Grocery stores obtain
food at wholesale prices because they buy in wholesale quantities, it’s
that simple. Grocery stores buy large quantities directly from the
producers and often on a line of credit. Like in any business, the more
you buy the cheaper it gets, and it is because of these huge purchases
that grocery stores are able to offer super savings and discounts.Most
of the time, items on grocery store shelves are placed there directly
by the manufacturers and only paid for once they are sold. This means
that grocery stores allow manufacturers to place items on their shelves
and charge a commission on sales.A lot of
times products that do not get sold initially are later sold at
discounted prices. This is how online grocery stores are able to offer
products at a fraction of their original price. Sometimes if products are not sold even
after discounts they are returned to the manufacturer and the shelf
space is given to a better selling product. In
Most of the markets, there are wholesale entities dealing in groceries
and retail stores and online grocery companies procure from such
wholesalers depending upon their proximity. However, there are no set
rules, some of the large etailers like Big Basket purchase from Brands,
also have their own private label products and work on an inventory
model with warehouses stocking inventory.