Low prices and wide selection

Yet another online grocery store opening its virtual doors this week faces the challenge of wooing a general public that doesn_t seem ripe for buying bananas or bread online any time soon. Online entrants--including yesterday_s online debut Webvan--are trying to grab a share of the multibillion dollar U.S. grocery market. But companies trying to enter the market face an uphill battle that includes narrow margins, expensive expansion costs, and cost-conscious consumers. Jupiter Communications estimates that the online grocery market will grow from $350 million in 1999 to $3.5 billion in 2002. Although the latter figure would make groceries one of the largest online commerce categories, it would still represent less than 1 percent of the total grocery market in the United States, according to Jupiter analyst Michael May...