How To Start a Wholesale Business in 2026

Starting a wholesale business allows you to sell products to other businesses at scale, often at lower price points than retail. It also presents a lot of potential for entrepreneurs: in February 2026, US merchant wholesalers’ sales reached $751.9 billion, up 8.8% from February 2025, according to the US Census bureau. 

For entrepreneurs, starting a wholesale business can mean building a company around operations and product development, rather than handling every customer relationship directly. 

Instead of selling one unit at a time directly to consumers, wholesale businesses sell in bulk to retailers and other business buyers, who then help bring those products to end customers.

This guide explains how wholesale businesses work and how you can start one using an ecommerce platform.

What is wholesale?

Wholesale involves buying large quantities of products from a manufacturer and selling them to a retailer. Wholesalers purchase products at a discounted rate from the manufacturer, allowing them to generate a profit. The retailer then sells the products directly to consumers (DTC) at a higher price.

Understanding the wholesale business model

Wholesalers are intermediaries in the supply chain, managing the flow of goods from manufacturers to retailers as efficiently as possible. Because wholesalers purchase large quantities of stock, they secure lower prices and pass those savings on to retailers. Wholesalers may also help retailers source specific goods for customers.

The wholesale business model has expanded. Platforms like Faire have allowed small businesses to engage in wholesale activities by increasing access to a global audience of buyers. 

Shopify now offers B2B features on all of its plans (including Basic, Grow, and Advanced), so B2B and DTC sales run side by side. Whether you’re using a marketplace or your online store, it’s straightforward for online businesses to sell to both retailers and consumers. Create dedicated shopping experiences for customers, whether they’re other businesses, resellers, or the end user.

Types of wholesale businesses

The different types of wholesale businesses include:

• Distributors. Wholesale distributors purchase products in bulk from manufacturers and sell them in bulk to retailers. They often handle logistics, storage, and transportation.
• Manufacturers. Manufacturers produce goods and may sell them directly to retailers or wholesalers. Some act as their own wholesalers.
• Merchant wholesalers. Merchant wholesalers are intermediaries in the wholesale supply chain. These vendors purchase items in bulk from wholesale suppliers, store them, and sell them wholesale to retailers in smaller quantities.
• Brokers/agents. Brokers and agents earn commissions on deals between businesses and wholesalers. 
• Manufacturers’ sales branches. These are wholesale operations owned and operated by the manufacturer. They stock and sell the manufacturer’s products directly to retailers or other businesses without using independent wholesalers.
• Online B2B platforms. These platforms connect manufacturers, wholesalers, and retailers digitally. Examples include Faire and Alibaba.

Wholesale vs. retail: key differences

Wholesale is when businesses sell products in bulk to other businesses, usually at lower prices. Retail is when businesses sell products directly to individual customers at a higher per-item price.

Here’s a breakdown that details wholesale versus retail: 

Is a wholesale business profitable?

Profitability in wholesaling comes down to bulk buying at discounted rates. When you purchase large quantities at a lower cost, you position yourself to sell these items to retailers at a higher price, thereby securing a profit margin.

In a Q4 2025 Shopify survey,** 79% of store owners said they use profits to self-fund growth — making wholesale margin optimization critical from day one.

If you currently run a direct-to-consumer business and sell products online, expanding into business-to-business sales can boost your profits. Here are three reasons to consider becoming a wholesale distributor:

1. Boost sales while spending less on marketing

In a wholesale model, your marketing focuses on finding retailers rather than individual customers. This shift can make your marketing budget go further, as the cost per customer acquisition can be significantly lower.

Running a direct-to-consumer brand often means spending heavily on marketing to grow, with each new customer costing money. As digital marketing consultant Shane Barker points out, “B2B ecommerce generates much higher revenue than B2C ecommerce,” suggesting that switching to a wholesale model can make growth marketing less expensive.

By selling your products wholesale, another business takes on the customer acquisition cost (CAC). This allows you to reinvest your time and money into other areas of your business.

