Have you ever received an inquiry about wholesaling your work from a boutique owner and wondered how to respond? Also, what should you charge? And how do you handle the increased volume of this kind of order? So many questions spring to mind!
With the holidays around the corner, brick and mortar shops are looking to stock up on the perfect gifts! (And where better to start their search than Etsy?) Read on to find out more about wholesaling your work to shops and galleries. Have an experience to share or want to learn more? Leave it in the comments below or join us this Wednesday, September 17th, 2008 at 4pm Eastern in the Online Labs.
Why Wholesale?
Why should you wholesale your work when you can sell it for more online? There are a few reasons. First, consider the time it takes to photograph, list, promote, package and ship your own work. When you are sending a larger quantity of items to a wholesale account, they do this work for you. Secondly, wholesaling is an opportunity to create a consistent income from recurring wholesale orders. If you wholesale to multiple buyers, this can bring in a steady and large portion of your income.
Tip: Creating items in multiples, as is required for a lot of wholesale orders, can cut down on your labor time (per item) and cost of supplies (if you buy in bulk).
Minimums
The shop owner contacting you might ask you what your “minimum” is. If you’ve never heard this term, what they are referring to is the minimum order they need to place to receive your work at wholesale prices. They are looking for a dollar amount: for example, if they place an order of $200 or more, they have met your minimum. You should decide what your minimum for wholesale orders is going to be based on your costs. What amount makes the wholesale price worth this discount?
Pricing
Retailers interested in your items are looking to sell your items for double their price. This is called a keystone markup. Keep in mind that many interested retailers might assume your Etsy prices are already at their retail price. This means that when they ask you for your wholesale prices, they are usually interested in the price you have listed on Etsy, cut in half. Many sellers find this a bit of a quandary. When they’ve listed their items without taking this situation into account, they may find themselves severely undercut if they take 50% off their current prices to take advantage of a wholesaling opportunity. In this situation, you can either increase your Etsy prices or let your wholesale buyers know that your wholesale discount is less than 50%. Both have their own challenges: You need to weigh the pros and cons for both situations and figure out which will be most advantageous for your shop. If you are serious about selling your work in brick and mortar shops, I would suggest increasing your Etsy prices. It is always best to have the prices of your work consistent online and off. This will keep your wholesale buyers happy!
Tip: You can keystone your Etsy price + shipping! If a shopper buys your item from one of your wholesale accounts, they don’t have to incur the shipping price. This is a little trick that can help raise your wholesale prices a touch.
For more info on this topic, check out Bethela’s great article, Preparing for Wholesaling, from the Art of Pricing series.
Terms
Before you send information, such as your terms of agreement, I would make sure you are dealing with a “legit” buyer. You can ask them for their resale certificate, business license or state tax resellers permit. You should politely ask for more information about their business, not only to see if they are “legit,” but to make sure your work will fit in with their customers. If they are local, go and meet the owners in person. If not, make sure you have a look at their website, photos, blogs, etc. Remember, this is your business and you set the rules. If something feels odd, investigate!
When a buyer comes to you wanting wholesale information, make sure you set your terms. We have talked about some of these conditions already, such as minimums. You may also want to set a separate minimum for reorders (i.e. $200 first time wholesale minimum, $100 reorder minimum).
Next, let them know what your shipping fees are for wholesale orders. Definitely include the price of tracking and insuring your packages.
You may also like to mention your return policy in your terms. Many artists will only return defective or damaged merchandise for a certain period, such as within 90 days. This is, of course, up to you.
Lastly, let the buyer know how to order from you. If they have found you via Etsy, let them know you can create a reserved, customized listing in your Etsy shop just for them. (Here’s how!) It is perfectly acceptable to ask for complete payment up front! By creating a wholesale listing for them through Etsy, you have a transaction record and more resolution options should the agreement go sour.
Tip: Creating a listing through Etsy for your wholesale buyers can increase your feedback and also serve as a small advertising to other shops who are looking to buy wholesale from you!
Packaging
Packaging is just as important when sending out a wholesale order as it is with an Etsy order. Make sure you have tagged your items with your business name! This way your buyers (online and offline) will connect your work with your brand. Cute, thoughtful packaging will impress your wholesale buyers and their shoppers.
Hopefully, this has shed some light on the sometimes daunting topic of wholesaling! It can be an intimidating step for small business owners, but if you are prepared, this can take your business to the next level. You can find out more about wholesale and consignment in the following Blog articles:
The Art of Pricing: Preparing for Wholesaling | The Ins and Outs of Consignment | Let’s Trade: Behind the Scenes at the National Stationery Trade Show
We’d love to hear your wholesaling tips in the comments below or live at our Holiday How-To workshop in the Online Labs this Wednesday, September 17th, 2008 at 4pm.

