Starting a clothing business is very exciting for many reasons. However, proper knowledge of wholesale clothing buying is paramount for making profits. This is something that sounded difficult but with the proper guidance it becomes easy.
With the help of this article, you will figure out how to stock your business with clothes. It is made simple and easy for you.
Things that you will learn:
* Steps to set up your business legally.
* Where to find reputable wholesale suppliers.
* How to safely place your first order.
* Basic things that you should avoid.
This article will explain to you how to buy clothes wholesale through each step in detail.
Step 1: Be Prepared Before Buying
Before you buy clothes, you need to do a successful preparation first. This will help you save from a lot of troubles later. Think of it as a solid foundation for your building.
Define Your Target Market
You can not sell to every one. A company that focuses on a particular part of the market does better. Identify your customers.
Question yourself: Who will be my clothes buyers? What will be their age? How will they dress? How will they use money? What problems my clothes can solve? A particular focus will give you the opportunity to be different. For instance, selling eco-friendly clothes for kids would be a good example.
Register Your Business Legally
To buy clothes on wholesale, first, you should be a serious business. Many wholesalers will not deal with you unless you have proper registration.
- Business License: Most cities need this condition. This is the very first step to being able to run a business legally.
- EIN Number: It is a business version of the Social Security number. It can be obtained free from the IRS. You will need it for taxes and bank accounts.
- Resale Certificate: This is the most important document. It is the proof that you are a retailer. The form helps you buy goods without paying sales taxes initially. You will then charge tax on your clients later. The states may have different requirements. It is a good idea to check your state’s website for the details.
Draw Up Your Budget Plan
Be sure to keep track of your numbers. The budget you draw up should be beyond costs of the clothing hanging by yourself. You have to budget for all the expenses.
Your budget needs:
* Stock Prices: The cost price of the goods you ll be buying. Don’t forget the minimum order size rule.
* Shipping: It can end up costing more than you thought.
* Customs Fees: When you are buying from abroad, you will encounter these.
* Samples Fees: Often suppliers ask you to pay for samples.
* Other Costs: This includes market promotion, website costs, and packaging.
Step 2: Sourcing Clothing Suppliers
Now you are fully prepared to search for suppliers. It is possible to find several good options. The best choice will depend on your criteria and your budget.
Online Wholesale Sites
These websites offer a huge number of suppliers concentrated in one place. They are beneficial for new entrepreneurs.
- Pro: A variety of options, easy ordering, and buyer protection.
- Con: Platform fees and some competitors may have the same products.
- Examples: Faire and Tundra are well-known. You can also discover many more like Trendsi that also give dropshipping options.
Right from Factories
This involves dealing directly with the company that produces the clothes. It is advanced.
- Pro: You can order in bulk at a lower price. You may even have the chance of customizing the designs.
- Con: Usually, they require very high minimum orders. Communication difficulties might arise.
The goal of many businesses is to work with a clothing manufacturer that gives them the opportunity to have unique designs and control.
Trade Shows
These expos attract brands that exhibit their latest collections to shop owners.
- Advantages: Get to see and feel the products firsthand. Build relationships in person.
- Disadvantages: Travel expenses, tickets, and can be overwhelming for newbies.
Wholesale Districts
Wholesale shops are clustered in some major cities, such as the LA Fashion District.
- Advantages: Discover unique products not available on the internet. Many choose to buy-from-store directly.
- Disadvantages: It requires traveling. It might be hard to navigate if you are inexperienced.
Step 3: How To Choose Quality Suppliers
Locating suppliers is one thing. Finding the best ones among them is an entirely different matter. This is your verification process to keep your business safe and to make sure you get the desired quality products. The capacity to verify suppliers is an essential skill on how to buy clothes wholesale.
Assess Their Reputation
A website can be attractive, but that is not all. The only way to find out whether or not they are trustworthy is to look deeper.
Look for a well-designed site that contains adequate contact details and a valid location. The reviews, however, should be on sites other than theirs. Patterns in reviews can help you a lot. E.g., if 80% of clients complain about slow shipping, then you should raise a flag. Look for legacy sources for reliable clothing suppliers for your boutique in online groups where owners share real feedback.
Go Through Their Policies
Respectable suppliers are usually clear about their policies, while dubious ones are often vague.
