How to Source Products for Your Fashion Store: The Ultimate Guide

HOW TO SOURCE PRODUCTS FOR YOUR FASHION STORE: THE ULTIMATE GUIDE

Whether you run an e-commerce website or a brick-and-mortar store, one of your biggest challenges is probably stocking up on unique styles that your customers want.

By mastering the art of product sourcing, you’ll ensure that your shop is always filled with the right products, at the right time. You’ll avoid common retail pitfalls, like selling out of popular styles or getting stuck with large quantities of items that don’t sell.

In this complete guide, we’ll explain everything you need to know about product sourcing for your fashion boutique.

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

CONTENTS

WHAT IS PRODUCT SOURCING?

Product sourcing is the process of finding and purchasing products to sell to your customers. 

There are many different methods of product sourcing including buying from wholesalers or directly from manufacturers or labels. You could try a combination of these strategies.

Before you can start sourcing products, you need to: 

• Understand your customers and their taste. 
• Keep up with current trends. 
• Be aware of what your competitors are selling. 

We’ll get into all that in a minute – but first, let’s talk about the number one rule of product sourcing for your fashion store. 

BUY ONLY WHAT YOU NEED, WHEN YOU NEED IT

If you want to run a successful fashion boutique, follow this rule: don’t indent. 

(If you’ve never heard of indent, it’s preordering a collection 4-12 months in advance, usually with a large minimum spend).

In today’s world, indenting six months in advance is a risky buying strategy. It requires you to forecast everything from seasonal trends to your stock requirements, cash flow and customer trade levels. 

New businesses should never indent for the first 12 months. When you’re just starting out, you don’t know your customers. You don’t know if you’ve ordered the right styles and sizes, or the right amount of units for your store. 

Spend the first year getting to know your customers throughout all seasons. Buy only what you need, when you need it. Order the smallest pack available – 5-7 units is usually enough to test a new style. If the style sells, reorder it – and don’t stop reordering until it stops selling!

Once you’re into your second year of business and you’ve gauged your customers’ taste, only indent on:

• Your flagship brands.
• Special occasion styles.
• Specialty footwear.

This product sourcing strategy will give you more control and ensure that you’re only buying what you’re selling. 

Next, let’s look at two ways to start figuring out what products to buy for your fashion store:

CREATE A CUSTOMER AVATAR 

Start by defining who your ideal customer is. 

What’s their lifestyle and what are their hobbies? What type of clothes and accessories are they interested in? How would you describe their style? 

It’s important to consider factors like age, gender, budget, personality, body shape, and size. 

You can have multiple customer avatars, but it’s best to focus on a specific niche. The better you understand your customers, the easier it will be to buy the right styles for them. 

Watch the video below to learn more about creating a customer avatar and the reason to avoid indent when you’re starting out with your fashion store. Or check out our detailed guide on creating YOUR OWN CUSTOMER AVATAR with a free workbook.

9 PRODUCT SOURCING STRATEGIES FOR FASHION RETAILERS

Now let’s get into the different strategies you can use for product sourcing.

1. USE A B2B WHOLESALE MARKETPLACE

B2B wholesale marketplaces are a simple, convenient option for both E-COMMERCE AND PHYSICAL STORE OWNERS. 

When you register for a B2B wholesale marketplace like WHOLA, you’ll have access to a curated and constantly updated selection of the best and most popular items on the market. 

It’s free to join Whola, and members have access to a large collection of fast-to-market, trendy AUSTRALIAN FASHION BRANDS in one place. Our user-friendly website is a one-stop shop for stocking your boutique with best-sellers.

You can browse the collection at your convenience and place orders 24/7, with no pressure from sales reps. 

We aim to dispatch all orders within 24 hours so you can receive your products quickly and start selling them in your store. 

Plus, geographic exclusivity means you’ll get a unique retail mix for your store. If you buy a style for your store, no one else in your area can buy that same style.

Whola provides attentive customer service, recommendations, and reasonable prices. By curating the best of what’s on the market, we help you save time, money and hassle as you purchase products your customers will love.

2. SOURCE PRODUCTS FROM INDIVIDUAL WHOLESALERS

Wholesalers act as a middleman between retailers and manufacturers. They don’t produce anything themselves but rather buy products from manufacturers and sell them in bulk.