84 comments
Sign in to add your ownBululuStudio says:
Great Article Danielle, nice tips to keep in mind.
4 years ago
hullabalooboutique says:
Thanks for the article! Very helpful and informative.
4 years ago
redyellowandblueink says:
thank you so much for this article-I really need business and technical information, tips, and help with this whole business.....business. thanks!
4 years ago
bubblegirlknits says:
Good info Danielle...I just had a wholesale request this week. I'm going to try to make it to the lab today.
4 years ago
NMdesign says:
This is a perfectly timed article for me...i'm just getting around to some local shops, and it's great to know what the standard practice is. Always hard to figure out the fine line of wholesale/retail pricing. Thanks!
4 years ago
solidio says:
great article w/ lots of useful info. thanks!
4 years ago
StyleDiva says:
I hope to make it to the lab! Thanks for the tips! xo
4 years ago
jellybeans says:
great article, and very very helpful :)
4 years ago
LittleBitShabby says:
Thanks for this information. I just had a lady ask me about this at a craft fair I just did. She is opening a new store and now I will be able to make a deal. :)
4 years ago
CrowbirdieBeads says:
Perfect timing! Great info, now I'm hitting up the links in it to see what else I can glean. I just had a request and now, rather than being so intimidated by it, I can try to figure things out with more logic and less panic :D
4 years ago
KalliopeGifts says:
Excellent article, thank you for this information! I'm starting to make the rounds at local shops, and this is so helpful. Thank you Danielle and Etsy!
4 years ago
LieblingDesigns says:
Awesome article. Thanks for laying everything out for us!
4 years ago
WickItDesigns says:
Great article! I wanted to mention the "will you send free full size samples" to me before I purchase your products? Of course they will offer to pay the shipping most of the time. I did some research to see how experienced wholesalers usually respond when I first started wholesaling and this is the answer I received the most. Offer to ship what they are interested in at regular price explaining that they will receive a credit with their first wholesale order reflecting the wholesale price quoted. I have only had one buyer respond negatively, most are perfectly fine with this response. Here is something to consider, if they ask 100 sellers to send 3 items (of course they'll pay the shipping-the product is free), they have received 300 free products less shipping. Don't be surprised to see your items listed on ebay or at the local flea market!
4 years ago
littlepurls says:
Thank you so much for this!!!
4 years ago
Mimiandlola says:
Thank you for the great article!
4 years ago
SeaSideSupply says:
Great article Danielle! Word for word these are pretty much my policies! DEFINITELY get proof of resale!!
4 years ago
KnitArtbyGrace says:
thank you , very useful!
4 years ago
kittycrossbones says:
Great, thanks!
4 years ago
dogties says:
Great, Thanks for sharing.
4 years ago
EyePopArt says:
Great article, thanks!
4 years ago
retro80s says:
Thanks for sharing! :-)
4 years ago
PhospheneDream says:
Great article and good information from WickItDesign.
4 years ago
CorkandCotton says:
Thanks for the article. Very informative and helpful!
4 years ago
holycraft says:
Great article--very helpful!
4 years ago
Xenotees says:
This is so helpful! I'm fairly new to wholesale & I really needed this information, thank you!
4 years ago
happyfamily says:
Wholesale is just too much fun! We have a few B&M shops + wholesale + Etsy + sell online and are always glad to soak up any info we can find on this subject.
4 years ago
louloubell says:
I actually do it backwards, and offer a smaller minimum for the initial order, if they want to test the waters in their shop, to make sure it's a good fit... This way the don't have to make a big commitment off the start, most of my wholesale buyers seem to appreciate this, and will return for more again : )
4 years ago
ConstantGalore says:
This is a great article. Now if only someone wanted to buy wholesale from me... Must list more chocolates...
4 years ago
ckloostra says:
Regarding packaging... as Danielle says, hangtags are a must, and even better if they have a sentence or two that is a "story" about you or the work. (ie "This widget was lovingly made by Susie, who works out of her garage studio in the mountains of Tennessee"). Your packaging, however, SHOULD NOT contain your website, email or contact information. Retailers will remove this information (even if it means removing the whole hangtag), as they don't want their customers going directly to you to make purchases. By keeping your contact information off the tag, you are showing your support for driving customer traffic to the stores and galleries that carry your work.
