With the outbreak of the COVID-19 pandemic, the focus of most business now is to move their platform digitally. Even before the pandemic, the future digital ecommerce looks bright. But starting an ecommerce business is really hard work. A lot of steps need to be taken so that an ecommerce business can be profitable.
You will need to do research, sourcing the right supplier, and launching of your ecommerce site. The first step in an ecommerce is choosing the right product to sell whether wholesale, directly to consumers or online. When it comes to building a highly profitable ecommerce business, choosing the right product is definitely the most important piece of the business. A critical first step in making sure you have chosen the right product is evaluating the market demand, existing competition and viability of the product itself. Choosing the wrong product and you run the risk of wasting your time and energy, or worse, sinking your money into inventory you cannot sell.
To determine whether if you have got a viable and profitable product idea, Thai Wholesale Clothing have put together this guide that guide you exactly how to take a look “under the hood” of your market and your product to make sure you’re building your business on a strong foundation.
The first step is to decide how you want to build this business: manufacture, wholesale, or dropship. Taking clothes, fashion apparel or dresses as an example.
• Make – We can sew our own piece of clothing relatively easy if you have the sewing skills. We were quickly able to find design and fabric available online to make our own unique clothing design. A piece of clothing doesn’t require sophisticated processes or hard-to-find materials. Making a product like this would be relatively easy and inexpensive. Purchasing in small quantities to make our initial clothing means our margins will be smaller but as a new clothing and brand, we would also have full control over the pricing and a lower inventory risk.
• Manufacture – This would consist of working with a manufacturing partner to manufacture your clothing product. Because of the relatively simple nature of the clothing, this option doesn’t make much sense until we get to a point that we will want to have own brand clothing design or you need a large quantity of clothing to sell. This cost associated with manufacturing a clothing design like this would be much higher than if we were to make it ourselves due to minimum order quantities set by manufacturers, likely in the thousands of unit range.
• Wholesale – Purchasing wholesale means purchasing ready-made clothing products and reselling them on our own site. Typically, your margins for reselling products are around 50%, so a clothing product that costs us $10 to buy wholesale would retail for around $20. When buying wholesale, you’ll have little control over pricing as the prices are usually established by the manufacturers and expected by the market.
• Dropship – If we didn’t want to carry any inventory ourselves, we could go the dropshipping route. If we were to work with dropshipping partners, we would be looking at a much smaller margin, usually around 20%. This means that we wouldn’t have any start-up costs for our inventory. Instead, we would list the clothing product on our site and when we make a sale, our dropshipping partner would charge us and ship the product on our behalf.
Thai Wholesale Clothing as being a manufacturer and supplier ourselves is able to fulfil the requirements as wholesaler because we have our own clothing products. We are also a manufacturer ourselves so we can make designs for our customers. We are also a dropshipping partner as all our products are in wholesale prices. You can use our pictures and clothing product information for your own ecommerce site.
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