Wholesale vs. Retail What’s the difference and which one is better for my business?
Wholesale vs. Retail
What’s the difference and which one is better for my business?
This is easily one of the most popular topics I’ve been receiving questions on. And with the number of sales coming from online retailers increasing by the minute, I get it! It can be REALLY confusing.
You may be thinking…
🤔Why would I want to sell wholesale?
🤔Aren’t storefronts a dying space?
🤔Do I have to cut my prices in half?
It’s no secret that 2020’s events led to a major surge in online sales. Or was that just me doing all that shopping? 🙊
Companies that thrived from in-person retail shopping had no choice but to pivot. To consider ways they could possibly transform their business to, well, survive.
And while things are certainly getting back to “normal” in the world, online shopping has remained at an all-time high.
Now, more than ever is an integral time to understand the difference between wholesale & retail, and which one (or both) is best for you!
Understanding this “secret sauce” could be the missing piece to taking your business to a whole new level.
So let’s get to answering the glaring questions at hand…
1. WHY WOULD I WANT TO SELL WHOLESALE?
It’s important to realize that consumers still want to touch and feel certain things… especially unique and one-of-a-kind items. While I wholeheartedly believe in having your own space online (as a website or on Etsy), selling to stores will do more for your business than you could ever imagine! Simply put, selling wholesale will help you find more of your ideal clients in one place. When selling wholesale, you get to sell larger quantities and ship fewer boxes! Sounds like a win/win, right!?
2. AREN'T STOREFRONTS A DYING SPACE?
Unfortunately, we have all seen a lot of businesses close over the last two years. But, the ones that have made it through such incomparable hard times are strong, and they have more value than ever. How? Well, we will ALWAYS need places to go when we need something last minute. Because hey, even Amazon can't drop that “perfect gift” in your lap as you are walking out the door to go to a birthday party…for now, at least 🤣. Further, I know I’m not alone in the fact that I truly love choosing something special for someone. I enjoy and value spending time perusing unique items, and more importantly, supporting my local economy. I support MANY handmade makers – and it’s important to know that their livelihood depends on storefronts selling goods. I, along with a significant percentage of consumers, will always be committed to supporting local businesses and purchasing unique, quality products.
3. DO I HAVE TO CUT MY PRICES IN HALF IF I'M SELLING WHOLESALE?
To be honest? This question makes me cringe a little! My biggest recommendation is to always price your products for wholesale before you ever even think about retail! You should absolutely be making a profit at wholesale. And if you decide to sell in the retail world, that will allow you to make a little more money – a little bit at a time! When you are selling retail, it may seem like you are making more money, but remember: you are only selling 1-2 pieces at a time. Think about it – this becomes a lot more work in the end! Insider Tip: You can take my School for Wholesale Pricing course to make sure you are pricing for profit, right out of the gate! Also, check out these two blogs to learn more about pricing your products for wholesale – HERE and HERE.
The proof is in the pudding – I went from traveling to craft shows and vintage markets in 2015, to going to market for the first time in January of 2016. I doubled my income from the year before – just in that first show! 🤩
Wholesale vs. Retail What’s the difference?
At the end of the day, the best thing about wholesale is creating relationships with the stores and earning their trust. When you cultivate that relationship, you will have the opportunity to introduce new products each season, and your clients will continue to order the new + reorder the best sellers!
Wholesale vs. Retail can be hard to understand at first, but once you dive into wholesale and build those long-lasting relationships, I guarantee you will realize that you've made the right choice. Your business will grow like never before - and YOU will have more freedom to continue doing what’s most important to you.
There's a lot to learn about how to get started and how to make it efficient, and I’m here to help! If you haven’t already, click here to download my free resource: 4 Ways to Sell Wholesale Checklist, and let me know what questions you may have!
PS - my FREE masterclass is right around the corner, on September 25! Check your inbox later this month for a sneak peek, as well as an exclusive offer that you don’t want to miss! (not subscribed to receive my emails? You'll automatically be subscribed when you download the checklist above!