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What I have learned so far in wholesale apparel industry

Discussion in 'Dropshipping & Wholesale Hookups' started by Getwhatchuwant, Jul 25, 2011.

  1. Getwhatchuwant

    Getwhatchuwant Jr. VIP Jr. VIP Premium Member

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    I am a newbie to the forum so I cannot paste links or URLs but if you are interested in working together shoot me a PM.

    Anyway I wanted to give everyone new to this concept some basic info to work with to help anyone along who is interested in reselling.

    About me: I am based in the USA so everything will have my take coming from this perspective.

    When you choose to wholesale or dropship you have to consider some factors
    A) where is the product coming from?

    If from China you will either wait a month or more to get low and maybe free shipping or you will pay $25+ to ship items to yourself or your customers and even then it can take 2 weeks to get. But that is not to bad. What you have to ask yourself is if the product is cheap enough to buy several of so your per item cost remains low.

    As an example I have club wear mini dresses I see advertised online for $35-$40, I can get the same dress for $15 or less BUT if I order one I just paid $40 for it. Now if I order 10 my shipping will be roughly $40 or so plus $15 for each dress divided by 10 which equals a per unit cost of $19 per dress. In that case I can still buy the items and resell them at a profit. Often Distributors (like myself) will give a discount for larger purchases like 10 pieces or so which will help minimize the costs and some even let you mix lots so you dont have to stock 10 of the same item. This is important when it comes to customs too, I will explain in a bit.

    IF you are ordering from the US you likely will pay a little more per item but shipping will likely be 1/3 the cost. This is ideal for dropshipping or small orders but your per item profit will be smaller however you are more flexible with your initial costs OR you can avoid the cost all together until a sale is made. Again, you are likely to get a better deal by adding more items. For example to ship one garment say from NY to California may cost $13, but 2 garments in the same package cost just $14. Make sense? That 1st item you ship is always the one that costs the most, the more items you can ship at once the better pricing will be for you and your customers. Dont forget the dropship fees, most US based companies add $5 for this service but it is worth it.

    B) Are their any import duties or additional taxes?

    If you are bringing in items from overseas you may be charged a duty. This duty might equal what you paid for the garments or more BUT if orders are reasonably small or the lot is mixed YOU MAY avoid the fee. In general items under $200 value do not get charged a duty but if customs sees 5 of the same dress you or your customer may still get hit with a duty.
    This is VERY important!! The person RECEIVING the items pays the duty so if you want to keep a loyal following you want to make sure they do not get charged. The only ways to do that is to either ship the items to yourself or make sure that the orders are small enough and varied enough to not be charged.

    Ordering from the US you have no worries in this department, there are no duties to worry about and again shipping time and cost are reduced.

    C) Branding

    Many Chinese garment either have no brand can have YOUR branding or may be fakes. BEWARE when ordering NAME BRAND items from overseas, customs WILL hold and refuse entry items sold that they suspect are counterfeit.

    Many distributors in the USA have a named presence that is familiar to the people who shop for the product you are selling.

    D) Ethics
    Many Chinese companies who sell YOU your items are also selling on Ebay and sites like that. So the items you bought for $10 that you are hoping to sell at $20 is currently already on Ebay for $12!!

    With US companies they sell to resellers so you will not see the manufacturer competing with his own customers.

    There are other ways to make money than Ebay though, having your own site trying other online marketplaces or even the flea market all have worth. Just consider what your plan to sell is before making your order. You may be disappointed.



    Remember I cannot PM for now since I am new on the board.

    Thanks
     
    • Thanks Thanks x 1
  2. VinnyM

    VinnyM Newbie

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    Thank's for your tips. Really interesting stuff. It's good to have in mind that chinese manufacturers frequently compete with their own clients.. !
     
  3. rcdropship

    rcdropship Newbie

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    do you mean that you have brand clothes to sell or dropship from US ? If yes ,please let me know your products list .
     
  4. itsmymoneyandiwantitnow

    itsmymoneyandiwantitnow Newbie

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    thanks ive noticed that too many items ive searched for on eeebay are sold for less by the same company im researching
     
  5. WhiteCrown

    WhiteCrown Newbie

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    Intresting id Get What Chu Wants !
     
  6. cybergold

    cybergold Newbie

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    With Chinese you have to be careful. That's why I am over here right now checking things out.:)
     
  7. listenloud

    listenloud Registered Member

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    no offense but all i see in this post is common knowledge and some really basic math...

    you are basically saying
    1. products come from china
    2. its cheaper in china then in US
    3. buying many lowers the prices
    4. you are going to compete with other sellers

    customs has existed since the creation of the united states and almost everyone in the US knows that most products come from china. again... no offense because i understand you are trying to help... but realllllly basic stuff almost everyone knows.