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Retailers buy from vendors and assume the costs of their own business (warehousing, sales, etc.). They assume certain responsibilities regarding the products th
by Finnucane 7y ago
Retailers buy from vendors and assume the costs of their own business (warehousing, sales, etc.). They assume certain responsibilities regarding the products they sell in their stores. In this case, Amazon is pushing all the costs back on to the vendor, for whom they only provide some distribution service.
- hammock 7y agoIt's common practice for retailers to push many of those costs (as many as they can) back on the suppliers. For example, Walgreens expects ITS VENDORS to stock the shelves, cycle expired product, and install and replace in-store advertising. Walgreens doesn't do it themselves. And as for sales, often a supplier is required to buy back stock that goes unsold after a period of time. It's crazy, but that's how much power retailers have.
- Finnucane 7y agoOh sure, I work in publishing and that sort of thing goes on. In the old days of mass-market distribution, the guy on the truck would be the one putting books in the racks, and taking back the returns (or the ripped covers). Returns have been a thing for decades. A system of coop payments decides who gets good placement in the store. But in the end, the retailer is paying the vendor for goods sold.
- bduerst 7y agoPrecisely this, Amazon is not the same as retailers. Amazon may have warehouses but it doesn't purchase and hold inventory the same way CVS or WalMart does.