It’s hard enough to sell anything with the economy being so low today. Many businesses have lowered their standards and began to liquidate their inventory at very low prices. A product that can be purchased at low price for resale is clothing. A reseller can mark up the profit margin, offer it to consumers and still make a decent profit. One item that can be hard to find at a low price is jewelry. Many jewelry resellers can easily mark up the profit to 200% or more. However, if you can locate a wholesaler who will offer these items in bulk at a low price, you can make decent profits too. This may be a little hard to do, but the steps below can assist you in finding and obtaining wholesale clothing and jewelry
With any type of resale that you will conduct as business, you usually have to get a tax ID. You can get one online or through your state’s taxation and revenue department. This number identifies you as a business taxpayer. This is what will help you buy items for resale without having to pay any sales tax. Clothing or jewelry wholesalers will often need to have this number in their system. It’s often a requirement on the reseller application for that company.
While this makes it easier to obtain wholesale contracts with companies, it’s important to note that there is a condition when you have a tax ID. You will be required to report any sales quarterly and pay your taxes on those sales monthly, quarterly or yearly. The best way to begin your wholesale search is to check local vendors in your area. This can be department stores or even small shops around the area. Some may point you to their website while others may not want to reveal their wholesaler.
If you continue to run into dead ends locally, start a new search online. When conducting your search online, make sure you check into the company. Always be sure a company is legit and you aren’t receiving any stolen goods. Double check a company with the Better Business Bureau if you are unsure. It may not happen but it sometimes does, so it’s better to be safe than sorry.
It can become very costly when buying clothing or jewelry in large quantities. There are some middle men that pose themselves as wholesalers. While this may not be illegal, it can be a letdown to new resellers hoping to make large profits. These middle men purchase wholesale items at the wholesale rate, but mark them up ever so slightly to make a profit themselves. Then they pose as wholesalers to sell to new resellers who may not know better. Avoid the middle man by looking for the reputable wholesaler directly.
Many wholesalers have a minimum amount that a reseller must purchase from them. Some of them a ‘first order’ amount of $250 – $500 dollars worth of products. This is usually lowered as long as you continue to buy from them regularly. Other wholesalers can have a higher minimum order. It’s typically imposed on products that are least expensive because it takes many of them to meet shipping weight requirements.
Once you have found several wholesalers that you like, request or download a resale application. This application will require your tax ID number, your company name, a fax number, phone number, amount you wish to purchase monthly and about how much business you do per month. It is a lot of information, but you only have to enter it once.
It’s not hard to locate and obtain wholesale clothing and jewelry. What the hard part can be, is finding actual wholesalers and not middle men. Be prepared with your tax ID to submit your information once your search is completed. After your application has been approved, you can submit your first order.