2. Use other brands to sell your product 

Building a loyal audience of fans and customers is a challenge requiring time and resources. However, forming a wholesale partnership with an established brand can provide a shortcut.

Whether you partner with a marketplace like Faire, a well-known retailer, an established online boutique, or a sought-after independent brand, it’s possible to run a successful wholesale business without consumers necessarily knowing who you are.

“Wholesale has always been such a core part of what we do. It’s really that opportunity for people to discover us. It’s about brand alignment — sitting on the shelf or on the website of incredible stores that have similar values to us,” says Becca Stern, co-founder at Mustard Made. 

3. Enter new markets with less risk

Expanding your business into a new country or territory involves costs for warehousing and logistics. Plus, you might have to start from scratch, marketing to a population that hasn’t heard of you.

Partnering with a retailer that already has a presence and supply chain in a new market can lower the risks of international expansion by reducing your setup costs. To get started, identify regional retailers that share your brand values and propose a limited wholesale trial to gauge local demand without the overhead of a full launch.

Read: Wholesale vs. Direct-to-Consumer: Differences and Similarities

Wholesale business plan basics

If you’re a DTC seller thinking about expanding into wholesale business, Kevin Espiritu, founder at Epic Gardening, shares some advice: 

“It’s a completely different way of selling. You’re selling at wholesale pricing—it’s B2B—and you have to wear a different hat … thinking about how to service your customer, which isn’t the person buying the seed, it’s the nursery that’s carrying the seed,” Kevin says.

Below, find the core components of a wholesale business plan, structured as a concise, scannable checklist for starting a business: 

• Executive summary. An executive summary is a high-level snapshot of your entire plan, and it’s best to write this last. It takes the most important information from each section and gives reviewers an overview of your business.
• Company overview. Describe who you are and what you plan to sell. Share your business name, legal structure, business model, competitive advantage, mission, and short and long-term objectives.
• Products and pricing. List each product or service alongside key features and your pricing strategy. Wholesale businesses will specify minimum order quantities and tiered pricing.
• Market analysis. Research your market size, growth trends, target customers, and competitors (including a SWOT analysis) to confirm your wholesale concept is viable and identify your competitive edge, or unique value proposition (UVP).
• Marketing plan. Outline how you’ll attract buyers through marketing channels, brand messaging, specific platforms and tactics, and the tools you’ll use. 
• Logistics and operations plan. Detail your supply chain, including suppliers, production process, shipping and fulfillment methods, and inventory management strategy. Wholesale operations should address bulk storage capacity and lead times.
• Financial plan. Map out revenue and sales projections, expense forecasts, available capital, and any funding requests. 

Tip: Use Shopify’s free business name generator tool to name your brand and check domain name availability in one place.

How to start a wholesale business online

As of 2026, the global B2B ecommerce market is valued at $36 trillion. Ecommerce tools and platforms give you ways to scale your growth, from negotiating with suppliers to reorganizing your sales channels to accommodate business-to-business (B2B) sales. 

One of the myths about wholesale ecommerce is that you need significant cash flow and industry connections to get started. In fact, you can start wholesale operations much like any other business. 

Follow these steps to start a wholesale business:

1. Decide what wholesale products to sell
2. Pick a supplier
3. Get wholesale licenses and permits
4. Set a wholesale pricing strategy
5. Create an online wholesale store with Shopify
6. Market and sell your wholesale products
7. Manage wholesale operations

1. Decide what wholesale products to sell

Consider these factors when choosing a product niche for wholesale business items to sell:

• Seasonality
• Profit margin
• Size and weight
• Purchase frequency
• Competition
• Expertise
• Market analysis

Seasonality

Some products have peak sales periods. For instance, swimsuits typically see higher sales in the summer, whereas winter drives demand for coats. Other products have more stable, year-round sales. Recognizing seasonal patterns can help when planning stock levels and marketing strategies.

