Secrets Wholesale Clothing Suppliers Will Not Tell You
If you’re a retailer, you have probably already searched for various wholesalers. Amongst all that you’ve seen or read though, it is easy to get bewildered with the amount of misconceptions thrown at your way. Most people don’t have a clear picture of the wholesale industry, and it’s easy to get tricked when you don’t.
Here are 4 myths why buying wholesale can be misleading.
Myth 1 – Cost Research is Unnecessary and Wastes time
Believe it or not, most of our customers don’t actually spend enough time doing their research? The word ‘wholesale’ itself lures customers into thinking that they are getting the best prices for their purchase. This is what actually prevents them from doing the necessary research work, thinking it’s time consuming.
The thing is though, buying wholesale doesn’t always mean huge profits for very little investment. With the right research, expect hefty profits and large margins.
The wholesale clothing industry is a huge! There are plenty of suppliers selling the same exact thing you are. As competition increases, there’ll be a lot of people offering you a better price.
Once the right cost is determined, stick to a particular or few particular wholesale clothing suppliers. Rates are constantly changing and it is not a wise idea to base your company’s estimations without knowing the real price.
Other than that, it is also essential to learn about the prices of your products for resale before buying wholesale. In the apparel business, profit margins tend to be slim so always strive to get the best price and offer the most competitive prices.
If you’re new to the business, keep these KPIs in handy to understand the performance of your operations over time:
Profit Margin= Gross Profit/ Sales
Profit Markup= Gross profit/ cost of sales
It’s almost impossible to know all these without proper research. Browse the web, look into libraries, and use any material you can get your hands on until you know exactly what you’re getting into. Click here and take a look at the ways to find a wholesale clothing supplier.
Myth 2 – Amazon is the Best Way to Sell Your Wholesale Products
The main challenge when it comes to a wholesale business is definitely, the competition.
This is why this myth is one of the most popular amongst entrepreneurs. If you’re looking for a way to sell your products, no one can discount amazon as a very good choice, but have you thought about the degree of competition you have?
If you know someone who is an Amazon seller account, they’ll tell you how difficult it is because a hundred other people are selling the same products at much more competitive prices. Not to mention, Amazon closing in on you and selling the same thing at even lower prices.
Now, if you’re a small business or just starting, this is definitely a nightmare when you thing about it.
The trick is, the type of product you choose is very crucial for your business. When it comes to clothing, look to selling basic apparel at very low prices to trump the competition; things people will need, and you can source easily at competitive prices.
One tip: try to source from a Bangladesh clothing factory if you are looking for rock bottom prices.
Of course, once you get big enough build your own e-commerce site. Shopify is a great tool or you can use WordPress and build your own website. Shopify also has payment integrations that you can use. Take a look at the differences between the two:
Myth 3 – You Can Find all Your Wholesale Products Online
Most wholesalers, especially ones in apparel industries from developing nations like the Bangladesh clothing manufacturing industry, lack a good digital presence. You can easily get good prices if you do a bit of legwork. Technology advancement does not always usually mean cheaper prices.
The internet may save you a lot of time and is highly efficient but it prevents you from knowing certain wholesalers that could give you better prices. So, if you really want improve your margins, we suggest sourcing wholesalers in person, through trade shows, directories, or apparel manufacturing associations because there is a very good chance that these sellers will give you a much better price.
In addition to that, like we mentioned before, it is essential to have a good relationship with your supplier. A good relationship could result in short sampling times, better quality products, and of course for the hundredth time, special prices and discounts.
Of course that’s not to say that you should not leave any stone unturned. If you’re really looking forward to building a booming business, do both online and offline searches.
Myth 4 – Wholesaling is For Beginners
This is completely wrong and the polar opposite of the truth!
Wholesaling is actually a very complicated method of selling clothes and without the right knowledge your company can fall within seconds. You’d just be a fish in troubled waters if you underestimate the need to plan when it comes to wholesaling.
The main reason for this myth is that, wholesaling can be done with very little capital in hand.
Whether you’re a beginner or an expert entrepreneur, it doesn’t matter. The right information at the right time, with the appropriate experience, is what enables the best wholesale businesses to thrive.
With the right amount of intellect, research and a valid license, your business should be prospering in no time if you just remember to avoid these myths!
Myths are myths for a reason though. It’s more of a thing related to fear mongering. However, they do come from a true place. After all, all lies steam from truths. The easiest way to not let these myths make you worried, is to hire a proper agency like NewThread. Using a combination of our proprietary algorithm and boots on the ground, we source you the best quality clothes, at the most competitive prices from wholesale clothing suppliers in Bangladesh. Get the process started by downloading our free checklist!