how to sell wholesale, 7 Tips on How to Sell Wholesale

how to sell wholesale

7 Tips on How to Sell Wholesale Successfully

Selling wholesale can be a great way to expand your business and reach new customers. But it also comes with its own challenges and risks. How do you find the right buyers, negotiate the best prices, and deliver your products on time and in good condition? How do you manage your inventory, cash flow, and marketing strategy? How do you deal with competition, regulations, and customer service issues?

In this article, we will share some expert advice on how to sell wholesale successfully. Whether you are just starting out or looking to grow your existing wholesale business, these tips will help you achieve your goals and avoid common pitfalls.

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Tip 1: Do your research

Before you start selling wholesale, you need to do some market research. You need to know who your target customers are, what they want, and how much they are willing to pay. You also need to know who your competitors are, what they offer, and how they price their products. You need to understand the demand and supply of your product category, the trends and seasonality of your industry, and the legal and ethical standards of your market.

Doing your research will help you identify your unique selling proposition (USP), which is what sets you apart from other sellers. Your USP could be based on your product quality, design, innovation, sustainability, customer service, or any other factor that makes you stand out. Your USP will help you attract and retain loyal customers who value what you offer.

Tip 2: Choose your distribution channels

Once you have done your research, you need to decide how you want to distribute your products. There are different ways to sell wholesale, such as:

– Directly to retailers: This is when you sell your products directly to retail stores or online platforms that sell to end consumers. This gives you more control over your pricing, branding, and customer relationships. However, it also requires more time and effort to find and manage individual buyers.
– Through distributors: This is when you sell your products to intermediaries who then sell them to retailers or end consumers. This gives you access to a wider network of buyers and reduces your workload. However, it also means sharing your profits with the middlemen and losing some control over your pricing, branding, and customer relationships.
– Through dropshipping: This is when you sell your products to online platforms that handle the order fulfillment and shipping for you. This eliminates the need for inventory management and logistics. However, it also means competing with many other sellers on the same platform and having little influence over the customer experience.

You can choose one or more distribution channels depending on your product type, target market, and business goals. You should weigh the pros and cons of each option and find the best fit for your needs.

Tip 3: Set your pricing strategy

Pricing is one of the most important aspects of selling wholesale. You need to set a price that covers your costs, generates a profit margin, and matches the value perception of your customers. You also need to consider the pricing of your competitors and the market conditions.

There are different methods to calculate your wholesale price, such as:

– Cost-based pricing: This is when you add a markup percentage to your total cost of production. This ensures that you cover all your expenses and earn a profit. However, it does not take into account the demand and value of your product or the competition in the market.
– Value-based pricing: This is when you set a price based on how much value your product provides to your customers. This allows you to charge a premium for your USP and differentiate yourself from other sellers. However, it requires a thorough understanding of your customers’ needs and preferences and their willingness to pay.
– Market-based pricing: This is when you set a price based on what the market is willing to pay for similar products. This helps you stay competitive and align with the expectations of your buyers. However, it does not reflect the unique features or benefits of your product or the costs involved in producing it.

You can use one or a combination of these methods to determine your wholesale price. You should also factor in any discounts or incentives that you offer to encourage bulk orders or repeat purchases.

Tip 4: Create a wholesale policy

A wholesale policy is a document that outlines the terms and conditions of doing business with you. It specifies the details of your wholesale offer, such as:

– Minimum order quantity (MOQ): This is the minimum number of units or amount of money that a buyer has to order from you in order to qualify for wholesale pricing.
– Payment terms: This is how and when you expect to receive payment from your buyers. For example, you may require a deposit upfront and the balance upon delivery or offer net terms such as 30 days after invoice date.
– Shipping terms: This is how you deliver your products to your buyers and who pays for the shipping costs. For example, you may offer free shipping for orders above a certain threshold or charge a flat rate or a percentage of the order value.
– Return policy: This is how you handle returns, exchanges, or refunds in case of damaged, defective, or unsatisfactory products. For example, you may offer a full refund within a certain period of time or charge a restocking fee or require the buyer to pay for the return shipping.
– Warranty policy: This is how you guarantee the quality and performance of your products and how you deal with any issues or complaints that may arise. For example, you may offer a limited warranty for a certain period of time or provide free repairs or replacements for faulty products.

A wholesale policy helps you communicate your expectations and requirements to your buyers and avoid any misunderstandings or disputes. It also helps you protect your rights and interests as a seller and establish trust and credibility with your buyers.

Tip 5: Promote your products

Promoting your products is essential to attract and retain wholesale buyers. You need to showcase your products in a way that highlights their features, benefits, and USP. You also need to reach out to potential buyers and persuade them to buy from you.

