In Friday’s letter, Walmart told suppliers it will charge 1.25 per cent of the price of products sold to Walmart as an “infrastructure development fee.” The chain is also charging suppliers another five per cent on the cost of goods sold through Walmart’s e-commerce business.
“When you look at five per cent on e-comm sales — that’s your margin. So you’re going to give it away,” he said. “It’s just getting to be ridiculous. And quite honestly, the industry cannot sustain and continue to operate effectively under these continued demands.” Earlier this week, Walmart announced a major cash injection aimed at staying current with shopping habits, which have shifted dramatically toward online ordering during the pandemic.
“We’re making these big investments. They certainly benefit our supplier partners,” Shanahan said in an interview. “
And here’s yet another example of why I never shop at Walmart. Just the most abusive company. Too bad that the people who shop at Walmart don’t understand that the company’s policies are intended to ensure they can’t afford to shop anywhere else.
Wal-mart already charges a large mark up from suppliers price then bills back suppliers if they over bought and item needs to be marked down. This new fee will be icing on the cake. A common sayings among suppliers is wal-mart will make you then break you.
Walmart must be in desperate survival mode, like most retailers. Shop local, and shop Canadian. If we all sacrificed that extra 15-20% on even half the purchases, we’d all be better off.
Pretty soon we will have to retailers left and it’s Walmart and Amazon , sad
Buy Canadian!
Comparable to Amazon
I hope that Canadians spend their money in Canadian owned stores and if possible local ones. Time for us to be more self reliant in our own country.
As the Walmart rep said it’s a small amount. We don’t believe you. If it was a “small” amount, you wouldn’t do it. Don’t buy from Walmart.
They will be when people choose to buy elsewhere
This is just another American company killing off more Canadian suppliers. Government must act and slap there greedy hand away.