What Is a Wholesale Price?
A wholesale price is the price a manufacturer or distributor charges retailers or other businesses that buy goods in quantity to resell. It is lower than the retail price paid by consumers, leaving room for the retailer's markup to cover its costs and profit.
From Wholesale to Retail
Retail price = wholesale price × (1 + markup). A 20 wholesale item with a 100% markup retails at 40.
Minimum Order Quantities
Wholesale pricing often requires a minimum order quantity or tiered pricing, where the per-unit price falls as the order size rises. Retailers compare wholesale price, shipping, and expected sell-through when deciding how much to order.
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🔗 Related Terms
More Business & Sales Terms
- Accounts Payable
- Accounts Receivable
- Average Order Value (AOV)
- Balance Sheet
- Break-Even Point
- Burn Rate
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.