Marketplace & Channel Terms

Wholesale

Selling products in bulk to retailers who resell to end consumers.

1 min readLast updated Apr 2026

Selling products in bulk to retailers who resell to end consumers.

Why It Matters

Wholesale provides volume, retail presence, and brand credibility. Trade-off is lower margins and less control over customer experience.

Practical Example

Scenario

A natural beauty brand weighs adding wholesale to their DTC business.

Calculation

Wholesale: 50% margin, minimum 100-unit orders. Adds $400K annual revenue from 20 retail accounts

Result

Wholesale channel adds predictable B2B revenue while retail presence drives brand awareness benefiting DTC

Pro Tips

  • 1Create a separate wholesale portal or use tools like Faire, Bulletin, or NuOrder
  • 2Set minimum order quantities (MOQs) and reorder minimums that make wholesale profitable
  • 3Maintain MAP (Minimum Advertised Price) agreements to protect pricing integrity

Common Mistakes to Avoid

Giving too deep a discount—wholesale margins below 50% often aren't sustainable
Not having clear terms: payment schedules, return policies, exclusivity (or not)
Letting wholesale channel cannibalize DTC without a clear strategy for each

Frequently Asked Questions

Related Terms

DTC / Direct-to-Consumer
D2C

Selling directly to end customers through owned channels rather than retailers.