How to Sell FMCG Online?

By | May 04, 2020 | 2 Comments | 7295 views |
  • How to Sell FMCG Online?

The global retail market has matured a lot in the past few years because of ecommerce. The increasing penetration of the internet and smartphones has made online shopping the most integral part of our lives.

Ecommerce has given a great boost to almost every industry, from notable bricks-and-mortar players through to small cottage industries. Various players are creating their own niche  in spite of global behemoths like Amazon and Alibaba. One of such industries is Fast Moving Consumer Goods (FMCG).

Fast Moving Consumer Goods ecommerce has seen some new fortune in many markets around the world which is currently noticing a lot of investments in technology, start-ups and shifts in business models.

There is still potential for growth in FMCG ecommerce even in the developed markets. It is because of evolving consumer behaviour, demand for the online shopping experience, better discounts and convenience. In many emerging markets, growing internet penetration, online banking, mobile wallets, an overall rise in spending and the improved foundation is driving the growth in online sales.

Opportunities are endless in Fast Moving Consumer Goods Sales

Today, ecommerce across multiple categories of fast-moving goods like fashion apparels, electronics, regular CPG, etc. account for about $2.8 trillion, which is about 10% of the global retail market. With an estimated average annual raise of 20% every year, ecommerce is still going strong, and by the end of 2020, it is going to be worth over $4 trillion (source).

Not only that, the FMCG revenue share is going to double itself by 2025.

You can see the online share of the global Fast Moving Consumer Goods market between 2017-2025 (source). By the end of 2018, ecommerce sales of CPG accounted for 5.1% of the total worldwide Fast Moving Consumer Goods sales. And by 2025, CPG’s share is going to be doubled up to 10% worldwide. Currently, it is a little over 7% which means the next few years will observe a steady growth. So you can’t discount the opportunity you have in front of you.  

The growth of the FMCG sector might be a little stunted as there are still a lot of issues which need to be addressed. Some issues are the lifecycle of goods and logistical challenges but you don’t have to worry about those if you plan your business correctly using the appropriate business models. 

Which business model will best suit your FMCG ecommerce business?

Fast Moving Consumer Goods is generally perceived as a domain with high entry barriers. But this belief is almost tamed now. It has been possible because of the increasing number of emerging businesses and players resorting to 'D2C' business models.

Direct-to-consumer (D2C) is a business model which practically cuts out retail and work as wholesale. People often mistake ecommerce as a threat to the conventional retail-focused business. But that's not the case. The D2C route offers a world of opportunity for the established FMCG players too, not only the new ones. The possibilities are endless.

If you are having a hard time seeing past the rise of online retail, take a look at these few examples of FMCG business models to help stimulate your creativity.

  1. If you have an established business selling a single type of consumer good, then you can start selling those products online with expanding your product line and range. You can even launch new products for online sales which can be used as supplements and accessories for your primary product line. Your business expands easily and product lines diversified. For example, the electronics can be sold online in the same manner. Cross-selling/Upselling will be smooth as butter.
  2. You can even start service-based websites where you provide a valuable service to the customer instead of selling products. For example, Unilever is now promoting and encouraging startups to collaborate with them for their laundry website. Their model is loosely based on the same business model as Airbnb.
  3. If you are serving a particular niche (e.g. organic grocery, vegan products, etc.), then your business can thrive online by adopting the practice of ‘Premiumisation’. Enhance your product line with the premium tier of products and entice the premium segment for bigger profits.
  4. D2C approach can also help in the sales of normal fast-moving goods like grocery, rations, toiletries, cosmetics, confectionaries, and other perishable goods. Create your own supermarket online. Start a new brand. Anything is possible.
  5. Subscription-based models are now emerging in the FMCG sector as companies are now selling goods at a monthly subscription. You can try the same. Follow the footsteps of ‘Dollar Shave Club’. They got in to compete with Gillette and now it can leave Gillette behind very soon.

Why not sell fast-moving consumer goods from your home comfortably?

Now that you have so many opportunities laid out in front of you, why should you hesitate to take your business online? StoreHippo can help you reap so many benefits with its B2C ecommerce platform

Here are some benefits that StoreHippo has in store for you and your business.

