Shopify wholesale and everything to know about!

Shopify, a prominent e-commerce platform, has garnered support from millions of merchants across approximately 175 countries. Since its inception in 2006, the platform has successfully processed sales exceeding $812 billion, solidifying its position as a leader in the industry.

It is a perfect e-commerce platform for a B2C business model and a B2B business model. If you are preparing to sell wholesale on Shopify, this article will give you information about Shopify wholesale and everything to know about it. 

Let’s discover now!

What is Shopify wholesale?

Shopify wholesale refers to the sale of goods in bulk at a discounted price to businesses, such as retailers, restaurants, or other manufacturers, who then resell those goods at a higher price to the end consumer in the Shopify platform.

It’s like buying things in large quantities at a cheaper price per unit. Imagine it like buying a big bag of candy instead of individual pieces – you get more for your money but have to sell or consume it all yourself.

Here’s a breakdown of the wholesale process:

• Manufacturers or producers create the goods.
• Wholesalers buy the goods in bulk from the manufacturers at a discounted price.
• Wholesalers store the goods in their warehouses.
• Retailers or other businesses purchase the goods from the wholesalers at a slightly higher price than the wholesale price.
• Retailers or other businesses sell the goods to the end consumer at an even higher price.

Wholesaling plays a crucial role in the supply chain by:

• Providing retailers with access to a wide variety of products at competitive prices.
• Reducing the costs of manufacturers by allowing them to produce goods in bulk.
• Helping to distribute goods throughout the country or even the world.

There are two main types of wholesalers:

• Merchant wholesalers: These wholesalers buy and own the goods they sell. They typically have large warehouses and a sales force.
• Agent wholesalers or brokers: These wholesalers do not own the goods they sell. They act as intermediaries between buyers and sellers and earn a commission on each sale.

Benefits of selling wholesale on Shopify

• Increased revenue: Wholesale orders are typically much larger than individual retail purchases, leading to a significant boost in overall revenue. 
• Scalability and efficiency: Fulfilling fewer, larger orders is often more efficient than dealing with numerous smaller transactions. Plus, dealing with a smaller pool of wholesale accounts simplifies customer service and support needs.
• Market reach and brand awareness: Wholesale partners often have established customer bases, giving your brand access to new markets and demographics. Being chosen by wholesale partners can add a layer of credibility and confidence to your brand.
• Inventory management: Wholesale orders can help stabilize inventory levels and predict future demand more accurately.
• Product feedback: Insights from wholesale partners can be valuable for product development and improvement.
• Diversification: Adding a wholesale channel can diversify your income streams and mitigate risk.

3 Best  Ways to set up Shopify Wholesale

We will explore the three best ways to set up Shopify wholesale: using a third-party wholesale app, utilizing Shopify’s B2B features, and installing the wholesale channel by Shopify Plus. Each method will be discussed in detail, including its pros and cons, and step-by-step instructions on how to implement it.

1. Use a third-party wholesale app

Third-party wholesale apps offer a comprehensive and user-friendly solution for integrating wholesale functionalities into your existing Shopify store. These apps act as extensions, seamlessly adding features specifically designed to manage wholesale operations.

Pros and cons of this method:

Pros:

• Convenience and Efficiency: Wholesale apps streamline the process for both you and your buyers. They typically offer features like automated minimum order quantities, tiered pricing structures, custom order forms, and dedicated wholesale portals. This eliminates manual work and simplifies order management.
• Scalability: Many apps cater to businesses of all sizes, allowing you to scale your wholesale operations as your business grows. They can handle a high volume of orders and complex pricing structures.
• Customization: Many apps offer customization options for your wholesale experience. You can create tiered memberships, set minimum order values for different groups of buyers, and control product visibility for specific customers.

Cons:

• App Costs: While some apps offer free plans with limited features, most require a monthly subscription fee. These fees can range from around $20 to $100 or more per month, depending on the app’s functionalities and your business needs.
• Learning Curve: While user-friendly, each app has its own interface and functionalities. There might be a learning curve involved in getting acquainted with the app and setting it up to your preferences.

