What are listing fees

Listing fees are a compensation that large retail chains require for the introduction of products into the market.  

The fee can be agreed upon through two options:

• Absolute value: the difference between the benefits and the costs of the product in question;
• Via percentage: varies based on the degree of coverage that the distributor is able to ensure, the volumes to be marketed, the  popularity of the brand or the product , and from the placement on shelves in the assigned sales points.

Listing fee services provide the security of placing the product on a specific shelf chosen in the retail space, with the distributor assuming all risks and responsibilities if the product's sale is unsuccessful. Moreover, listing fee products fall under the expenses that the manufacturer must bear to use  Large Scale Distribution companies as a distribution channel.

How to include products in a listing fee?

To insert products in a listing fee, suppliers are required to pay a contribution so their product is placed on the shelf. These are real filters to determine the target market where the price can vary depending on the product sold.

Supermarkets commit to displaying products to stimulate consumers' purchase of the product. They play with the visual element of a person and it is an actual marketing strategy that catches the customer's eye.

If a product is placed high up or at the entrance of a supermarket, it gets noticed more than others that are positioned in different places.

It is actually the fees paid by the manufacturing companies that allow the product to access the supermarket shelves, and depending on the fee paid, the product is positioned within the store. There isn't a single listing fee mechanism; it depends on the agreements made between manufacturers and distributors.