  • Easily surmount geographic barriers - Since physical stores are restricted to a specific region to sell or service, with StoreHippo, you can make the entire world your territory.
  • Boost lead generation and conversions as SEO help out a lot - Along with conventional marketing or networks, go digital to multiply your orders. With search engines and SEO, your online retail store can attract a lot of traffic. 
  • A better brand and product awareness - There can be a lot of restrictions in a physical store when it comes to educating your client about the product or spread awareness about your brand. StoreHippo can easily let you put out as much info about your product and brand in multiple formats. Bolster your brand's identity with our enterprise ecommerce platform.
  • Save your money - Saving operational, marketing costs; is one of the most tangible and desired positives of ecommerce. You can easily attract a lot of sales as you can allocate those extra funds in running attractive promotions for your buyers. 
  • Reinforce the sales process with effective and efficient targeted communication - With the help of a simple registration form and cookies, you as an online retailer can obtain a ton of info about your customers. You can't perform such data-mining without the tools you'll get to use with StoreHippo. For example: If you want a specific product, you will automatically be displayed listings of other similar products/related products.
  • 24/7/365 availability - Sell online 24/7/365 and make exponentially greater profits. Websites are functional all the time and you can serve at any time, anywhere, in any time-zone.

So now you have a picture, how can our ecommerce platform help your FMCG business in ways no one else probably can. You will be surprised to know, how much will it cost you?

So how much does it cost to start a FMCG store to sell online with StoreHippo?

Absolutely nothing !!! You can sign up for StoreHippo’s trial version at ZERO COST. With an effortless sign-up procedure, you can experience running a completely potent ‘Multi-Seller’ and ’Multi-Store’ based online Fast Moving Consumer Goods business. If you are happy with the demo, you can continue by subscribing to our competitively priced plans. 

Managing your ecommerce FMCG store

Here are some tips to for an easy way to get started with your business:

1. What do you want to do? Specialize in a single Fast moving good or try to sell across a broader spectrum covering FMCG?

You can dream of becoming the next Walmart or Costco. and cater to a bigger audience but specializing in a single category (like electronics, grocery, cosmetics, etc.) can help you drum up more business. By catering to a certain niche, you can easily expand your market. Ultimately the choice is yours if you want to go multi or single seller. 

Take into account the principles of SEO while picking a domain for your website for better brand visibility. After doing that, sign up with our B2C ecommerce platform and let us help you get started with your online store.

2. Expand on the omnichannel 

As FMCG ecommerce is becoming more omnipresent, there is now a unique bridge between the consumer's offline and online experience. Their online and offline shopping process can be a part of a single path to one purchase. People usually look up a product online (via reviews, specs, price, reception, etc.) before they pick up the product at a physical retail store.

StoreHippo can give you the foundation you need to enhance your omnichannel business to provide a better experience to your consumers. 

3. Utilise the analytics to improve conversions

Conventional market research has helped companies a lot to gather consumer insight for better marketing. Ecommerce and digital marketing have made it so easy in the last few years. With only a few clicks, you can figure out a customer's taste and offer him what he wants.  Moreover, you can also determine the least profitable avenues of your operation to minimise your losses.

4. Continuously engage with the consumers

Forget in-store sales reps staffed by minimum wage-earning people; you can engage with your buyers online quickly and effortlessly. With promotions, discounts, sales, targeted offers, you can enhance your FMCG conversions and sell even faster. Design weekly activities or special events to let your consumers interact with a larger digital footprint of the store.

5. If your business follows are a service-based model, then combining services with your partners can be a good call

Sometimes to expand their respective portfolios, businesses often work together, amalgamating their services to offer a superior experience for their intersecting consumer bases. For example, Audi, DHL, Amazon in Germany are trying to test a service where Amazon, DHL uses your Audi’s GPS to deliver packages directly to your car.

StoreHippo’s ‘Multi-Vendor’ functionality can easily help you synergise as illustrated above.