4 years ago
autumnsarrival says:
Wonderful article and very informative. I've had several requests for wholesale orders and only one, so far, has been ligit. Look out for those that want to buy 3 items at "wholesale" price! They don't REALLY want to resell your items, they just want a major discount and you'll never hear from them again. When I sent them my terms, the response I got for 2 of them was, "I don't know what I would do with 20-30 pair". Well, for personal use, I can see that as a problem but if they were going to resell them in their own retail stores, 20-30 pair is not a whole lot and wouldn't have been a problem. Beware of those just wanting a huge discount and keep away from them!
4 years ago
ArleenDesign says:
Thats sum up the answers to my questions. Thanks for the information.
4 years ago
alexandraleah says:
Thanks for this very informative article. Well written, well organized, very helpful. Thanks!
4 years ago
TresFleury says:
Great advice. V. helpful : Thanks!
4 years ago
Ameera says:
Not only an awesome article but such good feedback comments too. Thank you all so much for sharing!
4 years ago
lildid says:
I could have definately benefitted from reading this BEFORE my first wholeale sale, rather than stumbling through it on my own. Excellent article, I will bookmark it for next time to refer back.
4 years ago
PamperMePlease says:
I agree lildid! Does anyone know where to check the resale certificate, business license or state tax resellers permit to see if the business is legit? Is there a web site? I had to get a ton of info from my first wholesale client and just trust my gut...not recommended but it worked for me once.
4 years ago
SlinkyCalhoun says:
This helped so much! Thank you!
4 years ago
maxscentsoycandles says:
Thank you so much for this article. I don't know what I would do without the Handbook articles. I just received my 2nd wholesale request, and I'm going to memorize this article before I respond.
4 years ago
bugbitesplayfood says:
Excellent! I just received my first wholesale order & would be lost without it!! thank you daniellexo
4 years ago
quayandco says:
I'm going to piggy back with PamperMePlease. Where does one confirm the resale info that's given??
4 years ago
maryeb says:
Thanks for the info. This looks very helpful. Will there be any follow-up articles?
4 years ago
pixiepotions says:
I disagree. I think it is irresponsible NOT to include your business contact information on the label, and I do believe in certain industries (food, bath and body) not including the business address, site, phone number is a big no no. FDA standards and whatnot. I have never seen a client rip labels off of products to keep their shoppers from knowing where/whom they come from. If I did have that happen, they would no longer be my wholesale client. There is such a thing as private labeling.
4 years ago
pixiepotions says:
Which would be another topic that would be great to cover! Private Labeling!
4 years ago
englishmuffinshop says:
very helpful - thank you :)
3 years ago
BluebirdHandmadeBags says:
Great information! I've just been asked to wholesale some of my products and I didn't know where to start. Now I do!!!
3 years ago
threedeluxe says:
thank you
3 years ago
KamiMono says:
Thank you very much for this article, two years later, still good advice!
3 years ago
jennytrinh says:
How do you handle payments? This boutique in Alaska send me money after I send them the goods, just for a few times, then she ignored my calls, stole more than $2,000 of my items.
3 years ago
LAGlass says:
Terrific information. I have been wholesaleing worldwide with galleries for 25+ years and have also had some wholesale orders on Etsy since I joined 1 year ago. My adivise is definitely stick with your policies regarding minimum and re-order $ amounts or as I do when I sell with www.wholesalecrafts.com, those who would like to order less than the minimum will be charged an extra fee, this way you will know who is serious and legit.
3 years ago
thedirtyhousewife says:
This has helped so much this week! Thanks for bringing it back!
3 years ago
polkadotsandblooms says:
This is so funny. I just had my first wholesale request in today, so this is super timely!
3 years ago
EightBabyLegs says:
this really helps with my question, "well, how much should i charge". thanks!!!!
3 years ago
ron987red says:
Great ideas will try this out I have an item or two I can wholesale.Thanks for info.
3 years ago
royalrugrats says:
Great information! I did my first wholesale order a few ago and have found that many other wholesale inquires are coming through ETSY!
3 years ago
cayennepeppy says:
pricing is for sure the hardest part of wholesaling. finding that perfect price that works for everyone.
3 years ago
lovahandmade says:
Very nice article on wholesaling! I work with quite a few brick and mortar shops off of Etsy but recently started offering wholesale lots right in my Etsy shop and have sold quite a few just in the past few weeks plus gained two more b&m stores in the process! Definitely worthwhile to add a wholesale section to your existing shop!
3 years ago
RomasMasion says:
My recommendation in regards to wholesale. Be sure you can still provide great customer service to your wholesale customer. It is very frustrating to get lousy service from a seller that is providing great service to its retail customers but can't provide wholesale items in a timely manner. It is nice to get wholesale orders but say no if you have too many excuses why you can't provide product and customer service. Also be wary of people who want to complete the transaction off of Etsy. Then you can't leave negative feedback if you need to....
