Distributor Pricing Guide: How Wholesale Costs Shape Retail Profitability
Distributor Pricing is the wholesale cost structure offered by authorized distributors to retailers and resellers based on predefined discounts, volume tiers, and purchasing agreements.
In the toy, miniature gaming, and e-commerce sectors, distributor pricing is a foundational factor in calculating profitability. It determines whether a SKU can function as a viable Amazon FBA product or join an Amazon stocklist with competitive margins. Toy wholesale suppliers rely on distributor pricing to set the baseline for profitable toys wholesale, while retailers use these costs to forecast ROI and determine reorder quantities for trending toys or high-turnover miniatures.
Example in practice:
A store receives a 45% distributor discount on Kings of War regiment boxes. After analyzing Amazon fees and expected sell-through, they confirm the SKU meets profitability thresholds.
Why does this matter?
Accurate distributor pricing directly influences:
- Competitive pricing
- Margin stability
- Long-term sustainability
