There are some wholesalers selling retail to consumers through their own online stores… and really! That’s okay! We all fear competition, especially from our own supplier. You are buying from that supplier, which means that they could potentially undercut your retail prices and if you try to match them, your profit margin suffers.

Since wholesalers depend on having many retailers selling their inventory, not just on their own website, they simply cannot afford to harm their retailers’ businesses.  

Wholesalers Selling Retail Really Want To Sell Wholesale

wholesalers selling retail in an online store

Typically, an accepted wholesaler who has an online retail store is the manufacturer of the product only. Most manufacturers / brand owners HAVE their own website online. This is nothing new. Most of them are providing their website as a way to offer more detailed information about the products and to get noticed by retailers.

Despite brand owners allowing consumers to buy the product directly from their site, there is another site benefit. That is showing their whole dealer network if the consumer wants to buy locally or from a favorite online retailer.

Now, remember true wholesalers do not sell at wholesale to consumers. They sell to consumers at MAP prices mainly for convenience sake. Manufacturer Advertised Prices (MAP) are the standard for that product’s retail price. Which can allow the retailer buying wholesale, a chance at discounting or bundling products together to gain a better profit.

Always remember, a wholesaler’s main mission is to sell their products at wholesale prices to retailers. Selling to the disadvantage of their retailers is effectively killing their wholesale business. Which is something they would never want to do.

Make Sure You Are Working with Real Wholesale Sources

To clarify, there is no reason to get upset if your Wholesaler has a Retail website.  There is typically no need for concern.  It is not in your wholesaler’s best interest to undercut you or even put you out of business.  The internet is a HUGE place. To a retailer, they will provide discounted wholesale prices that are below their own retail prices.  Then you should easily be able to “compete” with them.

They are not a true wholesaler though, if they are selling at wholesale prices to consumers. Therefore always start by finding real wholesalers & dropshippers through a trusted source, like with us here at WorldwideBrands.com. 

By Tisha Hedges

Director of Operations for Worldwide Brands, Inc

9 thoughts on “Wholesalers Selling Retail?”
  1. I’m new to this thing, and an learning. I just joined twitter, and don’t know what I’m doing. I just watched your video and it made sense. I have just begun an e-commerce venture and my first website is (earthentials.com). I have over 700 items on it so far, and have launched it, but have not sold anything yet. I got most of my dropshippers from World Wide Brands. Can you give me any advice as to how to promote my site?

    Thanks

  2. I am learning how to sell my item to the world now! my website has been launched for about one month, I sold CECT CELL PHONE, CAR DVD PLAYER, CCTV CAMERA, IPHONE ACCESSORIES WITH BEST PRICE, but up to now, I found it is very difficult to get the traffic! could you tell me what I should do firstly!

    Thanks in advance!

  3. Excellently written write-up, doubts all bloggers offered exactly the same content material because you, the internet is a greater place. Please maintain it up!

  4. I had originally considered starting my own apparel line, but a small shop seems much more fitting at the moment. I have a huge love for the products I want to sell, but after much research about wholesale, I am wondering if I should move further up the chain.

    If the wholesaler can sell to the end consumer, is it worth being a retailer? What are the advantages and disadvantages of wholesaler vs retailer besides needing to have enough space/insurance to store the merchandise?

  5. Hi Michelle,

    Costs! Cost is the biggest hurdle that many small business owners can’t overcome.

    You have to have a wholesale license.
    You have to have warehouse space.
    Purchase boxes and packing materials and labels.
    Will need a forklift.
    Inventory System.
    Get approved to wholesale products from manufacturers. (this can be really costly. As you aren’t trying to meet minimum order quantities for retailing, wholesale quantities are MUCH higher)

    When doing wholesale, you have to have a physical warehouse location because you will receive products by the container load. So they will not deliver to you unless your location is sanctioned to receive semitruck loads of products. So you will generally need a loading dock for deliveries. Time is of the essence for delivery drivers, so you will need a forklift to take the products off the truck.

    Hope that helps answer your question!

    Tisha Hedges
    Director of Operations
    WorldwideBrands.com

  6. Once you do your research, you will see that this isn’t a problem, just like this post says.

Leave a Reply

Your email address will not be published. Required fields are marked *