How to price for Wholesale (B2B) vs. Retail (D2C)
Selling direct-to-consumer (D2C) on Shopify feels great because you keep 100% of the margin. But scaling usually involves selling wholesale (B2B) to boutiques or big-box retailers. This calculator shows you exactly how much profit you sacrifice to acquire bulk buyers.
The "Keystone" Pricing Model
In retail, "Keystone" pricing means doubling the cost. If a boutique buys your product for $50, they expect to put it on the shelf for $100. This is why the standard wholesale discount is 50% off the RRP (Recommended Retail Price).
The Golden Rule of Wholesale Viability
To survive wholesale discounts, your cost to manufacture should ideally be 20% to 25% of your Retail Price (a 4x or 5x markup).
Example: Cost $20 → Wholesale $50 → Retail $100. (Leaves you with a 60% wholesale margin).
Why businesses fail at Wholesale
Many founders price their products just high enough to be profitable online. If it costs you $10 to make, and you sell it online for $25, you make a great 60% D2C margin.
But when a retailer asks for 50% off... your wholesale price becomes $12.50. After shipping, you are losing money. Use this calculator on every product before you launch it to ensure it is "Wholesale Ready."
Selling B2C on Shopify and B2B to Stockists?
Stash bridges the gap between your sales channels. Connect your Shopify store to auto-deduct consumer sales, while simultaneously generating manual B2B Sales Orders with Net-30 payment terms for your wholesale buyers.
Manage Multichannel Inventory