(NewsNation) — Consumers are turning to buying groceries online as a way to save money, driven by aggressive promotions from major players like Instacart, Amazon and Walmart, according to a new report by Consumer Affairs.

Online grocery sales expanded to $7.7 billion in June 2024 — up 8% from a year ago. This increase is happening without costing the consumer more on an average order.

“As companies innovate to meet demands for convenience, speed, personalization, and sustainability, the market will become more competitive – both global giants and niche players finding their spaces and the consumer will benefit from that,” Mark Beyer, founder at Mybey Ventures, told ConsumerAffairs.

Melissa Cid, the consumer savings expert at MySavings.com, says that along with convenience, online grocery shopping eliminates the temptation to buy things she doesn’t need.

“Those last-minute splurges in-store for items I didn’t plan for can really break a budget. When shopping online or in an app I can take my time and really think about if I need the item or not as well as compare prices to other retailers,” she said. “And time is money when you are a busy mom of four kids.”

Similar to entertainment platforms like Netflix and Spotify, grocery delivery services like Instacart and Amazon use algorithms to suggest items based on previous purchases, making reordering easier.

However, there are downsides as well. “The minuses include additional costs, gratuity and service charges,” said Mike Ford, the founder of Skydeo, an audience-targeting company.