Online stores selling onion at half the market price

While onion prices have spiraled up to Rs 80 per kg in retail markets, online stores such as Localbanya, Freshfalsabzi.com, GrocerMax and MeraGrocer among others are offering them at half the rates at Rs 40-69 per kg.

Localbanya that has started a grocery subscription plan for its customers this week said by eliminating the middlemen in procurement, online stores are able to pass on the benefits to customers, a report in The Economic Times said.

It is also the marketing strategy at times or the policy of taking a hit on the margins for retaining customers or passing on the benefits of a good procurement deal that the prices are so competitive in online grocery stores, Localbanya chief executive officer Karan Mehrotra said.

FreshFalSabzi, a Delhi-based retailer, which is selling onions at Rs 40 per kg, said that they are selling onion at a loss and have reduced the advertisement expenditure to make up for it.
The start-up promoted by television actress Sakshi Tanwar is selling fruits and vegetables procured directly from the farms at no-profit-no-loss strategy, Rajesh Gupta, chairman of the RSND Group-promoted FreshFalSabzi, said.

The start-up's minimum order has to be of Rs 249 for home delivery and it has even put a purchasing limit of 2 kg onions per day by a customer to prevent hoarding.

The onion prices in the wholesale market currently stand at Rs 45.50-55.

The online prices of fruits and vegetables are said to be as much as 10 per cent cheaper than that in the retail markets.

Gurgaon-based online grocer MeraGrocer is offering a 30 per cent discount promotion bringing the prices of onion to Rs 42 per kg, even lower than that of the wholesale markets.