3 years ago
mapleshoppers says:
Thanks for sharing the terms of agreement when selling wholesale. Great insight!
3 years ago
NewGalexC says:
I really appreciate all the info on this subject. I'm actually wanting to approach some shops so I can use all the advice I can get!
3 years ago
BizziBeads says:
Really interesting information, I shall sit and read it at my leisure. I am new to Etsy but I hope to sell jewellery really soon!!!
3 years ago
whatzits says:
Oh, my goodness! This was super helpful. Thank you for this article.
3 years ago
littlegreenthings says:
Thank you for posting this again. It was a great help. Just days ago I got my first request via Etsy for a wholesale order. The buyer asked for a line sheet with pricing. Does anyone here have experience with compiling something like this?
3 years ago
MyWisteriaCottage says:
Good article and I agree with the wholesale idea that we will send at regular price with a coupon for the same or larger amount with the actual wholesale order. It seperates the wheat from the shaft.
3 years ago
OpusMuse says:
I've been approached a few times, but didn't take the leap due to lack of know-how for wholesaling. This article helps to open my mind to it. Thank you for sharing this info!
3 years ago
edyodeco says:
It is really helpful ! Thank you you for sharing :)
3 years ago
DestinysTreasures says:
Great artical. I have been thinking about wholesailing my items and this artical gave me some good tips about getting started. Thank you:)
3 years ago
foulardthreads says:
Thanks for all the great info! I'm working on creating wholesale prices and policies, so this was super helpful!
3 years ago
artbybrooke says:
Thank you for your advice :)
2 years ago
CinderellaLollipop says:
Wonderful, helpful article. Thank you!
2 years ago
SilverTrumpet says:
Excellent info - thank you!
2 years ago
GrannysBasketShop says:
This was exactly what I was looking for after searching under Help for advice! So, from the article, it sounds as if it is not required to complete all wholesale request transactions through Etsy, but recommended?
2 years ago
Rockarooz says:
Fantastic article!!! This is EXACTLY the information I was looking for. Thanks a million!
2 years ago
HenBecDecor says:
Years later and still helpful, thanks!!
2 years ago
PorcelainArtJewelry says:
Great article!!!!!!!!!!!!!!!!!!Thanks
2 years ago
Chocchipdesign says:
Great thank you^.^
1 year ago
misakomimoko says:
great article!! thank you Danielle, very helpful :)
1 year ago
katehust says:
I so needed read this! I have heard all these terms but thanks for defining them so clearly!
1 year ago
SNoU says:
You forgot to mention if price should be different in case a store does not want to buy directly but wants your pieces on consignment.
1 year ago
littleeyedesigns says:
Great article! We all use our shops in other ways than just having a source of extra income. The shop serves as a catalog of all work in case someone is interested in carrying your product! Such a cool tool to have in the small business tool belt. I need to share my experience with wholesale orders: Someone contacts you about a product they would like to purchase, in bulk, at wholesale price. That's the good news! There couldn't possibly be any bad news, right? Ha-ha. The bad news is you need to be realistic about the amount of product you can produce and in what amount of time. Many of us have day jobs so there aren't as many hours in the day as we think there are. I have had experiences with orders I can keep up with (local, smaller orders) and some that are overwhelming, but totally worth it for the income. Before agreeing to any wholesale agreements I think it's totally fine to feel out your wholesale customers' intentions. Are they a large company with a big distribution? Are they a small boutique with a busy season around the holidays but much slower during the rest of the year? Are they located in a small town or a big city? All of these questions will direct you towards understanding more about what may be expected of your ability to fill orders in the future if/when your product sells well for them! There's more good news, though -- getting a league of wholesale customers in combination with the sales in your shop are the first step towards handmade being your day job!
1 year ago
rusticcarvings says:
Great article! I've recently had some inquiries, and have made some attempts to get my items in shops around town....and getting to know the terms, as in this article, and what people expect is crucial.
1 year ago
Pulguinha says:
I was contact a few days ago with information abour wholesale price. I think I have covered all the aspects of this thread in my answer, then got a proposal to reduce the price to a 1/3 of my Etsy price, I said I could reduce a little, but not that much(my inical proposal was 1/2 the price) and got no more feedback. What shoud I do?
1 year ago
Joan Meziere from VictorianTheme says:
Very Good Advice.
196 days ago
Tatiana from VilleDeFleurs says:
Great ! I Thanks for the useful info! I was looking to create wholesale prices and policies, so this article is super help!
175 days ago
Sarah and Colin Walsh from PetitReve says:
This is SOOOOO helpful. Thank you!!!!!
104 days ago