Direct-to-consumer (DTC) sales are rewarding, but they can be a slow way to grow. Every sale requires marketing, and every order is relatively small. Wholesale, selling your products to other businesses that resell them, offers a different path: larger orders, repeat buyers, and exposure to customers you'd never reach on your own.
Ontario is well positioned for wholesale growth. The province has thousands of independent retailers, specialty grocers, cafés, gift shops, and tourism businesses looking for distinctive local products. With ongoing trade tensions encouraging many Canadian retailers to source domestically, Ontario makers and brands have a real opportunity.
This article explains how to approach wholesale thoughtfully and how Shopify's B2B capabilities can help you manage it without building a separate system.
Is wholesale right for your business?
Wholesale isn't for everyone. Before diving in, consider:
Margins
Wholesale prices are typically much lower than retail prices, often around half of the suggested retail price. Retailers need room to cover their own costs and profit. If your margins are already thin at retail prices, wholesale may not be viable unless you can reduce production costs at higher volumes.
A simple test:
> If your retail price is $40 and your wholesale price is $20, can you still make a healthy profit after production costs, packaging, shipping, and overhead?
If not, review your pricing or cost structure before pursuing wholesale.
Production capacity
Wholesale orders can be large and time-sensitive. A gift shop ordering 200 units for the holiday season needs them on time. Make sure you can scale production without sacrificing quality.
Cash flow
Many wholesale buyers expect payment terms, such as net 30 (payment due 30 days after invoice). That means you fund production and wait for payment. Plan cash flow carefully.
Brand control
Once your products are in someone else's store, you have less control over how they're displayed and priced. Clear wholesale agreements help, including minimum advertised price policies if appropriate.
Channels for finding wholesale buyers
- Direct outreach to independent retailers whose customers match yours.
- Trade shows, such as gift and home shows in Toronto, and regional craft and food shows across the province.
- Wholesale marketplaces that connect makers with retailers.
- Local networks, including Business Improvement Areas (BIAs), chambers of commerce, and regional "made in Ontario" initiatives.
- Tourism businesses, such as museum shops, wineries, and cottage-country gift stores, which often seek local products.
- Corporate gifting, where businesses buy branded or curated gifts in volume.
Shopify's B2B capabilities
Shopify has steadily built native B2B features into the platform. Historically, the most advanced B2B tools were exclusive to Shopify Plus, but Shopify has been expanding B2B availability to more plans, and its 2026 releases added features such as net payment terms with automated invoicing. Check which features are included in your current plan.
Native B2B features generally include:
Company profiles
Instead of treating a wholesale buyer as an individual customer, Shopify lets you create company records with:
- Multiple locations (for example, a retailer with stores in Guelph and Cambridge)
- Multiple contacts with different permissions
- Location-specific shipping and billing addresses
- Tax settings, such as exemptions where appropriate
Catalogues and price lists
You can create B2B catalogues that determine which products a company can see and what prices they pay. Examples:
- A general wholesale catalogue at 50% off retail
- A volume tier for larger accounts
- A custom catalogue for a specific key account
Quantity rules and volume pricing
Set minimum order quantities, increments (for example, cases of 6), and volume discounts (lower prices when buying more). This protects your margins and encourages larger orders.
Payment terms
Offer net terms (such as net 30 or net 60), and require deposits where needed. Shopify tracks due dates and can send invoices and reminders. Offering terms is a common expectation in wholesale, but only extend them to buyers you trust. Consider starting new accounts on prepaid orders and offering terms after a few successful orders.
Vaulted payment methods
Buyers can save credit cards for faster checkout, and you can charge them when orders ship or when payment is due, depending on your setup.
Draft orders
For buyers who prefer to order by email or phone, staff can create draft orders with B2B pricing and send an invoice for payment.
Customer self-serve portal
Buyers can log in to your store, see their own pricing, reorder previous purchases, and view order history. This reduces admin work for your team.
Blended store or separate wholesale store?
You can run B2B from the same Shopify store as your DTC business (a "blended" store) or from a separate store.
Blended store advantages:
- One inventory pool
- One admin
- Shared product data
- Lower cost
Separate store advantages:
- Distinct branding and experience for trade buyers
- Different theme and navigation
- Clear separation of reporting
For most small and medium Ontario businesses starting out, a blended store is simpler. Larger operations sometimes move to a separate expansion store later, which on Shopify Plus can share certain data.
