New feature aims to improve shopping experience for customers while helping merchants grow

16 May 2024, APAC – foodpanda customers can now shop for groceries easily and more conveniently with the launch of the item replacement feature on foodpanda shops. This feature helps customers to quickly find alternatives when their ordered products are unavailable. It is currently present in Singapore, Malaysia and the Philippines, with plans to be rolled out across all 11 markets in the next few months. 

With item replacement, customers will receive a push notification or text message when an item ordered from foodpanda shops is out of stock, prompting them to substitute it with a similar product. They will have five minutes to make their selection before the replacement process ceases and they are refunded for the unavailable item. foodpanda shops pickers are trained to analyse customer preferences, product specifications and real-time inventory levels, ensuring that replacements not only match the original item but meet customer needs perfectly. 

“We are grateful to see our customers enjoying our product offerings, as seen from their higher spending per transaction in 2023. As we strive to enhance their shopping experience, we hope that this feature saves them time and effort from having to repurchase out-of-stock items, while also introducing them to new alternatives they may not have considered previously,” said Christian Urban, Director of Marketplace, foodpanda.

A study revealed that retailers will lose nearly $1.2 trillion globally in 2023 due to out-of-stock products. By suggesting replacements instead of immediate refunds for unavailable items, this feature could save tens of millions annually in lost sales for foodpanda’s retail partners, thus maximising their revenue potential from the platform. At the same time, customers can seamlessly fulfil their orders without having to make another purchase – a common pain point when it comes to online grocery shopping – resulting in significant time and cost savings.

To start, item replacement will be available for supermarkets and grocery chains on foodpanda shops such as Cold Storage in Singapore, AEON MaxValu in Malaysia, and Robinsons Easymart in the Philippines, with more retailers to follow.