How to Start a Wholesale Business in 2026: 8 Steps From Idea to First Order

To start a wholesale business, pick a product niche, write a one-page plan, register the business and get a tax ID, find reliable suppliers, set wholesale prices and order minimums, then open a way for retailers to order, such as a Shopify store. You can start small with one or two product lines and a short first order.

Last updated October 4, 2026. We rewrote this 2025 guide: it now uses current sources, shows the margin math instead of unsourced margin ranges, and names the Shopify B2B changes of April 2026. Business and tax rules differ by country and state. The legal steps below use the United States as the example, so check your own local rules. BSS B2B Solutions makes apps for wholesale stores on Shopify, and we say where an app is optional. For the platform side in depth, read how to set up a wholesale store on Shopify and the complete Shopify B2B guide.

What is a wholesale business?

A wholesale business sells goods in bulk to other businesses instead of to individual shoppers. The buyer plans to resell the goods or use them in its own work. In return for volume and repeat orders, the seller gives a lower unit price and usually asks for a minimum order. See the glossary entries for wholesale and distributor.

Type	What it does	Typical buyer
Merchant wholesaler or distributor	Buys from many makers, stores the stock and resells it	Retailers, restaurants, small shops
Manufacturer or brand selling wholesale	Sells its own products in bulk through a wholesale channel	Boutiques, stockists, resellers
Importer	Brings goods from abroad and sells them locally in bulk	Retailers and distributors
Dropship wholesaler	Lists a supplier’s stock and ships orders from the supplier	Online retailers
Broker or agent	Connects buyers and suppliers for a fee, without owning the stock	Both sides

How to start a wholesale business in 8 steps

Step 1: Choose a niche and a model

Pick one or two product categories, not a mix. Score each idea on demand that repeats (consumables beat one-off items), weight and size (shipping eats margin), seasonality, how many other wholesalers carry it, and how much you can learn before you buy. Then choose a model: stock and ship yourself, take pre-orders, or dropship. For ideas, see our wholesale business ideas.

Step 2: Check demand and the price gap

Before you buy anything, ask five to ten possible buyers what they pay today, what minimum they accept and who supplies them. Call small retailers in your niche. Look for a product they struggle to get, or a supplier they find unreliable. Write the answers in a sheet. They become your first price list and your first customers.

Step 3: Write a one-page plan

The SBA describes a lean startup plan: condensed, high level, often one page. Its nine sections are key partnerships, key activities, key resources, value proposition, customer relationships, customer segments, channels, cost structure and revenue streams (SBA: write your business plan). Add three wholesale-specific numbers: how much cash you need for the first purchase, how long buyers take to pay, and how many orders you need per month to cover costs. Update the plan after every supplier and buyer conversation.

Step 4: Register the business and get the right tax numbers

These steps use the United States as the example. Other countries have equivalents, such as a company registration and a VAT or GST number.

• Choose a structure. The SBA lists sole proprietorship, partnership, LLC and corporation, which differ in personal liability and tax treatment (SBA: choose a business structure).
• Get an EIN if you need one. The IRS says businesses need an EIN to hire employees, operate a partnership or corporation, pay sales and excise taxes and more, and that you never have to pay a fee for one (IRS: get an EIN).
• Register for state tax and licenses. The SBA says most small businesses need a mix of federal and state licenses and permits, and that what you need from the state, county or city depends on your activities and location (SBA: licenses and permits). Ask your state department of revenue about a sales tax permit.
• Use a resale certificate for purchases. A resale certificate lets a US business buy goods for resale without paying sales tax; names and rules vary by state. As one example, the Texas Comptroller lists a Texas Sales and Use Tax Resale Certificate (Form 01-339) on its sales tax forms page. Suppliers will ask for yours.

This is general information, not legal or tax advice. Confirm each step with your state or an accountant.

Step 5: Find and test suppliers

Check	What to ask or do
Reliability	Order a sample, then a small first order; measure lead time and quality
Terms	Minimum order, price breaks, payment terms, returns and defects
Credibility	Business registration, real address and contact, references
Backup	A second supplier for your top product
Landed cost	Product plus freight, duties, handling and your own shipping

Go direct to manufacturers for the best price, and to distributors or importers for smaller quantities. Directories help you start the search. See our list of wholesale suppliers in the USA.

