Category: Retail and Fashion

Wholesale buying, stockholding and shop-floor practice for independent retailers.

  • Open the Gates for Wholesale Fashion by Using These Simple Tips

    Every new retailer thinks the hard part of wholesale fashion is finding the stock. It is not. Stock is abundant and suppliers are easy to reach. The hard part is buying the right quantity of the right thing at a price that still leaves you a margin after markdowns, and that is a discipline rather than an eye for style.

    Buy narrow before you buy wide

    The most common opening mistake is buying one of everything. It feels safe because you are covered for every customer, but it leaves you with no depth in the lines that actually sell and a shop full of single sizes that nobody wants. Pick a narrow range and buy it properly. Six styles bought in a full size run will teach you more in a month than sixty styles bought in ones and twos.

    When a style sells through, repeat it. When it does not, mark it down early. Retailers lose more money holding out for full price on a dead line than they ever lose by discounting quickly.

    Understand the terms before you order

    Wholesale has its own vocabulary and misunderstanding it is expensive.

    • Minimum order value is the floor for the whole order, not per style
    • Pack sizes mean you may be forced to take a fixed size ratio
    • Lead time on imported stock can run to weeks, which matters for seasonal lines
    • Return policies on wholesale are usually far tighter than retail, and faulty-only is common

    Ask about all four before you place a first order, in writing. A supplier who will not answer plainly is telling you something useful.

    Sample before you commit

    Photographs flatter everything. Order a sample of anything you plan to buy in depth, and handle it. Check the seam finish, the weight of the fabric, whether the print sits straight, and how it looks after a wash. A garment that loses shape after one wash generates returns and complaints that cost more than the margin on the whole order.

    If a supplier refuses to sell samples, buy one unit at retail price from them if you can. It is cheap insurance.

    Work out your real margin

    The cost of a garment is not the wholesale price. It is the wholesale price plus delivery, plus duty if you are importing, plus the cost of returns and the cost of markdowns on the units that never sell at full price. A line bought at a third of retail sounds comfortable until a fifth of it goes out at half price.

    A simple rule that works for most independents: assume a proportion of every order will sell at a discount, build that into the margin you plan for, and treat anything better than that as a good season rather than the baseline.

    Build a relationship with two or three suppliers

    Spreading orders across a dozen suppliers gets you nothing. Concentrating them with a few gets you better terms, earlier sight of new ranges, and someone who will actually take your call when a delivery is wrong. Reliability matters more than the last few percent on price, because a late delivery in a seasonal business is not a discount problem, it is a lost season.