Many store owners work with a few different individual wholesalers who supply them with products. However, before you start working with wholesalers, you’ll have to do plenty of research. It’s not easy to find high-quality wholesalers that stock the right kind of products for your store. 

You may have to contact lots of different companies to find what you are looking for and compare their prices to find the best deals. Read more in our article on HOW TO FIND CLOTHING WHOLESALERS and see our list of the TOP 10 CLOTHING WHOLESALERS IN AUSTRALIA. 

3. WORK DIRECTLY WITH LABELS 

Another option is to work directly with clothing designers and labels. 

To do this, you will need to research lots of different labels that fit your ideal price range and style. Then, you’ll need to get in touch with designers directly to put in orders for your store.

Most retail stores stock products from a large variety of labels. Dealing with each label individually to curate your collection could be a tedious, time-consuming process.

4. WORK WITH AGENTS OR SALES REPS

A popular method of product sourcing is to work with an agent who will help you select and purchase products for your store. This can work well if you establish a longstanding, good relationship with your sales rep.

However, this old-school approach has its downsides. Sales reps tend to put pressure on store owners to buy, and they may try upselling you on brands that don’t necessarily work for your business. 

Working with sales reps and agents means taking time out of your business to do your buying, which can lead to a loss in sales while you’re not selling.

5. SIGN UP FOR TARGETED EMAILS OR LOOKBOOKS

You can also find new products by signing up to targeted email lists or lookbooks. These can be useful in curating popular products and giving you a brief list of the best styles, and a way to order them.

The problem with this product sourcing strategy is you may find yourself bombarded with lots of emails. This can be overwhelming. You’ll have to spend a lot of time combing through your inbox to find the right products. 

In addition, the styles that you like may not always be available or easy to find when you need them.

6. SOURCE PRODUCTS AT TRADE SHOWS

Trade shows like FASHION EXPOSED NOW and MELBOURNE RETAIL FESTIVAL are a great opportunity to browse the latest styles from different labels. 

You can get an up-close look at products and materials. Plus, trade shows give you a chance to network and learn from experts in your industry.

While it’s worth going to these events, they usually only happen once a year, or even less, owing to covid lockdown restrictions. In the meantime, you’ll need to find other ways to source inventory for your store.

Furthermore, labels often can’t guarantee exclusivity in a trade fair environment, meaning you may end up with a conflicting store in your area that also stocks the same brand.

7. FIND PRODUCTS ON SOCIAL MEDIA

Many labels and wholesalers are active on social media. So why not check out their accounts and contact them directly? This can be another way to source products for your fashion retail store.

For example, you can approach brands directly through their Instagram channels. The advantage of this is that you can use the app to research the brand: find out how popular their products are and get an idea of their target demographic.

However, contacting each company separately through their social media account and waiting for them to get back to you can be time-consuming. 

8. GO DIRECTLY TO MANUFACTURERS IN CHINA

You might think that dealing directly with manufacturers in China is the most cost-effective way to source products for your fashion store. 

After all, by cutting out all the middlemen and going straight to the manufacturer, you would get the cheapest prices and have the largest profit margins. 

But, unfortunately, there are lots of problems with this approach. 

First of all, you may be surprised just how much additional fees like taxes and shipping can rack up the price when ordering directly from manufacturers in China. 

Secondly, language barriers and cultural differences could make it difficult to do business successfully. 

And thirdly, these manufacturers are used to dealing with large wholesalers. You won’t receive a great level of customer service, they may consider your business too small to be worth their time, and won’t provide aftercare for faulty products.

They will only deal with massive minimum order quantities (MOQs), and there could be a long lead time until you receive your products.

This means you could be left without stock, or holding vast quantities of products that you are unable to sell.

Learn more about the difference between WHOLESALERS, DISTRIBUTORS AND SUPPLIERS.

9. DROPSHIPPING

Dropshipping is a product sourcing method that works exclusively for e-commerce stores. 

Essentially, it’s an arrangement with a wholesaler where you sell their products on your website and you only purchase from them when an item is sold. Then, the supplier ships the product directly to the customer. 

The advantage of this type of product sourcing is that you don’t have to carry any stock yourself. You never have to worry about buying too much or arranging for storage. 

The downside is that, as a retailer, you will never handle the products and you have no control over the shipping, as the items will be sent straight to the customer. 