Profit margin

Knowing your profit margin is crucial in any business. For example, if you buy coffee mugs for $2 and sell them to retailers for $8, your profit margin stands at $6 per mug. This figure is essential for pricing your products profitably while staying competitive. Remember, your retail customers will also need to operate with a profit margin.

Size and weight

Shipping costs affect your pricing and delivery choices. Selling smaller, lighter items, such as jewelry, generally allows for lower shipping costs. This makes it a more cost-effective choice if you’re starting a wholesale business with limited capital.

Purchase frequency

Products that consumers need regularly, such as printer ink or pet food, provide a more consistent revenue stream due to their high purchase frequency. Planning inventory for such items can be more predictable, making operations smoother.

Competition

Keeping an eye on your competition can reveal gaps in their product lines to capitalize on. For instance, if no bathroom product wholesaler offers lavender-scented handmade soaps, this scent could be your unique selling proposition.

Expertise

Use your existing knowledge to find wholesale products. If you enjoy going to the gym, for example, you’ll likely have a good idea of what other fitness enthusiasts might want to buy. 

Market analysis

Complete a market analysis and research demand, competition, and pricing trends using tools like Google Trends, industry reports, and customer surveys.

2. Pick a supplier

If you’re not making your own products, you’ll need to build relationships with manufacturers and suppliers. A stable wholesale business hinges on reliable and consistent inventory. Retailers shy away from wholesalers who can’t keep their customers’ favorite products in stock.

When picking suppliers, consider these factors:

• Diversify your supplier base. Don’t rely on one manufacturer or supplier. Working with several suppliers ensures you have a backup if one fails to deliver.
• Go with the most reliable options. Choose suppliers and manufacturers with a track record of on-time delivery. Delays can disrupt your business and disappoint your customers.
• Look for quality. Ensure your supplier provides high-quality products. Poor quality can harm your brand’s reputation and customer relationships.

There are many ways to connect with manufacturers and suppliers. You could reach out directly, ask for referrals from relevant people in your industry, or use online supplier databases. If you own a Shopify store, link the Faire wholesale sales channel to start syncing and selling wholesale to independent retailers.

Setting rules, or service level agreements (SLAs) with suppliers is critical to ensuring professionalism. For example, you might make agreements about delivery times, product quality checks, or what happens in the case of a supply issue.

Global wholesale marketplaces

Here are a few global wholesale marketplaces:

• Alibaba is a massive B2B marketplace based in China, and it’s great for sourcing a wide variety of products at scale.
• IndiaMART is India’s largest wholesale platform, a great option for textiles, apparel, and home goods.
• Faire is a curated US and European marketplace that connects indie brands with boutique retailers. It’s ideal for those looking to order smaller batches.

Evaluating supplier reliability

Dan Demsky, cofounder and CEO of Unbound Merino, remembers the challenge of finding reliable suppliers when starting to build the clothing brand.

“When we first started, we had no idea how to do this. I remember looking at endless amounts of suppliers, and they say they do everything. You don’t know who’s lying and who isn’t,” says Dan.

To vet suppliers properly: 

• Look for certifications like ISO or Fair Trade. 
• Ensure lead times are a good fit and can scale with your business. 
• Make sure minimum order quantities (MOQs) fit your cash flow. 
• Check reviews from other buyers, especially on third-party platforms. 
• Measure responsiveness. Quick, clear communication is a good sign. 
• Evaluate sample quality. Always order samples before committing to large orders. 

3. Get wholesale licenses and permits

To keep things legal, it’s important to apply for licenses and permits before starting a wholesale business. Depending on your business type, such as a corporation or starting an LLC, you may need to take additional steps.

Here are some licenses and permits you might need:

• Business license. Licenses may be required to operate in certain industries and locations.
• Sales tax permit. You may need a permit to buy goods wholesale without paying sales tax. A sales tax permit is also called a reseller permit, and rules vary by jurisdiction.
• Employer identification number (EIN). If you plan to hire employees, you’ll need an EIN from the IRS to file federal taxes.
• Specialized permits. Depending on what you’re selling (food and beverages, for example), you might need specific permits.
• Business registration. To acquire funding and credit, you’ll likely need to register your business.

