Selling wholesale requires a completely different strategy than selling direct to consumer. Your wholesale customers have different motivations and weigh different considerations than retail customers. You want to make it as easy as possible for your buyers to buy—clear terms and conditions are one way to do this.

But what should you include in your terms & conditions?

  • Minimum Order Amount
  • Minimum Order Quantity
  • Payment Methods
  • Turn-Around Times & Shipping Info
  • Refund & Exchange Policy

The two most important pieces are your minimums. So, let’s dive deeper into those.

Minimum Order Amount

def: the minimum dollar amount a retailer must spend to place a wholesale order.

As much as we’d like retailers to purchase everything we’re selling, they won’t. So, you want your opening order amount to be consistent with industry standards, but you also want your number to reflect the size of your product line and the price-point of the items you’re selling.  

In the stationery world, $150 for an opening order and $100 for reorders is common. However, brands that have higher priced gift items or a collection with several hundred skus will likely have a higher opening order amount. Same goes for other industries with higher priced goods like jewelry and clothing.

Set your minimum opening order amount high enough so that you’re attracting serious buyers but not so high that they have to purchase everything you sell to meet your minimum.

Minimum Order Quantity

def: the minimum number of an individual SKU a retailer must buy. Also known as MOQ.

In addition to meeting order minimums, a retailer must also adhere to minimum order quantities, also known as MOQ. MOQ refers to the minimum number of pieces a retailer must buy of a particular SKU to place a wholesale order.

Every industry, company and even product category has different MOQ requirements. Sometimes MOQs are set based on industry standards. But oftentimes, those industry standards were set for purely practical reasons.

For example, mugs are often sold 4 per SKU becuase it is easier to ship mugs in quantities of 4. Greeting cards are sold in quantities of 6 or 12 because that is how many cards can fit into most spinners and other point of purchase displays.  

Ultimately, you set the rules for your business and can set your MOQ to whatever you’d like, but I’d encourage you to do your homework and familiarize yourself with what others in your industry are doing so that you’re in line with industry standards.

In the end, having clear and thorough terms & conditions will make you look polished and professional, even if you’re new to wholesale.


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