Jun

4

How does Walmart sell stuff for so cheap and make money?

Filed Under Corporations 

walmart
qazwsx asked:


I was on the Walmart website, and everything is so freaking cheap! I live in a third world country and we pay way more than that for stuff. How does Walmart sell stuff for so cheap?

Bertha
Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Bumpzee
  • del.icio.us
  • Facebook
  • Furl
  • Mixx
  • NewsVine
  • Reddit
  • StumbleUpon
  • YahooMyWeb
  • Google

  • Where Can You Get Cheap Exotic Dance Shoes?
  • Cheap Cell Phone Plans
  • Ebay Store
  • Finding Cheap Women’s Motorcycle Apparel
  • How much profit does Walmart make per dollar merchandise sold?
  • Why are the same products sold in walmart and in regular grocers cheaper at Walmart?
  • We bought my sister-in-law an Energy Star Bottom Freezer Refrigerator as a house warming gift

    • Comments

    No Responses to “How does Walmart sell stuff for so cheap and make money?”

    1. xjavabotx on June 5th, 2009 1:46 pm

      because it purchases bulk items cheap, actually most of the stuff i have bought from walmart is cheap(crappy), lol

    2. lazydaysranch on June 7th, 2009 12:35 pm

      Volume sales.

    3. sdvwallingford on June 9th, 2009 7:56 pm

      The above is correct, but they also have very efficient methods of transporting everything. The items arrive where they need to be on basically the day they need to be there with very little wasted effort in between.

      I have heard it suggested that if Walmart had to move something twice, they would lose money on it.

    4. lulu on June 10th, 2009 11:19 am

      They get their manufacturers to move their manufacturing operations to China so they can get the goods cheaper. The plants in China pay their workers a lot less than they would in the US, so they are able to produce the product for a lot less. That’s why I call them China-mart and since they don’t do anything to address the human rights situation in China, I don’t shop there. I don’t want my money going to a corporation that supports torture and suppression. Don’t buy MADE IN CHINA!!

    5. poppapumpisurhookup on June 13th, 2009 3:34 pm

      Due to their purchasing power. They buy in extreme volume and get bulk discount pricing. Also, they tell vendors what they will pay them not vice versa. If a vendor doesn’t like the price Walmart will find a vendor that will give them their price. Most vendors don’t want to lose Walmart’s business so they agree to Walmart’s purchase price. Walmart is then able to offer the goods for the low prices that they do.

      I was able to tour one of their warehouses and they are quite expansive. Walmart has mastered the art of knowing what they need, how much they need, and when they need it. They order merchandise months in advance. They also have their stores linked into their inventory system and are able to replenish their stores almost instantly. For example, if you bought a TV. The system registers that a tv was bought at sore x and sends out a notice to ship TV to store X to replenish the inventory stock at store x. This usually happens in the same day. This efficiency also helps to save in ordering and labor costs which also contributes to Walmart being able to offer low prices.

    6. Doctor Deth on June 15th, 2009 2:20 pm

      you are paying retail in a 3rd world country - walmart buys huge quantities wholesale, so of course they will pay less than you do