Have you ever wondered how to sell wholesale to retailers and get your products into stores across the world? You’re in luck, because that’s exactly what I’ll be covering in this post!
In this post we will cover:
What is Wholesale?
When you sell wholesale to retailers, you are giving a store a discount (50%+ off) on your product. The expected discount is 50% off, and some wholesale platforms have this as a requirement. It sounds like this wouldn’t be a smart idea, however the reason selling wholesale is nice is because of the bulk orders you receive which are much larger than regular retail orders.
If the MSRP (manufacturer suggested retail price) of your card is $4, then the wholesale price would be $2. If you want to start wholesaling your products you need to make sure that you can still turn a profit on the wholesale price. Price for wholesale FIRST then retail.
Pricing Example:
Cost to Make x 2 = Wholesale x 2 = Retail
(1 x 2 = $2 x 2 = $4)
How to Start Wholesaling:
There is a lot of work that needs to be done prior to getting your first wholesale client. You need to know what the minimum purchase order will be as well as the minimum return order. AKA: what price would make it worth it to you to sell at wholesale prices? $20 is likely way too low, but $500 may be way too high if your products are only $4 each.
You should consider how many pieces the buyer would need to purchase to reach your minimum. If they’ve never worked with you before then chances are they don’t want to risk purchasing 5,000 pieces from a new line.
Wholesale Terms to Learn:
Minimum opening order quantity: This is the price that first time buyers will need to reach to place a wholesale order.
Return order quantity: Will you discount your minumum order for returning customers? If your opening order is $100, maybe your return order could be $50 or $75. It all depends on your products and the prices!
Minimum per product quantity: How many of each design needs to be ordered. For example, my cards are solds in sets of 6, which is the industry standard for greeting cards. A buyer needs to purchase 6 of each design and also in quantites of 6 (6, 12, 18 etc.). This ensures that in their store they will have enough cards available to start out with.
Payment terms: Will you collect 100% up front? Maybe 50% upfront and 50% once it’s shipped? Or maybe you’re going to do NET 30 with your buyers.
Shipping terms: Will you ship once payment is received? Do you usually use USPS or UPS?
Processing time: How long do your orders usually take to make once the order has been received?
Okay, I know the terms… now what?
There is no right or wrong way to do anything in business. And if I’ve learned anything in the past few years, it’s that no two businesses are exactly alike.
Cold Emails: Send emails out to stores you would love to be in. Do this by briefly introducing yourself and why you think you might be a good fit. If you have a digital catalog made up then you could attach or link that. You could also include some images of your products that you think they would like. If you want more help on how to email stores Proof to Product and Lucky Break Consulting have a few blog posts that have helped me!
Get on a Wholesale Platform: There are new wholesale platforms popping up all the time. I am on Faire and Hello Abound. Other sites are Boutsy, Stockabl, Tundra, and Handshake by Shopify. Every site has its pros and cons but ultimately it’s up to you where you what platforms you want to sell on.
*referal link
Make Your Own Wholesale Website: Make a password protected website or collection on your website to allows buyers to purchase directly from you. When you do outreach through email or by mail you can direct them to your own platform, but make sure you don’t forget to send the password too!
Send Samples or a Physical Catalog: Sometimes if there is a store you REALLY want to be in, sending samples might get their attention more. Follow up with an email a few days after they should have received the package.
I hope you found this post helpful in learning how to sell wholesale to retailers! If you have any questions at all please drop a comment, I’d love to hear from you!