Wholesaling for Business Owners: What You Need to Know

Wholesaling can be a rewarding way to scale your business, reach a wider audience, and create lasting partnerships with retailers. Whether you're selling handcrafted skincare, candles, or other consumer products, understanding the key requirements and logistics of wholesaling is essential for success. Here’s what you need to know before diving into the world of wholesale distribution.

Wholesaling can be a game-changer for your business, but it requires careful planning, compliance with industry standards, and strategic partnerships. If you’re ready to expand into wholesale, make sure you have:

A certified kitchen or approved facility for production (if applicable)

• Compliant product labels that meet industry standards
• GS1-registered UPC barcodes for retail distribution
• Wholesale pricing and minimum order quantities set
• A professional presence on Faire, Bulletin, or direct wholesale outreach

Meeting Product Safety and Certification Requirements

If you plan to wholesale food, skincare, or other consumable goods, you must meet certain health and safety regulations. One of the biggest requirements is producing your items in a certified kitchen or an approved manufacturing facility. This ensures that your products meet safety and sanitation standards before they reach the market.

For non-consumable goods, such as candles, ensuring proper ingredient sourcing and compliance with safety standards is crucial. Retailers and wholesale platforms often require proof that your products meet regulatory standards, such as phthalate-free and paraben-free formulations for skincare or clean-burning wax and wicks for candles.

Labeling and Compliance Standards

Wholesaling requires professional, compliant product labels that meet industry and legal guidelines. Some key factors to consider include:

• Ingredient Listings: Skincare and body care products must have a full ingredient list using INCI (International Nomenclature of Cosmetic Ingredients) standards.
• Warnings & Instructions: Any necessary safety warnings, usage instructions, and storage information must be clearly displayed.
• Company & Contact Information: Your brand name, business address, and website should be on your product labels to comply with transparency requirements.

If you are distributing candles or skincare products, familiarize yourself with the FDA regulations for cosmetics and the ASTM standards for candle labeling.

Getting Your UPC Barcodes from GS1

Retailers, especially larger boutiques and stores, will require UPC barcodes for tracking and inventory management. A UPC barcode is a universal product code that allows stores to scan and sell your products efficiently. To ensure your barcodes are legitimate and accepted by retailers, they must be purchased directly from GS1, the official global provider of UPC codes.

Avoid third-party barcode resellers, as these barcodes may not be recognized by major retailers. Registering with GS1 ensures that your business name is tied to your product codes, which builds trust with retailers.

Selling on Wholesale Marketplaces

If you’re new to wholesaling, platforms like Faire and Bulletin make it easier to connect with boutique owners and retailers who are actively searching for unique, high-quality products. These platforms allow you to set minimum order quantities, offer exclusive pricing to wholesale buyers, and manage bulk orders in a streamlined way.

When listing on these marketplaces, make sure your product descriptions are detailed, your photography is high-quality, and your pricing structure reflects wholesale margins while maintaining profitability. Also, attending trade shows and expos can be a powerful way to grow your wholesale business. These events bring together boutique owners, large-scale retailers, and industry professionals actively looking for new products to stock in their stores.

Understanding Pricing and Minimum Order Quantities (MOQs)

Wholesale pricing is not the same as retail pricing. To ensure profitability, you must calculate your costs carefully and determine the right markup. Standard wholesale discounts range between 40%–50% off the retail price, allowing retailers to make their profit while ensuring you maintain a sustainable business.

Establishing minimum order quantities (MOQs) ensures that each order is worth the time, labor, and materials required to fulfill it. MOQs can be set per product or per total order value. A common practice is requiring a minimum of 6–12 units per product style or a total order value of at least $150–$300.

Building Long-Term Wholesale Relationships

Wholesale success isn’t just about selling products—it’s about building relationships with boutique owners and store buyers. Be responsive, offer excellent customer service, and consider offering seasonal exclusives or limited-edition products to keep retailers engaged. Having a professional wholesale catalog and price sheet also helps make a great first impression.