Aim: The purpose of this study is to identify factors that can attract customers to buy online and help the grocers to improve their online grocery services to retain and obtain customers. Design/Methodology/Approach: A qualitative method was used, based on triangulation methodology including observation and interviews of manager and employees. Quantitative data was collected by handing out questionnaire to 204 potential customers and 30 existing customers. Findings: The study shows that product and service quality, time saving and convenience, web page layout, customers’ trust in grocers (service providers), store image and advertising are the important factors that customers consider when they decide to use online grocer service. E- grocers also need to consider these factors when they start online grocery service.

Suggestions for Future Research: An extensive study with large population sample and co- operation from other companies can help to generalize the results. Future studies can be extended to include drive-in and shared reception box service method, and consider the cost for the customers in e-grocery sector.