If you decide to set up an online fashion store, one of the most critical aspects of your business will be the relationships you build with your suppliers. Ultimately, if you can’t get hold of the right clothing and accessories, you won’t have anything to sell – whether you are creating an inventory or going down the arbitrage route.
Suppliers are essential for any company, but when it comes to your fashion business, it will be tough to grow in any way, shape or form without them. With this in mind, here are a few pointers on how to keep ‘em sweet.
Know where to look
First and foremost, you can choose between a variety of suppliers for your business. As discussed at https://www.entrepreneur.com/article/66028, you can establish direct links with clothing manufacturers, which are often the source of the lowest prices available. There are distributor relationships to consider, too – the wholesalers that warehouse fashion goods and get it out to retailers, both online and off. You might build a relationship with an independent, also – a local clothes maker whose style you take a liking to, for example. And then there is the import market – which can often prove to be a fantastic opportunity to give you a USP – where you buy in clothes from abroad.
Know who to choose
The second point is all about choosing the right supplier to work with. Price is an obvious factor to look at initially, but it’s important to think a little deeper than just money. Does the supplier have a good reputation with other stores in your niche? Are they reliable in sending or delivering stock? Do they have backup systems in place for when things go wrong? And are they stable – or have they been in business long enough to trust?
Make it easy
Ultimately, your suppliers want you to sell their goods, and there is an opportunity to build an excellent relationship with them by spending time with them, finding out what they need, and making it easy for them. There is a multitude of ways of doing this at all levels of your business. As www.dataserv.com/ point out, even seemingly small things like processing invoices can take up a considerable chunk of your supplier’s time so it might be worth doing the donkey work for them. The idea is to stand out from your competitors and a company your suppliers love to do business with. And it only takes a few of those relationships for your reputation to start to soar.
Strike a deal
Finally, a word on prices. Your purchasing power will depend significantly on the amount of stock you buy in from your suppliers: bulk buying can get you discounts of up to 50% – or more. But be careful that their terms suit you, or you could be sitting on a massive amount of inventory that you are stuck with if it doesn’t sell. The key to striking the perfect deal is to work out what you need. Are you willing to pay a higher price per unit if you get a sale or return deal? Do they offer rebates for unsold stock? Can you get a cheaper rate for taking on end-of-life and sale products? There’s a lot you can do here, and it all boils down to one thing – excellent, two-way communication.
I hope these tips help – let us know if you have any more to add!
