How to Start Selling Wholesale as an Ecommerce Brand
The short answer
If you already sell direct to consumers, you start wholesale by selling your products in bulk, at a lower per-unit price, to businesses that resell them. Those buyers fall into a few groups: independent retailers, larger chains, and distributors that place you into their own network of stores. You can reach them three main ways: pitch retailers directly, list on an online wholesale marketplace, or work through a distributor. The first step is the same for all three, which is to set wholesale pricing that still earns you a profit at roughly 50% off your retail price.
What is wholesale, and how is it different from selling direct to consumers?
Wholesale is selling your product in bulk, at a discounted wholesale price, to a business that resells it to the end customer. Direct to consumer (DTC) is selling a single unit at full retail price straight to the shopper, usually through your own website. The trade is simple: wholesale earns a smaller margin per unit, but brings larger, repeat orders and far wider reach, because someone else owns the storefront and the shopper.
| Direct to consumer (your site) | Wholesale | |
|---|---|---|
| Who you sell to | Individual shoppers | Businesses that resell |
| Order size | One or a few units | Cases and bulk |
| Price per unit | Full retail | About 50% of retail |
| Who owns the shopper | You | The store |
| Reach | Limited to your own marketing | The store's traffic and customer base |
Most brands do not pick one or the other. They use DTC to prove the product sells and to own the customer relationship, then add wholesale to scale into stores they could never reach one shopper at a time.
What are the main channels to sell wholesale through?
There are four common ways to get your product onto other businesses' shelves: direct outreach to retailers, online wholesale marketplaces, distributors, and sales reps or a wholesale agency. Each trades a different mix of margin, reach, and effort. Most brands start with one and layer on the others as they grow.
Direct outreach to retailers
You find stores yourself, pitch the buyer, and sell to them directly. This keeps your full wholesale margin and the relationship, and it is the best way to build a base of key accounts. The cost is time, because you do all the finding, pitching, and follow-up. Our guide on how to get your product into retail stores walks through this end to end.
Online wholesale marketplaces
A wholesale marketplace is a platform where many independent retailers browse and order from many brands in one place. The platform handles discovery, processes payments, and often gives the store payment terms while paying you, which lowers the risk for a shop trying an unknown brand. In exchange, the marketplace usually takes a commission on the orders it sends you. Marketplaces are the lowest-effort way to be discovered by a large number of small, independent stores quickly.
Distributors
A distributor buys or warehouses your product, then sells and ships it on to retailers in its network. It can handle logistics, and sometimes the store relationship, so you reach many stores without managing each one. The trade is margin, because the distributor takes its own cut, so your price to it has to be lower. Distribution is the common route into grocery, larger chains, and new regions or countries. We cover it in depth in how wholesale distribution works.
Sales reps and wholesale agencies
Independent sales reps and wholesale agencies sell on your behalf into relationships they already have, for a commission or a fee. This helps when you lack the time or the contacts to do outreach yourself. A done-for-you agency like Ginger goes further: it finds the right retailers, marketplaces, and distributors for your brand, runs the outreach, and grows the reorders.
How do you price and get ready before you start?
Before your first wholesale order, set a wholesale price that still profits at roughly half your retail price, and put together a basic wholesale kit. Buyers move fast when they are interested, so missing pieces cost you deals. If a distributor is involved, price lower still, because there are two margins to cover, not one.
- Line sheet. A one-page catalog with products, SKUs, wholesale and retail prices, MOQ, case packs, lead time, and terms.
- Wholesale price list. Clear per-unit and per-case pricing, with any volume breaks.
- Order terms. Minimum order, lead time, shipping, and how payment works.
- Samples. Ready to ship the day a buyer asks.
If the math does not work at 50% off retail, fix your costs or your retail price before you approach any buyer. Selling wholesale at a loss to win an account is a trap.
Which wholesale channel should you start with?
Start with the channel that fits your goal and the time you have. If you want control and full margin and can invest the hours, begin with direct outreach. If you want fast reach to many small stores with little overhead, an online marketplace is the easiest on-ramp. If you want scale into many stores or new regions and can give up margin, distribution is the lever.
| Your goal | Best starting channel | Main trade-off |
|---|---|---|
| Control and full margin | Direct outreach | Takes the most time |
| Fast reach, low effort | Online marketplace | Commission on new orders |
| Scale with logistics handled | Distributor | Lower margin (an extra cut) |
| No time or no contacts | Sales rep or agency | Commission or fee |
Whatever you choose, focus on one channel until it works before adding another. Finding the right retailers, marketplaces, and distributors and running the outreach is exactly what Ginger does for brands, so you can keep making the product while the wholesale channel grows.
Frequently asked questions
- Can I sell wholesale and direct to consumers at the same time?
- Yes, and most brands do. Use your direct to consumer store to prove the product sells and own the customer, then add wholesale to reach stores. Keep your retail pricing consistent across channels so you do not undercut the shops that stock you.
- What margin do I need to sell wholesale?
- Plan to sell at roughly 50% off your retail price for direct and marketplace sales, and lower if a distributor takes a cut as well. Confirm your costs still leave a profit at that wholesale price before you approach any buyer.
- What is the difference between a marketplace and a distributor?
- A wholesale marketplace is a platform where retailers find and order from you directly, while you still ship the order and own the relationship. A distributor buys or holds your stock and sells it on to stores itself, handling logistics and taking its own margin.
- Do I need a minimum order quantity?
- Usually yes. A minimum order quantity (MOQ) protects your margin on small orders. Keep your first MOQ low, though, so a cautious new account can try you without much risk.
- How long does it take to start selling wholesale?
- You can be ready in a week or two once your wholesale pricing, line sheet, and samples are set. How fast the orders come in then depends on the channel you choose and how targeted your outreach is.
Want this done for you?
Ginger finds the retailers, runs the outreach, and grows your reorders on Faire and beyond. You make the product, we grow the orders.
Keep reading
How to Get Your Product Into Retail Stores
Find the right stores, price for wholesale, pitch the buyer, and turn first orders into reorders. The full playbook for getting a consumer brand onto retail shelves.
Wholesale Distribution: How to Find Distributors
How distributors actually work, what they do to your margins, and how to find, qualify, and pitch the right one to scale your brand into more stores.