6. Managing inventory

Arranging a broad inventory of fast-moving goods might require a lot of effort and resources, especially if you are dealing with multiple categories of FMCG. An ideal method of doing it would be collaborating with wholesalers and suppliers who will provide you with their products in your marketplace. When your online marketplace is established, you can attract more sellers helping with your offline retail. You can start getting more suppliers with better discounts. 

‘FMCG’ market Challenges & how to tackle them

Compared to other product categories, fast-moving goods may face a lot of different challenges in ecommerce. Our platform can easily help you tackle these issues. Following is an overview of how.

  • Maintaining consistent product profiles and info - Adding content for your products reaches beyond the standard product description. It empowers buyers to make educated buying choices, thus creating brand reliability and loyalty in the long run.The content creation for each product can be a big chore. Still, StoreHippo easy to handle CMS lets you add a different combination of information, pictures, USPs, videos, etc. to perfectly showcase your inventory.
  • Sometimes FMCG players take too long to evolve with the times and stay behind - Don’t be late to move your business online. Times have changed and the market has taken a sharp turn forcing the players to offer a true omnichannel experience. StoreHippo helps your business to make that change and adapt, with it’s cutting edge platform.
  • The entire ‘Supply Chain’ can be full of minor hurdles and challenges - When a business goes online for the first time, the investment can set panic in the mind of owners as they have to pay off different channel partners for a smooth transition from their warehouse to the consumer’s hands. StoreHippo lets you avoid all those costs by providing you with necessary integrations like shipping, payment gateways, marketplace extensions, etc.
  • Effective execution of marketing strategies - Since FMCG contains a plethora of goods under its domain, coming up with a pinpoint strategy to sell things can be tough. If you focus on one segment, you may miss the revenue of the products you aren’t focussing on. With powerful ecommerce solutions, you can run a marketing campaign with effective targeting at a moment’s notice.
  • Sustainability - FMCG has a big share of perishable goods and often there’s a lot of wastage. Waste management can be inefficient at times and can have an effect on a business’s sustainability.With operations running on an Enterprise ecommerce platform, you can make your business sustainable and environment-friendly.

How can you grow your business in future?

Following tips can help your FMCG business grow:

  • Try to come up with a premium line of products for segments with higher income. Slowly high-income users are opting for ecommerce in search of unparalleled experience. With a line of ‘premium’ products, you can establish a profitable niche for your business.
  • Instead of competing with giants like Amazon, Alibaba, Etsy, etc. figure out a way to coexist with such businesses. Try to list your website’s products on these marketplaces with extensions StoreHippo provides you.
  • Come up with a referral program for your customers to boost conversions and get new ones. Almost everyone is doing it these days, why shouldn’t you? It will help with customer retention and loyalty.
  • Make sure the after-sale service is top-notch if you are selling special items like heavy electronics or following a subscription-based model.
  • Set a lucrative and reasonable dealer margin if you are running a multi-seller marketplace to help your platform grow faster. Good margins will keep your suppliers happy and help your brand grow.


This guide covers everything needed to understand the setup and functioning of an online FMCG retail store. Hope you can materialise your ideas and vision by creating an online store that brings recognition to your brand.

StoreHippo’s enterprise ecommerce platform offers all that you need to roll out and market your online business. With integrated features like logistics, you can choose the most convenient shipping option to deliver goods to your customers worldwide. 

You feel ready to become an online FMCG giant? Sign up for our trial version and find out for yourself.

Leave A Comment


Useful tips!

By: Zivoke
Apr 11, 2023   Reply

Replies :
Hi Zivoke, thanks for appreciating our blog on How to Sell FMCG Online?. If you need our help setting up your store, feel free to contact us. For more ecommerce related information, keep checking the StoreHippo blog! Team StoreHippo - Apr 12, 2023

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FMCG segment is a fast growing segment in the ecommerce sphere. And with the popularity of quick commerce and hyperlocal ecommerce model, this is growing even faster. This article is very extensive and shares good points.

By: Virat Vaswani
Jan 13, 2023   Reply

Replies :
Hi Virat, thanks for appreciating our blog on How to Sell FMCG Online? If you need our help setting up an online store, feel free to contact us. For more ecommerce related information, keep checking the StoreHippo blog! Team StoreHippo - Jan 13, 2023

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