Wholesale is selling your products in large quantities to other retailers (or wholesalers) and not directly to an end consumer. What is the best way to do this within the Shopify universe? Set up a separate store, use discount codes, or use a wholesale app?
Why sell Wholesale?
Wholesale is a business-to-business sales strategy where another store carries your products and markets them to potential future customers.
Selling your products in bulk at a lower price than to the normal end consumer can help to diversify revenue. By allowing smaller gross margins you allow re-sellers space for their own marketing and promotion of your products. Pushing you further and wider, which in turn is a good way to increase your brand recognition and generate more cashflow.
Selling wholesale on Shopify
Although Shopify does not have an out of the box solution for selling wholesale, there are alternatives. Depending on the products you sell and how you sell them your wholesale method should fit your business model. The three most common options are; setting up a separate store, using discount codes, or a wholesale app.
By simply adding a sub-domain or a separate domain you can create another store aimed at wholesalers. You can set up a separate store by copying your existing online shop, password-protecting it, and customizing it to the exact shopping experience you want for your wholesale customers.
- Set-up without too much extra customization.
- Create a unique wholesale experience.
- Tailor your payment methods, tax and shipping options.
- You have to pay and manage two shops.
- Keeping track of inventory in two separate systems.
- Double the work load when making changes to product lists.
Discount codes can be easily generated for a variety of discounts and distributed to target customers without the need for creating complicated additional systems.
- Very simple to set up.
- Inventory tracking works for both retail and wholesale.
- Easy to restrict discounts to certain groups of products.
- Individual items within a collection can’t have different price reductions.
- Discount codes can be shared or leaked within customer groups.
- Only one discount code can be used per purchase.
The Shopify App Store has a number of apps that allow you to start selling your products to wholesalers at different rates. This is the recommended option for those who want to actively increase their wholesale customer base.
Customer Pricing, Wholesaler and Supple Wholesale are apps that allow you to tag chosen customers as wholesale. They will then be exclusively offered lower prices for the products you want to sell in bulk.
- Your inventory and orders are tracked within the same store.
- Allows logged-in users to see multiple levels/tiers of pricing.
- Increased control over pricing for your product portfolio.
- Takes a bit more time to set-up.
- The additional cost of running another app.
Invoices for wholesale customers
Issuing invoices is one of the core elements to fostering a good relationship between retailers and their customers, but they do more than just detailing what you have bought and for how much.
Wholesale customers are mostly businesses just like you, so receiving a valid invoice is important for their accounting.
Sufio does the invoicing for you, by automatically creating invoices when wholesale orders are created, paid, or fulfilled, taking the stress out of invoicing for your online store.
Invoices are sent via email and can be paid by credit card, allowing wholesale customers to pay even after the checkout stage. You can get paid faster and improve your cash flow by receiving payments from anywhere.