Wholesale Management – Top 3 Reasons to Apply Minimums

Wholesale Management

If you’re already running a wholesale business then you already know how hard it is to manage orders, customers and, shipment along with everything else that comes with running an online e-commerce website.

Just to give our readers a clearer perspective, there are different types of wholesale businesses.


Before we categorize wholesale businesses into their types, let’s be clear that some wholesalers do their business with complete freedom, while others are associated with one or multiple producers. There are three main categories in the wholesale trade.

Merchant Wholesalers

Merchant wholesalers are the largest single group of wholesalers, approximately 50% of all wholesaling. Merchant wholesalers include two significant types: Full-service wholesalers & limited-service wholesalers.

Merchant wholesalers do not manufacture their products, but they have in-depth knowledge of products to know when is the right time to start selling them to retail businesses in different industries. If there is any loss between the buying and selling of the product, it must be balanced out by the merchant wholesaler.

Brokers & Agents Wholesalers

Brokers and agents wholesalers usually don’t possess the goods they are selling; most of the time, they are the bridge between a wholesale operator and their customers. A broker negotiates a good deal between the two parties and works off a sales commission structure.

The difference between a broker and an agent is that a Broker is for short-term contracts like just a couple of orders while the agent works for the long term and specializes in the repeated purchase.

Sales & Distribution 

When a manufacturer hires people to represent them to wholesalers actively. That representative creates distribution channels and has a proactive approach in sales and negotiations.


The wholesale business gives you an edge where you can set your minimums (Minimum amount of Quantity) to sell it to the purchaser. The purpose of minimum order quantities is to allow suppliers to increase their profits while getting rid of more inventory more quickly and weeding out the “bargain shoppers” simultaneously. It is cruel and capitalistic, but it is a fact of business if you want to grow volume, revenue, and ultimately profits.


  • To Remain Profitable:

For a considerable profit margin, you might need to sell products in large quantities. That is if you want to break even selling goods at a low cost. With a Minimum Order Quantity rule in place, you can trim out the right customers from bargain hunters. Thus, you can focus your efforts on the more profitable customers who see enough value in your goods to purchase them in larger quantities.

  • Increase in Inventory Turnover

If you have to manufacture your finished goods, your wholesale business might be channeling raw materials and parts from other suppliers at a specific minimum order quantity. For a healthy inventory turnover, your business might have to sell your products at a certain Minimum Order Quantity to justify the raw materials buying costs. If the products do not get sold quickly, they might spoil or expire, resulting in lost revenue.

  • Made-To-Order Goods

Your wholesale strategy may also be operating on a made-to-order business model where you produce products based on clients’ demand instead of keeping warehouse stock. For production to generate sufficient profits, your business can only start production if there is a justifying order quantity.

Thus, a minimum order quantity helps to ensure that there is an acceptable demand for your products to start production.


Wholesale for Woocommerce Plugin (The Most Powerful & Complete Wholesale Solution For Your WooCommerce Store) gives you a splendid feature for MOQ; You can allow wholesale prices and checkout to only those wholesale customers that have reached a minimum quantity of orders in their cart.

Changing Trends of Online Shopping in 2020

When was the last time you did some online shopping? For those of you who haven’t explored the digital styles of shopping, you are missing out on a lot.

Now, a shopper doesn’t need to visit the mall or a departmental store to buy something; instead, they can order it from their mobile phones via e-commerce. We can not deny the fact that modern shopping is more customer-service oriented and agile in its functionality.

On the other hand, online shopping has brought many challenges for sellers (Retail or Wholesalers) like logistics, supply chain, shipping, customer retention, bad online reviews, brand reputation, e-commerce platform selection for online stores, payment methods and delivery infrastructure.

Since digital technology is advancing in every passing minute, the number of online stores are growing like mushrooms. These emerging virtual stores are also providing immense help to wholesalers along with retailers as B2C & B2B business spectrum is getting narrower day by day. The business community is observing new styles of sales like dropshipping.


1. Digital Surveys and Ethnography 

You have to measure shopping insights correctly like what does your audience need, how they think, and how you can sell your products to them while keeping your competitors at bay. There are specific sectors and items where people spent more money, like tech gadgets, clothing, shoes, and accessories. By identifying what is essential to customers, quantity, and prices, wholesalers can generate more leads and sales.

2. Promotions and Discount Coupons

Discounts and low price offers work tremendously well with customers. Wholesalers can do a profitable business with discounted offers and sales, especially for occasions like Black Friday, New Year, Cyber Monday, etc. It is an excellent marketing strategy to send your customers discounts coupon messages, and emails. These tactics also come in handy if you’re looking to retain your customers.

3. Convenient Payment Method & Shipping Offers

Credit & Debit cards are the most preferred payment methods available in this day and age. Make sure that your online store accepts Visa, Mastercard and/or other major payment gateways.

Offer your customers free shipping – offering free shipping for domestic orders is a sure-fire way to get your customer’s attention; however, depending on your margins, it can also potentially cut into your profits. You could also try offering free shipping on minimum order value or minimum cart items (Beneficial for Wholesalers).
For recurring customers, you can store their payment information so that it is convenient for them to make a payment next time. Payment gateways like Square and SumUp are also popular, secure, and convenient for many online shoppers.

Are you looking for an e-commerce platform that allows you to sell at wholesale prices and quantities? 

WooCommerce is a customizable open-source e-commerce plugin that helps you build an online store without much need from an expert. You can make money in ways you never could before in the e-commerce sector and even hit the big sales numbers if you are a smart planner. Selling wholesale products is an excellent way to sell your products to small vendors and people who are running their own business. After all, B2B guarantees a whole lot more than B2C.

Wholesale for WooCommerce Plugin – The perfect B2B solution for e-commerce businesses

Wholesale for Woocommerce Plugin is the ultimate solution for B2B wholesale businesses. With wholesale for Woocommerce, you can control everything from your wholesale product, prices, and customers to order processes and wholesale user roles.

Why Use Wholesale for WooCommerce:

Perfect for B2B businesses dealing with wholesale products.

Create and manage multiple wholesale user roles.

Manage wholesale prices for single or variable products with ease.

Define different prices just for your wholesale customers.

Easy-to-use back end interface that lets you manage user requests via the wholesale registration form.

Tax-Exempt (Exempt wholesale user roles from paying taxes)

Control product visibility (Control product visibility settings specifically for wholesale user roles.)

Define different pricing options and discounts for your customers.

Set minimum order quantity limits as per your requirements.

Default Multi-User Role Dropdown

Hide Prices For Non-logged in user on Shop Page

Compatible with Bulk Shop for WooCommerce, Bulk Variation Forms.

To give your business the success it deserves, it is crucial that you conduct proper research on how to attract online shoppers, choose the right payment methods, shipping strategies, and customer-oriented atmosphere.

Since an online wholesale business can be highly profitable, we’d suggest you try Wholesale for WooCommerce plugin. Good luck!