E-Commerce & Product Sellingintermediate
Wholesale Pricing
Definition
A discounted price structure offered to retail stockists or trade buyers purchasing in bulk, typically 40-60% below the recommended retail price (RRP).
Why it matters
Wholesale opens a completely separate revenue channel, retailers stock your product and handle their own marketing. The trade-off is lower margins in exchange for volume.
Example
A skincare product retails for £25. The founder sets a wholesale price of £12.50 for boutiques ordering 24+ units. She maintains 55% gross margin after COGS of £5.50.
Related terms
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