How Online Retailers Can Avoid Costly Out-of-Stock Issues: A/B testing by Instacart suggests that telling customers about stocking times can increase spending and decrease the proportion of items replaced or refunded.

A recent study conducted by Instacart suggests that informing customers about stocking times can help online retailers avoid costly out-of-stock issues. Stockouts, when a product is unavailable, can result in lost sales, negative customer experiences, and higher operational costs. The study found that when customers were informed about the probability of stockouts based on their specified delivery window, retailers saw a 4.6% increase in customers' average daily spending. Additionally, informing customers about high-stock delivery windows led to a decrease in the proportion of items replaced or refunded. However, providing this extra information can make online grocery shopping more time-consuming and may create frustration if customers are unable to receive a delivery at the suggested time. Overall, the study suggests that giving shoppers a small bit of extra information can help them avoid negative experiences and lead to increased purchases. [Extracted from the article]