Buying Wholesale Clothing for Resale – 6 Steps to Get Started

BUYING WHOLESALE CLOTHING FOR RESALE – 6 STEPS TO GET STARTED

Starting a clothing boutique is exciting. At first, everyone hopes that the process will be smooth and easy to execute – but in reality, there can be some unexpected challenges. And a lot of those have to do with the buying process.

If you want to build a successful and long-lasting fashion business, it’s important to understand the entire process of buying wholesale clothing for resale, from beginning to end. 

To help you out, we’ve created a simple 6-step guide on how to start your fashion business by buying wholesale clothing for resale, so you can fulfill your dreams with no bumps in the road.

Ready to stock hot-selling styles from 100+ unique Australian brands? JOIN WHOLA now. 

1. FIRST THINGS FIRST: SET UP A LEGAL BUSINESS

It’s extremely important that you handle all the legal aspects of your fashion business before moving on to anything else. Without the correct registrations, licences and permits, your business will face severe repercussions in the long run. 

There are various steps to correctly set up a business in Australia. After choosing the business structure best suited for your needs and goals, you must:

• Register an Australian Business Number (ABN) and a business name. 
• Register your business for Goods and Services Tax (GST). 
• Apply for a business Tax File Number (TFN). 

This officially sets up your new business. 

Next, you must ensure that you follow the correct guidelines in order to establish your physical store, employ workers and start selling goods. 

Depending on your desired business plan, legal requirements will vary. To ensure that you’ve covered everything, from registering for a trademark to acquiring a license to play music in your store, you can refer to the Government website of the state in which your business will be located. 

For those in New South Wales, here is a breakdown of everything you need to know in order to OPEN A CLOTHING RETAIL BUSINESS IN NSW.

2. FIND A NICHE AND CREATE A CUSTOMER AVATAR

To make sure your fashion clothing business will remain successful both short-term and long-term, it’s important to find a niche and focus on a specific customer. 

For example, you may want to buy wholesale clothing targeted at teens or young adults. Or, you may want to serve the “yummy mummy” customer profile – young mums who want to look chic while leading a busy life. Maybe your ideal customers are plus-size or mature women. 

There are a variety of ways in which you can decide on your niche and create your customer avatar:

• Analyse other small fashion businesses in the area and identify any gaps in the market where your business could shine through. 
• Find a unique angle that would set your store apart from others i.e. focus on selling a certain style of clothing. It’s important that your niche is something that will be popular all year round that will remain relevant and attractive year after year. 

Finding your niche and creating a customer avatar requires experimentation. Don’t be afraid to take time in exploring different paths to find what works for you. This process often takes at least a year to figure out, so persist in finding your own unique space in the fashion world!

3. FIND CLOTHING SUPPLIERS FOR YOUR STORE

Now that you’ve successfully got your business running and have a clear idea of what you will be offering and who for, it’s time to find the clothing suppliers for your store. So, where will you be buying your clothing from? 

There are various routes you can take when it comes to product sourcing for your clothing business. Are you going to be buying your clothing from manufacturers, labels or wholesalers? Will you buy your clothes from overseas suppliers or stick to sourcing from Australia? 

There are advantages and disadvantages to each of these methods, which we covered in our article on HOW TO FIND CLOTHING WHOLESALERS. You can also use our article on the TOP 10 AUSTRALIAN CLOTHING WHOLESALERS to find the best domestic supplier for you.  

Next to the types of suppliers listed above, B2B fashion marketplaces have become one of the most popular ways to buy wholesale clothing for resale. They act as a one-stop shop where you can buy everything you need in one place, saving you time and ensuring that you always have new styles to choose from.

WHOLA is an Australian B2B marketplace stocking 100+ leading Australian labels that you can shop whenever you need, wherever you are. Our curated selection consists exclusively of top-selling fast-to-market brands that dispatch within 24 hours.

This makes the buying process easier than ever – no need to go on time-consuming buying trips or put up with pushy salespeople. We want to contribute to your fashion boutique’s success, so we even give you stocking insights on your local competitors to ensure your store remains one-of-a-kind. 

Easily browse by category or label and find top-selling new styles on the Whola marketplace. 

4. DEVELOP RELATIONSHIPS WITH YOUR SUPPLIERS

Maintaining a good relationship with your clothing suppliers is essential. You should aim to establish a long-term exchange that will remain smooth and efficient so you can run your fashion business with ease. 

