How To Start A Wholesale Clothing Business – If you are interested in working in sales or if you love the world of fashion, a wholesale clothing business could be right for you. Wholesale clothing companies are very popular startup ventures because of their versatility and potential financial success. What does it mean to sell wholesale compared to selling private label or retail?
Wholesale clothing sales is a great option for those interested in opening a store that sells to retailers. When choosing your products, you can browse through many catalogs, and you can sell clothes to retailers around the world. This explains why as a shopper you will see the same outfits in different stores regardless of their location.
How To Start A Wholesale Clothing Business
When buying clothes to sell wholesale, you can make purchases based on what sells well in stores or other places, which offers you a bit of protection when placing large orders. At first, you will probably have to spend a lot of money to buy more supplies and set up shop, but subsequent purchases should be smaller and cheaper.
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Wholesale differs from retail in that wholesalers are buying clothes and selling them to retailers, namely stores and online companies that sell directly to consumers. Wholesalers do not sell directly to consumers.
Unlike wholesale clothing, private label clothing is the kind you can’t find on suppliers like Amazon or other big-name stores. You may need to arrange a special contract with these labels to sell their products. They also tend to cost more, which can put you at greater risk until your business model is proven.
Before you start buying wholesale clothing for resale, there are a number of license, permit and tax considerations that must be part of your wholesale clothing business plan. To get started, you’ll want to obtain a business license and vendor permit if required in your area.
However, the process of obtaining the appropriate documents for your business will depend on the state in which you will be operating. You’ll likely need a state and city business license to operate, and business insurance is also a necessary purchase.
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There are other licenses you may need to operate a wholesale clothing company. For example, your state-specific wholesale license may be required in order for you to transact legally. Also, depending on your state’s laws, you may need to obtain a sales tax license, which will allow you to charge sales tax on any clothing items you sell.
Operating location is important for any business. Make sure you carefully complete any leases or other documents required to secure your location and protect your interests in the long term.
If you are looking to buy a storefront wholesale rather than renting a facility, be sure to consider whether you will be staying in the area for a long period of time. Additionally, if you prefer to keep most of your sales online, a permanent location may not be necessary. Depending on your circumstances, leasing a space might make the most sense for you. The amount of money you have to spend will also help shape your decision.
At a minimum, you will likely need office and warehouse space to maintain your inventory, handle orders and prepare shipments. If you have staff, this could be a space you want to buy or lease. If you are running the business alone, you could probably work out of your home if you have an extra room or garage that could function as an office.
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Creating a marketing plan to target your ideal customer is an essential part of your business plan. For example, if you are selling clothes for teenagers and children, you will probably want to choose an energetic space or website with brighter colors.
If you’re after wholesale suits, elegant dresses or other high-end clothing and accessories, you might prefer a more traditional site or website. The way you market your products will go a long way towards attracting the right retailers.
Before you start investing in inventory, you should determine your purchasing strategy and whether you will be sourcing your wholesale clothing from overseas or domestically. If you are buying from an overseas manufacturer, you may pay less, but you may have to buy larger quantities of clothing at one time. There is also a chance that you may have problems with communication or logistics when dealing with merchants from overseas.
If you work with a local vendor, you may spend more to buy clothes, but your suppliers will probably be easier to deal with. The choice you make depends on your budget and how accessible you can work internationally.
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Drop shipping is a viable option when selling wholesale clothing. However, depending on your business structure, it may cause more problems than it’s worth. Drop shipping is the process of going directly from the manufacturer to the retailer without dealing with the distribution channels that are typically in place.
Many people who sell wholesale clothing love this option because they don’t have to stock merchandise and because they don’t have any fulfillment obligations or inventory. All you have to do is take the orders.
However, the profit margins in drop shipping aren’t always in the seller’s favor, and that’s worth thinking about. You also have to run frequent customer service interruptions for problems you can’t solve or handle. For example, if a drop shipper ships the wrong order or delivers it late, even though it’s not your fault, you need to address those issues with the customer.
Once you have all the necessary processes and permits in place for your business, you’ll want to find a supplier you can trust to deliver the type of clothing you want to sell.
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After you find the merchants you want to work with, you will probably need to fill out an application and be able to prove that your business is legitimate. This process may involve sharing your business license or even invoices to show that you have already done transactions. After you have established many successful relationships with vendors and distributors, you will be on your way to being seen more seriously in the industry. Networking in any industry is essential for growth, and this is one way you can help your wholesale clothing company grow.
As with any business you own and operate, you’ll want to make sure your marketing plan clearly maps out your course of action and how you can grow. You need to make continuous efforts to reach retailers and attract them with the exciting new clothes that you are buying in bulk. Advertisements, marketing your business on social media, newsletters and even flyers are just a few ways you can spread the word about your new business. Hearst Newspapers participates in various affiliate marketing programs, which means we may receive paid commissions for editorially selected products purchased through our links to retailer sites.
One of the key tenants of business is “buy low and sell high.” The clothing retail business is no different. If you want to start a clothing business, buying wholesale is the best way to buy at the lowest price, so you can add your markup, and then sell your items for a reasonable profit. Buying wholesale is not difficult, when you find the right places with the inventory you need.
To operate a clothing business, you will need to ensure that you are legal to do business in your area. Get all the necessary permits and licenses to run your business. For example, you may need a state and city business license to open your doors. Business insurance is also necessary because it protects your business in the event of a problem.
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You also need to find a suitable location for your business. You don’t need to open your store in the ritziest location, but the building and your store should be clean and welcoming to your potential customers. You’ll also need marketing materials and a marketing plan in place, so that when you have your grand opening, there will be people outside waiting for your doors to open.
Who is your target market? And what types of clothes do you want to sell? Do you want to specialize in children’s clothing, the tween market, or women’s clothing? If you don’t have a choice, look around your area to see what market is underserved. Then, try to fill that niche.
For example, if there are not many options for big and tall teenage men, if you open a clothing store aimed at this group, you would be filling this niche. Or, maybe there are no high-end or formal fashion boutiques for teenage girls or young women. Studying your market or lack thereof can help you shape the type of business you should open. Another option is a mall booth,
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