How to Set Up Wholesale with a Third-Party App:

1. Research and Choose an App: Explore the Shopify App Store and compare different wholesale apps based on your needs and budget. Popular options include Wholesale Gorilla, Wholesale Pricing Discount, Wholesale Order Form, and Wholesale Club. Consider features like pricing rules, minimum order quantities, customer account management, and reporting tools.
2. Install and Configure the App: Once you’ve chosen your app, follow the on-screen instructions to install it into your Shopify store. Most apps will guide you through a setup wizard where you can configure features like pricing tiers, minimum order values, and product visibility for wholesale customers.
3. Designate Your Wholesale Products: Specify which products you want to offer through the wholesale channel. Some apps allow you to create a separate product catalog specifically for wholesale buyers.
4. Set Up Wholesale Pricing: Define your wholesale pricing strategy and configure the app to apply your discounts. You can set fixed discounts, percentage discounts, or tiered pricing structures based on order quantity.
5. Create a Wholesale Portal (Optional): Many apps allow you to create a dedicated wholesale portal within your Shopify store. This login-protected area provides a streamlined experience for your wholesale customers, allowing them to browse your wholesale catalog, place orders, and manage their accounts.
6. Promote Your Wholesale Channel: Reach out to potential wholesale buyers through email marketing, industry events, or online directories.

2. Utilize B2B features on Shopify

Shopify offers some built-in features that can be leveraged for basic wholesale functionalities, even without a third-party app. Now, let’s explore pros and cons of this method:

Pros:

• Cost-Effective: This method doesn’t require any additional app subscriptions, making it suitable for businesses on a budget.
• Simplicity: If your wholesale needs are relatively straightforward, Shopify’s built-in features offer a basic solution to manage wholesale pricing and customer accounts.

Cons:

• Limited Functionality: Compared to third-party apps, Shopify’s native features offer less customization and automation. Setting minimum order quantities, managing tiered pricing structures, and creating a dedicated wholesale portal can be more complex.
• Manual Workload: You will need to manually manage many aspects of your wholesale operations, such as creating custom customer groups with discounted pricing and processing wholesale orders

And we introduce how to set up wholesale with Shopify’s built-in features here: 

1. Create Customer Groups: Go to your Shopify admin panel and navigate to “Customers” > “Customer Groups.” Here, you can create a new customer group specifically for wholesale buyers.
2. Set Up Wholesale Pricing: Assign your wholesale customer group a discount on your products. You can choose between a fixed amount discount or a percentage discount.
3. Manage Minimum Order Quantities (Partially Manual): While Shopify doesn’t offer a built-in minimum order quantity (MOQ) feature, you can achieve a similar effect with a workaround. Consider creating a minimum order value for your wholesale customer group. This requires manually calculating the minimum order value based on your desired minimum quantity and average product price. Alternatively, you can create a custom product specifically for wholesale buyers, priced at your minimum order value.
4. Manually Process Wholesale Orders: Since there’s no dedicated wholesale portal with Shopify’s native features, you’ll need to manually process wholesale orders through the Shopify admin panel. This can be time-consuming, especially as your wholesale business grows.

4. Install wholesale channel by Shopify Plus

Installing a wholesale channel by Shopify Plus means opting for the dedicated store. This involves constructing a specialized storefront with segmentation tailored for an expanding wholesale channel. 

This approach is most suitable for sellers experiencing active growth in their wholesale channel, requiring more in-depth reports and customizations for these customers. However, managing a new storefront demands additional time and resources, so it’s crucial to ensure that you have the necessary resources in place. 

Pros:

• Advanced Functionality: The wholesale channel offers extensive features like tiered pricing structures, minimum order quantities, custom order forms, and a dedicated B2B buyer portal. It streamlines the wholesale buying experience and simplifies order management.
• Scalability: The wholesale channel is built to handle large order volumes and complex pricing structures, making it ideal for businesses with significant wholesale operations.
• Seamless Integration: The wholesale channel integrates seamlessly with your existing Shopify Plus store, ensuring a cohesive experience for both retail and wholesale customers.

Cons:

• Cost: Shopify Plus has a higher monthly subscription fee compared to the basic Shopify plans. Additionally, the wholesale channel might have additional costs associated with its use.
• Availability: The wholesale channel is only available to Shopify Plus merchants, making it less accessible for smaller businesses on basic Shopify plans.

