Instacart Introduces New Tools to Address Out-of-Stocks

Table of Contents

1. Key Highlights
2. Introduction
3. The Challenge of Out-of-Stocks
4. Instacart's Technological Response
5. Implications for Retailers and Consumers
6. Real-World Impact: Case Studies
7. Conclusion
8. FAQ

Key Highlights

• Instacart launches Store View, an AI-driven technology to provide real-time shelf inventory updates.
• The second store check feature allows workers to quickly verify product availability at nearby locations.
• The innovations aim to enhance customer satisfaction amidst ongoing challenges with out-of-stock items.

Introduction

In the fast-evolving landscape of online grocery shopping, the challenge of inventory management looms large for retailers. A surprising statistic reveals that approximately 60% of inventory records are inaccurate, significantly impacting customer experience. Instacart, a leading grocery delivery platform, is taking significant steps to address these challenges. On March 27, 2025, the company announced the launch of two innovative features—Store View and Second Store Check—that leverage artificial intelligence (AI) and a vast network of workers to enhance real-time understanding of product availability. This article explores the implications of these advancements for both shoppers and retailers, while also delving into the broader context of inventory issues in the grocery sector.

The Challenge of Out-of-Stocks

Out-of-stocks have become a perennial headache for grocery retailers, especially as online shopping grows in popularity. A disparity between expected and actual inventory levels can lead to increased frustration among customers, affecting their shopping experience and brand loyalty. According to Instacart, about 5% of customers express dissatisfaction with replacement items they receive when their requested products are unavailable. This challenge is compounded by the complexity of supply chains, which have faced numerous disruptions, particularly in the wake of the COVID-19 pandemic.

Historical Context of Inventory Challenges

Historically, managing inventory has been a pivotal concern for merchants, dating back to the establishment of modern retail practices in the 19th century. As consumer shopping patterns evolved, so did the need for accurate inventory tracking. Yet, even with advances in technology, including barcode scanning and computer systems, the issue of stock discrepancies has persisted. The emergence of e-commerce has only intensified these challenges, as retail operations must now bridge the gap between online and physical store inventories.

Instacart's Technological Response

Store View: AI at Work

Instacart’s Store View is set to revolutionize how grocery inventory is monitored. Utilizing artificial intelligence and computer vision technology, Store View allows workers to capture real-time data on store shelves. By sending eligible workers into stores to take detailed videos of inventory, Instacart can analyze which items are available, which are out of stock, and which are running low.

• How Store View Works:
  • Eligible workers are equipped with the task of capturing videos aisle by aisle.
  • The AI system processes this footage to assess shelf availability.
  • The data collected enhances Instacart’s predictive models, improving future inventory management.

This proactive approach is anticipated to decrease inaccuracies in stock records significantly, directly addressing the root of the out-of-stock issue.

Second Store Check: Expanding Options

Alongside Store View, the Second Store Check feature allows another Instacart worker to verify product availability at a secondary retail location when an out-of-stock item is identified. This feature is particularly salient given that more than half of the orders are accepted by workers who are already at or near the store.

• Implementation of Second Store Check:
  • Automatically prompts an additional worker when the primary shopper can't find a requested item.
  • Enhances customer satisfaction by offering real-time solutions.
  • Supports the vast network of Instacart’s approximately 600,000 workers who collect over 10 million data points daily.

These innovations aim not only to streamline the shopping experience but also to foster a more collaborative environment among Instacart shoppers.

Implications for Retailers and Consumers

The introduction of Store View and Second Store Check marks a significant shift in how retailers can manage online orders.

Enhanced Customer Experience

For consumers, these features promise a more seamless shopping experience. By addressing out-of-stock scenarios proactively, customers are less likely to receive disappointing substitutions. A more accurate representation of stock levels can also encourage users to trust the platform more deeply, potentially increasing user retention and order frequency.

Operational Efficiency for Retailers

Retailers partnering with Instacart will likely see an improvement in operational efficiency. By reducing the number of erroneous substitutions and enhancing the accuracy of inventory tracking, retailers can allocate resources more effectively and optimize stock levels.

• Advantages for Retailers:
  • Improved inventory accuracy reduces financial losses associated with unsold items.
  • Enhances customer loyalty by minimizing out-of-stock occurrences.
  • Opportunity for leveraging advanced technologies like AI to forecast demand better.

Real-World Impact: Case Studies

The potential for these technologies to innovate inventory management is already evident in early adoption case studies.

Successful Use Cases

• Retail Test Cases: Various pilot programs with selected retailers have showcased promising results, with retailers reporting a significant decline in out-of-stock cases when utilizing AI-driven inventory checks.
• Consumer Feedback: Early user feedback indicates a noticeable improvement in satisfaction rates, with many users expressing their preference for faster and more accurate updates on stock levels.

Conclusion

Instacart’s introduction of Store View and Second Store Check exemplifies a forward-thinking approach to solving one of the most pressing challenges in the grocery sector: out-of-stock items. As grocery shopping increasingly shifts online, retaining an accurate inventory has never been more essential. By harnessing the power of technology and leveraging a large workforce, Instacart not only enhances the shopping experience but also sets a new standard for grocery retail operations.

FAQ

What is Store View?

Store View is an AI and computer vision technology developed by Instacart that captures real-time data on grocery store inventory through videos taken by workers.

How does the Second Store Check feature work?

The Second Store Check feature allows another Instacart worker to check for item availability at a nearby retail location when the primary shopper cannot find a requested product.

Why are out-of-stocks a significant issue for retailers?

Out-of-stocks lead to customer dissatisfaction, lost sales, and decreased brand loyalty, making inventory management crucial for retailers.

How will these technologies impact customer experience?

By providing more accurate inventory updates, these technologies are expected to minimize disappointment for customers when items are unavailable, leading to a more positive shopping experience.

When can we expect these features to roll out?

Instacart plans to launch Store View with select retailers over the coming weeks, with expanded availability throughout the U.S. and Canada throughout 2025. The Second Store Check feature will also become available in the coming months on the Instacart marketplace.