, for those craving the security of a more traditional establishment, Albertson's has entered the online grocery market in Seattle and parts of Texas. Along with the wide variety of Albertson's products, the Web site also offers meal planning, recipes and an "Ask the Chef" feature. Shoppers can choose to pick up their orders at local Albertson's or, for $5.95, groceries are delivered within a 90-minute window. The delivery fee is waived for orders over $60.
 
The Price of Convenience

In most cases, online groceries cost more than groceries bought the old-fashioned way. According to a recent comparison by Consumer Reports, online groceries average 25 percent higher. But that's just the average.

Those extra dollars may be a small price to pay for convenience for those who don't have the time or inclination to shop in person.

Price Comparison of Two Online Stores
Item Webvan.com Peapod.com
Chicken Breasts, boneless skinless,
per pound		 $4.99*
(Foster Farms)		 $6.19
(Zacky Farms)
Turkey Store Lean Ground Turkey,
per pound		 $2.97 $3.39
Deli Black Forest Ham, sliced, per pound $10.47 $10.99
Portabella Mushrooms, 6 oz. package $3.97 $3.89
Cantaloupe, fresh, per pound $.57 $.49
VitaSoy Drink, 32 oz. $2.39 $2.39
Carnation Evaporated Milk, 12 oz. $.89 $.89
Dannon Light Yogurt, 8 oz. $.85 $.79
Minute Maid Orange Juice, 64 oz. $3.99 $3.59
Best Foods Mayonnaise, 32 oz. $3.99 $1.50*
Honey Nut Cheerios, 20 oz. $4.41 $2.99*
Tide Liquid Detergent, 100 oz. $7.53* $8.69
Benadryl Allergy, 24 count $5.19 $5.79
Duracell Ultra AA batteries, 4 pack $3.99 $4.59
Subtotal $56.20 $56.17
Delivery ** $3.95***
Total $56.20 $60.12
*Sale price
**$4.95 fee waived for purchases over $50
***$1 discount for early-morning delivery
 
BeyondWork Easy Extras
  • Webvan. Offers name-brand groceries at everyday prices. Find Webvan in Chicago, SF Bay Area, Sacramento and Atlanta.
  • "Do online grocers deliver the goods?" Consumer Reports, September 2000. Reviews six online grocery stores, including Webvan, ShopLink, Peapod and Albertson's.
  • Albertson's. Available in Seattle and parts of Texas.
  • Hawaii Online Grocery. Offers approximately 5,000 items for delivery to areas of Oahu.
  • NetGrocer.com. Available nationwide; nonperishables only.
  • Peapod. Available in Boston, Chicago, Columbus, Long Island, San Francisco, San Jose and parts of Texas and Connecticut.
  • Porricellis. An independent grocer in Connecticut, offers online shopping through its own Web site.
  • Streamline. Available in Boston; Chicago; Washington, D.C.; and parts of New Jersey.
  • ShopLink. Available in parts of New York, Connecticut and Massachusetts.
  • WhyRunOut. Serves San Diego and Orange counties in California, offering neighborhood delivery service for grocers and other service retailers.
  
 
 
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