Every business revolves around the primary principle of ‘buying low and selling high’. The same applies to a clothing line business. The best way to begin a clothing business is to buy wholesale at low cost, add on your mark-up percent to the goods, and then put them up on sale to earn a fair profit.
How to start a clothing business by buying wholesale?
There is no problem in purchasing wholesale products, but you need to find an appropriate wholesaler of the requisite goods. After winding up the legal formalities of setting up a business, decide the kind of clothes you wish to trade in and do online or offline research for the relevant wholesalers. You can file in your application and contact them through a phone call, email, or in person. They will need copies of your business permit and license, and supply the goods thereafter. Further, you are required to maintain a healthy relationship with the wholesale suppliers for the success of your business.
Glimpse through the detailed requirements of starting a clothing business with wholesale purchase.
How to sell wholesale clothes from home:
Fulfilling the Legal Obligations
In order to initiate any kind of business, you are expected to secure the legal permits, licenses, and related documents. This would ensure that you are allowed to run the business in any given area or location. To start with, get a state or city business license for your clothing line. Further, you require trade insurance for the protection of your business assets in case of a mishap.
Deciding the right location for a business is also crucial for its success. This does not mean that you have to establish your store in a plush area. All you need is a clean and uncongested location to set up a showroom. Besides, every business entails a marketing strategy and advertising plan for its impressive opening. Any business owner would like to put a good first impression on the potential customers waiting outside the store.
Choosing your Niche
What is your target audience? And what kind of clothes you prefer to sell? Do you want to focus on kids’ clothing, teen fashion, ladies’ wear, or any other? If you wish to trade in one particular type, examine your area and try to find out where is the market lagging behind. That is the niche where you can fill the space and establish yourself.
Such as, if there is a scarcity of clothing options for tall sturdy teenaged boys, and start a clothing line specifically focussing on this group, you are providing for the relevant niche. Similarly, if there are no boutiques for ladies/girls’ formal or luxury wear, you may open up a particular showroom for these clothes.
It is essential to scrutinize the market to learn about its competitive and non-competitive parts. This will help you model your business accordingly. Other alternatives include opening a retail kiosk, or store the goods and sell them online on sites like eBay.
Searching for Wholesalers
After you have worked out your business strategy and fulfilled the legal obligations, you need to look for the wholesalers. There are several ways to find the right wholesale suppliers. One way is to search for websites of the companies that trade in various clothing brands. Alternatively, you can check the websites of the relevant clothing brands. You will see some wholesale-related information present on the top or bottom end of the site. Here, you may not find detailed data related to order quantity, costs, terms, or qualifications. But you can use the information to get the contact number, location, or email id of the wholesaler.
Contacting the Wholesale Suppliers
Generally, there is a provision of applying directly for wholesale on a website. In some cases, you may have to email or call the wholesaler’s representative. The complete process is mostly simple for you to become a reseller. Yet the wholesalers of elite brands may cause a few complications if your business has just recently started.
You will be asked to show documents that confirm the legitimacy of your business. Wholesale suppliers require your copies of business license, resale permit, and invoices of any other wholesale accounts you may have. Before you sign agreements with wholesalers, ensure that you are aware of all their terms, pricing conditions, credit criteria, and other essential information.
Building Supplier Relationships
Relationships play a vital role in any kind of retail business. From the point of searching for the wholesalers to working with them, you need to put in adequate time, money, and effort. Building a healthy relationship with suppliers is crucial to the final success of your trade. If you are on good terms with the wholesaler’s representative, you will probably get favorable terms, pricing, and merchandise for your business. It is very important to stay respectful of a wholesaler’s time and payment dates. Similarly, if you are facing any issue with respect to the wholesale products or related things, it is better to communicate and address it soon else it may escalate into a bigger problem.
Other Alternatives for Inventory
Given below are some of the other ways to purchase wholesale clothing products:
- Visiting trade fairs or similar events of the clothing industry
Here, you can meet the wholesaler representatives directly and look through their sample goods prior to purchasing the stock.
- Buying goods from the stores that want to dispose of their merchandise
These stores are either losing business or wish to do away with goods at the season’s end. Even though their items may not be in trend, they will still provide you with profits. Such products are usually found in abundance and give you a chance to please the customers with low-cost good deals.
- Associating with Liquidators
Wholesale liquidation companies purchase unsold goods from catalog merchants and main departmental stores. These goods are then stored in bundles and sold to resellers. In this, you cannot pick and choose every piece based on your likings or preference. However, you have the benefit of buying new branded clothes for pennies on a dollar. Besides, popular liquidators let you know the contents of the bundles exactly. Some of these companies offer lots online at their websites, so you can place an order more easily.