Consider booking a consultation with a business adviser, financial adviser, or local government office to ensure you have all the necessary paperwork in place. Working with a bookkeeper or accountant early on is a good way to prevent fines or late fees, as you incorporate and start paying taxes or file necessary paperwork.

4. Set a wholesale pricing strategy

Pricing strategies are a key component of successful wholesaling. 

In a Q4 2025 Shopify survey,** 34% of store owners cited stable cash flow as their second most important business goal—a priority directly influenced by wholesale payment terms and pricing decisions. 

You’ll need to price products differently depending on whether you’re selling to customers online, to a small retailer, or to a large business making a bulk order.

Here is an example of a pricing strategy in which a wholesale business would retain a 50% profit margin on wholesale orders and a 75% profit margin on direct-to-consumer (DTC) sales. MSRP stands for “manufacturer’s suggested retail price.”

For example, let’s say your product costs you $20 to manufacture.

• If you sell it wholesale for $40, your profit is $20, a 50% margin.
• If you sell it directly to consumers for $80, your profit is $60, resulting in a 75% profit margin.

A profitable pricing strategy for wholesale distributors enables them to maintain a profit margin while allowing retailers (customers) to do the same.

MOQs

Setting minimum order quantities (MOQs) ensures that every transaction covers your operational overhead and protects your profit margins. Wholesale businesses set MOQs that retailers must meet to place an order, which helps you move inventory in bulk and simplifies logistics.

From there, you can use marketing tactics to encourage retailers to place larger orders, resulting in better margins upon resale.

MSRPs

Another wholesale pricing strategy to keep income stable is a manufacturer’s suggested retail price. MSRPs discourage customers from undercutting one another, helping you maintain your prices and margins.

An MSRP is often part of a contract agreement between a wholesaler and a retailer. It guarantees that the retailer will stick to the suggested retail price, discounts, and sale events such as Black Friday.

As a wholesaler, you can set the rules for your retailers. But it’s also up to you to ensure retailers can make a profit from selling your product.

Setting payment terms

Another pricing decision you’ll need to make as a wholesaler is what payment terms you’ll offer customers. Most retailers are unable to pay for stock upfront. Instead, net payment terms allow retailers to pay for items as they make sales.

Consider setting individual payment terms for each company you sell to. Terms could vary depending on order size and your prior relationship with the retailer. Popular terms include:

• None. Customers pay for orders immediately at checkout.
• Net (period). Customers pay for orders by an agreed due date, such as 30, 60, or 90 days.
• Upon fulfillment. Customers pay only when the order is fulfilled or received.

Shopify offers eight net payment term options, including net periods, due on receipt, and due on fulfillment. You can also set custom payment due dates. Shopify also supports ACH payments for B2B orders. 

International pricing considerations

When pricing wholesale products for international markets, one of the most critical things you’ll need to consider is currency fluctuation. Exchange rates can shift quickly, impacting the cost of goods sold and reducing margins if you don’t account for them. 

Other major pricing factors include tariffs, duties, and taxes, which vary significantly by country. As of May 2026, the US has implemented a baseline tariff structure with rates around 10%. 

Tariffs increase the landed cost of goods, which also includes other import-related expenses like customs fees and inspections. For example, a 25% tariff on a product might raise its end price for businesses by 9% to 10% after factoring in related costs. 

5. Create an online wholesale store with Shopify

Shopify is the simplest way to sell to other businesses online. Its B2B features make it easy to provide tailored shopping experiences for different types of customers, whether they’re requesting custom bulk orders or purchasing single items. Shopify offers native B2B features to everyone, including shop owners on Basic, Grow, and Advanced plans. 

Here are some of the features that you can use to create an online wholesale store with Shopify.

Company profiles

Shopify’s B2B customer profiles are designed for wholesale. Profiles can represent multiple buyers and locations, keeping all customer information in one place.

