A Guide to Starting a Clothing Business by Buying Wholesale

Dec 21, 2023

Starting a clothing business can be overwhelming, to say the least. With so many things to consider, buying wholesale can reduce some of the stress and set you up for success.

This allows you to buy a mass selection of certain items at a low cost, so you can get started on your stock and gain a profit. 

If you want to learn how to launch a business with wholesale clothing, read our simple guide below and check out our extensive range of wholesale items on our website. 

Understanding the Wholesale Clothing Market

Wholesale refers to purchasing goods in large quantities from manufacturers to retailers or small businesses.

As the items come in bulk, this is a cheaper way to source products for your clothing business. The pricing, however, varies depending on the quantity of the order, the items, and your relationship with the seller. 

Wholesalers must keep up with current trends and consumer needs to supply relevant stock that will sell well for your business. 

Identifying Your Niche

It's important to identify your niche before researching wholesalers or purchasing any stock. 

A niche is a specific area or audience you wish to target and market your business. This could include a gap in the market where consumer meets aren’t being met, for example, plus size or eco-friendly clothing.

This allows you to operate your business with less competition, leading to higher-quality products and services. 

Finding your niche involves key areas, such as: 

1. Market research: Understand current trends and consumer behaviour in the fashion industry.
2. Target audience: Businesses focusing on a niche market cater to a specific audience. Target your products or services to meet your audience's needs, interests, or values. 
3. Analyse competitors: Study your competitors, focusing on what they offer, their customer satisfaction and how they position themselves. 
4. Evaluate economic value: Ensure there is enough interest and command for the product or service you want to sell. It should be large enough to succeed but not large enough to lose its specialised appeal. 
5. Test your brand: Test your niche idea with a small, low-risk product line and gain customer feedback. 

Legal Considerations and Registrations

Once you have settled the basics, you must consider any legal considerations and complete the registration process to qualify as a verified business. 

Browse the registration applications and considerations below to start your business :

• Trade licenses 
• Business registration
• Tax registration and compliance
• Intellectual property protection
• Importing and exporting regulations
• Product safety and compliance
• Consumer rights

Building Relationships with Suppliers

Building a relationship with your supplier will lead to shared trust and efficient communication. This could open the door to lowered prices, business opportunites, or the first pick for new stock.

Follow these steps to find the right supplier for you:

1. Research potential suppliers: Use online directories, trade show listings, industry publications, and business networks to find potential suppliers.
2. Evaluate supplier credentials: Choose a supplier based on their experience, product range, minimum order quantities, pricing, and delivery times.
3. Initial contact: Prepare a range of professional questions before contacting the supplier. Follow up afterwards to show your interest and eagerness for a partnership. 
4. Negotiate terms and agreements: Negotiate and agree on pricing, payment terms, and delivery. Sign documents to set clear responsibilities and expectations during the partnership.
5. Consistent communication: Regularly contact your supplier and pay invoices on time.

Financial Planning and Budgeting

Once you have found a trustworthy supplier, you must plan the financial aspects of your business. 

To do this, organise your inventory costs, website development, leasing, marketing, and legal fees. Ensure that you can afford each area of your business by setting a strict budget and sticking to it.

You must also compare supplier prices and minimise overheads to prevent draining your finances. Once you have chosen a wholesaler, manage your inventory efficiently and always sell your products for more than you bought them to gain a profit. 

You should factor in the cost of goods, market positioning, competitor pricing, and desired profit margins to find the perfect selling price for your business.

Start Your Clothing Business With NNfashion

At NNfashion, we have over 20 years of experience in the womens wholesale fashion industry. 

Trusted by our partners and products loved by all, we supply the latest trends to your door for amazingly low prices. Our clothing is designed with love, quality, and care, which is the perfect recipe for a successful business. 

To kickstart your clothing company, browse our products today and contact us to secure your partnership.