Slotting fees are fees paid by businesses to retailers to get more or better shelf space
Manufacturers must pay a slotting fee, also known as a shelving fee or slotting allowance, in order to have their products displayed on retail shelves. In exchange for a one-time fee, brands are guaranteed to be able to stock a new product until its sales performance can be determined, which typically takes four to six months. Launching a product in the country's grocery stores can cost millions of dollars, and because of this expense, these fees influence our diets and supermarkets long before we are able to make a purchasing decision. In order to address the issues of retailer shortage and excess manufacturing, the slotting fee was created in the middle of the 1980s. Fees reduced some of the risks for retailers, let them know that a new product might succeed, and prevented the spread of too many products.
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