In trade allowance programs, extra shipping costs occur when a retailer engages in:

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Extra shipping costs occur in trade allowance programs when a retailer engages in diversion, which refers to the purchase of products at a lower price in one market and diverting them to another market to be sold at a higher price. This often involves shipping the products from one location to another, which can result in additional shipping costs. Slotting fees are fees paid by manufacturers to retailers for shelf space, and exit fees are fees charged to manufacturers for removing products from a retailer's shelves. Forward buying refers to purchasing products in advance of when they are needed at a lower price, but this does not necessarily involve extra shipping costs.

In Trade Allowance Programs, Extra Shipping Costs Occur When a Retailer