Wholesale is selling to a retailer rather than directly to the end customer: a shop buys your products outright at a discounted wholesale price — often in the range of 40–55% of retail, though the exact discount is negotiated per buyer and product category — and resells them at full price. You move volume and get paid up front; the retailer takes the margin and the risk of selling through.
The discount is real and has to be planned for, not discovered after the fact. A wholesale price near 50% of retail only works if your costs leave enough room at that level — which is why wholesale pricing is built from cost and margin, often as its own pricing tier, rather than improvised per order.
Wholesale also changes the rhythm of the business: larger, less frequent orders, line sheets and minimums, and net payment terms instead of instant checkout. Many makers run retail and wholesale side by side, with a distinct pricing tier for each.
Related terms
Pricing Tier
A named pricing configuration (like retail, wholesale, or market) that applies a markup or adjustment formula to calculate prices. Useful for selling at different price points.
Consignment
A sales arrangement where a shop or gallery displays your work but does not pay you until it sells, keeping an agreed percentage of the sale.
Line Sheet
A one- or two-page sales document listing your products, wholesale prices, minimums, and terms — the catalog you send to prospective retail buyers.
Gross Margin
Gross profit expressed as a percentage of the selling price — what fraction of each dollar of revenue is left after the direct cost of the goods sold.