There are different ways to promote your products, such as:

– Creating a wholesale catalog: This is a document that displays your product images, descriptions, prices, and other relevant information. You can create a physical or digital catalog and send it to your prospective buyers or post it on your website or social media platforms.
– Attending trade shows: This is when you exhibit your products at events where buyers and sellers in your industry meet and network. This gives you an opportunity to showcase your products in person, demonstrate their value, and generate leads and sales.
– Joining online marketplaces: This is when you list your products on platforms that connect wholesale sellers and buyers. This gives you exposure to a large and diverse audience of buyers who are looking for products like yours.
– Building relationships: This is when you establish and maintain contact with your existing and potential buyers through email, phone, social media, or other channels. This helps you build rapport, trust, and loyalty with your buyers and keep them informed of your new products, offers, or updates.

Promoting your products requires time, effort, and money. You should plan your marketing strategy carefully and allocate your resources wisely. You should also measure the results of your marketing efforts and adjust them as needed. offers wholesale distributors and manufacturers a simple and economical way to grow their business online
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Tip 6: Provide excellent customer service

Customer service is another key factor in selling wholesale successfully. You need to provide excellent customer service before, during, and after the sale. You need to answer any questions or concerns that your buyers may have, fulfill their orders promptly and accurately, and resolve any issues or problems that may occur.

Providing excellent customer service will help you:

– Increase customer satisfaction and retention
– Generate positive word-of-mouth and referrals
– Enhance your reputation and credibility
– Create long-term relationships and loyalty

To provide excellent customer service, you should:

– Be responsive and courteous
– Be honest and transparent
– Be flexible and accommodating
– Be proactive and helpful
– Be professional and respectful

Tip 7: Keep learning and improving

Selling wholesale is not a one-time deal. It is an ongoing process that requires constant learning and improvement. You need to keep up with the changes and trends in your industry, market, and customer behavior. You need to monitor your performance and feedback from your buyers. You need to identify your strengths and weaknesses and work on them.

Keeping learning and improving will help you:

– Stay competitive and relevant
– Adapt to changing customer needs and expectations
– Innovate and differentiate yourself from other sellers
– Grow your business and achieve your goals

Selling wholesale can be a rewarding and profitable venture if done right. By following these tips, you can learn how to sell wholesale successfully and take your business to the next level.

How to Sell Wholesale in 2023: A Guide for Ecommerce Businesses

Wholesale is a business model where you sell your products in large quantities to other retailers, who then resell them to their customers. Wholesale can be a lucrative way to grow your ecommerce business, as it allows you to reach more customers, generate more revenue, and lower your marketing costs. However, selling wholesale also comes with some challenges, such as finding the right retailers, setting the right prices, and managing your inventory. In this guide, we will explain how to sell wholesale online in 2023, and share some tips and best practices to help you succeed.

The Benefits of Selling Wholesale Online

Selling wholesale online has many advantages for ecommerce businesses, such as:

-Higher revenue from fewer transactions: When you sell wholesale, you can move more products in one order than when you sell to individual consumers. For example, if you sell candles for $5 each to consumers, you would need to sell 200 candles to make $1,000. But if you sell them in bulk to a retailer for $3 each, you would only need to sell 333 candles to make the same amount of money.
-Lower marketing and customer acquisition costs: When you sell wholesale, you don’t have to spend as much time and money on marketing and finding new customers. Instead, you can focus on building long-term relationships with a smaller number of retailers who will buy from you regularly and promote your products to their customers.
-Improved brand awareness and market expansion: When you sell wholesale, you can leverage the existing customer base and reputation of your retailers. This can help you increase your brand awareness and reach new markets that you might not be able to access otherwise.

According to a report by Shopify, the global wholesale ecommerce market is expected to grow from $5.8 trillion in 2018 to $15.5 trillion in 2023. This means that there is a huge opportunity for ecommerce businesses to tap into this growing market and scale their sales.

How to Start Selling Wholesale Online

To start selling wholesale online, you need to create a separate channel or platform where retailers can shop your products without interference from consumers. There are different ways to do this, such as:

-Creating a password-protected storefront: You can use Shopify’s MagicPass app or create an independent site for this purpose. This way, you can control who can access your wholesale products and prices, and offer a customized shopping experience for your retailers.
-Joining a wholesale marketplace: You can also join a wholesale marketplace that attracts retailers who want to compare prices and products from different sources. You can apply to sell on Handshake if you have an active Shopify store and meet their criteria. Handshake is a curated marketplace that connects wholesalers with verified retailers across various categories.
-Using a wholesale app: You can also use a wholesale app to create a separate channel from your retail store. For example, you can use Wholesale Club by Pixel Union or Wholesale Gorilla to add wholesale features to your existing Shopify store, such as tiered pricing, minimum order quantities, custom shipping rates, and more.

Once you have set up your wholesale channel or platform, you need to find the right retailers for your products, set your wholesale prices and terms, manage your inventory and orders, and provide excellent customer service. You can also use some strategies to boost your wholesale sales, such as offering incentives, attending trade shows, partnering with complementary brands, and registering with a wholesale marketplace.

Selling wholesale online can be a great way to grow your ecommerce business in 2023. By following this guide and using the resources we mentioned, you can start selling wholesale online successfully.


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