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On #1 I too had the same question, but I think the difference there is that department/grocery stores are re-sellers. They've already bought the goods from the
by natej 8y ago
On #1 I too had the same question, but I think the difference there is that department/grocery stores are re-sellers. They've already bought the goods from the third-party and are choosing to re-sell it at a markup. Amazon on the otherhand is a platform which only enables the initial sale.
- andromeduck 8y agoThat's not really how it works anymore. It depends on the product type but often brands pay for shelf space and unsold goods are refunded.
- NeedMoreTea 8y agoThey call it the back margin. Brands buy shelf space, position, pay for offers and promotions, extra payments (effectively a fine) if volume targets are not reached, etc. Tesco infamously had 24 ways of extracting extra money from suppliers via back margin. The front margin is the traditional agreed buying price.