Trade · 6 pages · 12 min
How a slotting fee buys shelf
A slotting fee is what a supplier pays a retailer for a place on the shelf.
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From the opening
A slotting fee is a payment from a manufacturer or distributor to a retailer in exchange for stocking a product and giving it space in the warehouse and on the shelf. The retailer is selling a scarce facing, and the supplier is buying access to shoppers who will see that facing. The opening covers fees purchase facings, new items outnumber space, and risk of a dud shifts.
The rest of the brief — the later sections and the reading notes — opens after Stripe confirms payment.
Inside
- Fees purchase facings
- New items outnumber space
- Risk of a dud shifts
- Strong brands may skip the fee
- Where the idea stops applying
- A distinction worth keeping
Sources
- Grocery slotting allowances
- Planogram shelf allocation