Pricing, terms, and the paperwork of selling to buyers instead of shoppers.

Wholesale runs on different arithmetic from DTC: a buyer needs a margin, a distributor needs one too, and both come out of the same retail price. The arithmetic is here, and so is what a new account will ask for.

18 questions answered

• What is a line sheet?→

  A line sheet is the ordering document a wholesale buyer works from. It lists every SKU available with a product image, style or item number, colourways and sizes, case pack, wholesale price, suggested retail price, and minimum order. It is built for placing an order rather than for persuading anyone.

• What is a sell sheet and how is it different from a line sheet?→

  A sell sheet makes the case for one product on one page: what it is, who buys it, why it sells, the margin it delivers, and the logistics facts a buyer needs. A line sheet is the full range formatted for ordering. The sell sheet persuades; the line sheet transacts.

• What is a wholesale price list?→

  A wholesale price list states what each account pays, by SKU, along with the terms attached. Most brands run several tiers — independent retailers, key accounts, distributors — because a distributor reselling to retailers needs a deeper discount than a shop selling to consumers.

• How do I set wholesale pricing?→

  Work backwards from the shelf price, not forwards from cost. Decide what the product should retail for, subtract the retailer’s required margin to get your wholesale price, then check what that leaves against your landed cost. If the gap will not cover operations and trade spend, the problem is the cost or the retail price.

• What is keystone pricing?→

  Keystone pricing is doubling the wholesale cost to set the retail price, giving the retailer a 50% margin. It is the traditional default in several categories and a useful reference point, though actual retail margins vary widely — grocery often runs far below it and specialty or apparel frequently above.

• What margin does a retailer expect?→

  It varies by category and format. Grocery and mass typically work on lower percentage margins with high turns, while specialty, apparel, and beauty expect more. The buyer will usually state a required margin as a condition, and it is the figure your wholesale price has to be set against.

• What is MAP pricing and how is it enforced?→

  Minimum advertised price is the lowest price a reseller may advertise your product at. It governs advertising rather than the actual selling price, which is what keeps it workable in most jurisdictions. Enforcement rests on the supply agreement: a reseller who breaks the policy can have terms withdrawn.

• What is the difference between a distributor and a retailer?→

  A retailer sells to consumers. A distributor buys from you and resells to retailers, taking on warehousing, logistics, and often sales coverage. Selling through a distributor reaches many more doors for one relationship, at the cost of a deeper discount and losing direct contact with the retailers who stock you.

• What is a broker and do I need one?→

  A broker is a commissioned representative who sells your products into retail accounts on your behalf, usually holding existing buyer relationships in a category or region. They open doors and present at category reviews. They do not hold inventory, and they are paid a percentage of sales.

• What is B2B ecommerce?→

  B2B ecommerce is letting wholesale buyers order from you online, with account-specific pricing, credit terms, minimums, and case-pack rules applied automatically. It replaces the email-and-spreadsheet reorder cycle, and it works best for repeat ordering by accounts whose terms are already agreed.

• Do I need Shopify B2B or retail EDI?→

  It depends who is ordering. Shopify B2B suits independent retailers and small accounts logging into your storefront to reorder at their own prices. Retail EDI is required when a national retailer’s system places the order and expects acknowledgments, ASNs, and invoices back in X12. Brands selling to both run both.

• What are slotting fees?→

  Slotting fees are payments a retailer charges to stock a new item, covering the cost and risk of giving it shelf space. They are common in grocery and mass, quoted per SKU per store or across a chain, and they are typically taken as a deduction from payment.

• How do I onboard a new wholesale account?→

  Agree the commercial terms, then work through their supplier packet: vendor application, tax and insurance documents, the routing guide, EDI or portal setup, item setup with GTINs and dimensions, and any labelling requirements. Item setup and EDI certification are the two that take longest and gate the first shipment.

• What is category management?→

  Category management is the retailer’s practice of managing a product category as one business unit — deciding the assortment, shelf layout, pricing, and promotions for the whole category rather than brand by brand. Suppliers are evaluated on what they contribute to category performance, not only their own sales.

• What payment terms should I offer a new wholesale account?→

  Start tighter than you expect to finish. Prepayment or a card on the opening order, moving to net 30 once payment history exists, is standard for independents. Large retailers dictate their own terms and will not negotiate much, so the question there is whether you can fund the gap rather than what you would prefer.

• How do I know whether a wholesale account is actually profitable?→

  Build a profit and loss for the account. Start from its revenue at its prices, subtract landed cost, then every cost it specifically causes: trade spend and promotional funding, slotting, deductions and chargebacks, dedicated packaging, freight terms, and the cost of financing its payment terms. Large accounts frequently look worse than expected here.

• What is a minimum opening order?→

  A minimum opening order is the smallest first order you will accept from a new wholesale account, set to cover the cost of onboarding them. Reorder minimums are usually lower. It filters out accounts too small to be worth setting up and signals the level you expect the relationship to operate at.

• What do I need ready before a wholesale trade show?→

  The ordering apparatus, before the booth. Current line sheets with case packs and minimums, a price list with dated terms, samples, a way to write orders on the spot, and stock or production capacity to cover what you sell. Buyers who leave without a way to order rarely come back to one.

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