With dropshipping, there’s little you can do about missed orders or faulty products, and there aren’t many desirable brands that offer this option. 

CONCLUSION

There’s obviously A LOT of ways to find different suppliers. Once you’ve had a think about these, it’s time to narrow it down a little.

HOW TO CHOOSE CLOTHING WHOLESALERS – DOMESTIC AND OVERSEAS

When you are looking for clothing wholesalers, there are several things to consider.

• Location. You need to look for wholesalers that can supply to your region, whether they are based in Australia or overseas.
• Order quantity. The wholesaler you choose must be a good fit for your business, in terms of size. Check out their MOQs and ensure that it’s viable for you because you don’t want to have to order vast quantities that you don’t have the means to store or sell fast enough.
• Price. Of course, their prices must be within your budget, and you should browse their catalogue to ensure that they stock brands and styles that work for your target market. 

Ideally, you’ll build long-term relationships with wholesalers. So make sure you work with reliable and trustworthy companies that provide you with quality products, within the agreed timeframe, at a fair price.

Start reaching out to wholesalers and be honest about exactly what you need, including minimum order quantity and budget. 

TOP 5 AUSTRALIAN CLOTHING WHOLESALERS

1. WHOLA

WHOLA is a B2B fashion marketplace bringing together the best fashion and lifestyle labels in Australia all under one roof. We provide a convenient buying experience for retailers that will save you time, money and hassle.

It’s free to register with Whola, and when you sign up to the platform you’ll get access to a wide range of fashion brands at your fingertips. You can trust that everything on our platform has been selected for its potential to sell fast.

We’ll never put you under any pressure to buy. You can browse at your convenience and buy products as you need them, with fast delivery so you can get them on your shelves or listed on your site as soon as possible.

Choose from a curated list of 84 leading Australian brands, with select edits of hot-selling styles that are updated regularly. 

We’ll even help you protect your point of difference by guaranteeing geographic exclusivity in your suburb on all styles you buy.

2. STYLE STATE

Founded in 1989, STYLE STATE is a women’s clothing supplier with physical stores located in Melbourne and Sydney and an online platform. The entire range is also available via Whola so you can do all your buying in one place.

Style State provides quality fast fashion that stays ahead of emerging trends, with new styles introduced to the catalogue every week. 

They also offer exclusive styles that are designed in-house by designers from the Style State label.

3. SPICY SUGAR FASHION

Providing a large range of clothing for all occasions, SPICY SUGAR FASHION’s catalogue is updated every week with new styles. 

Spicy Sugar Fashion caters for all different styles, from casual to formal looks. They stock three different brands: New Cover, Teaberry and their in-house brand, Spicy Sugar. 

You can browse through the products available on their site, and also preview and preorder new styles from their “Coming Soon” selection.

4. LAUNCH FASHION MANAGEMENT 

LAUNCH FASHION MANAGEMENT is a sales management and strategy agency that aims to unite retailers, designers and fashion houses and build long-term relationships in the industry.

As well as sales strategy and management services, they also consult in design, marketing strategy, contract negotiation, fashion business management and more.

5. GLOBAL FASHION HOUSE 

GLOBAL FASHION HOUSE was established in 2006 and stocks a variety of in-house brands such as Ebby & I, Label of Love and All That Glitters. 

Their collections include sophisticated occasion wear, classic tailored workwear and basics. 

You can view their lookbooks online, but to place an order you must either contact their head office or the office of the label you are interested in.

TOP 5 UNIQUE AUSTRALIAN LABELS TO STOCK YOUR STORE

If you want to start sourcing fashionable pieces that are bound to sell out fast, here are five great unique Australian brands to start your collection. 

You can purchase the hottest styles from all these brands from WHOLA’S MARKETPLACE.

1. CAZINC THE LABEL

A preview of Cazinc the Label’s latest collection

Launched in 2018, CAZINC THE LABEL combines function and style to create a useful, wearable wardrobe for busy women. 

Their versatile clothing is designed to last, incorporating trends yet remaining timeless. Their collection includes casual clothes, workwear, and occasion pieces. 

Seeking more sustainable solutions, the brand has localised the design and production of clothing and uses only good quality, breathable fabrics. They also won the prestigious Ethical Label of the Year Award for 2021.

