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

Essentially the second one – Walmart ‘buys’ your product and ‘re-sells’ it for more than they paid for it but there are a lot of different types of arrangements between manufacturers, distributors and retailers that make it a little more complex than this simple breakdown.

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