  The growing e-grocery sector faces challenges in becoming profitable due to
heightened customer expectations and logistical complexities. This paper
addresses the impact of uncertainty in customer demand on inventory planning
for online grocery retailers. Given the perishable nature of grocery products
and intense market competition, retailers must ensure product availability
while minimising overstocking costs. We propose introducing subscription offers
as a solution to mitigate these inventory challenges. Unlike existing
literature focusing on uniform subscription models that may harm profitability,
our approach considers the synergy between implementing product subscriptions
and cost savings from improved inventory planning. We present a three-step
procedure enabling retailers to understand uncertainty costs, quantify the
value of gathering additional planning information, and implement
profitability-enhancing subscription offers. This holistic approach ensures the
development of sustainable subscription models in the e-grocery domain.
