Looking for a guide on how to start a clothing business by buying wholesale? Then this post is for you.
When it comes to starting a clothing business with wholesale inventory, there are a lot many things that business blogs recommend. But as someone with first hand experience, I’d like to give you a step-by-step guide to make the process beginner friendly. You can also drop your questions in the comments.
Let’s begin!
Quick things to consider when buying wholesale
When it comes to starting a clothing business with wholesale model, you need to consider some quick things beforehand to make the entire process swift -
- Supplier reputation - You need to check that the quality of the supplier is good and it has good online reviews.
- Minimum order quantity - unless you have a supplier that offers both dropshipping and wholesale options, you need to consider the minimum order quantity based on the budget. It is the minimum number of items that you must order for making a purchase.
- Shipment time - Overseas shipment cost is something that could add to your order value. Check that the supplier has domestic warehousing and if possible select a domestic supplier.
- Refund policy - Lastly you need to read the refund policy carefully. If you are unsure, place a test order.
5 steps to start a clothing business with buying wholesale
Step-1 Get the legal documents
There are certain legal documents that you need to have beforehand when starting a wholesale clothing business. The wholesale clothing supplier will primarily require you to have a business registration and seller permit.
- Business License
- Employer Identification Number (EIN)
- State Sales Tax Permit
- Reseller’s permit
- Articles of Incorporation/Organization
- Operating Agreement (for LLCs)
- Partnership Agreement
- DBA (Doing Business As) Name Registration
- Bank Account and Financial Documents
- Insurance
- Import/Export Documentation
- Vendor Agreement
Lastly, consider secondary documents like copyright for your brand logo and other intellectual property protection documents. If you have a big inventory and a lot of employees, then you will need to check the compliance with state labor laws. Ensure your business is following health and safety regulations, and if you have an online store, make sure there’s a privacy policy page.
Step-2 Select your niche and target audience
The next step in our guide on “how to start a clothing business with buying wholesale method” is selecting your niche.
You can use tools like Google Trends for finding which type of clothing performs the best and the designs that are most liked by the customers. Check Amazon or Etsy to have a heads up on best selling clothing items.
Next study the audience that you are going to target. You can also define your target market segments based on demographics like gender, preferences, target location, average income, and other data.
For example, if you are thinking of selling off-shoulder clothing, you need to use keyword research tools for finding out the country where the competition is least. Then checkout Google shopping for finding average price, best-selling designs, and similar products.
The good thing is you will be doing bulk wholesale purchase so you will be able to run ads for the long term without worrying about shipping time or product availability.
Step-3 Find a wholesale clothing supplier
Once you have the basic idea for how to start a clothing business with buying wholesale and the research required, its time for getting a wholesale supplier.
There are many wholesale clothing suppliers you can choose from based on your needs. It can be print on demand supplier, direct manufacturer (if you can hold bigger inventory and put high investment), wholesale, or dropshipping.
After deciding the above, you can easily find a wholesale clothing supplier without much effort. Just ensure that the supplier you are working with is reliable, has good ratings, and easy refund policies.
Step-4 Select a storage location
After you have the nitty-gritty sorted out it's time to get a storage location for holding inventory. Check for storage that is located nearby your target region. Domestic centers will help you deliver faster, reduce shipment time, and get higher ROI. Also, get insurance for your inventory storage location.
Step-5 Launch your clothing business
Lastly you just need a business website for launching your online store. You can easily start an online store using platforms like Shopify. It is good for starting a beginner friendly clothing store.
You just need to sign up, install a design template (theme), select a domain name (brand name), and list the products. If your wholesale supplier have an online website, you can import the media directly from them using a free app,
If not, you can use a product importer for uploading the clothing products instead of manually doing it.
Build a rapport with all stakeholders (BONUS)
So that was our quick guide on how to start an online clothing business with buying wholesale.
Now that your business has moved on from planning to execution, it is important to put effort in building rapport with all your stakeholders so that you can remain in business for the long run. When you have a good relationship with your suppliers and customers, you can ensure that there is an uninterrupted supply of goods at reliable prices and repeat customers who will always buy from you due to service and rapport!
Armed with this knowledge, you can now take the next steps in opening your dream clothing store!
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