If you want to build a successful clothing business, you need to know:
- How to source at your target price?
- How do you sell them to a specific niche demographic?
- How to build a following of customers who love wearing your brand and the products you offer?
Wholesale Clothing
A wholesaler sells bulk products directly or through an intermediary. A wholesaler can also be a manufacturer of those products, such as Port Authority Clothing.
Why Is Wholesale Clothing Business Beneficial?
Here are the benefits of wholesale clothing. Keep reading to learn more!
Strong Brand Awareness
As a wholesaler, you can build a strong reputation in the least time than a retailer. On the contrary, retail clothing brands have consumers that shop exclusively at a specific store. That’s why retailers have to work hard to get more customers.
Wholesalers have wide retail consumers, ever-ready to buy at low cost.
High-Quality Products with Low Possibility of Damage!
Quality is the most inspiring benefit of wholesale clothing. When you source directly from manufacturers, there is a low possibility of damaged goods. This can enhance your brand reputation as a wholesaler.
Pricing Is the Key Benefit of Wholesale Clothing Business
Having various price ranges is the biggest benefit for a wholesaler. When you source your products from the manufacturers directly, this ensures a better profit margin.
Drop-Shipping
In drop-shipping, you get benefits like targeted branding and a direct line to the customer. Whether it’s in the form of a drop-shipping icon on orders, a report filter, or any other order status, you are able to separate those orders quickly. This is what retailers require from you.
For effective workflows, you need easy and effective reporting. Moreover, your team should process orders quickly and correctly.
More Convenient Than a Retail Business
Wholesalers can buy branded products in bulk around the world. This way, you can stock the best fashion products and target more customers successfully. This isn’t the scenario for retail business.
An Opportunity for Global Expansion
Selling wholesale products makes your expanding into global markets much faster and easier. Any growth and expansion are defined by your relationship with your customers.
Does your accounting system allow multi-currency transactions? Yes, it should be! Because it will allow more customers to place orders in multiple currencies.
Being a wholesaler, you have a chance to ship your products in one large container. This is pretty beneficial than sending individual retail packages. If you are going to start a wholesale business, fulfill its requirements and start working.
Possible Pitfalls in Wholesale Business
Wholesale business doesn’t have only benefits but also drawbacks.
Requires Huge Capital
Starting a wholesale business requires a lot of capital. It is due to:
- Purchasing a large number of goods.
- Requirement of sufficient balance.
To maintain market value, you should have adequate inventory to avoid product shortages. That’s why you can’t grow your wholesale business with low capital.
Needs More Space
As a wholesaler, you require more space to store goods in large amounts. Storing goods is another headache to wholesalers due to high commercial rents.
The Probability of Loss is more
Wholesalers have to store a large number of products in the warehouse. But, this is not enough here! There is a possibility of product damage like water and fire. In this situation, wholesalers can suffer enormous financial losses.
Despite fruitful benefits, wholesalers can anytime incur in these situations.
If you are going to start a wholesale apparel business, you should have these things in mind.
Due to bulk orders, wholesalers get a low-profit margin than retailers. Wholesalers make a 2% to 7% profit from sales, but retailers can enjoy a 10% to 20% profit. On the other hand, retailers sell fewer products than wholesalers.
No Direct Customer interaction
Since wholesalers do not sell products to end customers, there is no interaction between wholesalers and customers. That’s why wholesalers cannot understand the interests and preferences of the audience.
Final Words!
You can gain extensive experience in meeting the different needs of retailers. We hope that you now feel a little better prepared to make the right decision for your business. Take time to plan how you will manage your wholesale business. These benefits and possible pitfalls will help you go on the right track.
