Wholesale
Buying products in bulk at a discounted rate to resell individually, as opposed to manufacturing them.
In practice
Wholesale margins are typically slimmer per unit than direct-to-consumer sales, since the buyer needs enough margin to mark the product back up and still profit - but it trades that margin for volume and someone else handling retail-side marketing and customer service.
A manufacturer sells cases of 100 units at a wholesale rate to a retailer, who then marks each unit up and sells them individually to customers.
Why it matters
Wholesale trades margin for reach - a brand gives up per-unit profit for a retail partner's existing traffic and trust, which would otherwise take years to build independently.
Worth knowing
- Pricing is typically 40-60% below eventual retail price, leaving room for the buyer's markup.
- Often requires minimum order quantities and set payment terms, like Net 30.
- Wholesale and D2C can coexist, though pricing needs care to avoid undercutting retail partners.
Start the conversation
Let's talk it through
Tell us where things stand with putting wholesale into practice and we'll respond with next steps, no forms, no waiting in a queue.
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- No long-term contract to start the conversation
