What Is a Dark Store and How Does It Impact E-commerce?
Published on September 3, 2025
• 7 min read
Imagine a store that looks like a standard supermarket, but no one can buy anything. There are no customers, billing, or counters – simply loads of products kept for rapid pick and pack operations. This store, which looks more like a fulfilment centre, is what a dark store is; it is the future of the e-commerce realm. E-commerce sales are projected to reach $7.4 trillion by 2025, an 8.37% increase from the previous year. This dynamic growth and shifting consumer preferences for shopping created the need for dark stores, which are dedicated micro-fulfilment centres. But how does it affect the e-commerce industry? This article will discover what a dark store is and how they will impact the e-commerce scenario.
What Is a Dark Store?
A dark store is a retail distribution hub. It has been configured exclusively for fulfilling online orders rather than in-store shopping. It’s like a retail store where groceries, clothing, brands, and home goods are stored; however, it has been converted into a micro-fulfilment centre. Since these outlets are inaccessible to shoppers, more space can be allocated to store inventory.
The concept of dark stores isn’t new; Tesco pioneered the dark store idea in 2009 by processing 475,000 online orders. The basic idea behind the dark shop was to close the gap between physical stores and digital sales channels. However, dark stores grew massively during the pandemic as people had no option but to order essentials online.
Prominent features of dark stores are as stated below:
- Automated Pick-and-Pack Operations: Conveyors and RF scanners automate the pick-and-pack processes, resulting in faster processing.
- API-driven Order Routing: Better order processing and orchestration with integration with e-commerce platforms and delivery aggregators.
- Micro Fulfilment Footprint: A huge area ranging from 2000 sq ft to 10,000 sq ft located strategically near high-demand zones to minimise service level agreements and provide faster deliveries.
- SKU-level Inventory Management: Stock-keeping units (SKUs) are synchronised in real-time across omnichannel systems, which helps reduce stockouts and overstocking.
How Do Dark Stores Impact E-commerce?
Since the concept of dark stores involves online orders similar to e-commerce, it impacts e-commerce in more ways than one:
Improved Supply Chain And Inventory Velocity
Dark stores focus on fulfilling online orders, achieving higher sell-through rates and turnover. They also ensure that inventory moves quickly through the supply chain and is delivered to customers quickly. This has led to perishable items being available to order online, with SLAs ranging from 1 hour to 24 hours.
Faster Fulfilment of Order
The standard time to fulfil the order from centralised warehouses is between 24 and 72 hours. However, dark stores have changed the game and can fulfil orders in metro areas in under two hours. When customers receive their orders faster, it helps boost their satisfaction and also makes them more likely to place another order.
Better Accuracy With Orders
Since dark stores use a dedicated path and automation in their operations, they report mispack rates below 0.5%, significantly lower than those of physical stores.
Vast Variety of Products
The dark stores have expansive storage areas that enable retailers to stock up on various products without a problem. Customers can now choose a wide range of products, which improves their shopping experience and also leads to increased sales.
Reduced Last-mile Costs
Almost all delivery locations are nearby since the dark store operates in a high-demand area. This proximity leads to lower last-mile costs. It also helps reduce fuel and labour costs by 20%, which is a significant number compared to that in the traditional fulfilment model.
Also check – Blinkit Case Study: Exploring Blinkit’s Impact on the Market
Challenges Faced by Dark Stores
The dark stores offer a multitude of benefits. However, certain challenges are present even for a dynamic concept like the dark store. Let us look at the most common challenges faced by any dark store:
- Dark stores require huge initial investments before they can be set up. Some aspects where the initial setup costs will be high include infrastructure, advanced technology, facilities, and employee training. Retailers must first conduct a cost-benefit analysis to determine the return on investment.
- As many online orders need to be managed, dark stores have to multitask in multiple ways. From inventory management to order processing and finally shipping out, orders must be completed within a stipulated time to avoid delivery delays. A robust infrastructure and automation are the keys to attaining operational excellence.
- Even if a dark store has the best automation and technology, employees will always be the backbone. However, at times, it can be challenging to train and manage many employees and make them capable of handling various tasks, such as picking, packing, tracking, and shipping.
Get Your Dark Store Up and Running With Strategic Fulfilment Centres at WareIQ
WareIQ’s fulfilment solution allows you to regionally place your inventory to fulfil purchase orders from Blinkit, Zepto, and Swiggy Instamart with a fully compliant solution. Drive frequent replenishments to multiple dark stores on schedule and with proof of delivery.
Our solution includes:
- Local Fulfilment Centres: Our pan-India network of fulfilment centres functions as feeder warehouses to send inventory on time to Blinkit, Zepto, and Instamart dark stores
- PO Creation & Management Platform: Our platform integrates with your OMS/WMS/ERP to get all the order data & enables you to create & track POs in real time
- Trained Operations Team: Our team of seasoned operations experts ensures all your POs are prepared accurately as per SOP and dispatched on time to dark stores
- Delivery as per Appointment: We are integrated with the top courier partners, and our team ensures all your POs are dispatched as per the appointment taken from the dark stores
Conclusion
Dark stores have successfully redefined the e-commerce industry by converting real estate assets into micro-fulfilment centres that aim to decrease wait times and improve customer satisfaction. It is high time that retailers understand and leverage this e-commerce fulfilment model that is quite accelerated in terms of inventory management, reduced SLA, improved customer satisfaction, and increased revenue and also provides a competitive edge over other e-commerce competitors. With automation, robotics and green delivery solutions, dark stores are the next big thing.
Suggested – Flipkart Launching 100 Dark Stores for Quick Commerce
FAQs About Dark Stores’ Impact On E-commerce
Are dark stores only for groceries?
No, while it was the first vertical to embrace the dark store concept, now there’s almost nothing you can’t find in a dark store. From electronics to apparel and personal hygiene to perishable items, dark stores are best for all product categories.
What are the KPIs that a retailer must monitor for a dark store?
Metrics such as order-to-delivery time, picking accuracy, labour activity, inventory turnover, and last-mile cost per order should be monitored.
Can dark stores handle sudden spikes in demand?
Yes, with dynamic slotting, temporary labour, and surge pricing based on delivery slots, dark stores can easily handle peak demand spikes.
What is the expected break-even period for a dark store?
The break-even in a dark store can be between 12 and 24 months, depending on the order density and automation levels the store uses.
Can any retailer open a dark store?
Yes, it is a great option for a retailer with huge space who can fulfil a large number of online orders via a physical store.
