Learn the difference between markup and margin, how to calculate real profit on wholesale deals, and which hidden costs to watch for.
Access 30,800+ verified suppliers and exclusive wholesale deals with the best margins.
Learn the difference between markup and margin, what makes a good wholesale deal, and how to factor in real costs.
Many wholesale buyers confuse markup and margin. They’re related but measure different things. Understanding the difference is crucial for accurate profit planning.
Markup %
The percentage increase from cost to selling price.
(RRP − Wholesale) / Wholesale × 100
Example: Buy at $10, sell at $20 = 100% markup
Margin %
The percentage of revenue that becomes profit. More conservative than markup.
(RRP − Wholesale) / RRP × 100
Example: Buy at $10, sell at $20 = 50% margin
The “good” margin depends on your business model, but here are industry benchmarks:
30–50% margin: Solid wholesale range
Typical for established wholesale suppliers. Enough to cover costs and make profit after accounting for shipping, returns, and fees.
50%+ margin: Excellent opportunity
Great deals that give you flexibility to discount, handle returns, or reinvest profits. Often found in liquidation or closeout inventory.
Below 30% margin: High risk
Little room for error. After shipping, platform fees, and customer returns, you might break even or lose money.
The profit shown on a deal card is before all your business expenses. Always factor these in when evaluating deals:
Margin calculations only work once the price is normalized to a single unit. On WholesaleUp™, the selling_unit field and the matching case_pack_size tell the platform how to convert a lot or case price into a per-unit cost for comparison against RRP.
For a full walkthrough of selling units, case pack size, and lot pricing, see Per-Unit vs Per-Lot Pricing.
Every deal card on WholesaleUp™ displays:
How to use this data:
Start with the Estimated Profit/Unit, then subtract your additional costs (shipping, fees, returns). The result is your realistic profit per unit. Multiply by expected volume to estimate total profit for the deal.
Don't Chase Markup % Alone
A deal with 200% markup might have low absolute profit if the wholesale price is cheap. Focus on profit/unit, not just the percentage.
Consider Volume
A deal with 30% margin becomes more attractive if you can order 1000 units and achieve economies of scale in shipping and fulfillment.
Check MOQ Against Volume Goals
A product with 50% margin but 5000 MOQ is only good if you can realistically sell that quantity.
Factor in Shipping Costs Early
Suppliers from far away (China, India) have lower wholesale prices but higher shipping. Calculate the all-in cost before committing.
Account for Category-Specific Returns
Electronics have higher return rates (5–10%) than apparel. Adjust your margin expectations accordingly.
Use Margin, Not Just Markup
When comparing deals, always compare margins to margins and markups to markups. A 100% markup sounds better than a 50% margin, but they’re the same deal. And remember: the numbers on WholesaleUp™ are before your costs. Subtract shipping, fees, and returns to see your true profit.
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