WHAT SELLERS
CHARGE.

Reference

The commonly quoted range, what the percentage applies to, when it is paid, and the terms that actually decide the money.

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Guide

HOW MUCH DO WHOLESALE
SELLERS CHARGE?

Independent sellers are paid commission on what ships, and the commonly quoted range in most consumer categories is ten to fifteen percent of the wholesale price, with twenty at the high end for hard categories and small lines. The rate is the least important number in the agreement. What it is paid on, when, and on which accounts is where the money actually goes.

What to know

The range, and why it varies

Ten to fifteen percent is the range most brands and sellers quote; gift and apparel sit in the middle of it, food and grocery often lower because volumes are higher, and a new line with no accounts pays more than an established one because the seller is doing the opening. A seller with a showroom in a mart may add a showroom fee or a monthly retainer on top of commission.

Commonly quoted: 10–15% of wholesale, up to 20% for hard categories or small lines
Higher for opening new accounts, lower on house accounts and large reorders
Showroom or retainer fees are separate from commission where they exist

What the percentage applies to

Net of discounts and freight is the usual base: commission on the goods the retailer actually paid for, not on the shipping or a promotion the brand funded. A rate agreed without the base is two different numbers to two different people.

Usually on net wholesale: after discounts, before freight
Returns and chargebacks are commonly deducted from the next commission statement
Samples and display goods are usually excluded

When it is paid

On shipment, on invoice or on payment. Paying on payment protects the brand from paying commission on an order that never gets paid; paying on shipment protects the seller from a slow brand. On GRAJ commission is computed at settlement, the moment the buyer's money is collected and split, so both sides see the same figure on the same day.

On payment is the most common and the fairest to both sides
Monthly statements are standard; GRAJ shows it per order
Settlement on GRAJ computes the split to the cent when the money lands

House accounts, residuals and termination

The disputes are never about the rate. They are about the account the brand already had, the account the seller opened and then handed to the brand's own team, and what happens in the six months after a seller leaves. Write the residual down: a seller paid on accounts they opened for a period after they stop writing orders is standard, and it only exists where the originator is recorded.

House accounts: named up front, usually excluded or at a lower rate
Residual on opened accounts after termination: commonly 30 to 90 days, sometimes longer
Account ownership recorded with the originator is what makes any of it enforceable

Where to go next

COMMISSION CALCULATOR

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COMMISSION RATE

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SELL IT

What this role does on GRAJ, and how to start doing it.

Open

HOW TO FIND A SELLER FOR YOUR BRAND.

An independent seller is the fastest way for a small brand to reach retail buyers it has no relationship with.