5 causes to promote your ecommerce items at wholesale costs


Most business owners make the mistake of underestimating the benefits a wholesale channel can add to their ecommerce business.

Or, assume that wholesale pricing is best done by a brick and mortar wholesale company.

But any e-commerce business, large or small, can sell to both consumers and retailers at a wholesale price.

Unlike selling at retail price only, the standard price a consumer will buy your product for, adding a wholesale channel results in:

  • Higher sales and lower costs lead to higher profits and growth
  • Higher customer loyalty
  • An enlarged market share
  • Increased trust in your brand

We’ll go into further details, but first a quick definition:

A wholesale price is a discounted price that you offer to customers who are buying in bulk.

You can set a minimum order quantity (MOQ), which is the fewest number of units a customer must order in order to qualify for the wholesale price.

This means that any customer who purchases from your store at or above the MOQ will automatically qualify for the wholesale price.

Why adding a wholesale price is a smart move for your ecommerce business

1. Increase your sales

Selling your ecommerce goods at a wholesale price is aimed at two other types of buyers:

  • Consumers who shop in bulk to save money with reduced unit costs
  • Companies that buy at a wholesale price and sell to consumers at a higher price (B2B)

Consider it: When you sell at retail prices only, you will need to convert significantly more customers to meet your target sales.

However, if you’re selling at a wholesale price on bulk orders, it only takes a fraction of that number to achieve the same goal.

In doubt? Look at these statistics.

In 2019, the B2B e-commerce market was valued at $ 12.2 trillion – six times as much as the e-commerce B2C market.

The conversion rates of B2B online transactions are between 6% and 8%, while B2C online transactions are only between 3% and 5%.

These numbers are proof that wholesale pricing is the way to go if you want to reach your sales goal faster. Joining a community of like-minded ecommerce store owners will be to your advantage.

When you connect with people who speak your language, your business will be catapulted over all the hurdles you face in wholesale pricing. You can learn how to market your goods and buy the crème de la crème from you at retail outlets.

The eCommerceFuel community consists of experienced, high-revenue eCommerce store owners. This guarantees that every interaction you have is productive and takes you one step closer to your goals.


2. Increase the value of your customer lifetime

Customer Lifetime Score is a measure of the revenue an individual customer generates over the amount of time they do business with your ecommerce store. The longer the customer stays in your company, the higher the profit.

One of the main advantages of selling at a wholesale price is that you can Build solid business relationships with your customers.

You can sell to the same customer over and over again – provided you keep your service and product quality constant. This creates a high value for customer lifetime.

Think about it like this. When you sell jewelry at a retail price, your main customers are consumers. And they’re unlikely to come back for the same piece.

The standard B2C scenario is as follows: the customer gives you money, you ship the item, and then you never hear from them again.

On the other hand, selling at a wholesale price will attract other business owners. Once they realize that your product is selling well with their customers, they’re back for more of the same product – in bulk.

However, you still need to build good relationships with your wholesale customers. Here are some tips:

  • Make sure your customer support and customer service are above average. A survey found that 61% of customers stopped trading with a brand because of poor customer service.
  • Keep communication lines open. Make it easy for your customers to give feedback or ask questions.
  • Personalize your communications, including chatbot pop-ups.
  • Be transparent with information like prices, company data and product lists.
  • Make reordering easier.

3. Expand your market

You already know that attracting new customers is not an easy task. It is even more difficult to gain the loyalty of these new customers.

By offering your goods at a wholesale price, you can forge strong partnerships with established brands in your niche.

And that gives you direct access to an existing customer base.

Your goods enter new territories without having to introduce your brand to customers who have never heard of you.

As more of your product ends up in the stores of different retailers, be it in online stores or in brick and mortar stores, your brand becomes better known.

Additionally, when customers see your product in different stores, they begin to develop their own relationship with your brand. And this can ultimately drive organic traffic to your ecommerce business.

4. Improve your credibility

Online shopping fraud lost over $ 8 million in 2020, according to the Australian Competition and Consumer Commission.