Each location profile includes fields for all necessary wholesale data. Manage payment terms, catalogs, tax exemptions, and user permissions directly from the profile.

Catalogs

The catalog includes three features for easy customization of the B2B buying experience:

• Price lists. Set wholesale pricing using fixed amounts or a percentage off the retail price. You can also specify minimum, maximum, and increment rules for each stock keeping unit (SKU).
• Customer-specific product publishing. Segment your catalog to show different products to different customers.
• Volume pricing. Offer additional discounts based on the quantity a customer adds to their cart. 

Customer accounts

The customer accounts feature lets you show B2B customers your wholesale products and pricing while keeping your existing product pages for B2C consumers.

When a retailer logs into your store, they can manage their orders, view past orders, and save their account information. Use these features to serve retailers, resellers, and end consumers from your Shopify store. Retailers can also self-serve by browsing products, adding items to cart, and checking out with net-terms rather than waiting for manual quotes. 

“When a customer orders our product on somebody else’s website, that order just pops right into our system. It can go through all our standard workflows,” says Adam Wolfe, founder and CEO at Boost Auto. 

6. Market and sell your wholesale products

With a profitable wholesale business idea, a pricing strategy, and an online store, the next step is finding potential wholesale customers and nurturing long-term customer relationships.

While marketing to end consumers might not be necessary, visibility to retailers is crucial. So, how do you find these retailers and ensure they notice your business?

Use your website

If you run a direct-to-consumer (DTC) website, you may be able to use your visibility to find wholesale customers. Retailers and distributors often reach out to popular online stores to establish partnerships—either to stock a product in their store or expand their product distribution.

Harness this organic interest by giving your store an enticing name and brand. Then, signal that you’re open to a wholesale relationship by making it easy for retailers to contact you. One option is to put a link for wholesale inquiries in your website footer.

Let your customers submit a form on your online store to request a B2B relationship.

Join a wholesale marketplace

Access a large pool of retailers by listing your products on wholesale marketplaces. You can add your store’s products to marketplaces to spread your business across sales channels and reach new buyers.

Before choosing a wholesale marketplace, it’s important to do your research and understand the terms and conditions. Some marketplaces ask for exclusive rights, and every platform charges different fees.

Attend trade shows

Trade shows have long been a trusted avenue for wholesalers to connect with potential customers. No matter your niche, be it baby apparel or home décor, there’s likely a trade show tailored to your industry. Find these events listed in trade show directories.

Setting up a booth at these shows provides a platform to network directly with retailers. 

“Our first trade show, we got positioned right next to a coffee cart, and with a coffee cart at a trade show, you know that means a big long line. ... It gave us a perfect opportunity just to pick people off and tell our story," says Keith Eshelman, co-founder and CEO at Parks Project. 

Keep in mind that trade shows can be a significant investment. They often involve planning, travel expenses, and booth fees.

Before diving in, consider this trade show tip: attend a trade show as a visitor first. Walk the floor, gauge the potential, and then decide if exhibiting is a worthwhile investment for your business.

Use incentives to motivate buyers

Here are some incentives to consider:

• Low minimum order requirements. Make it easy for new customers to start buying from you in small quantities.
• Free shipping. Consider offering free shipping based on order amount and delivery location.
• Volume pricing. Encourage larger orders by offering discounts on bulk purchases.
• Various payment methods. Make transactions convenient for customers by offering various payment method options.
• Bundle deals. Offer discounts on product bundles to increase sales.
• Discount codes. Create time-based or personalized discounts using codes.
• Free samples and testers. Let customers try before they buy through product sampling.
• Store credit. Shopify supports store credit for B2B customers, which can be a retention incentive for repeat wholesale buyers. 

Another strategy is to offer dropshipping services. As a dropshipping supplier, you deliver your products directly to the end customer when a retailer registers an order. 

Reach out to complementary brands with Shopify Collective

One added benefit of a wholesale channel is that, unlike direct-to-consumer, you don’t always need a large volume of customers to grow. If you have a handful of high-quality retailers who are successful at selling your product, they can come back and continue to place larger orders again and again. 

