Wholesale Pricing & Margin Requirements

Commercially Viable Wholesale Pricing

Our Brand Partner program combines paid onboarding and promotion with a separate retail supply arrangement. Both must be commercially viable.

The partnership fee does not replace or reduce our wholesale margin requirements. It covers the agreed onboarding and promotional scope, while product margin supports the retail transaction and ongoing operating costs.

Target Margin and Minimum Requirements

We assess proposed products against the following thresholds:

• Target gross margin: 30–35%.
• Limited consideration: 25% to below 30%, subject to demand, costs and operational suitability.
• Below 25%: products will not proceed.

Meeting a margin threshold does not automatically guarantee approval. We also consider product quality, market demand, advertising permissions, stock reliability and fulfilment requirements.

We require genuine wholesale pricing. A price labelled “trade” or “reseller” is only acceptable if the actual figures support our commercial requirements.

Current Market Selling Price vs RRP

RRP is the recommended retail price. It is not necessarily the price customers currently pay.

We assess margin using a realistic current market selling price for the same product. Relevant references include:

• Your own direct-to-consumer website.
• Established online retailers.
• Comparable marketplace and reseller offers.
• Current promotions that materially affect the achievable selling price.

Comparisons must account for differences in product specifications, included accessories, stock availability and freight.

We do not base approval on inflated, historical or unsupported RRPs. Where RRP differs from current market pricing, provide both figures and explain the difference.

Margin must come from viable wholesale pricing, rather than an assumption that we can sell materially above the market.

How We Calculate Gross Margin

Use amounts in AUD excluding GST for both the selling price and wholesale supply price.

Gross Margin (%) = (Selling Price − Wholesale Supply Price) ÷ Selling Price × 100

For a product with a current market selling price of $2,000 excluding GST:

Gross margin is different from markup. A 30% markup on your supply price does not produce a 30% gross margin.

These examples show product gross margin before freight, handling and operating costs. They do not represent net profit.

Disclose the Full Supply Cost

Alongside your wholesale price, disclose any costs or conditions that affect the transaction, including:

• Freight and delivery charges.
• Dropship or order-processing fees.
• Handling, packaging or administration charges.
• Minimum order quantities or minimum order values.
• Payment surcharges.
• Location-based charges.
• Conditions attached to discounts, rebates or promotional funding.

If charges vary by destination or order size, explain how they are calculated. Our application provides an indicative product margin calculation. Final approval also considers compulsory charges and the overall cost of selling and supporting the product.

Pricing Structures We Will Not Accept

Products are unlikely to be commercially suitable where:

• The wholesale or trade price equals or exceeds the prevailing retail selling price.
• The required margin is only achievable using an inflated RRP.
• Compulsory charges make an otherwise qualifying product unviable.
• Regular market discounting leaves insufficient margin at the offered supply price.
• Viability depends on uncertain future rebates or volume discounts.
• Higher sales volume is presented as a substitute for an acceptable margin.

Any rebate, credit or supplier-funded promotion relied upon during assessment must be documented and agreed.

Supply Models and Payment Terms

These requirements apply whether products are purchased for stock, dropshipped, supplied on consignment or handled through a combined arrangement.

We may consider upfront payment, approved account terms, end-of-month settlement or Capricorn where available and agreed.

Payment terms can influence our commercial assessment, but they do not automatically compensate for insufficient margin.

Partnership fees and product supply payments are separate obligations, with their respective terms confirmed before onboarding.

Price Changes and Ongoing Viability

Please advise us promptly of changes to:

• Wholesale supply prices.
• Recommended retail prices.
• Freight or handling charges.
• Supplier promotions.
• Rebates, credits or account conditions.
• Product specifications or included accessories that affect value.

Where possible, provide advance notice and clear effective dates so we can review affected listings and campaigns.

If market prices fall or costs increase, we may seek revised wholesale terms, adjust the selected range or review promotional activity and listings in accordance with the agreement.

Our focus is the viability of our own supply and retail arrangements. We do not require suppliers to prevent other retailers from discounting.

Provide Representative Pricing With Your Application

Include one representative product with:

• The product name and SKU.
• A product or market reference link.
• The current market selling price, excluding GST.
• Your wholesale supply price, excluding GST.
• Compulsory freight, handling or other charges.
• Any relevant minimum orders or payment conditions.

Further pricing information may be requested during the commercial review.

Apply for a Brand Partnership >>

For guidance on RRP, retail pricing and supplier promotions, read our Retail Pricing & Promotional Guidelines.