How to Start a Clothing Business With Buying Wholesale

Most clothing retailers obtain inventory by purchasing bulk and wholesale lots of clothes from various suppliers, manufacturers and distributors. Buying wholesale is essential in order to make a profit, enabling the most successful clothing sellers to mark up their purchase prices significantly. If you're looking to sell clothing and buy wholesale merchandise, there are several things you should be mindful of before starting your business.

Step 1

Target a niche for your clothing business to help you distinguish yourself from other clothing sellers. For instance, you can specialize in selling children's clothing, clothing for teens, plus size clothing or suits for men.

Step 2

Obtain the permits required in your area to run a retail business, such as an assumed name certificate, resale permit or sales tax permit. Such business documentation will be necessary in order to open wholesale accounts with clothing suppliers.

 

 

Step 3

Find selling venues for your clothing business. The most expensive venue is a traditional, physical store. Less expensive options include mall kiosks, your own e-commerce website through a company such as Core Commerce, online marketplaces, such as Bonanza, Internet auction websites like Ebay, and local flea markets.

Step 4

Secure a storage area for your merchandise, if you will not be opening a brick-and-mortar storefront. A commercial storage facility or warehouse would work, but you can start with a spare, clean closet that is free from odors, sunlight and pets.

Step 5

Make a list of clothing brands you would like to sell. Think about your niche and the image of the brands you want to sell, because this will be a key consideration for your suppliers before they will do business with you. For example, if you plan to primarily sell discount or off-brand clothing, a luxury brand would be unlikely to align with your business, since your image wouldn't align with their brand. Keep in mind that you can still buy clothing from luxury brands in other ways, such as through liquidation sales and auctions. You just won't be an official retailer.

Step 6

Open wholesale accounts with clothing brands, manufacturers and distributors in your niche by contacting suppliers directly or visiting their websites. Many suppliers have a wholesale application online. To open a wholesale account, you will need to fill out an application with each supplier, place an initial order and provide proof, such as a sales tax or resale license number, that you are a business.

Step 7

Arrange your clothing logically and attractively, if you will be opening a physical store. For example, place all t-shirts in one area, jeans along a separate wall and casual shirts on their own rack. Sort clothing by size, so that customers can easily find what they need, and be careful not to cram clothing displays together too tightly. You don't want your store to be difficult to navigate and frustrating to shoppers.

Step 8

Promote your clothing business. Host a fashion show featuring the clothing you sell, place coupons or fliers in complementary businesses, such as beauty salons, shoe and accessory stores, open social networking accounts, launch a promotional blog and website or buy local radio ads.

by Melinda Gaines, Demand Media

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