Wholesale sneakers can be a good business, but the margin is decided before the first order ships. Minimum order quantities, freight, QC failures and currency all move the number. This guide explains how the model works and what to ask before you commit.
How wholesale pricing works
Factories price by quantity, material and complexity. A 30-pair order does not get the same unit price as 300 pairs, and a mix of sizes can cost more to assemble than a single-size run. Ask for a quote that separates the unit price, packaging and freight, so you can see where the money goes.
Minimum order quantity
Most workshops set a minimum per style or per order. A practical starting point is 30 pairs mixed across sizes, which is enough to test demand without tying up too much cash. Ask whether samples count toward the minimum and whether a reorder can be smaller.
Dropshipping versus stock
Dropshipping removes the stock risk but adds a per-order handling cost and a longer customer promise. Holding stock gives faster delivery and better unit economics, but cash is tied up in sizes that may not sell. Many resellers start with dropshipping, then move their best sellers into stock.
QC and failure rates
Ask what percentage of a wholesale order is expected to fail QC, and who pays for replacements. A serious supplier checks every pair before packing and shares photos. Build a small allowance for defects into your margin; a 2–5% allowance is more realistic than assuming zero.
Freight, duties and returns
Freight is usually quoted separately from the goods. Import duties and local taxes depend on the destination and are normally the buyer’s responsibility. Returns from end customers are your cost unless the fault is the supplier’s. Price all three before you set a retail price.
A simple margin model
Take the landed cost per pair: goods plus freight plus duty plus a QC allowance. Subtract that from your selling price, then subtract payment fees and customer shipping. The remainder is your gross margin. If the number is thin at 30 pairs, it will not improve much at 60 unless the unit price drops.
What to ask before ordering
- What is the unit price at 30, 60 and 120 pairs?
- Can I mix sizes and styles?
- What is the QC process and who pays for replacements?
- How long after QC approval does the parcel ship?
- Can you ship in neutral packaging for dropshipping?
- What payment method and receipt do you provide?
If you want a starting point, see our wholesale and dropshipping page or message the studio with your style list and quantities.