SHOP CAZINC THE LABEL ON WHOLA

 

2. DAISY SAYS

A preview of Sanctum the Label’s latest collection

SANCTUM THE LABEL’s philosophy is all about producing high-quality garments made from exquisite natural fabrics. 

Their pieces are created for 30+ women. With a resort focus and boho flair, their styles are also suitable for mature or curvy customers.

SHOP SANCTUM THE LABEL ON WHOLA

4. BAGIRA THE LABEL (BTL)

A preview of Bagira the Label’s latest collection

Fusing oversized casualwear with high fashion, BAGIRA THE LABEL aims to design bold and beautiful clothes that are forever wearable.

Going by the motto that “nothing you like is ever out of style,” the brand creates collections of timeless, unique pieces with a point of difference.

SHOP BAGIRA THE LABEL ON WHOLA

5. GLOBAL DESIGNER SOLUTIONS (GDS)

A preview of GDS’s latest collection

GLOBAL DESIGNER SOLUTIONS (GDS) is a fashion label for elegant women over 30, offering high-quality, flattering garments. 

They mix business and casual fashion with feminine silhouettes and high-quality materials for an elevated, classic look. 

GDS is a USA-based company with an Australian-owned subsidiary. All their items are designed in the USA, and every season their collection includes updated prints, shapes and details. 

SHOP GDS ON WHOLA

PRODUCT SOURCING: THE ART OF STOCKING YOUR STORE WITH STYLES THAT SELL

A great product sourcing strategy is the key to running a successful fashion boutique or e-commerce store.

Having your store stocked with the right product at the right time will help you generate a consistent income. You’ll ensure that you never run out of popular styles too soon, nor end up with surplus stock that won’t sell.

Though there are many ways to go about product sourcing, today’s savvy retailers are turning to B2B marketplaces to source products, both for online and offline boutiques.

Using a marketplace can make your life easier and save you time and money compared to some of the more old-school, risky ways of buying inventory.

If you want to learn even more, check out our guide to BUYING WHOLESALE CLOTHING FOR RESALE and STARTING A CLOTHING BOUTIQUE.

FREQUENTLY ASKED QUESTIONS ABOUT PRODUCT SOURCING FOR FASHION RETAIL STORES

 

HOW DO YOU SOURCE A PRODUCT FOR RETAIL?

To source products for your retail store, you have to research different types of suppliers that can provide the kinds of products you need. 

One of the best options for modern fashion retailers is to use a B2B wholesale marketplace such as Whola. You’ll get a curated selection of brands and styles, which, in Whola’s case, are specially selected for their fast-selling potential. You can browse styles and purchase conveniently at great prices, knowing that your store will always be stocked with hot styles that suit your clientele.

There are other ways to source products for your store, for example, you could approach manufacturers directly. Though they may offer low prices, the downside is that it will take a long time to find the right companies, and many wholesalers and manufacturers have very high MOQs (minimum order quantities) which are impossible for small businesses. Plus, there’s the added risk of having no recourse for faulty items.

You can also try contacting labels on social media, attending trade shows, working with agents and sales reps, or signing up for targeting emails.

HOW DO YOU DO PRODUCT SOURCING?

To source products, you can use B2B wholesale marketplaces, work directly with wholesalers, manufacturers or labels, contact brands through social media, attend trade shows or enlist a sales rep to help you.

Whichever sourcing method you choose, it’s important to have a clear idea about who your typical customers are and what kind of products they are interested in. 

Before you buy anything, it’s good to research what kind of products people are searching for online in your area. You can use Google Trends to find popular search terms or look through the best-seller lists on large e-commerce sites like REVOLVE, NET A PORTER, SPELL or SEED HERITAGE.

HOW DO RETAILERS FIND SUPPLIERS?

Here are some ways retailers can look for suppliers:

• Use Google to discover clothing suppliers that operate in your region. Search for the type of clothing or products you are looking for and work your way through the options, researching each company and reaching out over email if they seem like a good fit.
• Register with a B2B wholesale marketplace like Whola. This will give you access to a curated list of best-selling styles and brands, saving you the trouble of sourcing products from lots of different wholesalers individually.
• Browse social media. Look up hashtags with keywords that relate to your target customer’s and see what different brands and wholesalers come up.
• Sign up for an email newsletter or lookbook that will send you a preview of new styles from different brands and suppliers.

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