How to set up wholesale with Shopify Plus wholesale channel?

1. Upgrade to Shopify Plus: If you’re not already on Shopify Plus, you’ll need to upgrade your plan to access the wholesale channel.
2. Activate the Wholesale Channel: Once on Shopify Plus, navigate to your admin panel and locate the wholesale channel section. Follow the on-screen instructions to activate the channel and configure its settings.
3. Configure Your Wholesale Settings: Define your wholesale pricing strategy, minimum order quantities, and customer account permissions within the wholesale channel settings.
4. Designate Your Wholesale Products: Specify which products you want to offer through the wholesale channel. You can create a separate wholesale product catalog or utilize product tags to identify products available for wholesale purchase.
5. Design Your B2B Buyer Portal: Customize the look and feel of your dedicated B2B buyer portal within the wholesale channel settings. This portal provides a login-protected area for your wholesale customers to browse products, place orders, and manage their accounts.
6. Promote Your Wholesale Channel: Reach out to potential wholesale buyers through targeted marketing campaigns to build awareness of your B2B offerings.

5 Key Strategies for Selling Wholesale on Shopify

Selling wholesale on Shopify can be a profitable venture, entering this business requires meticulous planning and skillful execution. Here are 5 tips to help you successfully maintain and grow your Shopify wholesale business:

1. Crafting a strategic pricing structure

Your pricing strategy is the cornerstone of your wholesale business. It dictates your profit margins and shapes how attractive your offerings are to potential buyers. Here are key factors to consider:

• Cost of goods: This includes the cost of materials, manufacturing, or acquiring your products. Understanding this cost is essential to set a profitable wholesale price.
• Wholesale discount: Wholesalers expect a significant discount compared to your retail price. Typically, this ranges from 40% to 50% off.
• Minimum order quantity (MOQ): Setting a minimum amount for wholesale purchases encourages bulk buying, which benefits you by streamlining order fulfillment and increasing your profit per order.

Example: Imagine you sell custom-printed mugs. The cost to produce one mug, including materials and printing, is $3. You decide to offer a 40% discount for wholesale orders of 100 mugs or more. This brings the wholesale price to $1.80 per mug. While the individual profit seems lower, fulfilling a single bulk order of 100 mugs generates a significantly higher profit than selling them individually at retail price.

2. Providing clear and comprehensive product information

Wholesalers rely on detailed and accurate information to make informed buying decisions. Here’s what you need to provide:

• High-quality product photos: Invest in professional or high-quality product photos that showcase your items from multiple angles and under good lighting. This allows wholesalers to get a clear understanding of the product’s design, size, and materials.
• Detailed descriptions: Don’t skimp on product descriptions. Include specifications like materials, dimensions, weight, and any variations available (color, size, etc.). This comprehensive information saves wholesalers time and prevents confusion when placing orders.
• Inventory levels: Transparency is key. Wholesalers need to know if you have enough stock to fulfill their orders. Regularly update your inventory levels on your Shopify store to avoid order fulfillment issues.

Example: Let’s say you sell handcrafted leather wallets. Your product descriptions should mention the type of leather used, available colors, dimensions when closed and open, and any compartments or features. High-resolution photos showcasing the stitching, texture, and functionality of the wallets are essential for wholesalers to assess quality and make purchasing decisions.

3. Streamlining the order processing experience

A smooth and efficient order processing system is crucial for building trust and fostering long-term relationships with your wholesale customers. Here’s how to achieve it:

• User-friendly ordering system: Your Shopify store should have a dedicated section for wholesale orders. This section should allow wholesalers to easily browse your products, select items, and submit orders with minimal hassle.
• Clear order confirmation and tracking: Once an order is placed, send a confirmation email with all the details, including product names, quantities, prices, and estimated delivery timeframe. Additionally, provide a way for wholesalers to track their shipment status.
• Fast fulfillment: Once an order is confirmed, ensure efficient packing and shipping to avoid delays.

Example: Consider integrating a Shopify app specifically designed for wholesale order management. These apps can automate tasks like generating invoices, sending tracking numbers, and managing inventory levels. This frees you up to focus on other aspects of your business while ensuring a smooth ordering experience for your wholesalers.

