What You Should Know about Buying Wholesale Designer Clothes
Selling designer clothes from credible sources plays an instrumental role in achieving success in the dropshipping clothing industry. This is particularly important if your business plan has anticipated supplying your store with wholesale designer clothes bought at cheaper prices. There are lots of things you should take into account when buying wholesale designer clothes.
You can just decide and buy designer clothes from someone today. The risk of acquiring counterfeit products and selling them without having the necessary legal things covered can get you in trouble.
So, what is required to do to be able to buy wholesale designer clothes and resell them? The first question that every newbie in this area of the dropshipping industry asks is the following:
Do I need a license to buy wholesale designer clothes?
When buying wholesale products one thing is certain – indeed, you need a license. Regardless of the type of your business – brick and mortar store, online store, or home business, a license to buy from a wholesaler is imperative. Depending on which location you are based in, this license could be referred to as resale ID, retail ID, wholesale ID, or a reseller’s license.
What is the benefit of having a wholesale license?
This wholesale license would allow you buying products in bulk and resell them legally to your customers. Additionally, you won’t have to pay sales taxes for the merchandise you buy. And on top of that, having a license to buy wholesale will make you more professional which will increase your reputation in the wholesale designer clothes industry.
How do you get a wholesale license?
Obtaining a wholesale license is a process that requires various things, depending on where your business is located. All in all, the basic steps, that more or less are followed in every part of the world are the following:
Submit an application for an EIN Number
An Employer Identification Number (EIN) or also called Federal Tax Identification Number is a unique number to identify a business entity. In fact, applying for EIN Number is the first step towards creating a reputable business. This number is assigned to business entities by the Internal Revenue Service (IRS).
If you are based in the U.S.A., there’s also the possibility to file your EIN application online. After you have submitted the application, the EIN should be issued instantly. Thereafter, use it to open your business bank account and sign up for accounts with the various wholesalers that you’re looking to work with.
Procure a State Tax License
Getting a sales tax license is the next step in establishing your business. The application for this license can be done in your state of residence. For example, in Texas, USA, the license is called the Texas Sales and Use Tax Permit. And the good thing is that you can make this application online. If you live in a different state, a simple online search for the tax or revenue department of your state will help you know where you’ll make the application.
Business Name Registration
The next step towards acquiring a license to buy wholesale designer clothes is to register your business name. The type of business that you intend to establish determines the type of business you’ll register. It can be either a sole proprietorship, limited liability company (LLC), or a partnership. Say you’re starting a sole proprietorship under an assumed name, you’ll need to complete and file a Doing Business As (DBA) form with your state of residence. However, if you’ll be conducting business in your own name and not an assumed name, this step isn’t necessary.
Open a Checking Account
You should now visit your local bank and open a checking account for your business with a local bank. To this end, you’ll require your registered business name and EIN. This isn’t mandatory; however, it will be challenging to do any designer clothes wholesale without it. This is because a majority of clothing wholesale suppliers are very likely to be uncompromising about their requirements when you make your application. So just cover all your bases, including getting a business bank account, in order for them to open a buyer’s account for you.
Acquire a Debit Card
You also need a business debit or credit card, so make sure to apply for one. The card will be linked with your business’ checking account and it’s the payment method that you’ll use to buy wholesale clothing from your suppliers.
How to buy designer clothes wholesale?
After you complete all the previous steps of the process of obtaining your license for purchasing wholesale designer clothes, the next step is to find wholesalers.
Purchasing designer clothes in bulk works in the following manner. First, you need to find a wholesale clothing supplier that sells genuine products from luxury brands. Second, you have to make appropriate arrangements with that supplier and buy merchandise from them. Third, you need to define the retail prices of the products you bought in bulk and start selling them. In this last step, lies your opportunity to earn a decent profit.
BrandsGateway as your wholesale supplier
Buying wholesale designer clothes is not an arduous task if you develop a proper business strategy. In fact, finding the right supplier can be very easy if you know where to look. By using the right keywords, you will be able to make connections with the right people.
There is a myriad of wholesale clothing suppliers, but not all of them are reputable and trustworthy. What you need is one that could lead you every step of the way toward building a successful boutique business.
BrandsGateway has the reputation of being a wholesale supplier for numerous businesses across the globe. Different success stories are proof of this company’s dedication to delivering premium services and products.
What makes BrandsGateway a leading supplier of wholesale designer clothes is their broad portfolio of luxury products available at convenient prices. The possibility of choosing the best deal for your business is yet another benefit that BrandsGateway brings to the table. Their wholesale services offer two options: Pick & Mix and Stocklots.
In order to start a wholesale partnership with BrandsGateway, make sure to register on their website, browse their catalog of products, and place an order.
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