Wholesale is the sale of goods in bulk to businesses that resell them or use them commercially, rather than to individual end consumers. Because buyers purchase in volume and need room for their own margin, wholesale pricing is generally lower per unit than retail. It is the supply side of most B2B commerce: manufacturers and distributors sell to retailers, resellers, and other businesses at negotiated or tiered rates.
How it works
A wholesale transaction usually starts with a business buyer requesting pricing on a quantity, often above a minimum order quantity (MOQ). The seller applies volume-based pricing, which might be a flat percentage off retail, a fixed price list, or tiered breaks where the per-unit cost drops as quantity rises. Payment terms are frequently different from retail too, with net terms, deposits, or purchase orders instead of instant card payment.
Why it matters
Retail catalog prices rarely fit wholesale buyers. They expect account-specific pricing, quantities that vary order to order, and a quote before they commit. That is why wholesale on Shopify often runs through a quoting flow rather than a standard product page. A buyer asks for a price, the merchant prepares figures based on volume, and the buyer approves and pays once the numbers are agreed. See related terms in the B2B quoting glossary.
Example
A stationery brand sells notebooks at 12 USD each at retail. An office supplier wants 500 units. Instead of paying retail, they request a quote and receive a wholesale price of 6.50 USD per unit, reflecting the volume and the supplier’s own resale margin. The order is confirmed as a draft order and paid through checkout.
Handling this well means capturing the request, pricing per account, and getting to a payable order without back-and-forth email chaos. Pricing tiers and quote plans are covered on the pricing page.