To find these select partners, contact companies that sell complementary products. You could look for a contact form on their website, find their social media accounts and send a direct message (DM), or use Shopify Collective to connect with like-minded brands.

When reaching out, lead with a mutual value proposition, keep messages concise, and always include a single clear call to action (CTA).

Here’s a sample email you can tweak: 

Subject: Partner Idea: [Brand A] + [Your Brand]

Hi [Name],

We both sell to customers who love curated, quality [product category]. I’d love to discuss a collaboration with you. 

Would you be interested in a 15‑minute brainstorm call next week?

Thanks,

[Your Name] | [Your Brand]

7. Manage wholesale operations

Running a wholesale business day to day means keeping your logistics and fulfillment systems running smoothly. Tools that automate order processing, batch orders, and sync with your warehouse can save a lot of time, especially when handling large, repeat orders. 

Shopify Flow, an ecommerce automation platform, helps businesses automate tasks and processes and integrates with systems like NetSuite, Acumatica, and Brightpearl. 

Whether you fulfill in-house or work with a third-party logistics partner (3PL), make sure your systems are connected and scalable as you grow. 

Starting a wholesale business can begin as a sole proprietorship. But as your business expands, so does the need for a diverse team. Each role contributes unique skills, from customer satisfaction to inventory management and financial analysis.

Here are some of the job postings you might create if your wholesale business takes off:

• Customer success managers work with retail customers to drive sales and ensure customer satisfaction.
• Quality assurance supervisors work with suppliers and manufacturers to oversee product quality.
• Logistics coordinators manage a high volume of orders and the timely delivery of goods.
• Inventory analysts monitor and predict complex inventory needs.
• Office administrators or virtual assistants handle daily administrative tasks.
• Growth marketers seek new retail customers and opportunities for your business.

“The way that wholesale developed for us meant we had to create a new department for it, rather than it just falling into our normal orders,” says Louise Verity, owner at Bookishly. “But since we’ve done that, they’ve all got so efficient that it actually does feel like part of the normal orders.” 

Warehouse and inventory management

Good inventory habits are key to healthy margins. Forecast based on past sales and seasonal demand, and use inventory tracking tools to avoid overstocking. If you’re debating whether to manage your own warehouse or outsource to a 3PL, it comes down to control versus flexibility. 

3PLs can save time and space, but in-house warehousing gives you full oversight. Either way, using a solid inventory management system helps you stay lean and avoid waste. 

Brand control and partnerships

When selling wholesale, it’s important to keep your brand intact. Set clear expectations around pricing with MAP (minimum advertised price) policies, and create marketing assets retailers can use to keep messaging on-brand. 

You can also pitch co-marketing ideas, such as shared promotions or exclusive product bundles. These strategies help maintain consistency and build stronger, longer-term relationships. 

Wholesale business ideas

When it comes to selling wholesale items online as a B2B business, the possibilities are vast, including private label and white labeling products. Broaden your product range with these wholesale business niche ideas.

Home improvement and décor

Global home improvement sales are expected to exceed $1 trillion by 2034. Some home décor products to consider wholesaling are: wall art, candles, pots, vases, plants, wallpaper, rugs, throw pillows and blankets, furniture, storage and organization, and lamps and lighting. 

Apparel and accessories

Fashion is a large market, expected to reach almost $2 trillion in 2026, with several wholesale clothing vendors in the US. Some product types to consider in the wholesale clothing and accessories space are: baby, children, women, men, activewear, textiles, hats, jewelry, and shoes. 

Food and beverages

The food sales market is worth $9.67 trillion as of 2026, expected to grow annually by 6.24% until 2031. Here are some product ideas that could spark your next wholesale food business idea: beverages, dairy, oils, meat and seafood, fresh produce, snacks, desserts, organic items, and keto products. 

