The wholesale-to-retail-to-Etsy waterfall
If you sell wholesale to shops AND retail on Etsy, the three prices must form a clean waterfall — wholesale price for shops, MSRP that shops use, Etsy retail that does not undercut MSRP. Undercutting MSRP on Etsy will get you dropped by every wholesale account you have within 60 days. This calculator builds the waterfall from a target wholesale margin so the three prices stay consistent.
Standard multiples in handmade
Wholesale margin is typically 40–60% over true cost (cost × 1.5). MSRP is usually 2–2.5× wholesale (keystone pricing). Etsy retail should equal or exceed MSRP — never go below. So a $10 true cost becomes $15 wholesale, $30–37.50 MSRP, $30+ on Etsy. If your Etsy market price won't support that math, you cannot sustainably do wholesale on that product.
Common wholesale pricing mistakes
Pricing wholesale based on what shops 'want to pay' instead of what you can afford to make. Wholesale is brutal — you ship in bulk, give net-30 terms, take returns, and earn half the margin of DTC. Make sure wholesale margin clears at least 40% over true cost OR your minimum order quantity is high enough to make production efficient. Otherwise stick to Etsy retail only.
Etsy pricing vs other channels
If you also sell on Shopify, Faire, your own website, or in-person at markets, Etsy should usually be the highest price — Etsy has the highest fees, so the price needs to absorb them while matching MSRP. A common pattern: wholesale $15, Faire $20 (lower fees), own website $25 (no platform fees but you pay marketing), Etsy $32, in-person $30 cash. Use this calculator's outputs as the anchor and adjust other channels around it. Etsy occasionally adjusts fees, regulatory operating fees, and offsite ads rates. Always double-check the latest figures in your Etsy Shop Manager before pricing.
Frequently asked questions
What is keystone pricing?
Doubling the wholesale price to set MSRP — the standard markup in handmade and gift industries. This calculator uses 2× as the default retail multiple.
Can I sell cheaper on Etsy than I do wholesale?
Never. You will lose every wholesale account. Etsy retail must equal or exceed MSRP so shops can match it.
What if I cannot make the math work?
You either need to lower true cost (better suppliers, simpler design) or skip wholesale and stay DTC. Not every product supports wholesale.
What is a standard wholesale discount?
Wholesale is typically 50% of retail (keystone pricing), so your retail price must still cover materials, labor and profit at half price. This tool checks both prices stay profitable.