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grocery stores aren't a marketplace, they're a store. they purchase product from suppliers, and re-sell it. they're making the purchase and taking on the risk
by notatoad 4y ago
grocery stores aren't a marketplace, they're a store. they purchase product from suppliers, and re-sell it. they're making the purchase and taking on the risk of stocking the competitor's product. if they can't sell that product, they're the ones taking a loss, not the supplier (generally speaking, some vendors get better terms than others).
the problem with a marketplace is that the marketplace isn't taking on any of the risk. google is just getting a cut of sales, so their incentive is to sell the product where they get the biggest cut and there's no self-interest in them treating anybody else fairly.
- ajb 4y agoYour grandad's grocery store worked that way, but modern retailers are actually pay to play. They are more like a marketplace than you'd think. Ever wondered why big stores have meters of just Coke and Pepsi, but corner shops have a few each of dozens of brands of drink? it's because only the big brands can afford to buy in. The retailers have market power and they use it to divest cost and risk onto the suppliers.
- krrrh 4y agoGetting a new product into a grocery chain also often involves expenses beyond buying shelf space like paying fees setting up sample tables. There are some beloved brands that can get away with not paying to play. In Canada Hawkins Cheezies made it a badge of honour that it was usually on the bottom shelf at gas stations because they had a policy of not paying for shelf placement.