What to look for in a wholesale clothing supplier in the UK

If you’re starting a clothing shop or customisation business, a good relationship with your clothing wholesaler will be vital. Having a reliable partner will ensure you always have enough stock, and a good relationship will be reflected in your cash flow. But what makes a good wholesaler? While different suppliers suit retailers with different needs, here are a few things to look out for.

product quality and consistency

The first thing to look out for is, admittedly, a bit of a no-brainer: the quality of the goods. But let’s be honest here – who among us hasn’t had our head turned by a cheaper alternative? Sure, you might end up disappointed and vow to avoid that brand again, but when you are buying stock to sell on to consumers, then such a decision can lose you customers, even if you also stock other brands. One way to ensure quality is to stick with well-known brands, particularly those known for producing great clothing. That’s not to say that smaller, newer brands are necessarily bad, of course. But if you’re limited on the amount of time or money you can spend on researching, your safer bet is to go with an established brand.

Always ask for samples of the products you are looking to stock. If the wholesaler is unwilling to supply you with any, it can be a bit of a red flag, but also bear in mind that people do try to get free stuff from wholesalers by pretending they’re samples, so make sure you can justify your request, and don’t ask for too much in one go. Another quality signifier is consistency. Good labels also seek quality from their suppliers or manage their own raw materials, and this commitment should be reflected in the end products. If your deliveries are inconsistent, it probably means the manufacturer is cutting corners somewhere, so it’s probably one to avoid in the future.

...but does quality always matter?

Despite the importance of good quality in most circumstances, there are situations where exceptions and compromises apply. An example would be if you pitch yourself as a low-cost retailer, in which case people might not be expecting high quality. People buy sets of T-shirts for hen and stag parties, for example, or to take part in a sporting challenge or do some messy work. In such cases, the clothing is probably meant to be worn only once, so it might not be appropriate to buy premium-quality garments.

If you are a fashion or luxury retailer, it’s best to avoid lines like that, as it could cheapen the brand. But if being cheap and cheerful is your main selling point, buying high-quality garments could price you out of the market. 

pricing structure and moqs

The whole point of buying your stock wholesale is that you buy in large quantities at a lower per-unit price than you will retail the goods for. But while the maths makes sense on the face of it, buying in bulk does come with certain risks. One risk is that you may be unable to sell the clothing in the future. Perhaps tastes change, or some other external factor could make them unsellable. You might then be stuck with a large amount of stock, with no choice but to sell it at a loss. Buying in large quantities can also strain your cash flow, making it difficult to invest in your business or buy additional stock, at least without securing funding elsewhere.

Don’t forget that when you’ve bought all that stock, it has to be stored somewhere, preferably a secure place, with insurance. These are costs and risks that would be diminished if you bought in smaller quantities. It’s normal for wholesalers to be cheaper than retailers, but most can offer additional savings through bulk discounts. They usually offer these discounts in tiers, for example, where 1–9 items are at full price, 10–99 items are at 10% off, and 100+ items are at 15% off. Every wholesaler is different when it comes to such discounts, but it is in their interest to sell as much stock as possible, so it’s a win-win for the client and the seller if you take advantage.

Despite what the wholesaler advertises, it’s always worth enquiring about a personalised deal, especially if you can convince them you will be a regular customer. Perhaps show them your business plan or past sales records to reinforce your case.

Another factor is MOQs. This is where wholesalers won’t let you buy small amounts of the product in a single transaction. Again, different wholesalers have different MOQs, and some don’t have one at all, so shopping around could be beneficial if your cash flow is tight or if you lack storage space. MOQs can be measured by unit count or financial value, so make sure you know the minimum purchase required for a given wholesale supplier.

payment terms

When you are running a business such as a small retail store, keeping on top of your income streams and outgoings is a daily task. Although debt isn’t necessarily a bad thing when you’re growing, the more positive your cash flow is, the better, because it gives you more cash to invest in your business – and pay yourself – rather than it being tied up in stock. That’s why a wholesaler's payment terms really matter.

There are a few possible ways that a supplier can demand payment. First, there’s payment in advance. They won’t lick a stamp for your delivery until you’ve paid for everything in full. Second, there could be a deposit system, where you pay a certain amount, they send the goods, and you pay the balance. Third, you order the goods, and the wholesaler will invoice you at a later date, which can be any period, say 7 or 28 days. 

Then you’ll have a certain amount of time to pay. A fourth option is that you pay for everything you have ordered that month, or perhaps that quarter, at the end of that period of time. As you can see, these models will all have different effects on your working capital. As far as your business is concerned, it’s great to be able to actually sell the goods at a profit before you have to pay the supplier for them. If sales are going well, you should maintain a healthy balance at all times. 

However, not all wholesalers will offer such a deal – at least not at first. It might be a perk you have to earn after you have gained their trust and demonstrated that your shop is successful enough to minimise the risk of non-payment. Look out for hidden costs, whatever the terms. Delivery, packaging, and handling can add up, especially if you’re making lots of small orders rather than fewer large ones. Late payments might also incur interest, so find out what the deal is.

stock availability and range

If possible, find out how much stock the wholesaler holds, particularly in the products you’re interested in. What you don’t want is for them to start ordering from the factory when you place your order, because that just adds time. If they hold a regularly replenished stock of their own, then you should be able to get your orders dispatched quickly.

Do they frequently review their range and add new products? If you’re in the fashion business, this should be a deal-breaker, but some wholesalers can get stuck on the same limited range, which can affect your own offering.

supplier credentials

When you’re selecting a supplier, scour the internet for reviews, opinions and stories from people who have used them. 

People tend not to bother leaving reviews when a company does its job as advertised, so it’s not always easy to find positive reviews, but if you see a lot of negative reviews and reports, that’s a definite warning. If the supplier responds with their side of the story, it’s also worth considering, because not all reviewers are exactly honest, and some have no clue how the industry works. Check Companies House to ensure they’re a legitimate business operating from the UK, if that’s where you are supposedly sourcing your stock from.

account management

Can you open an account with the supplier? If so, will you be allocated a dedicated account manager who knows your business? This can help oil the cogs and avoid hold-ups. You can gauge how effective their account management is by how quickly they respond to emails or pick up the phone. 

returns policY and guarantees

Finally, you should know what happens if you’re not happy with the products they send you, or the service in general. Reputable wholesalers make returns easy if your complaint is genuine. In all likelihood, damage or poor quality isn’t their fault, so it’s an issue they will have to take up with their own supplier. But if you get the sense that they will make returns difficult, perhaps give them a wide berth or use them only for limited products.

Hopefully, this article will have got you thinking about things you had never considered in your search for a supplier. But get it right from the beginning, and you’ll be off to a flying start.