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Wholesale vs. retail pricing: answers to the questions founders ask

By the Stockist Lab team · Updated October 2026 · About a 5-minute read

Short answer: Your wholesale price is what a store pays you, and your retail price (MSRP) is what a shopper pays the store. A common starting point is wholesale at about half of retail. Once you sell to stores, keep your own website at the same MSRP your stores charge, so you never undercut the people reordering from you.

Setting the numbers is covered in How to set wholesale prices and terms. This page answers the questions that come up after that, once you're selling in two places at once: your own shop and other people's stores.

What's the difference between a wholesale price and a retail price?

The wholesale price is what a store pays you for one unit. The retail price, or MSRP (manufacturer's suggested retail price), is what a shopper pays the store. The gap between them is the store's margin, which pays for its rent, staff and the risk of buying your product up front.

How much lower should my wholesale price be than retail?

A common starting point is keystone pricing: wholesale is about half of retail, so retail is about 2x wholesale. It's a benchmark, not a rule, and some categories use different ratios. First check that your wholesale price still leaves you the margin you need over your landed cost.

Can I sell on my own website for less than my stores do?

It's best not to. If your site is cheaper than the store down the street, shoppers notice, and the store has little reason to reorder. Sell on your own site at the same MSRP you give your stores. On Faire it's also a rule: wholesale and MSRP must be the same or lower on Faire than anywhere else you sell.

Can I run a sale on my own site?

Yes, but plan it like a stockist would see it. Keep sales short and occasional, give your stores a heads-up before a big one, and don't discount new styles that stores just bought. Constant sales teach shoppers that your full price isn't real, which hurts every store carrying you.

Should I give one store a lower wholesale price?

Keep one price list for everyone. Stores talk, and quiet one-off discounts are hard to keep track of. If you want to reward a store, use terms instead: a lower reorder minimum, free shipping over a set amount, or net 30 terms after a first prepaid order. Write those on your line sheet so every store sees the same offer.

Do Faire's fees change my wholesale price?

Faire charges brands a commission on each order (15% on marketplace orders plus $10 on a store's first order with you, and 0% on Faire Direct orders from stores you bring), plus a payment processing fee. Check Faire's pricing page for current numbers. Because Faire also wants your prices the same or lower than your other channels, build the fee into your margin math rather than raising prices only on Faire.

What should I do if a store sells below my MSRP?

Ask them about it directly and politely, since it's often a mistake or an end-of-season clearance. Stores that buy you on Faire in the US and Canada agree to resell at or above the brand's MSRP. For direct accounts, write your MSRP on your line sheet so the expectation is clear from the first order.

Check every channel with one AI prompt

Put one row per product in a spreadsheet: your wholesale price, your MSRP, then a column for each place you sell. Label each column wholesale (Faire, line sheet) or retail (your site, Faire retail listing, Etsy, a market table). Then open ChatGPT, Claude or Grok Bot, attach the sheet, and paste:

You decide what to fix. The AI's job is to catch the mismatch you didn't notice, like the old sale price still sitting on one product page.

Quick rules

• One MSRP everywhere, including your own site.
• One wholesale price list for every store. Reward stores with terms, not secret discounts.
• Plan sales, keep them short, and tell your stores first.
• Never let an AI guess a price. Missing means MISSING.

Sources: Faire Help Center, pricing policy for US and Canada brands and MSRP requirements for reselling; Faire brand pricing (checked October 28, 2026).