Wholesale, retail and consignment
- Wholesale. A shop buys your items up front at the wholesale price and sells them at the retail price. You are paid whether or not they sell.
- Retail. You sell direct to the customer, at a market, on your own site or on a marketplace, at the full retail price.
- Consignment. A shop displays your items and pays you a share of the retail price only when they sell. You keep the risk, so your share is usually higher than the wholesale price.
Retail price = wholesale price × retail multiplier
Consignment payout = retail price × (1 − shop's share)
Example: an item that costs $8
| How you sell | You are paid | Your profit | Your margin |
|---|---|---|---|
| Wholesale to a shop (cost × 2) | $16.00 | $8.00 | 50% |
| Consignment, shop keeps 40% of $32 | $19.20 | $11.20 | 58.3% |
| Direct at retail ($32) | $32.00 | $24.00 | 75% |
The shop that buys at $16 and sells at $32 makes a 50% margin, which is what "keystone" means: the retail price is double the wholesale price.
What the multipliers mean
| Cost × total | Wholesale × | Retail × | Retail price on a $10 cost |
|---|---|---|---|
| 3× | 1.5 | 2 | $30.00 |
| 4× (most common) | 2 | 2 | $40.00 |
| 5× | 2 | 2.5 | $50.00 |
| 6× | 2.5 | 2.4 | $60.00 |
Getting the cost right
The formula only works if "cost" is your full cost: materials, your time at a real hourly wage and a share of overhead. If you leave your time out, the wholesale price will not pay you. The handmade pricing calculator builds the cost from materials, minutes and overhead; the candle cost calculator does it for candles.
Common mistakes
- Selling retail at your wholesale price. If you sell direct for $16, shops cannot stock you at a price that works for them, and you earn nothing for the selling you do yourself.
- Forgetting marketplace fees on the retail side. Selling direct on Etsy costs about 9.5% plus $0.45 per order; check it with the Etsy fee calculator.
- Accepting any consignment split. If the shop's share leaves you less than your wholesale price, wholesale is the better deal. The calculator warns you when that happens.
This calculator uses only your own numbers. To check a margin or markup, use the profit margin calculator or the markup calculator.
Frequently asked questions
What is keystone pricing?
Doubling the wholesale price to get the retail price. The shop then makes a 50% margin. An item bought at $16 is sold at $32.
How do I calculate a wholesale price?
A common starting point is your full cost (materials, labour and overhead) multiplied by 2. Check that the result still leaves the shop room to double it for retail.
What is a normal consignment split?
Splits vary by shop. Many pay the maker 50% to 70% of the retail price. Whatever the split, compare the payout with your wholesale price before agreeing.
Should my own retail price match the shops that stock me?
Yes, as a rule. Selling direct below the retail price undercuts your stockists and usually breaks wholesale terms.
Last reviewed: November 2026 · By Muhammad Shujah Uddin Qazi · How we check rates · Fee changes tracker