Look for clear info about:
* Minimum order quantities
* Return and damage policies
* Shipping times and costs
Any difficulty in locating such information should trigger caution.
Request for Samples Always
This step is the most crucial. Never make a significant order without first seeing a sample of the item. This should be one commandment that you write in stone. It is the only way you can inspect the quality before spending large amounts of money on it.
When the sample comes, ensure to examine it carefully:
* Feel the Fabric: Is it what you expected? Does it feel strong or cheap?
* Check the Seams: Pull gently on seams. Look for loose threads or weak spots.
* Test the Size: Does a “medium” fit like a real medium? Is sizing what customers expect?
* Wash it: Wash it as the care instructions tell you, did it shrink as much as it was supposed to; did colors bleed, or did it lose shape? A product that spoils after one wash can totally ruin your reputation.
Step 4: Ordering and Problems Avoidance
You have done the research and tested the samples. Now it is time for you to make your first real order. The simple knowledge of the terms and ability to identify the pitfalls will make your introduction to the world of wholesale clothing buying.
Key Terms You Need to Know
Here are some common words you will see.
* MOQ: Minimum Order Quantity. The smallest amount you can buy. The amount could be in dollars or number of items per style.
* Pricing: The wholesale price (your payment) and the suggested retail price (they suggest your selling price).
* Lead Time: The duration between placing your order and their dispatching it.
Smart Negotiating
In most cases you won’t talk about price, especially if you are on the online platform. But other than that, you can amend anything else in order.
With manufacturers, you have some more ground. For the first orders, ask them to lower the minimum order and talk about better shipping rates on bulk orders or flexible payment terms. Always stick to good manners.
Warning Signs and Fraud
Be wise and protect yourself from warning signs. While learning how to buy clothes wholesale this will be crucial.
| Warning Sign | Reason It’s Bad |
|---|---|
| No samples sent. | A supplier who won’t send samples doesn’t trust their own product. |
| Vague contact info. | If you can’t find phone or address, they might disappear with your money. |
| Too low prices. | Very low prices usually mean very poor quality or complete scams. |
| Pressure on sales. | Good sellers don’t need to pressure you to decide to buy today. |
| Photos only stock. | If they only use generic photos, they might not have real inventory. |
It is quite essential to learn the importance of thoroughly vetting wholesale clothing vendors to avoid the issues mentioned above.
On Your Order Arrival
Boxes delivery won’t be the end of your work. Open them immediately and check them all. Take note of the styles, sizes, and color variations whether or not they match your order. Ensure there’s no shipping damage involved. You should do this before any sale.
Your Wholesale Adventure Starts Here
Now you have the steps written down in a clear manner. Knowing how to buy clothes wholesale is not a single action but a journey of steps that you take from preparation to action.
Initiate by laying a strong foundation for your business. After that, search for suppliers and check them meticulously. In the end, you should make the orders wisely and confidently. This is a competence as you learn with each order you place.
Taking these steps will not only ensure that you avoid mistakes but will also be of great assistance for you to build the successful business you have long wished for.
Questions That Are Commonly Asked (FAQ)
Is it necessary for me to obtain a license to buy clothes wholesale?
Yes, nearly all the genuine wholesale suppliers require proof that you are a legal business entity. For this case, a business license and a resale certificate are required by you. This means they can sell to you without charging tax.
What is a good profit margin for reselling wholesale clothing?
A typical retail profit margin is 50-60%. This means that you mark up the wholesale price by two to two and a half times. A shirt that you buy for $10 might be sold for anything between $20 and $25. All of these factors can have an effect on your brand and customers.
Is it possible to buy wholesale clothing without a physical shop?
Yes. Nowadays most of the new clothing companies are starting from an online base. Suppliers look at your legal business status instead of having a storefront. The legal documents that you produce are evidence that your business is functional.
What’s the difference between wholesale and dropshipping?
With wholesale, you purchase inventory in bulk and maintain it. You are the one who packs and ships the orders to the customers. With dropshipping, you are selling products which you do not own. When the customers order the products, the wholesaler sends them directly to them. You will never touch inventory.
How much cash do I need to start purchasing wholesale clothing?
The amount varies a lot. You need money for business setup, samples, and first inventory. Some suppliers have low minimums. You might start with a few hundred dollars. Others need thousands. A safe budget for first small inventory is often $500 to $2,000.
