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This will obviously not work cuz no one wants to buy all of that stuff online instead, if he or she can buy from his near store

Bro what about margins , all items including chips , biscuits have less margin . The cashback providing system is not sustainable, the delivery's extra cost . Why do you want to complicate such a simple thing of buying from shop .

This model is fascinating from a behavioral economics standpoint. It leverages several cognitive biases: the endowment effect (people value things more once they own them, like a subscription), loss aversion (not wanting to "waste" the subscription), and the goal-gradient effect (motivation increases as people get closer to a goal, like the higher tier discounts).

It's essentially a form of price discrimination, allowing the company to offer lower prices to more frequent buyers. This could potentially increase overall sales and market share. However, it might also cannibalize full-price sales.

I'm not sure if it would work for all FMCG products. For things like chips or snacks, sure. But what about essentials like toothpaste or detergent? People usually buy those based on need, not impulse. The subscription model might feel forced for those categories