How does a brand make money if their item is sold in a grocery store?

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If I have a product that is sold at Walmart, so to say, do I make money when someone buys my product from Walmart or does Walmart buy my product in bulk to sell and that’s how I make my money? This question has bothered me for decades, thanks!

In: Economics

13 Answers

Anonymous 0 Comments

It depends on the deal you have with the supermarket. As other answers have said, sometimes a supermarket will buy stock and sell on. In that case, you get paid when you deliver your product to the supermarket. Sometimes the supermarket will cut a deal, though, and will only pay for sold inventory, and you agree to take unsold products back. Another model is for the supermarket to sell suppliers “shelf space”, then the supplier buys the shelf space and gets paid when the item is sold. Source – my wife used to be a category buyer.

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