Buying in wholesale is a form of business that has been around for a long time, and it involves the purchase of goods in bulk for resale.
With the rise in popularity of e-commerce, the wholesaling business has moved from the traditional brick and mortar business to the online space.
E-commerce has improved the system of wholesale by making it easy to purchase goods from anywhere in the world.
What is wholesaling?
In wholesaling, a business buys goods in bulk and resells them at a lower price than retail. Since the goods are bought in high volumes, it is easier to make profits as you will be able to purchase the goods at very affordable prices and sell them at a higher price.
Wholesale businesses are grouped into 3 categories depending on the type of business model used. These models include:
- Merchant wholesalers- this is the most common type of wholesaling where the wholesaler purchases goods at cheaper prices from the manufacturer and resells them to various retailers.
- Brokers-brokers act as intermediaries between the manufacturers and retailers. The brokers do not purchase any products directly but they negotiate a deal with the manufacturer so that they can earn a profit off the sales made.
- Sales distributors- in this model, a manufacturer will directly source for people to help them distribute their products. The distributor will directly search for wholesalers who will buy the products in bulk.
When starting a wholesale business, doing the necessary research will enable you to easily run a successful business. The steps you can take to set up a wholesale clothes business include:
- Find a niche- finding a niche is very important as it allows you to narrow down the options to find what will work best for you. Since babies will grow out of clothes rapidly the business is a safe bet for anyone who is starting in the wholesaling business as you will always have a market for your products.
- Obtain a license or permit to run your business the process of obtaining licenses is different depending on the region. This is an important step to take as you will avoid challenges with the law when running your wholesale business.
- Find a location for your warehouse- the wholesale business requires you to have a physical store that can hold a huge bulk of goods. Ensure that your warehouse is located in an easily accessible and safe area for easy operations.
- Find suppliers- finding suppliers has been made easier through the numerous online directories found online. You can also decide to search for a supplier through the various trade shows that are available. Choosing a reliable supplier is important for the success of your business as they are responsible for ensuring you get products that are of good quality and affordable prices.
- Have an offline inventory option- when getting into the wholesale business; you must have numerous options to choose your products from. Most trade shows offer a list of merchants who sell their products at affordable prices although this may require you to organize on the logistics that may be involved.
- Create a marketing plan for your business- for your wholesale business to succeed, you will customers to purchase your goods. Since a wholesale business involves buying and selling of products in bulk, ensure that you have a strategy to attract more retailers by offering affordable prices and quality products that sell easily. Since the clothes business is more dependent on trends, you need to find out the baby clothes that sell fast and supply them to the market.
Benefits of wholesaling
Though you may require huge capital to start. The wholesale business, if run efficiently can make you huge profits. Initially, you may need to conduct thorough market research to find products that will sell. Some of the benefits of wholesaling include:
- Higher profit margins- since you will be selling goods in bulk, it is easy to make higher profits from the wholesale business. When purchasing goods for wholesale, you will be able to get goods at cheaper prices which will allow you to set prices at rates that will allow you to make profits.
- Ease of expansion-since the wholesale business allows for ease of expansion as you can easily scale up on the number of goods you supply. Unlike manufacturers, wholesalers are not limited regarding the type of goods they supply.
- Wider geographical reach- wholesalers can reach a wider market and source goods from a variety of suppliers and hence there is no limit as to how wide your reach can be.
- Ready access to goods-wholesalers purchase goods that are readily available in the market and since they have access to a variety of suppliers, running the business is easy as there is sufficient access to products.
- Easy to get a network of suppliers- the wholesaling business involves sourcing of products from a variety of suppliers which involves getting in touch with several suppliers to source for products. Having a large network of suppliers will enable you to get the best price for products for increased profits.
How to buy baby clothes on wholesale
For an entrepreneur looking to make money, the wholesale business can be a profitable way to have an income. When you have already established a niche, you need to source for reliable suppliers to provide you with the goods. The steps needed to buy baby clothes on wholesale include:
- Find supplier-suppliers will provide you with the product so you will need to research on the best suppliers for a particular niche. The suppliers can be found from a list of directories that can be found online or various trade fairs.
- Gather capital to buy the goods- after sourcing a supplier, you will need to negotiate on the price of the goods you need to run your business. This will require you to source sufficient capital that you will use to pay for the goods.
- Be specific with your online searches – this will allow you to connect with suppliers for your particular niche. Since you will find a variety of options, you will need to go through the various customer reviews to find out how reliable the supplier is.
- Beware of the risks involved-since you will be depending on a supplier for goods; you may need to be aware of the risks that can be involved. Your goods may arrive late or they may not be of the quality you require. All these are challenges that you may face when buying wholesale clothes and so you need to be careful and have a backup plan to avoid huge disappointments.
Wholesale baby clothes suppliers
Since the supplier is the main component of the wholesale business, you need to research thoroughly to find one that will be reliable. Some of the recommended suppliers for baby clothes on wholesale include:
Nihaojewelry is a top supplier for a variety of goods including women’s and girls’ clothing and shoes among others. Should you choose the girls’ clothes niche, Nihaojewelry will provide you with quality clothes at affordable prices. The company also manufactures the latest trends and efficient shipping and customer care services to enable you to source goods that will guarantee you profits. Nihaojewelry has years of experience in working with wholesale distributors and therefore has improved systems to facilitate huge purchases.
Chinabrands is an online eCommerce platform that connects buyers to a variety of suppliers. The platform offers affordable prices for goods to enable you to run your business efficiently. With over 100,000 products to choose from,chinabrands provides customers with great options and reliable services from excellent IT support to efficient logistics.
Alibaba is a platform that offers a wide range of products at affordable prices. Alibaba connects buyers to several suppliers, making it easy for buyers to have a wide range of options to choose from. With the numerous discounts available on the platform, buying products from Alibaba enables wholesalers to have increased profit margins from the sale of goods.
Angel wholesale is a baby clothes supplier based in the UK that provides a huge variety of the latest designs of baby clothes and accessories. The company also supplies clothing blanks and other accessories to a variety of retailers across the UK.
Kiddies world is a well-established baby clothes supplier that serves as a distributor for some of the leading kids’ brands. The clothes are made from the finest fabric and latest designs to enable businesses to make profits.
Honeydew is a US-based supplier for trendy and sophisticated baby clothes. The company offers the best price for top quality products and 1-2 days shipping options for the goods.
Numerous possibilities in wholesale businesses
Though you may require a lot of capital to begin, the wholesale business will give you the chance to expand your income if done correctly.
To make profits, you will need to research the best niche of products to sell and find your target customers.
The possibilities that are present in the wholesale business are numerous owing to the huge number of suppliers available.