This allowed them to enter the market relatively cheaply, but they were unable to realize the full benefit of information. Realizing this, they have begun to build their own distribution centers, and have decided not to enter any new markets without building a distribution center for the market. It expects this to be a high margin area that will help pay for the lower margin grocery sales. They will market this information to manufacturers and other retailers to help them analyze consumer trends. NetGrocer only offers dry goods, which they ship via Federal Express.
Orders typically arrive within four days.
NetGrocer has been able to compete on price because they have an internal distribution system, but are not saddled with the delivery problem. As new companies enter the market, NetGrocer will find it increasingly more difficult to compete because they do not offer perishable goods and customers must wait several days to receive their orders. Internal distribution and delivery. Expanding to other areas. Products travel on conveyor belts and are assembled in packages for delivery.