How to Become a Wholesale Clothing Distributor

Oct 18,2021

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wholesale clothing distributor

wholesale clothing

Nowadays, as the wholesale clothing business is getting more and more popular, many people are concerned about how to become a wholesale clothing distributor. For many wholesale clothing vendors or high-quality boutique owners, finding wholesale clothing distributors is an essential procedure to start their business. Thus, becoming a wholesale clothing distributor is a promising career for anyone who wants to have a try. Thus, read the following texts to find your answer to how to be a wholesale clothing distributor.

Table of Contents

What is a Clothing Distributor?

Determine Your Role

●Wholesale Distributor or Retail Distributor

●Brand fashion Distributor or Without a Brand

Confirm the Specific Type of Clothes

Calculate the Costs Involved

Complete the Legal Procedures

Start Your Business as a Distributor at FondMart

What is a Clothing Distributor?

Many people are not clear about the concept of clothing distributors or may get confused when they see the clothing distributors and wholesalers. Actually, there are some differences between them. Wholesale clothing distributors are generally entrepreneurs who sell clothing products to retailers, sellers or wholesalers, which means wholesalers can also purchase clothing from distributors. In most cases, distributors facilitate the transfer of apparel and apparel products from manufacturers to stores. Distributors may have relationships with multiple different retail stores.

At the same time, most wholesale clothing distributors buy clothes from manufacturers. In some cases, the wholesale distributor may also be the manufacturer, who may own complete control of the distribution chain. Besides, some clothing distributors can also distribute clothing to end users or consumers through direct mail orders.

It is possible that the clothing distributors have signed contracts with several different clothing manufacturers. Distributors may also buy different kinds of clothing, from coats to dresses, from skirts to pants. However, a distributor may also focus on a specific style or type of clothing, though they may have a lot of choices.

Distributors can also purchase one or more specific brands of fashion clothing. For example, a distributor may own the right to sell a specific brand of clothing like some famous brand known all over the world. Distributors may also have exclusive or limited relationships with a few specific stores, which helps to protect their brand's image and reputation in the clothing and apparel market.

Generally speaking, in order to save money, some distributors usually sign contracts with manufacturers to produce clothing in a world where labor costs are lower than in developed countries. For example, a distributor may have a contract with manufactures in China or the Philippines. In this case, clothing distributors also play the role of importers, shipping clothing from overseas for sale in more developed places such as the United States or Europe.

Determine Your Role

According to the statistic published in the authorized websites, total wholesale distribution ended 2020 on a positive note with $5.824 trillion. So the wholesale distribution is quite attractive. To answer the question "how to be a wholesale clothing distributor", first you need to determine your role for yourself based on various factors.

●Wholesale Distributor or Retail Distributor

Actually, you can become a wholesale clothing distributor or retail apparel distributor, or both at the same time. However, before making your final decision, you should compare various factors such as sales volume, profit, storage space, display of required items, money investment, income or expected return, etc.

If you choose to be a retail apparel distributor, this means you will focus on B2C business-to-consumer business. In B2C work, you will buy clothing wholesale and sell it to end users through stores, family gatherings, websites.

If you become a wholesale clothing distributor, you are going to deal with the B2B (business-to-business) business. In a B2B business, you will buy products at wholesale prices and then sell them to different retailers or even small wholesalers. The price of the goods you sell will be lower than the retail price, but higher than your purchase price.

Unlike B2C sales that only sell a small number of products to end customers, the number of products you sell will be several times the number of B2C sales orders. If you sell completely online, you can use the dropshipping service like at FondMart.com, which means you never have to see or touch the product. Also compared with retail business, you have to deal with fewer customers, and they are all professionals, so your customer service needs are limited.

If you have funds for initial investment and product storage, become a wholesale clothing distributor and choose a B2B business is a good choice because you can buy in bulk to get the highest profit.

However, don’t worry that you can only decide on one choice. Actually, once you have established yourself as a wholesale or retail distributor, you can add another one after you accumulate enough profit. Everything depends on the money you will earn.

●Brand fashion Distributor or Without a Brand

Wholesale fashion clothing distributors are distributors who buy fashion clothing in bulk from manufacturers and distribute them to retailers in small quantities. Generally, there are more business-to-business sales of fashion clothing distributors. Retail fashion distributors are distributors that purchase fashions in bulk from wholesalers or manufacture them and sell them directly to customers.

With so many people of all ages, entering the fashion clothing industry has become a very profitable choice. However, huge demand is not the only reason that drives entrepreneurs to become fashion clothing distributors. Since fashionable clothing has become very popular not only among celebrities but also among ordinary people, people start to show their personalities and characteristics through their designer clothes on special occasions. Nowadays, some people are eager to know how to become a distributor of the fashion apparel business.

If you decide to become a fashion clothing wholesaler, your supplier can be a fashion designer or a manufacturing company. You should approach them and discuss your suggestions with them. You can select one or more suppliers.

Although it seems more important to become a distributor of fashion or branded clothes, it is not that easy because branded clothes only choose specific distributors to sell their brand, which means that it needs a high threshold to start this business. So if you just start to become a wholesale clothing distributor, we recommend you just choose the clothes that are not of famous brands. After all, a good start is a half success.