Step 6: Plan storage and operations

You need somewhere to store goods, a way to count them and a way to ship them. Start with the smallest setup that works: a spare room or a rented unit, a spreadsheet or the inventory tools in your store, and a carrier account. Check your city’s rules for running a business from home before you store stock there; the SBA notes that local licenses depend on your activity and location.

Step 7: Set wholesale prices and terms

Price from your landed cost and the gross margin you need. The formula is price = cost divided by (1 minus margin). The table shows it for a $10.00 landed cost.

Target gross margin	Wholesale price	Markup on cost
20%	$12.50	25%
30%	$14.29	43%
40%	$16.67	67%
50%	$20.00	100%

Then test it from the buyer’s side. A common retail rule of thumb is keystone pricing: the retailer doubles the wholesale price. If your wholesale price is $14.29, a keystone retailer prices at $28.58. Check that number against what the market pays. Next write your terms: minimum order (see MOQ), case packs, payment terms and shipping. Start with prepayment or card for new buyers, and offer net terms only to verified buyers with a record. Our guides cover minimum order quantity, tiered pricing and Net 30 terms.

Step 8: Open your wholesale store and find your first buyers

You can take orders by email, but an online store lets buyers apply, see their prices and reorder without you. On Shopify, native B2B includes companies, catalogs, quantity rules, price breaks and net terms on Basic, Grow, Advanced and Plus, with up to 3 active catalogs outside Plus (plan table). Plans are $19, $49 and $299 per month billed yearly for Basic, Grow and Advanced (Shopify pricing). Shopify says a blended store, which sells to D2C and B2B customers, shares one storefront and cannot be gated to B2B customers only (Shopify store types). Start blended if you also sell retail; see selling B2B and B2C from one store.

Apps fill the gaps native B2B leaves. BSS B2B Solution adds a registration form with approval, prices by customer tag and order limits; BSS B2B Lock hides prices from guests; BSS B2B Quote adds quick order and quotes. Our wholesale store from scratch use case walks through the setup.

To find buyers, list your products with a line sheet, email local retailers in your niche, visit trade shows and ask your first buyers for referrals. Follow up on every application within a day.

How to set up a wholesale program for your brand

If you already sell your own products, a wholesale program is the set of rules for retailers who want to stock them. Decide these before you announce it.

Term	Decide	Example question
Eligibility	Who can apply	Business license or resale certificate required?
Application	What you collect	Tax ID, website, store photos, expected volume
Price	Wholesale price and tiers	Half of retail, with a lower price at 50 units?
Minimums	First order and reorder minimums	$250 first order, $150 after?
Terms	Payment and shipping	Prepaid first order, net 30 after three orders?
Brand rules	Minimum advertised price, territory	Do you restrict online resale?

See silver, gold and platinum wholesale tiers and the wholesale registration form with approval use case. The customer onboarding hub covers applications in more depth.

Can you start a wholesale business from home?

Yes, if the stock is small, light and easy to store, or if you dropship. Check three things first: your city’s rules for home businesses, whether your lease or insurance allows storing and shipping goods, and whether a supplier will ship in cartons you can handle. Many home-based wholesalers start with pre-orders or a short first run, then rent storage when orders repeat.

How do you run a wholesale business day to day?

• Inventory. Track stock and reorder points for your top products every week.
• Customers. Keep each buyer’s price, terms and order history in one place, such as company records in your store.
• Cash. Chase invoices on a fixed schedule. Late payment is the usual wholesale cash problem.
• Suppliers. Talk to them before busy seasons so you hear about delays early.
• Numbers. Track repeat order rate, average order value and gross margin each month.

Frequently asked questions

Sources

• SBA: Write your business plan, Choose a business structure, Apply for licenses and permits, Get federal and state tax ID numbers.
• IRS: Get an employer identification number and Texas Comptroller: sales and use tax forms (example of a state resale certificate).
• Shopify: native B2B for more merchants (April 2, 2026), B2B features by plan, Blended and dedicated stores, Pricing.
• All read October 4, 2026. BSS plan prices: BSS B2B Solution listing (4.9, 1,187 reviews).

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