Bite Sized Business Lectures: Online Food Business is an Opportunity
Planning to get into the online world of selling? Or maybe thinking if getting into the online food business is the right choice? Don’t sweat because doing business online is one of the best opportunities that anyone can grab a hold on right now.
Even though a lot of industries are pulling back because of COVID-19, e-commerce is in full swing, and according to experts, business will be in a boom for a long time.
Everyone’s at home
The most important thing about this new environment is that all customers are practically at home. Traditional means of marketing and advertising are giving out in favor of digital channels. International information firm Nielsen has called the COVID-19 an “unexpected catalyst for tech adoption”.
In China for example, the number of online buyers aged 40 and above have already surged by more than 200%. According to statistics agency Statista, online transactions have soared, especially in countries hard-hit by lockdowns. In the United States alone, online traffic for restaurant delivery already exploded by 31%, a massive number in a very short time frame.
Sprawling billboards, bus wraps, and flashy events give way to display ads, social media ads, paid searches, and groundbreaking kinds of internet marketing that open up new types of markets for your business.
More and more people are avoiding traditional weekend destinations and leisure spots such as malls, groceries, restaurants, and parks, even with less strict community quarantine measures.
Finding a good dine-in experience is now also a challenge. For example, dine-in establishments in areas with a general community quarantine are only allowed to seat 30% of their full capacity, not to mention signing forms and health checks, and that means you may have to wait double the time for service.
Experts from Maybank say that while food delivery services in the Philippines only penetrated 5.5% of the market last year, it is bound to get big this year, with more and more aspiring restaurateurs and old-timers signing up with food delivery services such as GrabFood or Foodpanda. In comparison, food delivery services in South Korea reached well over 30% and 13% in the United States.
The Philippine e-commerce market is expected to grow to about P168 billion this year, and one can expect that there is a lot for everyone.
Times are changing and the ways people enjoy food are in the flux of innovation. Ordering food is now only as easy as a few swipes away.
Turning your hobby to business
Because more people are staying at home, more people are discovering new hobbies, especially cooking. For example, “Dalgona coffee” quickly became a trending topic in social media soon after the lockdown, and many social media users started posting their own versions of the drink.
It didn’t stop there. From ube cheese pandesal to cinnamon rolls to chewy cookies, everyone is eager to make their own versions of the internet’s favorite dishes and make some money at the same time. Maybe you can find your own hobby that you could profit from.
In fact, many business owners already pivoted online as means of gaining extra income and for a cheaper cost. Imagine how much money can be saved on advertising alone—instead of spending thousands or even millions on flyers and billboards, a business owner can use only a fraction of that amount for online ads.
And with people less exposed to traditional marketing, traditional competitors are less to worry about. Customers have more freedom exploring for themselves what they want. By playing one’s cards right and building creating value for customers, one can hope for getting a good start selling online.
More profit, more innovation
If you aren’t convinced yet, think how much you can save by starting an online home-based business instead of setting up a traditional brick and mortar store, especially at a time when it is harder to get around.
For one, you don’t really need to worry much about capital. If the business is home-based, there will be no need to pay for building rents or overhead. An aspiring online food entrepreneur only needs cooking equipment, ingredients, and some effort to start building their own enterprise.
As an aspiring online seller, you are not stuck in one place so you don’t have to worry if there’s not a lot of people going near your shop—simply arrange for a delivery service to get the goods to your customers. While delivery services may be more expensive compared to a normal situation, it certainly is an easier way to get goods around.
Furthermore, you can use mobile transactions to pay and receive money. Apps like GCash won’t even require you to have a credit card. It’s easier and safer!
Be advised that it is also best to register your business with the Bureau of Internal Revenue if you are already making at least P250,000 a year. Luckily, if you haven’t reached that level, there is no need to do so.
The market for all kinds of e-commerce and marketplaces, such as TippyMart is set to grow much this year. With some time, effort and a bit of good marketing, making a worthwhile investment in the best opportunities today is within reach.