slotting fee definition

slotting fee

Sum paid by a vendor or manufacturer to a retail chain or establishment for (1) making room for a product on its store shelves, (2) making room for the product in its warehouse, (3) entering the product data in its inventory system, and (4) programming its computers to recognize the product's bar code. In the US, slotting fees often run up to $50,000 or more per product per store, on an annual basis. Also called slotting allowance.

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