Scaling eGrocery:

Practical Strategies to Meet Demand and Boost Profits

Scaling eGrocery operations can feel like both a blessing and a curse.


If your order volume is increasing, it’s clear your marketing and customer experience are hitting the mark. However, more orders don’t necessarily mean more profit, especially if you face inefficiencies in supply chain management and fulfillment.


These are the most critical hurdles to scaling efficiently, but there are practical solutions grocers can implement to stay ahead of the game.


Supply Chain Disruptions: Unpredictable stock levels can lead to delays, substitutions, or lost sales, frustrating both customers and grocers. The best response is to invest in advanced demand forecasting tools—that offer real-time inventory visibility. When matched with stronger supplier partnerships, this minimizes stockouts and allows better planning for unexpected supply chain issues.


Last-Mile Delivery Costs: Delivering groceries to customers’ doors is one of the most expensive parts of eGrocery operations. To address this, grocers should explore delivery route optimization technologies. These tools streamline delivery routes, reducing fuel and labor costs while improving delivery speed. Additionally, grocers can incentivize curbside pickup options, which cuts down on delivery costs while still offering convenience.


As order volumes spike, fulfilling them on time without compromising accuracy can be challenging. Streamlining processes with automated picking systems or using enhanced batch-picking methods can ensure higher accuracy while improving efficiency.


By implementing these practical solutions, grocers can maintain operational efficiency, ensure order accuracy, and prevent scaling challenges from eating into their profits. The right approach will not only help meet increased demand but also drive sustainable growth.

Lee Lambeth

Vice President of Retail Operations
Mercatus