The Independent Brand's Guide to Wholesale

You've built something people love. Now retailers are asking to carry it. Should you say yes?

Wholesale done right expands your reach and builds credibility. Done wrong, it commoditizes your brand and tanks your margins. Here's how to get it right.

The Wholesale Math

Standard wholesale is 50% off retail (keystone pricing). On a $30 product:

• You receive: $15
• Retailer sells for: $30
• Retailer margin: 50%

Can you profit at $15? If your COGS is $8, you're at 47% margin—tight but workable. If COGS is $12, you're at 20%—probably not sustainable.

Minimum Order Quantities

MOQs protect you from tiny orders that cost more to process than they're worth:

• Opening order: Higher MOQ (6-12 units per SKU) to ensure commitment
• Reorders: Lower MOQ (3-6 units) to encourage replenishment
• Case packs: Price breaks for full cases simplify fulfillment

Protecting Your Brand

Not every retailer is right for your brand:

Good signs:

• Curated selection (not everything under the sun)
• Proper merchandising and staff knowledge
• Geographic diversity from existing accounts

Red flags:

• Heavy discounting culture
• Poor presentation of similar brands
• Competing directly with your own retail customers

The Hybrid Approach

The best independent brands don't choose between DTC and wholesale—they use both strategically:

• DTC for full margin, customer data, and brand experience
• Wholesale for reach, credibility, and customer acquisition

Your wholesale accounts become a discovery channel that drives customers to your DTC site for subscriptions and full collections.