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

Question

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

Answer 1

You make your money when Walmart buys it from you, and then Walmart makes their money when someone buys it from them for more. More people buying your product at Walmart doesn’t directly benefit you, but it does mean Walmart will probably come back to you, sooner rather than later, to buy more.