Setting up wholesale in Shopify: a step-by-step approach
Step 1: Define your wholesale terms
Document:
- Wholesale pricing (percentage off retail or specific prices)
- Minimum opening order (for example, $300)
- Minimum reorder amount
- Case packs and quantity increments
- Payment terms
- Shipping policies (who pays, freight thresholds)
- Lead times
- Return and damage policies
- Territory or exclusivity rules, if any
Step 2: Prepare your product data
Wholesale buyers need more information than consumers:
- SKU and barcode (UPC) for their POS
- Case pack quantity
- Suggested retail price (MSRP)
- Product dimensions and weights
- Ingredients, materials, or specifications
- Country of origin
- Shelf life for food products
- High-quality product images they can use
Use metafields to store wholesale-specific data like case pack and MSRP.
Step 3: Create catalogues and price lists
Set up your standard wholesale catalogue and any tiers. Test that prices display correctly when logged in as a B2B buyer.
Step 4: Create company accounts
Add approved buyers as companies with locations and contacts. Decide whether to accept applications through a wholesale inquiry form, with manual approval.
Step 5: Configure tax
In Canada, wholesale sales are generally still taxable supplies. Retailers who resell your goods generally pay GST/HST and claim input tax credits rather than receiving exemptions, although provincial sales tax rules in PST provinces can differ for resale. Configure tax settings carefully and confirm treatment with your accountant.
Step 6: Set up shipping
Wholesale orders are often heavier, so consider:
- Calculated rates for larger shipments
- Freight options for pallet-sized orders
- Free shipping over a wholesale threshold
- Local delivery for nearby Ontario accounts, which can be a competitive advantage
Step 7: Launch with a small group
Invite a handful of trusted buyers first. Gather feedback on the ordering experience before expanding.
Selling wholesale in person with Shopify POS
Wholesale often happens face to face, at trade shows, pop-up markets, or during sales visits. Shopify POS can support this:
- Take orders at trade shows and create draft orders for later fulfilment.
- Capture new buyer information on the spot.
- Offer show-specific discounts.
- Accept deposits using a card reader.
Create a separate location in Shopify for trade shows so you can track show performance separately.
Managing wholesale relationships
Communication
Wholesale buyers value reliability and communication. Keep them informed about:
- New products and seasonal collections
- Production delays
- Price changes (with advance notice)
- Merchandising tips and marketing assets
Use Shopify's customer segmentation to send targeted emails to B2B buyers, following CASL requirements for commercial electronic messages.
Support your retailers
Your success depends on their success. Consider providing:
- Shelf talkers and signage
- Product training for their staff
- Social media content they can share
- A "stockist locator" on your website that sends customers to their stores
A stockist locator is especially valuable because it reinforces the local shopping experience and shows retailers you're sending them business rather than competing with them.
Handle channel conflict
If you sell directly to consumers and through retailers, be thoughtful about pricing and promotions. Frequent deep discounts on your website can undercut your retailers and damage relationships. Communicate promotions in advance and consider giving retailers access to similar offers.
Measuring wholesale performance
Track:
- Wholesale revenue and share of total revenue
- Number of active accounts
- Average wholesale order value
- Reorder rate (how many accounts order again)
- Days sales outstanding (how long payment takes)
- Gross margin on wholesale versus retail
- Sell-through at key accounts, if they share data
Shopify's analytics can filter by B2B orders and companies, helping you see which accounts are growing and which need attention.
A realistic example
A fictional small-batch hot sauce maker in Prince Edward County sold mainly at farmers' markets and online. After building a wholesale catalogue on Shopify with case pack quantities, a $250 opening order minimum, and net 30 terms for established accounts, the owner reached out to specialty grocers and wineries across Eastern Ontario and the GTA.
Buyers could log in, see their prices, and reorder in minutes. The owner used a separate POS location for trade shows and captured leads with a simple form. Within a year, wholesale made up a growing share of revenue, and several retailers asked for exclusive seasonal flavours. The stockist locator on the website also increased foot traffic to partner stores, strengthening those relationships.
Key takeaways
- Wholesale can accelerate growth for Ontario makers and brands, but it requires healthy margins, production capacity, and cash flow planning.
- Shopify's native B2B tools support company profiles, custom catalogues, volume pricing, and payment terms; check which features your plan includes.
- Prepare detailed product data, including SKUs, UPCs, case packs, and MSRP.
- Use Shopify POS for trade shows and in-person wholesale selling.
- Support your retailers and manage channel conflict to build lasting partnerships.
B2B feature availability varies by plan and changes over time. Confirm current capabilities in Shopify's help centre and consult your accountant about tax treatment for wholesale sales.