Selling Wholesale Internationally
Why Sell Wholesale Internationally
The domestic wholesale market in any country is finite. If you manufacture or distribute products with broad appeal, international wholesale can double or triple your total addressable market. A US-based brand selling natural skincare products domestically to 200 retail accounts might find equally strong demand from 200 to 400 additional accounts across Canada, the UK, Australia, and the EU. A food product popular in the US might have untapped demand in markets where American brands carry cachet, like Japan, South Korea, and the Middle East.
International wholesale also diversifies your revenue base geographically. Economic downturns, seasonal buying patterns, and competitive dynamics vary by country. A recession in one market may not affect demand in another. Seasonal patterns differ between hemispheres (winter in the US is summer in Australia, creating year-round demand for seasonal products). Currency fluctuations can work in your favor when your home currency weakens, making your products cheaper for international buyers.
The challenge is that international wholesale is operationally more complex than domestic. Each new market adds shipping logistics, customs compliance, labeling requirements, payment complexity, and potentially product certification requirements. The most common approach is to expand incrementally, starting with one or two international markets that have the lowest barriers (Canada and the UK for US-based brands, due to language, cultural similarity, and relatively straightforward import regulations), then adding markets as you build international operations capability.
Finding International Buyers
International buyer acquisition uses many of the same channels as domestic, with some additions. Wholesale marketplaces like Faire operate internationally (Faire is active in the US, Canada, UK, and EU), connecting you with international buyers through the same platform you use for domestic sales. International trade shows attract buyers from dozens of countries, and shows like Ambiente (Frankfurt), Maison et Objet (Paris), and Canton Fair (Guangzhou) are specifically designed for international wholesale.
Online B2B platforms with international reach include Alibaba (if you are selling to Asian buyers), Global Sources, and TradeKey. For European markets, platforms like Orderchamp and Ankorstore connect suppliers with European retailers. For specific country markets, research the dominant B2B platforms and trade publications in that country, as buyer habits vary significantly. Japanese buyers rely heavily on trade shows and personal introductions, while UK and EU buyers are comfortable ordering online from international suppliers.
International distributors are the most common route for brands entering new markets. Rather than selling directly to dozens of individual retailers in each country, you sell to one or two distributors per country who handle local marketing, order fulfillment, and retail relationships. Distributors buy at deeper wholesale discounts (30 to 40 percent off your standard wholesale price) because they assume the cost and risk of market development, but they provide immediate market access without you needing local operations, warehousing, or regulatory expertise. Find distributors through trade show networking, industry association directories, and LinkedIn searches for distribution companies in your product category and target market.
International Shipping and Logistics
Wholesale shipments to international buyers typically move by ocean freight (for large, heavy shipments to distant markets), air freight (for smaller, time-sensitive shipments), or parcel and LTL (for shipments to Canada and nearby markets). Ocean freight from the US to Europe takes 10 to 20 days and costs $2,000 to $5,000 per 20-foot container, which is the most cost-effective option for large shipments. Air freight takes 3 to 7 days and costs 4 to 8 times more per kilogram than ocean, but makes sense for high-value, lightweight products or urgent orders.
Shipping terms in international trade are defined by Incoterms (International Commercial Terms), which specify exactly where the seller's responsibility ends and the buyer's begins. The most common Incoterms for wholesale are EXW (Ex Works, the buyer handles everything from your warehouse door), FOB (Free on Board, you deliver to the port and the buyer handles ocean freight and destination costs), CIF (Cost, Insurance, Freight, you pay for ocean shipping and insurance to the destination port, the buyer handles import customs and delivery), and DDP (Delivered Duty Paid, you handle everything including import duties, delivering to the buyer's door). New international wholesale sellers typically start with FOB or CIF, which give the buyer control over import logistics while the seller handles domestic transport to the port.
Work with a freight forwarder to handle the logistics complexity of international shipping. Freight forwarders coordinate pickup, containerization, customs documentation, ocean or air booking, destination clearance, and delivery for a fee that is typically 5 to 15 percent of the shipping cost. Experienced freight forwarders also advise on the most cost-effective routes, help with customs classification (which determines duty rates), and handle any issues that arise during transit. For a small wholesale business new to international shipping, a good freight forwarder is worth every dollar of their fee.
Customs, Duties, and Documentation
Every international wholesale shipment requires customs documentation. The essential documents include a commercial invoice (describing the goods, their value, country of origin, and the buyer and seller information), a packing list (detailed contents of each case in the shipment), a bill of lading or airway bill (the transport document issued by the carrier), and a certificate of origin (proving where the goods were manufactured, which determines applicable duty rates and trade agreement eligibility). Some products require additional documentation: health certificates for food products, MSDS sheets for products containing chemicals, phytosanitary certificates for plant-based products, and product-specific certifications (CE marking for EU, UKCA for UK).
Import duties vary by product category and destination country, ranging from 0 percent (for many goods between countries with free trade agreements) to 25 percent or more for protected categories. Use your destination country's tariff schedule to determine the duty rate for your products based on their HS (Harmonized System) classification code, a universal 6 to 10 digit code that categorizes every product for customs purposes. Your freight forwarder or a customs broker can determine the correct HS code for your products, which directly impacts how much duty the importer pays.
Currency and International Payments
International wholesale payments involve currency conversion, higher transaction fees, and longer payment timelines than domestic transactions. The simplest approach for US-based sellers is to invoice in US dollars and let the buyer handle currency conversion on their end. Most international buyers are accustomed to paying in USD for American products. If you invoice in the buyer's local currency, you take on currency risk (the exchange rate may move against you between invoicing and payment) but make the transaction easier for the buyer.
For payment collection, wire transfers (SWIFT) are the traditional standard for international B2B payments but incur fees of $15 to $50 per transfer plus a 1 to 3 percent currency conversion spread. Payment platforms like Wise (formerly TransferWise), Payoneer, and PayPal Business offer lower fees (0.5 to 2 percent) and faster processing. For established accounts on net terms, require a letter of credit from the buyer's bank for large first orders ($10,000+), which guarantees payment from the bank regardless of the buyer's ability to pay, essentially eliminating credit risk on international transactions.
Regulatory Compliance by Market
Each country has its own product regulations that your products must meet before they can be legally imported and sold. The European Union requires CE marking for applicable product categories, REACH compliance for products containing chemicals, EU-specific labeling (in the official languages of the member state where products are sold), and a registered EU responsible person for cosmetics and certain other product categories. The UK post-Brexit requires separate UKCA marking (replacing CE), UK-specific labeling, and registration with UK regulatory bodies. Canada requires bilingual labeling (English and French) and compliance with Health Canada regulations for health-related products, the Canadian Food Inspection Agency for food products, and the Canada Consumer Product Safety Act for general consumer goods.
The international legal considerations guide covers the broader legal framework for selling internationally, while product-specific regulatory requirements should be researched per category and per destination market before shipping your first international order.