How to Enlist Products in Grocery Stores
From factories, how do products end up in the grocery shelves?
Most products in grocery stores are called FMCG or “fast-moving customer good”. FMCG is a category of products that are in-demand since most of these products are used in a day-to-day basis like foods, bath room products, dish-washing products, laundry products, and others. With these FMCGs, now grocery stores play a major rule in consumer’s day-to-day life. And since manufacturers or suppliers are targeting consumers, then for them grocery stores are also a necessity. All manufacturers have the same goal, and that is to enlist their products in grocery stores.
Enlisting products on grocery stores are done with the agreement between the grocery store owner and the supplier or manufacturer. And here are some requirements on how to enlist products in grocery stores.
1. Provide Product information. Products on grocery stores are stored in a database that holds all the information of each product like product code, product barcode, product image, price, size, category and others. Enlisting a product to a grocery store means putting the product information to this database. So product information is always a MUST HAVE.
Note: There are some grocery stores that are requiring the actual product for testing and verifications.
2. Product Legal Papers. Always present the legal papers of the products. Papers like Manufacturer’s business permit or permit to manufacturer such product; Certification that the product is safe for customers consumption (example: BFAD or Bureau of Foods and Drugs Approved Certification); and other papers that confirm the products is legal to sell.
Note: In Muslim countries, all products should have Halal Certification that certifies the products are edible, drinkable or usable by Muslims. To learn more about Halal visit www.halalcertificate.com.
3. Pay Listing Fee. Listing fee is the cost for adding the product in the database. Each product skus are charge with listing fees. If a grocery has branches, listing fee will also be charge for each store. Learn more about grocery listing fee then read this article “Facts about Grocery Listing Fees”
Note: "sku" stands for stock-keeping unit. It refers to a number that I used to identify different products.
Example: Milo 200g pack and Ovalitine 200g are 2 skus
Milo 200g pack, Milo 500g pack and Milo 1Kg are 3 skus
4. Provide support. Since the product is newly enlisted, in needs some promotions to let the customers know there is a new product in the grocery. Promotion like discounts and freebies are usually offered for new products and the supplier, often times, the one shouldering the expenses.
And most importantly it should be put in a place where in can get the attention of the customers. But placing it on a promotional shelves or “special” location like the entrance and putting some promotional signage may need additional cost from the supplier or manufacturer.
The list above is the primary requirements for enlisting products on grocery stores. As you can see most of the cost and expenses are shoulder by the manufacturers. There are still other requirements that are not mentioned like the B.O. or Bad Order policies, return policies and others, and again those are bear by the suppliers or manufacturers. Carrying all this expenses forced manufacturers to raise their products’ prices.