When it comes to starting an eCommerce Clothing Brand, your startup expenses will depend on several factors.
The most important factor is your online clothing model. Below you can find the 3 eCommerce Clothing models.
- Dropshipping Clothing Products From Your Online Store – Dropshipping is a business model where you take orders from your website but your supplier stores and ships your clothing products to the end customer.
- Selling Wholesale Clothing Products From Your Online Store – Selling wholesale is a business model where you purchase clothing inventory upfront for brands that you do not own and sell them on your online store.
- Selling Private Label Clothing Products From Your Online Store – Selling private label is a business model where you manufacture your own clothing products and sell them under your own brand on your website.
1. Start An Online Clothing Store Dropshipping
Dropshipping is by far the cheapest and easiest way to start selling goods online which is why most new entrepreneurs gravitate towards this business model.
Without going into too much depth, dropshipping is attractive when you are willing to sacrifice some amount of profit in order to avoid carrying an inventory.
When a customer places an order, you then place an identical order with your supplier, and the supplier ships the product to the end customer.
The amount of profit made is the selling price minus the cost of goods sold and a small dropshipping fee.
Expect to pay between $35 and $500 on average to start a dropshipped online store.
2. Start An Online Clothing Store Selling Wholesale Products
Starting an online clothing store the traditional way with inventory carries all of the same costs as starting a dropshipped store except that you also need to set aside money for your initial cost of goods.
Depending on which clothing product you plan on selling, your inventory can cost hundreds or thousands of dollars based on the minimum order quantity (MOQ) that your vendor requires.
In general, however, when it comes to buying wholesale products within your home country, the minimum order size is typically on the order of $200 – $1000 depending on what kind of clothing you sell.
A typical wholesale clothing supplier in the United States requires a minimum order value of around $200 which is pretty manageable considering that you can reorder at any time and receive your products quickly.
Wholesale clothing Products cost $200 – $1.000
3. Start An Online Clothing Store Selling Private Label Products
Selling your own private label clothing products offers the highest profit margins. It is the fastest way to make significant money with your eCommerce business. By working with overseas factories, you can create your own branded line of products and keep the majority of the profit.
While manufacturing your own clothing products may seem intimidating at first, it’s actually fairly straightforward once you’ve gone through the process a single time.
Selling your own private label clothing products requires the same startup capital as starting a wholesale online store. The difference is you need to set aside more money for your cost of goods.
Because you will be working with factories overseas, your minimum order quantities will be in the hundreds or thousands of units. The main difference in startup costs between a wholesale store versus a private label store is the initial clothing inventory purchase.
Because you will be importing clothing goods from overseas, you will need to pay to transport your clothing goods from other countries to your home country and pay customs.
The cost of manufacturing and shipping your private label brand products will be around $2.000 – $10.000.
If we add it all together the total comes out to between $2.235 and $11.500.
Here is a video of “What is the Starting Cost of an eCommerce Clothing Brand?”