These are some of the possible reasons why businessmen and women would rather focus on starting a wholesale clothing business rather than a retail business. If you’re thinking of venturing to a wholesale clothing business, here are some factors you need to consider before you make some plans on opening your wholesale business Lukas Lindler.
Among the growing trends in business today is E-Commerce. Electronic commerce, commonly known as e-commerce or eCommerce, consists of buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily high since the spread of the Internet.
Among the many businesses conducted on the internet today, online shop businesses are the most popular. Online shops, in this case, online clothing shops, are becoming more and more common throughout the world as more people are still starting their own businesses online.
In business, popularity means more competition. Because of the growing popularity of brick and mortar clothing shops, may it be for retail or wholesale clothing, the competition became more aggressive. Newer, more modernized, and more competitive clothing shops are starting to show up on every corner of the world, making things more complicated for starters. This is one of the reasons why people are opting to do business on the internet rather than starting a brick and mortar clothing shop.
But other than that, what else do people look for in an online business, or in this case, online clothing shops. Here are some reasons why people go with an online clothing shop business rather than a brick and mortar clothing shop.
In online businesses such as online clothing shops or online wholesale clothing shops, you could receive a larger profit margin than the brick and mortar shops. Unlike with the latter, online businesses such as online clothing shops won’t necessarily require a middle man in its business process. This in-turn will generate more profit than those of brick and mortar ones.
You’ll have better control on your pricing. By removing the middle man, you’ll be having better control on the flow of your pricing. Thereby allowing you to negotiate and offer more discounts compared to your competitors.
Lower price tags than those of the brick and mortar clothing shop. This in-turn will attract more customers to visit your site and buy your products.
Offer your products on a larger market. Unlike with the brick and mortar clothing shops, online clothing shops can target its market on a larger scale. By using successful internet marketing strategies, this could give your business a global recognition.
Location is not required in an online business. Unlike with the brick and mortar clothing shops where success depends greatly on its locations, all online clothing shops needs is a website. This could save you time to do some studies on your stock rather than interview and observe the traffic of people in your location.
Setting up online clothing shops is cheaper than buying or renting a place for your clothing store. If you have some knowledge in setting up an online business, then you would not have to hire yourself a team of web developers.
But aside from the advantages and benefits that you can get from starting an online clothing store, there are also downsides in starting a business on the internet.
You’ll have no control on where you sell your products. It could be from some place that is totally unfamiliar to many.
Lack of knowledge in E-commerce may leave you susceptible to scams and hacks.
There may be extra cost on your part when the prospective customers are countries away from you. Cost on shipment is very expensive, especially if you’re transporting only a couple of products to your customers.
It could cause you to loose your focus on managing your store accounts (if you have any). This is because online shops require daily basis maintenance. Glitches and bugs within the system could cause you more trouble and expenses.
But overall, setting up online clothing stores may be preferable for people with limited financial resources – e.g. you do not have enough budget to buy or rent a space for a clothing store or hire men for your business. Although there are differences between brick and mortar clothing shops and online clothing shops, there are also some similarities that you should be aware of.
Like in brick and mortar businesses, finding a niche is also important. Setting up a business that caters to the needs of people that other businesses couldn’t provide is where you should base your niche. Take for example an online clothing shop that specializes in providing plus sized clothing lines. Because of the small number of clothing shops that cater to plus sized people, setting up this unique niche can provide you the marketing attraction that you needed.
Much like setting up a clothing store business, setting up an online clothing shop also requires skills in maintaining and handling an online business. Experience is one of the most important skills that you should possess. A knack for handling risks and business crisis is also as important.
Like any other brick and mortar businesses, managing online clothing shops also require you to do some research about the niche that you chose. Being a specialist in the niche you’ve chosen is an important aspect that you should possess. Get the most updated catalogs and ideas on what people want and how they wanted it.
If you are interested in starting your own online store, take note that it requires a lot of hard work, determination, and time to research and find products you would like to sell. But in the end, all your efforts will be well worth it. With that in mind, it is more than possible for you to run a successful and profitable online store. As a reminder, be sure to research and review all local, state, and federal laws before opening your first store.