Wholesale
Wholesale is selling your products to retailers or distributors in bulk at a discounted price (typically 40–60% below MSRP). It trades lower per-unit margin for higher volume and offline distribution — and is a distinct revenue channel from DTC or marketplace selling.
What is Wholesale?
In a wholesale model, a brand sells cases or pallets of product to retailers (brick-and-mortar stores, chains, or online retailers) at wholesale price — typically 40–60% of MSRP. The retailer then marks up the product and sells at full price to the end consumer. The brand gives up margin but gains distribution, volume, and the retailer's customer base.
For ecommerce brands that have built a proven product on Amazon or Shopify, wholesale is often the next channel unlock. A product selling $50,000/month DTC can potentially add $20–40,000/month in wholesale revenue to regional retailers, specialty stores, or chains — without any consumer-facing marketing spend.
Wholesale requires different infrastructure than DTC: case pack configuration (products must be packaged in standard case counts), EDI compatibility for large retailers (electronic ordering system integration), net 30/60 payment terms (brands ship product and wait 30–60 days for payment — a cash flow challenge), and a sales process targeting buyers rather than consumers.
Why it matters for sellers
Wholesale diversifies revenue streams beyond the Amazon algorithm or Meta advertising ecosystem — both of which can change dramatically without warning. A brand with $600k Amazon + $200k wholesale is more resilient than one with $800k Amazon-only. Wholesale also builds brand credibility: a product on retail shelves signals legitimacy to consumers, press, and potential acquirers.
How to use Wholesale
Start with independent retailers in your product category — local health food stores, pet boutiques, kitchen shops — rather than immediately targeting chains. Prepare a simple line sheet: 2–3 pages showing product, wholesale price, MSRP, MOQ, lead time, and a brief brand story. Attend 1–2 industry trade shows (e.g., Expo West for natural products, NY NOW for home goods) where buyers actively seek new brands.
Set your wholesale price at minimum 50% of MSRP — this maintains retailer margins and ensures they're incentivised to sell your product. Never go below 40% of MSRP for wholesale; below this threshold most retailers won't achieve sufficient margin to actively merchandise your product.
Real-world example
A candle brand with $40,000/month Shopify DTC revenue lists on Faire.com (the leading wholesale marketplace). Within 60 days, 34 independent retailers have ordered. Average wholesale order is $280 (at 50% of MSRP). Monthly wholesale revenue reaches $9,500, growing to $22,000 by month 6 as reorder rates establish. Wholesale margin (40–45%) is lower than DTC (65%) but generates $22k with zero ad spend — effectively free channel diversification.
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Frequently asked questions about Wholesale
What is the difference between wholesale and DTC?
DTC (direct-to-consumer) means selling directly to the end buyer — no intermediary. You control the price, customer data, and experience, but carry all customer acquisition costs. Wholesale means selling in bulk to a retailer who then sells to consumers. You get a lower price per unit but zero acquisition cost, and the retailer takes on customer-facing work. Most successful brands use both channels.
How do I find wholesale buyers for my product?
Faire.com is the easiest starting point — it's a curated wholesale marketplace with 700,000+ independent retailers. Trade shows are the highest-ROI in-person channel. LinkedIn outreach to category buyers at specific retailers also works. For chains (Target, Whole Foods, etc.), you typically need a broker or substantial DTC/Amazon traction to warrant a buyer conversation.
Won't wholesale cannibalize my Amazon or DTC sales?
Rarely — retail and online channels typically serve different purchase occasions. A customer who discovers your candle in a local boutique may then subscribe to auto-delivery on your website. Retail distribution often drives branded search volume that benefits Amazon organic rank. The main cannibalization risk is with large online retailers (e.g., Walmart, Target online) if you wholesale to them at prices that undercut your Amazon pricing.