Like offline
In physical retail, there is such a thing as “entry fee”. It is not enough to produce a quality product, you also need to convince retailers to put it on the shelves. The cases when a product was taken for free can be counted on the fingers of one hand – and that is if you take the manufacturer’s words at face value. Basically, one-time deposits, in other words, the right to sell must first be purchased.
In general, this issue
is not regulated in any way in domestic practice. Each retail chain greece phone number data comes up with its own conditions: someone charges money for each product item (SKU), others take compensation if product sales do not reach the planned level. At the same time, the “best shelves”, naturally, cost more.
To give you a rough idea of the numbers – for the placement of one product item for a year, a regional (not even federal) chain of stores will ask from 500 to several thousand dollars per item. That’s a lot.
And we are not only talking about Metro, Lenta, Auchan or even Magnit. Any store wants to make money from your sales, even a run-down rural grocery store.
How online
Largely due to the unaffordable conditions, the option of selling products in physical stores is not suitable for most manufacturers.
According to AKIT, only 3% of the entire retail market in Russia is made up of online purchases. And in the coming years, the situation is unlikely to change to the radically opposite. This forces online retailers to be flexible and inventive, to create more favorable conditions for manufacturers.
The advantages of online distribution include the democratic nature of store requests.
Starting small online retailers often look for manufacturers themselves, whose products they would fill their catalog with, and do not charge money for this. Larger businesses do not want to give up shelves for western new york muskoka car nothing – but they demand quite tolerable amounts, like this retailer, for example. Large stores and aggregators also offer their terms, although more severe (see Ozon’s offers).
The problem with distribution through large stores is the most banal – the market of offers is overcrowded. Everyone wants to be in the catalog of Yulmart and Citylink, not everyone can pay more than competitors.
Their number is measured in tens of thousands, while there are only a kuwait data few dozen large players. The turnover of small and medium stores in total also exceeds the turnover of the leaders – 70% against 30%. It would seem that there are favorable conditions and an unplowed field of complacent retailers.