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How to Wholesale & Sell Products to Retailers

As you grow your business, you will eventually realise that selling only to the end consumer directly may not be as profitable as selling to both retailers and the final customers at the same time. If you desire to increase your sales volume, you might consider climbing up the distribution chain and begin distributing either in a one line product or a variety of goods to other retailers.

You might notice that your revenue will begin to increase when you make this change. Of course, this would still depend on the line of business that you choose to venture into and the volume that you will be selling. Therefore, you should look at the market trend to see which line of business will be most profitable to you.

As a wholesaler, you will not only open up the channels of generating more revenues for your business, but you will also be allowing other businesses, who you will be supplying to, to help you in marketing your products. It is a given that retailers will market your products to their customers for sales. This can lead to their customers introducing your product to another hence expanding your market and revenues.

You can get your products on the retailer’s shelves by following these simple tips.

Different Customers, Different Prices

As a wholesaler, retailers are not the only ones you will be selling your products to; there are also opportunities to sell to the final consumers. When setting your prices, do not set the same prices for all kinds of buyers.

What you should do is give retailers a lower price compared to that of the final consumer. For example, if you are selling product A at $20 to the general public and getting a 50% markup as profit, you can sell the same product to a retailer for $15 so that he can sell it at a competitive rate and also make a profit.

The Bigger the Volume, the Lesser the Price

You can also increase your sales by encouraging your retail buyers to buy in large quantities. Let us say you sell product Z at $12, encourage your retailers to buy in bulk by letting them know that you can sell the same product at a lower price if they buy in volume. An example of this pricing set up is if a retailer buys 1000 units, you sell it at $8 per unit, or if he buys 600 units, you sell it at $9 and for 100 units you sell it at $11.

The primary goal is to entice your retailers to buy large orders and increase your revenue. This arrangement can be extremely attractive to your wholesale buyers because they can get more profit from the reduced prices.

However, you should make sure that your business can handle the volume and that your discounted prices will still earn you a profit.

Minimum Orders

To make a significant profit from your sales, you should consider setting a minimum order margin for your retail clients. Setting a minimum order means that buyers must buy a certain amount of products when placing an order for them to get it at a discounted rate.

A minimum quantity sale ensures better turnover for your products. An assured smaller profit from an immediate sale is always better than a potential higher income you can get when you sell your products individually. Selling to end consumers could mean longer clearance of inventory which has a higher possibility of wastage and higher warehouse cost. Add this all up and it could be more costly than selling it quickly at a lower price.

Dropship for Retailers

Another method to increase your revenue as a wholesaler is to allow drop shipping for your wholesale buyers. Drop shipping is a process where your retailers transfer their customer’s order and shipment details to you so you can ship the products directly to their clients.

In this process, the retailers get the customers and handle all their inquiries. They can also set their own prices for your products to ensure their own profits. All you have to deal with is making sure that your products get delivered to their customers. Drop shipping eliminates the process of you sending the products to the retailers for them to ship it to their own clients.


One of the foolproof ways to get others to know about your business is to be an exhibitor at trade shows. Wholesalers have an opportunity to showcase their products to potential retailers in trade shows that are being conducted in many cities.

Wisen up, instead of you spending a lot of time and money approaching retailers individually, you can set up a booth at a trade show. The inevitable presence of a lot of retailers in these exhibitions can potentially attract some to carry your products.

Give Samples to Retailers

You can gain the confidence of your retailers by providing small samples for display in their shops. You can get product feedback from their customers by doing this. By giving small samples, you stand a chance of getting an opportunity to present your products to a larger market.

When you decide to give samples to retailers, choose a number of local stores who would be interested in displaying your product. You can then have a great army of retailers who will be doing the marketing for you. But remember, getting your products on display at retail stores is only the first step for potential sales. You then need to be ready to meet the demand of the product once the customers start to make orders.

Online Selling

As a wholesaler, one of the most effective methods of selling to retailers is by allowing your products to be bought online. Invest on a website where you can display all your goods. Include the prices and descriptions on your online portfolio. Having all the information online makes it easier for them to choose at their own pace and decide better.

If you have a good business relationship with your client, you can allow them to purchase your products on credit. By allowing your customers to buy your goods on credit, you are opening the market even more. The ability to pay on credit encourages customers to buy now and buy more. This gives your business a chance for bigger revenues.

Also, through your online portfolio, you can develop a distribution network for your product. Your delivery system may include retailers or brokers who can provide further distribution of your products through their businesses.


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Editorial Staff

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