Depending on the type of supplier you opt for, building an ongoing relationship can be very easy or relatively difficult. For example, overseas manufacturers may not be well-equipped to deal with small boutique owners. 

On the other hand, B2B marketplaces often focus on their customer service as they understand that the majority of their clients are small business owners. 

Whola prides itself on its customer service team that offers support throughout your buying process. From answering your questions to helping you choose new styles for your next order, Whola is here to help 24/7. 

Learn more about the roles of WHOLESALERS VS DISTRIBUTORS VS SUPPLIERS in the fashion supply chain. 

5. COME UP WITH A BUYING STRATEGY

Your buying strategy is one of the most essential steps to a successful business, as this will determine whether you sell out or are left with dead stock. Getting rid of dead stock can be extremely difficult and means you usually end up taking a hit on profits. 

As a general rule, in order to optimise sales and profit, it’s best to only buy exactly what you need when you need it. This is especially important for new businesses starting out because, at this point, you can’t really forecast your sales. 

Make sure you are not buying stock months in advance, as circumstances can change such as style trends or market forces like global pandemics, which can negatively impact your sales. 

In the beginning, try to order the smallest amount of stock possible and only reorder when it has sold out. This will reduce your buying risk to a minimum and ensure your business remains profitable. 

In time, you will be able to afford to experiment more with your buying strategy until you find one that’s most efficient for your business. 

6. PRICE TO MAXIMISE PROFITS

Speaking of profitability, once your buying strategy has been established, you can now determine your store prices. 

Pricing is an essential element of your RETAIL STRATEGY. It’s a risky process, as charging too much or too little can have a major impact on the performance of your fashion boutique. 

Here are just a few of the aspects you should consider in order to find the perfect store prices for your clothing stock:

• Wholesale clothing price: Identify the overall cost you are paying for your wholesale clothing supply. Buying from a marketplace like Whola is a great way to know exactly what you are paying, as Whola offers the same price as going to labels directly, with the added bonus of having everything you need in one place.
• Overhead cost: Covering wholesale prices isn’t enough – you need to account for all of the overhead costs associated with keeping your business running. Costs such as rent, utilities, travel, insurance, marketing and staffing also need to be included when determining your prices. SPEAK WITH A RETAILER HAPPINESS ASSISTANT AT WHOLA if you would like help determining a standard markup to apply to cover these costs and allow for profitability.
• Your target customers: Your CUSTOMER AVATAR should give you an accurate insight into how much you can charge with the guarantee that your customers will be happy to pay for it. You can also carry out customer surveys that will also help you to understand the exact pricing range your customers are willing to pay, which you can then apply to your clothing supply accordingly. 
• Competitors’ pricing: Looking at your competitors’ pricing will help you to determine your level of profit. Charging too much may mean that your customers go to your competitors for a better deal, so it’s always best to make sure that you are aware of local competitors. 

CONCLUSION: 6 STEPS TO BUYING WHOLESALE CLOTHING FOR RESALE

Buying wholesale clothing for resale is a complex process that requires a lot of experimentation. However, there are ways to set yourself up for success:

• First of all, have your legal requirements in place.
• Decide on a niche and create a customer avatar. 
• Find the right wholesaler supplier for your business.
• Forge well-established relationships with suppliers.
• Build a solid buying strategy.
• Work out your prices and receive a great profit that will keep your fashion business running for years to come. 

We wish you the best of luck! If you’d like to learn more, check out our in-depth article on HOW TO START A FASHION BOUTIQUE. 

FREQUENTLY ASKED QUESTIONS ABOUT BUYING WHOLESALE CLOTHING FOR RESALE 

 

HOW DO I BUY WHOLESALE CLOTHES FOR RESALE?

To find wholesale clothing suppliers, you can either opt for in-person opportunities such as trade shows or fashion referrals by your connections. Alternatively, there are online opportunities such as social media networking and B2B online fashion marketplaces such as Whola. 

CAN YOU RESELL WHOLESALE CLOTHES?

Yes. By legally setting up your own fashion store, obtaining the required licenses and fulfilling the correct consumer guidelines, you will be able to legitimately purchase wholesale items which you can then resell in your own store for a profit.

WHERE CAN I BUY QUALITY WHOLESALE CLOTHING?

There are a variety of wholesale suppliers you can choose from, both domestically and overseas. However, B2B fashion marketplaces like Whola are one of the most popular options for wholesale supply, as they offer everything you need all in one place at label prices. 

Ready to stock hot-selling styles from 100+ unique Australian brands? JOIN WHOLA now.