3 ms·
I don't believe this is true in all cases. Maybe for some products, but at least other commenters here are confirming that some manufacturers refund the grocer
by dave5104 5y ago
I don't believe this is true in all cases. Maybe for some products, but at least other commenters here are confirming that some manufacturers refund the grocer for any unsold product. (So, Safeway only pays for the inventory that gets sold.) Seems risk-free for grocers on the products they have those sorts of deals with.
- akiselev 5y agoYep they do that too but it's not risk free for physical stores because they take up shelf space. Anything that isn't moving off storefront shelves isn't making them any revenue - unlike Amazon they can't present every product through a paginated digital catalog while charging for warehouse storage.
- dantheman 5y agoYou don't think page space matters? How many people go page 30 of results?
- akiselev 5y agoPage space doesn't matter, at all. Anyone can produce more Amazon searches in 5 minutes than there are shelves in a retail store. Amazon makes money no matter which page you buy it from AND they charge all the merchants on page 30 for storing their goods in the Amazon warehouses on top of any commission. That's the exact opposite of inventory risk, that's an inventory gold mine. Retail stores can only sell stuff that is physical within arms reach of a customer. We're talking about retail vs Amazon, not retail vs Alibaba reseller #39146527.
- rsj_hn 5y agoNot only in grocery stores. Bookstores can return books that don't sell, and since the books are heavy, the front page is often stripped only that is returned. That is why some pulp paperbacks have warnings to buyers to not purchase stripped books. In the world of fashion, clothes are often only paid for when they sell, and there are similar arrangements to book stripping. Really the modern world allows many optimizations and creative contracts.