Why wholesaling matters to a first-time founder
Wholesaling changes how you price, package, forecast and finance stock. Larger orders may lower fulfilment cost, but wholesale prices leave less gross margin and buyers may demand credit. A founder must know whether volume and repeat orders compensate for discounts, returns and slower payment.
Examples of wholesaling
A skincare company usually sells a jar online for €24. It offers independent shops cases of 24 at €12 per jar, with payment due in 30 days. The founder checks that manufacturing, packaging, freight, commissions and expected returns still leave enough contribution to fund the next production run.
Common misunderstanding
It does not mean selling cheaply to consumers or merely offering a volume discount. Wholesaling is business-to-business distribution for resale or business use. The wholesaler may own the stock; a sales agent or marketplace can connect parties without buying inventory, which creates different risk and accounting treatment.
When to use it
Use this model when business buyers can reach customers more efficiently than your own direct channel. Set minimum order quantities, wholesale prices, payment terms and return rules before approaching accounts. Check competition, product-safety, labelling and resale-pricing law in each market, especially before restricting how buyers resell.