A Guide To Critical Wholesale Terms And Conditions (6 Examples)

One of the best ways to start a relationship with your customers is to provide a wholesale terms and conditions sheet. Your terms and conditions make clear what you expect of your customers and details what you’ll provide from your end.

Operate your business without wholesale terms and conditions and you might find yourself in an unpleasant disagreement with a customer. By clearly outlining what you will and won’t provide in your terms and conditions, you provide the clarity your buyers expect to know before purchasing from you.

In this post, we’ll dive into six examples of things you should include in your wholesale terms and conditions.

6 Wholesale Terms and Conditions to Include in Your Agreement Sheet

1. Wholesale Pricing

In your terms and conditions, you should outline what it means to have wholesale pricing, which is an advantage to doing business with you. Typically lower than retail prices and MSRP (Manufacturer Suggested Retail Price), your wholesale pricing should include enough margin to cover the cost of the product, plus your carrying expenses.  An example of this in your terms and conditions sheet would read:

All prices listed are in US dollars. Authorized retailers receive 50% off the MSRP, plus the cost of shipping. Our prices are available to established retail stores and websites reselling our products. Prices are subject to change without notice.

2. How to Place an Order

This condition states how buyers can order products from you. You should make the ordering process as easy as possible by providing clear instructions on how to do so. Here’s an example of ‘how to place an order’ for your terms and conditions sheet:

Buyers may purchase via our B2B portal, where orders can be placed. After your order is placed, you’ll be able to view your order in the portal and you’ll receive an order confirmation via eMail.

3. Minimum Order Quantity (MOQ)

Provide the MOQ (Minimum Order Quantity) for your customers. A minimum order quantity dictates that customers cannot order any given amount of a product. It’s the lowest threshold quantity that you’re willing to accept on a given order. For example, if you advertise an MOQ of 500 units in your terms and conditions, customers can only order 500 units or more from you each time. Here’s how your MOQ should read in your terms and conditions:

The minimum order quantity is 500 units, or a value of $600 or more, each time you place an order.

4. Payment Terms

Payment terms clearly outline how much time your customer has to pay if paying by invoice. You want to provide payment terms as some retailers or customers may not be able to pay upon delivery. Payment terms give your customers time to receive the goods and sell them. Typically, terms offered are NET 30, 60 or 90 days. Also, some wholesalers offer a discount for paying invoices before 30 days. Your payment terms might read:

Customers may apply for credit terms by filling out an application form with at least three credit references. A credit application form may be obtained by calling us at XXX-XXX-XXXX. Once you are approved for credit, a letter with your approved payment terms will be mailed to the shipping contact on file. Checks returned due to insufficient funds may be considered fraud and subject the check writer to prosecution and fines. However, we understand that usually there is no criminal intent and in these circumstances, we will only charge the customer a reimbursement for bank fees and other incurred costs.

5. Return and Exchange Policy

A return and exchange policy is important to your success as a wholesale distributor, especially given the large purchases your customers make. Be sure to outline how many days a customer has to return an item, what the process is and whether shipping cost is included.  A wholesale return and exchange policy may read:

Returns may be made within seven days of delivery.  Prior approval, or an RMA (Return Merchandise Authorization), must be obtained by calling customer service and the customer must provide a reason for the return.

6. Shipping Terms

Your shipping terms outline how long it typically takes you to fulfill an order and the costs associated with shipping. It’s also important to include whether you ship internationally and if freight is included. Your shipping terms may read:

Allow for 10-14 business days for your order to arrive. Large orders may require additional time. Shipping is not included in the cost of goods. Freight will be charged at a rate of 5%, which will be shown on your invoice. We do not ship international orders at this time.

Your terms and conditions sheet is essential to conducting business as a wholesale distributor. As a result, this is one of the most important things you do before you start shipping to customers. Be sure to build this out as it will protect you and your customer and prevent those unpleasant conversations that would occur without one.

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