From DTC to Wholesale: Why Brands Are Making the Shift and How to Do It Right

For years, direct-to-consumer (DTC) brands defined modern retail — sleek websites, loyal customers, and fast digital growth. But in 2025, the DTC model alone isn’t enough. Rising ad costs, growing competition, and slowing acquisition have forced brands to rethink their growth strategy.

The next evolution? Wholesale.

Far from being a step backward, wholesale is helping DTC brands expand reach, stabilize revenue, and future-proof operations. The key is doing it strategically — with the right workflows and technology.

Why More DTC Brands Are Turning to Wholesale

The move into wholesale is driven by a mix of necessity and opportunity.

• Rising Costs of Customer Acquisition: Five years ago, scaling a DTC brand online was relatively cheap. Today, customer acquisition costs (CAC) have skyrocketed. Competing on Meta, TikTok, and Google Ads drains margins. Wholesale bypasses this by connecting brands to retailers’ established customer bases.
• Immediate Market Expansion: Wholesale enables overnight expansion. A brand that lands a deal with Target, Sephora, or a niche distributor can access thousands of new buyers without spending heavily on advertising or opening stores.
• Stable Revenue Through Bulk Orders: Unlike fluctuating one-off DTC sales, wholesale provides large, recurring purchase orders. This stability makes forecasting, production planning, and inventory management far more predictable.
• Brand Credibility and Trust: Presence in physical stores—or association with major online retailers—lends legitimacy. Customers who see a brand on shelves are more likely to trust it online as well, creating a flywheel of growth.

Related reading: ERP-Integrated B2B Portals: Why Seamless Sync Matters

DTC vs Wholesale: What Makes Wholesale Different?

It’s tempting to assume wholesale is just “DTC at scale.” In reality, it’s a different business model with its own set of rules.

This shift is where many DTC brands stumble. They underestimate the operational and technological leap required to handle wholesale effectively.

The Challenges DTC Brands Face in Wholesale

• Complex Pricing Rules: Wholesale buyers expect tiered, regional, or negotiated pricing — impossible to manage manually on a DTC site.
• Operational Pressure: Missed shipments or incorrect invoices can end retail relationships.
• Inventory Visibility: You need real-time sync across DTC and wholesale channels to prevent overselling.
• Compliance Requirements: Large retailers require strict EDI, invoicing, and shipping standards.
• Buyer Experience Expectations: Wholesale buyers expect quick reorders, account-based access, and flexible payments.

Learn how modern B2B workflows simplify wholesale operations in our blog: The Future of B2B Bulk Ordering Workflows: Fast, Simple, Reliable

When Is the Right Time to Add Wholesale?

Your brand might be ready for wholesale if:

• Online growth is flattening and CAC is rising.
• You have proven demand and a loyal customer base.
• Operations and fulfillment are strong.
• Retailers or distributors are showing interest.
• You’re ready to scale into new regions without opening stores.

If these sound familiar, it’s time to build a wholesale strategy.

How to Build a Scalable Wholesale Strategy

• Set Clear Goals: Define if wholesale is for revenue growth, reach, or awareness.
• Find the Right Retail Partners: Choose distributors that align with your brand values and audience.
• Establish Wholesale Terms: Define MOQs, discount tiers, and payment terms early.
• Upgrade Operations: Ensure fulfillment, invoicing, and customer support are wholesale-ready.
• Invest in the Right Technology: A B2B portal integrated with your ERP and eCommerce systems is essential for scalability.
• Recommended read: ERP + eCommerce = The B2B Growth Unlock — discover how integration accelerates wholesale expansion.

Why B2B eCommerce Portals Are Essential

For wholesale to scale smoothly, brands need more than a modified DTC storefront. They need a purpose-built B2B eCommerce portal.

Here’s why:

• Flexible Pricing and Discount Management: Wholesale buyers need personalized rates, volume discounts, and contract-based terms. A B2B portal automates these rules without manual oversight.
• Simplified Bulk Ordering: Wholesale buyers don’t want to waste time adding 200 items to a cart. Portals enable quick ordering, CSV uploads, and repeat purchases in just a few clicks.
• Account-Based Experiences: Different buyers require different catalogs, credit limits, and terms. A B2B portal makes these variations seamless.
• Seamless System Integration: A true wholesale operation requires ERP, CRM, and inventory systems to work in sync. Portals built with integration in mind ensure data flows automatically across platforms.
• Compliance and Scalability: Meeting EDI standards, generating accurate invoices, and scaling as new buyers join the platform are all easier with the right technology foundation.

How i95Dev Helps DTC Brands Expand Into Wholesale

At i95Dev, we help DTC brands transition into wholesale with powerful, integrated B2B solutions:

• Magento B2B Expertise: Wholesale-ready platforms tailored for brand growth.
• ERP, CRM & Accounting Integrations: Real-time data flow between systems.
• Scalable Architecture: From boutique orders to national retail chains.
• Personalized Buyer Portals: Role-based catalogs, pricing, and credit terms.
• Future-Ready Technology: Flexible infrastructure to support hybrid DTC + wholesale models.

The Future: Hybrid Growth (DTC + Wholesale)

The strongest brands of tomorrow won’t rely solely on DTC or wholesale. They’ll master both.

• DTC builds community and loyalty.
• Wholesale scales reach and revenue.
• Together, they create resilience and growth.

But the bridge between these two models is technology. Without the right systems, wholesale can feel like chaos. With the right B2B infrastructure, it becomes a competitive advantage.

Final Thoughts

Wholesale isn’t a fallback for DTC brands—it’s the next frontier. It offers scale, stability, and credibility in ways that pure DTC cannot. But it comes with complexity that demands preparation and investment in the right technology.

For brands ready to make the leap, wholesale can be transformative. And with i95Dev as your partner, you can move with confidence, knowing your wholesale operations are built for scale, integration, and success.

Let’s build the future of your wholesale business together. Talk to i95Dev now.