Wholesale Meaning & Examples
Definition
Wholesale is the practice of selling goods in large quantities to retailers, resellers, or businesses at discounted prices rather than selling directly to end customers at retail prices.
Good or Bad?
Good, when it increases sales volume, builds long-term business partnerships, and reduces inventory faster.
Bad, when discounts are set too low, margins shrink, or when wholesale buyers misuse pricing intended for bulk orders.
Why does it matter?
Because wholesale helps businesses expand their reach, sell larger quantities, and establish stable revenue streams.
Poor wholesale management can hurt profitability and disrupt retail pricing strategies.
Common Mistakes
- Offering wholesale prices without minimum order requirements.
- Not separating retail and wholesale customer groups.
- Lack of tiered pricing for different wholesale order sizes.
- Poor tracking of wholesale inventory and margins.
How to Improve It?
- Set minimum order quantities to protect margins.
- Create separate pricing tiers for wholesale and retail customers.
- Use automation to manage wholesale orders and approvals.
- Monitor sales data to identify profitable wholesale partners.
Recommended Plugin
Dynamic Pricing & Bulk Quantity Discounts for WooCommerce by WPFactory.
This plugin helps stores manage wholesale pricing by offering tiered discounts and quantity-based rules, making bulk selling simple and effective.
Real-World Example
A WooCommerce skincare brand sells bottles individually at retail price but offers wholesale buyers 30% off for orders of 100 units or more. Retail and wholesale pricing remain clearly separated, ensuring profitability.
Related Terms
- Vendor Management
- Bulk Quantity Discounts
- B2B eCommerce
- Minimum Order Amount
FAQs
How is wholesale different from retail?
Wholesale sells in bulk to businesses at lower prices, while retail sells directly to end consumers at higher prices.
Should small WooCommerce stores consider wholesale?
Yes, if they have enough production capacity to handle bulk orders and want to grow business-to-business sales.
How can I set up wholesale pricing in WooCommerce?
By using plugins that allow multiple pricing tiers, minimum order rules, and bulk discounts tailored for wholesale buyers.
