Selling Wholesale to Local Boutiques and Gift Shops

Getting your work onto the shelves of a local boutique or gift shop can mean bigger orders and a steady outlet close to home. It also means thinking about pricing, paperwork and production in a new way.

Here’s how selling wholesale to small shops usually works, and what to settle before you walk in the door.

How wholesale pricing works

Shops generally buy at a wholesale price and sell at about double that. Etsy’s Seller Handbook calls this “keystone” pricing: a $50 item might wholesale for $25, and the shop sells it for $50 or more.

That means your wholesale price has to cover materials, overhead and your time and still leave a profit. The Handbook suggests starting from your break-even cost, at least doubling it for wholesale, then doubling that for retail. If the numbers don’t work, revisit your costs first. Our guide to pricing handmade products walks through the break-even part.

Keep your retail price consistent

Once a shop carries your work, you’re generally expected to sell online at your suggested retail price (MSRP) or higher. Undercutting your own stockists on Etsy or at fairs is a quick way to lose them.

Line sheets, minimums and terms

• Line sheet: a simple document listing every product, with photos, wholesale price, suggested retail price and how to order.
• Minimums: the smallest order a shop must place to get wholesale pricing. Etsy’s example is a $150 opening order and a $100 reorder minimum, but you set your own.
• Payment terms: “Net 30” means the shop pays within 30 days; net 60 and net 90 also exist. Many sellers ask for payment up front or on delivery for a first order. Terms are negotiable.
• Policies: put lead times, shipping costs and how you handle damaged items in writing before the first order.

Consignment vs. wholesale

With consignment, the shop displays your work but doesn’t buy it. You’re paid only when something sells, and the shop keeps a commission, often 30 to 40 percent of the retail price. Unsold pieces come back to you, and you carry the risk of loss or damage.

Wholesale means the shop buys your goods outright, so you’re paid up front or on terms. Consignment can be an easy way into a new shop; wholesale is more predictable. Either way, get a written agreement. If you’re selling household items rather than your own products, see Selling Through a Consignment Shop: How It Works and What to Ask on our sister site.

Pitching a shop

• Pick one to three shops whose style, customers and price points match yours, and that don’t already carry something too similar.
• Find the owner or buyer’s name, then email a short note with a strong product photo (see our product photo tips) and your line sheet attached. Don’t just walk in during busy hours.
• Follow up once after a week or two. Many shops won’t reply, so keep working through your list.
• Only pitch as many shops as you can actually supply on time.

More on Garage Business Blueprint

• How to Price Handmade Products: A Simple Formula for Garage Makers
• Getting Your Garage Business Ready for Holiday Craft Fairs
• Sales Tax Basics for a Garage Business: Seller’s Permits, Marketplaces and Craft Fairs

Sources

• Etsy Seller Handbook: How to Price Your Products for Wholesale
• Etsy Seller Handbook: Wholesale Glossary: Terms You Need to Know
• Etsy Seller Handbook: How to Create Wholesale Policies
• Made Urban: The Step-by-Step Guide to Landing Wholesale Orders from Local Shops
• Made Urban: Selling Handmade Consignment vs. Wholesale (Which is Better?)