Quick answer: The six main online grocery business models are store-based fulfilment, dark stores, marketplaces, subscription boxes, B2B ordering and click-and-collect. In the US, pickup (44%) and delivery (39%) make up most online grocery sales. Independent grocers usually do best starting store-based, with pickup and delivery from their own branded app, because it uses existing stock and staff and pays no marketplace commission.
44%
of US online grocery sales came from pickup (June 2025)
39%
came from delivery, the fastest-growing way to receive orders
17%
came from ship-to-home, which most regional grocers do not offer
13–16%
of Coles and Woolworths sales now come from online
Your business model decides where orders are picked, who delivers them and how you make money. Pick the wrong one and even strong sales can lose money. The data helps: in June 2025, US online grocery sales were $9.8 billion. Pickup brought in $4.3 billion, delivery $3.8 billion, and ship-to-home $1.7 billion. Here is how each model works, and who it suits.
1. Store-based fulfilment
Staff pick online orders from your shop shelves, then deliver them or hand them over at the counter.
- Makes money from: product margin + delivery fees
- Pros: low start-up cost, uses the stock and staff you already have, fast to launch
- Cons: pickers share aisles with shoppers at busy times
- Best for: existing independent grocers, halal, ethnic and specialty stores
2. Dark store
A closed stockroom laid out for fast picking, serving online orders only.
- Makes money from: product margin + delivery and express fees
- Pros: fast, accurate picking; supports quick delivery promises
- Cons: rent, stock and staff before you have volume
- Best for: dense cities with proven demand
3. Marketplace (aggregator)
An app that lists many stores and takes a commission on each order. Instacart, Uber Eats and DoorDash work this way.
- Makes money from: commission from stores + fees from shoppers
- Pros for a store: quick access to shoppers
- Cons for a store: 15–30% commission on published plans, and the platform owns the customer (see the maths)
- Best for: testing demand, or entrepreneurs building a local multi-store app
4. Subscription or box delivery
Shoppers pay weekly or monthly for a recurring box: fruit and veg, meal kits or staples.
- Makes money from: recurring subscription revenue
- Pros: predictable demand, lower waste. That matters when produce is the most wasted food in US retail, at 902,000 tons in 2024 (ReFED)
- Cons: shoppers cancel if boxes feel repetitive
- Best for: fresh produce, farm-direct and niche products
5. B2B grocery ordering
Restaurants, cafes, offices and small shops order wholesale through an app.
- Makes money from: volume margin, often on credit terms
- Pros: large, regular orders
- Cons: credit risk, price negotiation, complex delivery schedules
- Best for: wholesalers and distributors
6. Click-and-collect
Shoppers order online and pick up in store.
- Makes money from: product margin, with no delivery cost
- Pros: cheapest model to run, and the biggest US online channel by sales (44% in June 2025)
- Cons: less convenient than delivery
- Best for: every store’s first step online
The models compared
| Model | Start-up cost | Speed to launch | You own the customer? | Commission |
|---|---|---|---|---|
| Store-based + own app | Low | Weeks | Yes | 0% with GXKart |
| Click-and-collect + own app | Very low | Days to weeks | Yes | 0% with GXKart |
| Dark store + own app | High | Months | Yes | 0% with GXKart |
| Subscription box | Medium | Weeks | Yes | Depends on platform |
| B2B ordering | Medium | Weeks to months | Yes | Depends on platform |
| Selling on a marketplace | Low | Days | No | 15–30% |
Which model should you choose?
If you already have a shop, start store-based with click-and-collect and delivery from your own branded app. Add a dark store only when online orders start slowing down your shop floor. Use marketplaces for discovery, not as your main channel.
Some GXKart clients go further in the other direction: they use GXKart mainly as an in-store POS, billing and stock system, and staff create orders from the admin panel. Online can then grow at its own pace, on the same system. GXKart supports instant and scheduled orders, delivery prices by location and time, and one stock count for shop and online.
FAQ
What is the most profitable online grocery business model?
For independent grocers, store-based fulfilment through your own app is often the most profitable, because it reuses existing stock and staff and pays no commission.
How does a grocery delivery business make money?
From product margin, delivery and express fees, and sometimes subscriptions, minus picking, delivery and platform costs.
Is pickup or delivery more popular for online grocery?
In the US, pickup was slightly bigger in June 2025 ($4.3 billion vs $3.8 billion), but delivery is growing faster.
Is a dark store worth it?
Only when you have steady, dense demand. Otherwise the fixed costs arrive before the orders.
Plan your model with us: book a live GXKart demo.