Health, fitness and wellness

The health and wellness industry is set to reach nearly $9 trillion annually by 2028. Here are some health and wellness products to consider for a wholesale business: massagers, vitamins and supplements, lotions, anti-aging creams, skin care regimens, aromatherapy, fitness apparel, essential oils, candles/incense, bath products, yoga accessories, exercise equipment, and organic beauty products. 

Pet care and supplies

The global pet care market was worth almost $274 billion in 2025 and is projected to reach over $499 billion by 2034. The average dog owner in the US spends about $2,524 on their pet every year. Examples of items to sell in the vertical pet market include pet toys, pet treats, pet food, health care, cleaning supplies, grooming supplies, bowls and feeders, clothing and accessories, leashes, collars, and harnesses, crates, aquariums, and beds. 

Party supplies and décor

The global party supplies market is projected to reach $33 billion by 2033. Products to consider in this category include: Balloons, party favors, disposable tableware, merch, themed items, banquet equipment, backdrops, décor, centerpieces, lighting and candles, flowers, stickers, and crafting kits. 

Wholesale business challenges to consider 

Wholesale comes with trade-offs worth understanding before you commit. Wholesale runs on high-volume, lower-margin economics: you move more units, but you keep less per unit. Here are the key risks to weigh.

Inventory risk

Wholesale requires you to produce or procure large quantities upfront. The longer inventory sits, the higher the risk it becomes outdated, spoiled, or damaged, turning a potential asset into a realized loss. 

If you hold too little inventory, you risk losing sales unless you can find another supplier or persuade customers to wait. Picking products with proven demand, like those surfacing on trending product lists, can help anchor your buy decisions in real consumer interest.

Delayed payments

Unlike in direct-to-consumer sales, wholesale operates on extended payment terms. Common net payment terms include net 30, net 60, or net 90. Depending on what your payment terms are, you may ship goods on day one and wait anywhere from one to three months to see any money. 

Margin pressure

In a Q4 2025 Shopify survey,** 19% of store owners said their biggest regret was not waiting for profitability before scaling.

Wholesale pricing means offering retailers a significant discount off the retail price, so knowing your profit margin is crucial. Every added cost (packaging, shipping, returns) subtracts from what your business earns. 

Retailer chargebacks

Retailer chargebacks can be a challenging reality for store owners. Retail chargebacks are financial penalties for suppliers who don’t comply with a retailer’s delivery standards. This might be labeling, shipping, or packaging issues. Penalties range from 1% to 5% of the gross invoice amount. 

Mastercard’s 2025 state of chargebacks report found that the value of global chargebacks in 2025 was more than $33 billion. While many of these are standard payment disputes, wholesale businesses face a unique risk—retailer chargebacks to recoup costs for unsold inventory.

“A lot of good footwear brands have gone bankrupt because they would get shoes placed in a major retailer, and the retailer wouldn’t sell the product and would ask for markdown dollars back,” says Myriam Belzile-Maguire, co-founder of Maguire Shoes “So you owe them $50,000, and they won’t pay for your next collection.”

**Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.

Start selling B2B with Shopify today

For years, ecommerce has helped direct-to-consumer brands launch and grow faster than by selling with a traditional storefront. Now, a new wave of wholesale startups is thriving online—by rethinking the way wholesale works. 

An ecommerce wholesale distribution business creates efficiencies to benefit both the retailer and the wholesaler. The retailer gets a new product to sell without investing in research and development. Meanwhile, the wholesaler saves money on marketing and gains access to an existing customer base.

Why Shopify B2B makes sense for many wholesale startups

• All-in-one platform. Shopify B2B ecommerce lets you manage payments, marketing, your storefront, and wholesale operations through a single, unified interface.
• Self-serve B2B checkout. Let buyers build carts, apply price lists, and pay on net 30 without manual quotes.
• Granular pricing and volume breaks. Publish customer-specific catalogs, fixed or percentage price lists, and auto-apply tiered discounts.
• Scalable without the IT headaches. As your business grows, Shopify’s apps and APIs make it easy to add advanced capabilities without overhauling your system.