Walmart Is Imposing Fees On Vendors For Stocking And Warehousing Inventory

Most vendors that sell Walmart inventory know the thrill of getting a mega order. An order from Walmart can keep a factory going for months, and add profit to the vendor’s bottom line if they know how to manage the small profit margins that Walmart offers them. Vendors know that Walmart can and often does send them chargebacks for any buying agreement mistakes the vendor makes, and those chargebacks eat into the vendors bottom line profits. Smart vendors know how to play by the rules, and they make a lot of money from the volume of orders Walmart can produce.

But Walmart is playing a new chargeback game now that they have announced wage increases for their hourly employees. Some of the extra costs associated with the wage hikes are being passed on to the vendors in the form of inventory stocking fees. Walmart will now charge vendors for stocking their merchandise in new stores, and they will also charge them for warehousing inventory. More than 10,000 Walmart vendors will have to pay these additional fees. Ricardo Tosto would hate to have to go through that.

Walmart has charged some vendors for stocking and warehousing in the past, but this new charge will impact all Walmart vendors.

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