Pros and Cons of Starting Wholesale Clothing Business

If you have a passion for the world of fashion, then starting a clothing business is right for you. The clothing industry is one of the biggest in the market, and two types of clothing businesses are profitable; retail clothing and wholesale clothing.

Both types of clothing businesses come with different advantages and disadvantages. There are many things that you should consider before stepping into the wholesale or retail clothing market.

Business individuals interested in wholesale clothing business need to check the benefits and drawbacks before starting their company.

Here we have compiled a list of major pros and cons of starting a wholesale clothing business. This list will help you decide whether you should start a wholesale clothing business or not.

Without further ado, let’s get on with our list of pros and cons of starting a wholesale clothing business:

Pros of Starting a Wholesale Clothing Business

The following are some of the primary benefits of starting a wholesale business:

1. Business Potential

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A wholesale clothing business comes with huge potential for growth and expansion. Clothing is a basic need for people, which means that you will never have to fear the demand for your product in this business.

According to Statista, the market value for clothing was calculated at $368 billion in 2019. This value increased by $1.46 trillion in 2020, and it is expected to reach around $2.25 trillion by the end of 2025. These statistics clearly show the profitability and a wide scope of potential in the clothing business.

2. Moderate Prices

We all know that wholesale products are way cheaper than retail products. The price of clothing items further reduces when you buy them in large orders from the manufacturers. One of the considerable advantages of starting a wholesale clothing business is that you will get significant discounts on your stock.

You can get clothing items in bulk from the manufacturers at low prices and then resell at rates of your choice after customizing the clothing products according to the latest fashion trends. Most wholesale clothing companies are following the trend of buying fabrics from the manufacturer and reselling them after modifications.

3. Variety of Products

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Another benefit of starting a wholesale business is that you can have a variety of clothing niches to choose from. The latest clothing niche ideas that you can consider in 2021 are bohemian, preppy, trendy, vintage, and sporty.

The most popular wholesale business types are baby clothing, women’s clothing, men’s clothing, bridal clothing, casual clothing, formal and party wear, swimwear, holiday costumes, and themed clothing.

4. Low Maintenance

As a wholesaler of clothing items, you should be aware of the latest fashion trends. Unlike other products, clothing does not get old with time.

Even if your wholesale clothing items get out of fashion, you can remake them and sell them. Also, you can offer discounts and deals to your customers to sell the less trending clothes. In short, you do not have to worry about the shelf life of your inventory stock.

5. Seasonal Sales

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Another advantage of starting a wholesale clothing business is that you can sell your clothing items for specific seasons. Let’s understand this with an example:

If you have a wholesale swimwear business, then in summer, your sales will double. You can store the remaining stock and sell it at a discount the next summer. This way, you will never have to face the overstock problem. Clothing items are timeless, which means you can store them for as long as you want.

6. Low Shipping Cost

You can enjoy the benefit of low shipping costs in all types of wholesale businesses. Wholesale business requires you to order clothing items in bulk, which means lower shipping rates. On a side note, if you want to attract more customers to your company, then you can offer low or free-of-cost shipping.

Cons of Starting a Wholesale Clothing Business

The following are some of the disadvantages and drawbacks of starting a wholesale clothing business:

1. Blending of Goods

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If you are a wholesaler who has decided to deal with different kinds of clothing items, then it can be problematic for your business growth.

Dealing with multiple clothing niches can be overwhelming and frustrating. The worst thing is that all the clothing items can get blended in the warehouse if not categorized or appropriately organized. It can directly affect the sales and deliveries of your orders.

2. Limitation and Boundaries

Another significant disadvantage of starting a wholesale business is that you can get limited by the manufacturers. Clothing wholesalers are bound to purchase the type of clothing that manufacturers offer. It is also possible that certain kinds of clothing items are out of fashion or demand. Therefore, you cannot help but purchase what manufacturers offer.

There is a solution to this problem. You can purchase any kind of clothing from the producers and remake them into something trendy, stylish, and fashionable. However, this will require extra time, effort, and investment.

3. Perfect Suppliers

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Finding a perfect wholesale supplier is quite challenging, especially when it comes to the clothing market. Due to the highly competitive environment, new wholesalers often fall into a trap by fraudulent clothing suppliers.

  • If you want to avoid deceitful wholesale clothing suppliers, then you should be mindful of the following factors before selecting your wholesale clothing supplier:
  • Never select a supplier who offers surprisingly low prices for large quantities of clothing items. Such suppliers often show high-quality products and deliver lower-quality clothing items.
  • Always check your potential supplier’s reputation in the clothing market by asking other wholesalers, retailers, distributors, and manufacturers.
  • A wholesale clothing supplying company is trustworthy if it gives you access to its inventory.
  • Ask for your potential supplier’s quality assurance process before signing your contract.

Bottom Line

Like every other business, a wholesale clothing business also comes with certain benefits and disadvantages. However, the advantages weigh out the drawbacks of this company. The potential and profitability of a wholesale clothing business also depends on personal preferences, location, and budget.

We hope that the information mentioned above will help you make the right decision about starting a wholesale clothing business.

All set? Then click here to start your wholesale clothing business on an established b2b marketplace. Good Luck!