In the UK, 10,000 more cases of online shopping and auction fraud were reported in 2020 compared to 2019.

These statistics show the importance of consistently promoting your ecommerce business to potential customers as legitimate. You have to consistently prove that you are trustworthy.

Adding trusted retailers to your customer pool through a wholesale price builds your credibility.

When potential customers find that a brand they know and trust is buying from you, they are likely to see your business as legitimate. They will link your relationships with these brands as evidence of your reliability.

Here are a few ways you can achieve this:

  • Show customer reviews on your ecommerce store, especially from retailers.
  • Publish a live feed of orders received from other wholesale and retail customers at the front of your website.

5. Lower the total cost of running your business

Every successful ecommerce entrepreneur knows that one way to increase sales is to reduce costs.

As mentioned earlier, adding wholesale prices to your ecommerce store will lead to repeat customers. Considering that it costs five times more to get a new customer than to keep an existing one, so will a regular customer Lower your overheads significant.

Targeting retailers through a wholesale price will also lower your marketing costs by placing that responsibility on the retailer.

All you have to worry about is selling the goods in bulk to the retailer and they can be worried about getting customers.

This allows you to transfer your time and money to other growth areas in your ecommerce business.

Selling in bulk above a wholesale price will also be available Reduce fixed costs per unit. This refers to the percentage per unit of cost like website maintenance.

The fixed costs per unit are inversely related to the sales volume. As the sales volume increases, the fixed costs per unit decrease as the costs are spread across multiple units.

How to calculate the wholesale price for your goods

Your wholesale price should cover your overhead and total cost price while maintaining a reasonable profit margin.

A common wholesale pricing strategy is to offer a 50% discount off the regular price of the goods or the manufacturer’s suggested retail price (MSRP).

The MSRP is your suggested retail price. It should be on the contract you give to your wholesale customers.

The MSRP guarantees that the retailers who buy products from you at a wholesale price are selling at a single price. It prevents a situation where your product is available in another store for a lower price than what you are selling.

A 50% discount off your wholesale price allows retailers to maintain a reasonable profit margin when selling to their customers. And your business will still make a decent profit.

Here is an example of calculating wholesale prices for your online business:

Assuming your gross profit margin is 75%, you can offer a 50% discount on wholesale orders and still get a 50% gross profit margin.

Wholesale price x 2 = regular price or suggested retail price

product Cost price Retail price / recommended retail price Wholesale price
ON $ 50 $ 200 $ 100
B. $ 40 $ 160 $ 80

You can increase your profitability by harnessing the power of numbers. One way to achieve this is to use a graduated wholesale discount.

Here the wholesale discount varies depending on the order quantity. The bigger the order, the bigger the discount.

This will encourage your customers, especially retailers, to place larger orders for a higher gross profit margin on resale.

However, the negative of selling to large retailers like Walmart is the high capital you need to cover the total cost of stocking massive bulk orders.

You can get the financial support you need, as well as top-notch mentoring to help you grow through eCommerceFuel Capital. Our investment partners and mentors include seasoned entrepreneurs and recognized names in the e-commerce space.

Ready to test wholesale pricing in your store?

The global e-commerce wholesale business has grown steadily over the years. And these statistics from Statista prove it.

Global gross volume of goods in B2B e-commerceScreenshot from: statista.com

Brands like HanesBrands, a Fortune 500 company, have capitalized on the growth of the B2B e-commerce sector.

According to Charlie Stack, the company’s vice president of casual wear and e-commerce, the brand saw double-digit growth by selling in bulk to other companies.

Charlie Stack, vice president of American CasualwearScreenshot from: business.amazon.com

You too can experience this type of growth by adding wholesale prices to your ecommerce business.

You can easily add a bulk order section to your ecommerce website. Here is an example of Grainger adding a bulk orders tab to their homepage.

Grainer HomepageScreenshot from: grainger.com

With the right tools and a community to help you explore this gold mine, your business is sure to take your business to the next level. And best of all, you can optimize your website to adequately serve both wholesale and retail customers.

Photo by Freepik

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