Wholesale is Becoming Crucial For Brands, Let's Talk About Why

The days of worrying that e-commerce would completely replace brick-and-mortar retail are largely behind us. Although the pandemic spurred a surge in online shopping, retail stores have made a strong comeback, and many industry experts are noting that “wholesale is back.” 

A few notable brands reported their quarterly numbers and there was a notable similarity among the brands that posted overall strong performances or strong performances in a key segment. 

The similarity was the strength of their wholesale. 

• Brands like Ralph Lauren saw a rise in wholesale revenue for the first time in six months.
• Levi’s posted a nearly 7% wholesale revenue increase
• Overall retail sales were up 3.9% in January

This shift has prompted brands to revisit or even initiate a wholesale strategy.

Whether it’s Nike renewing its wholesale partnerships or once pure-play online companies opening physical locations, the idea of being present on the retail floor has regained momentum, so let’s talk about why. 

The Appeal of In-Store Shopping

People still crave a tangible shopping experience, despite the convenience of online retail. 

There is something immediate and satisfying about walking into a store and walking out with your item on the same day. In-store shopping also allows customers to try on different sizes in real time, avoiding the hassle of shipping returns if the fit is wrong. 

Moreover, shoppers often discover and purchase multiple items during one store visit. A customer may go in for a sweater but end up buying jeans and a belt as well. This added spontaneity often translates into larger purchases, benefiting both brands and retailers.

E-Commerce Brands Going Offline

Brands that initially built their names in the e-commerce space are now recognizing these advantages. 

Warby Parker is a prime example of a company that started entirely online but later opened physical stores to give customers a more hands-on way to explore its products. Although Warby Parker once insisted it would remain an online retailer, it ultimately realized that many consumers prefer trying on eyewear in person. 

This same principle applies to any brand looking to expand: if you sell apparel or accessories solely on your website, you could build credibility and attract new customers by appearing in retail stores.

The Cost and Distribution Strategy of Wholesale

Another reason wholesale is regaining importance is the high cost of opening your own flagship stores. Running a physical location involves real estate expenses, staffing, and inventory management. 

Wholesale partnerships, on the other hand, let brands reach new audiences at scale without incurring these overheads. Working with established retailers means letting them handle the operational side of the brick-and-mortar environment. 

This approach allows you to focus on product development, brand storytelling, and marketing initiatives.

Pricing for Wholesale

One critical lesson many digital-first brands learn is that they must price their products properly when they shift into wholesale. It can be tempting to set prices for a direct-to-consumer model without building in the necessary margins for retail partners. 

If the margins are not there, retailers have little incentive to stock your products. Adjusting your pricing involves careful planning to remain competitive while offering enough of a markup for retailers to profit. Getting this balance right ensures that both you and your partners see tangible benefits.

Balancing Online and Physical Presence

Ultimately, a well-rounded strategy often combines the best of both online and offline worlds. 

While e-commerce offers convenience and global reach, brick-and-mortar stores provide an immersive experience that many shoppers still crave. 

The resurgence of brick-and-mortar demonstrates that customers appreciate variety in how they discover and buy products. Being present in the right retail settings can lend credibility to a brand, expand its reach, and encourage higher purchase volumes. By blending a polished direct-to-consumer platform with a strong wholesale model, brands can position themselves for steady success and long-term relevance.

If you’d like to see how your brand could benefit from the tools RepSpark has to offer (which are built with the needs of brands and retailers in mind) then check out our full features list.