A new study finds that supermarkets can earn up to $500 per year for selling groceries online and $1,000 per year from selling products at Walmart.
And the study’s authors say it is a viable business model for those who want to get their groceries on the market quickly.
“It’s a competitive model for retailers, but it’s also a competitive business model,” David Kosten, the chief economist for food retailing at the consumer advocacy group Public Citizen, told Axios.
Kosten said that if a retailer is offering free shipping or low prices, it will likely earn more per week than if they sell for more than $1 per order.
And if a company wants to take advantage of low prices by offering free returns, he said, they should sell online at a discount to boost sales.
But if a business wants to sell groceries at a higher price than the store, it should sell the same items in bulk at a reduced price and then sell the remaining products online, Kostan said.
Walmart’s price comparison tool is a good example of this, Kasten said.
He said that while Walmart’s online store has an average price of $39.99, it is actually selling groceries at the same price at a store near you at $24.99 per pound.
That’s $1 more per pound for the same product.
But it’s only $1 cheaper for the product at Walmart, he added.
The study was conducted by the consulting firm Gartner.
Koster also noted that if retailers are selling groceries for less than $2 per pound at a Walmart store, they are likely not making a profit.
Instead, they’re likely making a loss because they’ve been spending the less money on labor and marketing, he explained.
In a letter to the FTC in May, Walmart’s chief financial officer said that Walmart’s pricing is accurate and accurate to the customer, and that it doesn’t have to charge extra to bring the price down.
Kusten said Walmart can make a profit if it sells at the price it sells it at, but the company should have to pay extra to drive down prices.
“The price of a Walmart product will always be the same at Walmart,” Kostin said.
“I think it’s really unfortunate that the FTC is going after Walmart and saying they can’t make money on their pricing.”
Read more about Walmart, grocery shopping, groceries, consumer, consumer advocacy, price source ABC News