Direct Liquidation: Wholesale Fashion 101

Direct Liquidation: A User’s Guide to the Wholesale Fashion

Finding your niche is an arduous task. Some people go on sabbaticals, many spend their youth trying on every job for size and others never find it at all. Yet, for a business person, this is one of the most crucial tasks one must complete. A business without a direction is a ship with no sail and is destined to not go far. And, there is no one size fits all model. Instead you must determine which avenue will be most successful for you personally. Many entrepreneurs have decided that the wholesale business for them is the most fruitful.

So you have determined that wholesale will generate the most profit, now determining the specialization is key. Fashion has always been an aspirational industry and one that touches the lives of every person everyday. Now everyone knows that to generate a healthy bottom line, you must provide consumers with a product or service that they both want and need. That is why apparel can prove so successful.

 So You Want to Be in Fashion?

Maybe you’ve dreamed of owning your own boutique. As a child you would peruse boutiques with your mother and loved being able to touch and interact with garments in endless colors and unique fabrics. The store owner was always so sweet and from her conversation with you to and her inviting interior, she made you feel at home. Now, you’ve decided to create the same experience for others by opening your own brick and mortar store.

Maybe instead you are a a tech savvy guru who lives and breathes everything digital? What excites you is the challenge of creating a sleek and aesthetically pleasing website that is intuitive to your consumer. They can be brought into your world from the comfort of theirs. Either way you choose to do it, wholesale is the heartbeat of your business.

Buy Low, Sell High

“Buy low, sell high,” is basically the first commandment of any wholesale business. Apparel is no different. So how do you maximize your profit margins? The answer is buying inventory with prices low as possible. And, one of the easiest ways to do that is by buying in bulk. A good apparel liquidator or wholesale supplier is your best friend. What do best friends do? They have your back of course. In the wholesale business, having your back is not only in the form of low prices but also in providing you with the right quality for your brand’s price point.

Getting the quality that you and your customer deserves, is best accomplished by creating partnerships with liquidators and distributors that specialize, or have a strong selection of apparel. If you go with a broad-based supplier, you run the risk of them having a relatively low selection of apparel. Since it is not their only offering they may only have a few channels in which they receive it. On the other end of the spectrum, one that specializes in and/or one in which clothing makes up a large part of their business, will yield best results. It is through them that you can use discretion in finding what you need and also allowing you to buy large quantities.

So you think you’ve found a supplier. Their niche is apparel and they have product categories ranging from infants, to kids, to menswear, to womenswear. You think your job is over and it is not until you’ve taken some time to investigate their standing in the business sector. They say that reputation is everything and they’re right. In regards to your supplier, their reputation can and will directly affect yours. If your wholesaler does not complete deliveries on time, sells damaged goods, has poor quality items, then your business will not be one consumers can rely on to meet their needs.

This also goes both ways as a relationship is a two-way street. If you do not make your payments on time, cancel orders and bids last minute and basically lack any sort of business etiquette or tact, you wont go far. It is best to find suppliers that suit your needs and create lasting and loyal partnerships. Many distributors will even offer benefits such as lower prices on pallets and on shipping to their most trusted partners.

Profiting Big.

As we touched on earlier, a key to a profitable company is in meeting consumers wants and needs. So what can your business do to be more profitable? Meet more of their needs by offering more products! Diversification is key to this as long as it is on par with your brand. A clothing retailer has a great opportunity to do this because it can offer items for the whole family under one roof. Womenwear, menswear and childrenswear does not have to be mutually exclusive. Some of the most successful brands such as Old Navy, The Gap, H&M and more have turned themselves into a one stop shop.

This is clearly an an article filled with clichés and here comes another- “Timing is everything.” This is true when it comes to relationships, opportunities and of course fashion. Fashion literally comes out in seasons making time be of utmost importance. Cashing in this business requires awareness of the lifecycle of a season. As a consumer who is in the market for a classic trench coat would find the best deals not at the height of winter but instead as Spring is approaching and stores are trying to clear shelves for new merchandise. As a retailer you can employ the same tactic with your supplier. When doing this though, be mindful of trends. Holding onto and storing trendy pieces for next season is a risk in the fickle fashion industry. This is best reserved for classic pieces that stay in style year after year.

Like any area of business, wholesale has its ups and downs, highs and lows, and its pros and cons. And in the fashion aspect and your taking on the nuances of a whole other industry. Armed with a clear brand identity, some research on the industry and target customer and you’ve got yourself a business. Add in a few reliable and trusted suppliers and now you’ve got yourself a success. Direct Liquidation is a trusted and reliable supplier with a large variety of product that includes clothing. They carry quality product that is ready for the rack once it is received by you. They have 6 locations placed in the US and Canada, your business will quickly receive shipments to its stores or headquarters.

Get started online today or call for more information at 1-800-679-9451.


Author:  Christine Duff

Christine wants to live in a world filled with cutting edge fashion, beautiful words and and an endless supply of leather jackets and boots. A product development grad of FIDM, she was the Editor-in-Chief of MODE Magazine where she reignited her love of storytelling. She has diverse experience within the industry with trend research, art direction and styling editorial spreads. She gained her most notable experience working in Los Angeles at the satellite operation for GQ and Vogue Thailand. Christine is passionate about social science and the role it plays in the consumer goods industry and apparel in particular.


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