Wholesale
Definition
Selling your products in bulk to retailers or distributors, who then resell them to consumers, usually at about half of retail price.
Want a deeper explanation?
Wholesale brings big orders and brand exposure, but with lower margins, payment terms and retailer requirements. It changes your cash cycle more than most owners expect.
Tracking wholesale as its own channel shows whether it really pays. Watch for: wholesale growth that requires more inventory and longer receivables at the same time.
Example
A $60 MSRP product sells to a boutique at $30. The boutique orders 200 units on Net 30 terms.