4. Leveraging customer segmentation for targeted engagement

Not all wholesalers are created equal. They have different needs and buying behaviors. By segmenting your customer base, you can tailor your communication and offerings to maximize their satisfaction. Here are some factors to consider for segmentation:

• Order size: Wholesalers who consistently place large bulk orders might require different pricing structures or promotions compared to those placing smaller orders.
• Product focus: Wholesalers specializing in specific product categories might need more targeted information or promotions on those items.

Example: You might have a segment for wholesalers who consistently place large orders of athletic wear. You could offer them a tiered discount program based on order volume or provide them with exclusive early access to new collections of athletic apparel.

5. Utilizing analytics to make data-driven decisions

Data is your friend in the wholesale business. By tracking key metrics, you can gain valuable insights into what’s working and what needs improvement. Here are some crucial metrics to monitor:

• Sales data: Analyze which products are selling well to wholesalers and which ones are lagging. This data helps you adjust your product offerings to better meet your target market’s needs.
• Customer behavior: Track which wholesalers are placing repeat orders and those who are not. This allows you to tailor your communication or promotions to their specific needs. For high-value customers, consider offering personalized account management or exclusive benefits.

Example: By analyzing your sales data, you discover that phone cases with a specific material aren’t performing well with wholesalers. This might indicate a need to adjust your material selection or target a different audience for those products. Additionally, you see that a particular boutique consistently places large orders across various product categories. You can reach out to them with a dedicated account manager who can provide personalized recommendations and support.

6 Best apps for Shopify wholesale

1. B2B Wholesale Club

This app allows you to create a wholesale-specific area of your Shopify store, set up tiered pricing, and control access to different customer groups. It’s known for its flexibility in managing wholesale pricing structures.

Pricing: 39$/ month for basic plan, 69$/ month for professional plan, 99$/ month for premium plan

Rating: 4.6 stars based on 686 reviews

2. Bold Custom Pricing: Wholesale

Bold Wholesale is designed to streamline the wholesale order process. It offers features like tiered pricing, minimum order quantities, and the ability to hide prices from retail customers. It’s highly customizable to suit various wholesale business models.

Pricing: 20$/ month for quantity breaks level, 39.99$/ month for basic level, 59.99$/ month for premium level.

Rating: 4.5 stars based on 1055 reviews.

3. Wholesale Pricing Discount B2B

This app lets you set up different price levels for different customer groups. It’s useful for providing specific discounts or pricing structures based on customer loyalty, order volume, or other criteria.

Pricing: 19.99$/ month for a basic plan, 34.99$/ month for the professional plan, 44.99$/ month for enterprise plan.

Rating: 4.8 stars based on 456 reviews 

4. Locksmith 

While not exclusively a wholesale app, Locksmith helps you control access to different parts of your Shopify store. This can be useful for creating a private wholesale section accessible only to approved customers.

Pricing: 12$/ month for basic Shopify level, 29$/ month for Shopify level, 99$/ month for advanced Shopify level, 199$/ month for Shopify plus level

Rating: 4.6 stars based on 472 reviews.

5. OrderLogic 

OrderLogic is designed to simplify the ordering process for wholesale customers. It includes features like minimum and maximum order quantities, tiered pricing, and easy order form creation.

Pricing: 4.99$/ month for standard level, 9.99$/ month for premium level

Rating: 4.2 stars based on 109 reviews

6. Wholesale All In One

This app offers a comprehensive solution for wholesale management, including features like tiered pricing, minimum order quantity, and a wholesale registration form. It effortlessly integrates with your current Shopify store.

Pricing: 24$/ month for basic plan, 29$/ month for professional plan, 39$/ month for business plan.

Rating: 4.7 stars based on 144 reviews

Related post: Top 10 Shopify Wholesale Apps to Consider in 2023

Conclusion

In conclusion, delving into the world of Shopify wholesale brings forth a myriad of opportunities for businesses seeking scalability, efficiency, and market reach. As the landscape evolves, staying informed about industry trends and continuously optimizing operations are keys to sustained success.