Facts About Grocery Listing Fees
Grocery listing fees are charges that are imposed on grocery products to be listed in the grocery’s database. Grocery stores have a computerized system that holds the database of all the products that are for sale. Inside the database are the information of each grocery products like product barcodes, item codes, category of product, price, size and others. And for a product to be listed in this database, the manufacturer or supplier of such products should pay first a “listing fee”.
In most countries like the Philippines, the cost of listing fees that grocery store owners are imposing, were not regulated by law. And with the absence of this law, store owners have the freedom to impose their desired amount for listing fees. In the Philippines, cost of listing fees range from PhP500- Php2,000 (US$12 – US$46) per sku or stock keeping unit (a unique identifier for each distinct product that can be purchased) and per store.
To clarify this more here is an example. Suppose Nestle Philippines wants to enlist their two skus, namely Nestle Coco Crunch 200g and 500g (the same product but different sizes means different skus) at Waltermart Supermarket who have 30 stores and charging Php2,000/sku/store listing fee, then Nestle Phils. Needs to pay PhP120,000 (US$2,730) to enlist their 2 skus/products on 30 stores of Waltermart.
2 skus x Php2,000 (listing fee) x 30 stores = PhP 120,000
Although it still can vary, depending on the discretion of the stores’ owners or buyers. Sometimes listing fees are converted to discounts based on the agreement between supplier and the buyer/store owner. And there are times that listing fees need be renewed like yearly of quarterly.
Listing fees have been a burden to small manufacturers or suppliers. Small time manufacturers sometimes cannot afford to pay for listing fees making their products unavailable to some large grocery stores, since larger grocery stores charge higher listing fees than the small ones. And paying for listing fees doesn’t assure manufacturer that their products will have a good market on those grocery stores. Manufacturers still need to spend more in advertising and promoting their products.
But the fact in here is that there exists a listing fee that most people who buy products on grocery stores never knew of. Listing fee had become compulsory for most grocery stores and manufacturers/suppliers are left with no choice but to pay if they wanted their products be seen and sold on the trade. It may look unfair for manufacturer, but the fact is that this listing fee is now a tradition that grocery stores are taking advantage of.