What is a Wholesale?
Understanding Wholesale in E-commerce
Quick Definition
Wholesale is a business model where products are sold in bulk quantities to retailers, resellers, or other businesses at a discounted price, typically lower than retail prices. Wholesalers act as intermediaries between manufacturers and retailers, enabling efficient product distribution across multiple sales channels with reduced per-unit costs.
Understanding Wholesale in E-commerce
Core Wholesale Mechanics
Key Characteristics
- •Bulk quantity sales
- •Lower per-unit pricing
- •Minimum order quantities
- •Business-to-business transactions
Typical Pricing Structure
Retail Price: $100
Wholesale Price: $50-$70
Typical 30-50% discount range
Wholesale Pricing Strategies
Cost-Plus Pricing
Calculate product cost + desired profit margin
Production Cost + 40-60% Markup
Tiered Pricing
Offer increasing discounts for larger order quantities
1-10 units: 30% off, 11-50 units: 40% off
E-commerce Wholesale Considerations
| Factor | Impact | Recommendation |
|---|---|---|
| Minimum Order Quantity | Ensures profitability | Set realistic MOQ based on product margins |
| Payment Terms | Cash flow management | Net 30/60 terms for established buyers |
| Shipping Policies | Logistics complexity | Free shipping over specific order value |
Wholesale in Modern E-commerce
Today's wholesale strategies require sophisticated digital approaches. Advanced platforms like Growth Suite enable merchants to create dynamic wholesale experiences, including personalized pricing tiers, automated volume discount calculations, and targeted marketing for B2B customers.
Successful wholesale programs balance competitive pricing with sustainable profit margins, leveraging technology to streamline complex multi-channel sales processes.
Put Wholesale into Practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective wholesale strategies.