Confirm the Specific Type of Clothes

Now, you have to decide between two options: focus on selling one product or selling multiple products. Some ways are helping you to make your final decision of how to become a wholesale clothing distributor.

First, you should understand the current market and understand your competitors. Understanding current market trends can help avoid selling clothes that no one needs or wants. The key to understanding the needs is to communicate with customers on a regular basis and establish a good customer relationship from the beginning.

Besides, you can look for small retailers who need wholesale suppliers for their business. You can also view potential brands that may become famous in the industry in the next few years. You need to conduct thorough market research because the product you choose may make or break your business.

What’s more, contact the clothing manufacturer and ask about their wholesale prices and practices. By comparing retail rates and shipping and management costs, determine which products have the greatest profit potential. In many cases, clothing manufacturers are located in third world countries or regions in order to reduce the cost of labor price. You should pay special attention to checking the product quality of clothes at a really low price.

Developing a marketing plan for your audience is very important for your clothing wholesale business. For example, if you choose a niche market for women’s clothing, you will need a diverse collection to satisfy your target customers.

As for women's clothing, we sincerely recommend you select FondMart as your first choice because we can provide you with sufficient types and styles of diverse clothes. You can also take a look at how to start a clothing business with buying wholesale for more questions.

Calculate The Costs Involved

Like any other business, the apparel business also requires funding, especially for wholesale clothing distributors who need to purchase many clothes at the same time. Every procedure requires money, such as materials, transportation, storage, packaging, order receipt, promotion, delivery and so on. All these demand money.

You must estimate your funding needs based on the credit period allowed by the supplier and the costs you need. These funds should be arranged in advance from a suitable source to avoid any failure in the smooth operation of the business. Develop a business plan detailing the specific product, the number of items you expect to sell, and to whom you plan to distribute it. Costs, expenses, number of employees and profit forecasts should also be specified in the business plan.

You must decide whether to buy from an overseas manufacturer or domestically. If you buy wholesale clothing items from overseas suppliers, you may end up paying less. But generally, you must order a larger minimum order quantity at once. However, FondMart provides NO MOQ (no minimum order quantity) service and also shows you the cost of clothes you purchase and the delivery, which helps you to calculate the costs involved. In addition, you will not face communication issues with suppliers and logistics issues at FondMart, because our customer managers are good at English and other languages.

While cooperating with domestic buyers, you may spend more money on wholesale clothing though you can deal with suppliers more easily. Everything depends on your budget and you will decide where to buy wholesale clothing.

If you want to become a big wholesale clothing distributor, you may need a place to store your clothes. The place of business has a great influence on profitability. Therefore, choosing a suitable business location is indeed an important decision. Before choosing a suitable operating location, you must consider factors such as customer traffic, transportation, storage and delivery convenience. You can also open a sales office in a place with high traffic, and open a storage area in other places with lower rents.

Most importantly, cost and pricing should be affordable and attractive to retailers. Shop owners also need to be profitable, and the cost of operating a physical store will increase rapidly. When a clothing distributor buys clothing from a manufacturer, before selling it to the end user or retail store, the product will be priced. Then, the retail store will also set the price, which usually means that consumers pay a lot more for a particular product than that the distributors purchase from the manufacturer.

If you want the store to continue to order from you, please keep it in mind that gives them a reason to be happy to work with you by making money. Generally, customers expect your product price to be at least 50% lower than your regular retail price. Of course, make sure you take into account all the costs associated with producing the product so that you can take them into account when calculating the price. For setting the price, you can read how to calculate wholesale and retail price for clothing!

Complete the Legal Procedures

Once you are ready to start to become a wholesale clothing distributor, you can not ignore the legal procedures and remember to prepare the paperwork required for the business. All legal procedures should be properly handled.

Generally speaking, before starting your business, you need to obtain the necessary licenses and permits. In this case, the most important legal document you need is the wholesale license, which will allow you to act as an intermediary and buy products from the manufacturer without paying sales tax.

In addition, you need to contact the manufacturer and make a deal to distribute their products. Many times, this is first to fill out an online application form on their website or contact their local sales office. Thus, completing the legal is quite important. For more details, you can read “How to Get a Wholesale License for Clothing”.

Start Your Business as a Distributor at FondMart

Once you have finished the procedures above, you are very close to your target! If you have prepared sufficient funds, decided on the office space and suppliers, also have a legal license to become a fashion apparel business distributor, then you can start your business as a wholesale clothing distributor. Remember to use every possible way to promote your business.

FondMart is a global clothing supply platform with the largest number of products in stock to offer one-stop service for wholesalers, retailers and dropshippers. The team behind FondMart has been working in the clothing industry for decades, who are devoted to helping more overseas merchants benefit from no MOQ and a rich selection of goods.

Don’t hesitate to select FondMart to start your business!

By the way, if you have more questions like "Where to Buy Wholesale Clothes", "How to Buy Wholesale Boutique Clothing", "How to Start a Clothing Business with Buying Wholesale", browse our blogs and have a look!