How Can You Start A Wholesale Clothing Business in 2020?
By having an interest in working in sales or having passion for the world of fashion, starting a wholesale clothing business might be right for you. Wholesale clothing companies are very popular startup ventures because of their potential finance success and their versatility. So selling wholesale is becoming more popular than selling private label or retail.
Target Boutique Owners For Wholesale Clothing Business
Wholesale clothing sales is one of the best choices for the interested persons who are going to open a shop for selling to retailers. At the time of picking your products, you can browse through dozens of catalogs as well as you can sell clothing items to the retailers around the world. For this reason, you are seeing the same outfits in different stores regardless of their locations.
When you are purchasing clothing to sell wholesale, you can make purchases based on thinking which items are being sold well in other locations or shops. Thus you can establish protection for your investment when you are going to place large orders from suppliers. At first, you will want to spend a lot of money purchasing a larger supply of merchandise to set up a wholesale clothing shop. But initially your purchasing lots should be smaller and less expensive.
Wholesale is different from retail in that wholesalers are selling their bulk items to the retailers, online companies and namely stores which sell directly to consumers. But the wholesalers do not sell to consumers directly.
Private label clothing is different from wholesale clothing since you can’t find the suppliers from marketplaces like Amazon, Alibaba. You have to manage a special contract with these labels in order to sell their products in your store. You can also face a greater risk by taking products from them if your business model is not proven.
Securing A Physical Location
It’s important to any wholesale clothing business which is an operating location. Always ensure that you have completed to check your legal documents properly and you can protect your interests based on long term.
When you are looking for buying a storefront for your wholesale clothing business rather than renting, you have to think that you’ll stay in the area for a long period of time. Additionally, if you develop your website and want to sell most of your items online, the decision for buying storefront will be unnecessary. Considering all the circumstances, it will be better to lease a space that will make the most sense for you. You have to shape your decision with the amount of money you are going to spend.
If you think the least, you’ll require a warehouse and an office space to handle orders, to keep your inventory and to prepare shipments. If you have staff, you should lease a space. If it’s only you, you can use a room of your home and can use your garage as a warehouse.
Marketing Plan For Your Wholesale Clothing Business
Creating a marketing plan to target your audience is so much important for your wholesale clothing business. If you select the niche of teenager clothing items, you’ll require an energetic space or colorful website to boost your sales. If you are dealing with elegant products, you’ll require a traditional website.
After targeting the right retailers, you can make a digital marketing plan to maximize your profit. You can go for SEO of your website, running campaigns through Google adwords, Facebook, Instagram, YouTube and many more platforms.
We’ll suggest enlist your business in the wholesale clothing marketplaces. Let’s discuss our wholesale fashion marketplace Stylepick. Stylepick is an online wholesale fashion marketplace dedicated to inspire manufacturers and the best wholesale women's clothing vendors through the combination of trendy styles and user friendly web interface. It is a virtual fashion district for all vendors and retailers globally. Established in Los Angeles, Stylepick offers experiential wholesale environments and a mix of the latest and top wholesale women's clothing from different vendors like J.nna, Blue B, Day & Night, Hers & Mine, Davi & Dani, Spotlite and many more.
Drop Shipping Options
Drop shipping is a viable option for your wholesale clothing business. It is the process of going directly from the manufacturer to the retailer without having a deal with the distribution channels.
A lot of people who are selling wholesale clothing items love this option. Because they don’t have to store products in their warehouses. They just collect orders and send those orders to the manufacturers.
However, the profit margins are not under your control for drop shipping. So you have to negotiate this thing with your manufacturers. Your customer support has to face many problems which are not on your side to fix those problems. So your business reputation will go under control of your manufacturers.
You have to find out the suppliers whom you can trust without any hesitation. Besides they have to deliver you the products before the deadline without generating any problem.
After finding out the desired merchandisers with whom you would like to work, you have to fill out applications and have to submit necessary documents to prove that your business is legitimate. Sometimes you have to show your invoices to prove that you have already made transactions. When you have established multiple relationships with the merchandisers and distributors, you can go ahead in a more serious way in the industry. Networking is important in any type of industry for your business growth. Through networking you can also grow your wholesale clothing business in a significant way.
Focusing On Overall Strategy
You have to determine your purchasing strategy for your wholesale clothing business before beginning to invest in your inventory. You have to make a decision whether you’ll buy from overseas manufacturers or domestically. If you acquire your wholesale clothing items from the overseas suppliers, you may end up paying less money. But you have to order a larger minimum order quantity at one time. Besides you’ll face communication problems with the suppliers as well as logistic problems.
By working with a domestic merchandiser, you may spend more to buy wholesale clothing. Besides it will be easier for you to deal with your suppliers. Everything is depending on your budget and you’ll decide from where you’ll buy wholesale clothing.
License, Permits & Taxes
Before beginning to buy wholesale clothing, there are several licenses, permits and tax considerations. These things will be an important part of your wholesale clothing business. So it’s mandatory to manage these papers if these are required in your area.
If your state provides wholesale licenses to run your business, you’ll have to grab this. So your transactions will be legal. Besides you are supposed to have a sales tax license if your state requires this. You also have to go for business insurance for your business safety.
As you are owning your wholesale clothing business, you have to make your business plan so precisely that you can take significant actions to grow your business. You have to make a plan to reach your retailers and allure them with new wholesale clothing items which you are buying in bulk. Marketing your business on social media, advertising, newsletters, colorful catalogs will help you primarily to spread the words regarding your wholesale clothing business.