New Business idea

[elliotk1993]

Hi All,

I am new here and have a question.

I'm looking to set up a online store selling clothes, or something of the sort. (£30-40 per set)
I have not that much money atm I was thinking about being a middleman for the time being.

Advertising it on my website and when I get a order, order from my supplier in the uk ( takes 2-3 days to get to my address)

Would this work do you think?

or do people just always want next day these days.

I am stuck in the middle of saving and buying in bulk ( risk is i'm not sure if any will sell)
Or if I stick as a middleman for the time being as this is safe.

Any advice is greatly appreciated.

Thanks
Elliot.

 

[TheGaffer]

What you are looking to do is called droppshipping

There will be loads of clothing suppliers who will ship the items direct to your customer

 

[elliotk1993]

Hi,

Thanks for your reply.

I wouldn't mind doing this but then wouldn't my customer know my supplier?

I.E there name be on the mail or paperwork inside the package?

 

[fisicx]

Depends on the dropshipper. Most will use your labels with your name on it.

But I would caution you about this venture, if you don't have a lot of money your chances of success are slim to zero. Marketing isn't going to be cheap and it's unlikely you will even cover your costs in the first year.

 

[elliotk1993]

Hi Fisicx,

Thanks for your input.

I may not use a dropshipper at the moment then and do what I was first suggesting?

That way I only buy when I have a order coming in?

seems like a win win unless they mess you about with posting.

 

[fisicx]

It's not the use of the dropshipper that's the problem. You major obstacle will be getting people onto your website in the first place. Your competitors will be spending a large wodge on marketing, unless you have the funds to match them nobody will even know you exist.,

 

[TomJ83]

@elliotk1993

First of all, welcome to the forums As you don't have much money, the dropshipping idea should be something worth to consider. In the beginning at least. It means that when someone orders through your website, you will then place an order with the supplier who will send the clothes to your customer. Middleman in the context you describe it is synonymous with dropshipping. However you should make sure that your supplier offers a white label packaging or packaging with your brand. Otherwise people will go to the supplier rather than you.

Before you start out, you should look at the options of getting business support. It could be your local council that has a program for start-ups or people wanting to start out. You could also see what Prince's Trust could do for you. They could give you support to start your business.

Good luck!

 

[Gordon - Commercial Finance]

It's not the use of the dropshipper that's the problem. You major obstacle will be getting people onto your website in the first place.

Have to agree with this - whether you dropship, stock-on-order, buy in bulk, or any other variation of these things, it doesn't really matter. You will need to spend money on marketing to drive traffic to your site and bring in orders. Dropship is the cheapest way to get started, but save up some money first to create a marketing budget. You're competing with the likes of Asos. Last year they spent £722 million in "cost of sales". Big chunk of that will have been marketing. That's what you're up against essentially...

 

[elliotk1993]

Hi All,

Many thanks for your answers these have been more than helpful.

I will start of small and try to grow and advertise as much as possible.

I shall let you know when I've made it in years to come! haha (joke)

 

[fleming g]

Try and contact your supplier to know if he can be sending it to your buyers with your label on it. Plus you will have to spend on advertisement cus there is huge competition in this niche you are about to go into.

Also, remember that the name of your website most be catchy, easy to remember, short and a.com domain. Your site must be mobile optimized as in people must be able to use your site on a mobile phone easily cus people uses mobile for search more than a PC.

Just start small. THERE IS NO LIMIT TO WHAT YOU CAN ACHIEVE. GOODLUCK

 

[sharonjones]

Actually, drop shipping is quite simple and you don't need much money to do it.
What you have to do is to find a customer as well as such products for which your customers can wait for few days. You don't need to worry about other parts of the process like shipping and all.
I would suggest you focus only on finding a customer and good product.

 

[WebshopMechanic]

@elliotk1993

Before you start, make sure your business has a 'unique selling point' and is solving a problem.

It sounds all very fluffy but, unless you have something to differentiate yourself from the rest, your business is doomed. You also need to be offering something your customers want or need.

If it is unique in some way, has an angle or there is a niche for it, then it makes it easier to market and a lot cheaper.

I've lost count of the number of businesses who approach me asking for help and I find out their motivation is just to make money. I usually get them when they've wasted a load of cash and I have to somehow re-engineer their story to fit their products and business (not easy).

Matt

 

[Sam Drury]

Any business needs a unique selling point (USP). Think carefully what makes your business unique and why customers would buy from you rather than someone else.

 

[Penny lyon]

Definitely start drop shipping. Then buy stock once you know you have customers. Start selling as soon as you can. Nothing will make up for a lack of sales. Good luck!

 

[BillWong]

to collect all resources you easy to get and to promote the easiest way of your own

 

[hakireview]

I think you should learn more about FBA (Fulfillment by Amazon) and Shopify
It's not easy but it's worth it )

 

[Mr D]

Drop shipping also avoids the other problems you have of ordering single items and getting items sent to buyers.
People nowadays want quick delivery.

Disadvantage you have is the level of returns in clothing is higher than in some other types of item. You get to refund buyer in full.
The buyer can order a dozen items from you and return them all a couple of weeks later leaving you out of pocket.
You have to factor all your costs into your pricing.​

 

[Noah]

Any business needs a unique selling point (USP). Think carefully what makes your business unique and why customers would buy from you rather than someone else.

There must be an awful lot of unique selling points out there then.

Our is : We don't have a USP.

 

[Mr D]

Its a good USP. Certainly a lot less effort than trying to be the singular provider of a service with a hundred thousand competitors that has a unique one.

 

[HomesWarehouse]

ill second the cost of advertising comments on here, I used to be in online retail and that's what did me in in the end, my competitors were spending 30k per day on ad words and eventually my time was up

Good luck, I would advise having a word with someone in the business at least before spending any cash, as considering you didn't know what drop shipping was yet I can see you do desperately need some help, mistakes can cost you all your cash very fast

 

[Markus Brundisteg]

Yes, this is called droppshipping. Many people use it, some succeed and some fail. But if you believe in yourself and have a competitive advantage than I wish you all the luck!

 

[effie9]

@elliotk1993

Before you start, make sure your business has a 'unique selling point' and is solving a problem.

Matt

is it possible to consider free shipping as the unique selling point?

 

[fisicx]

is it possible to consider free shipping as the unique selling point?

It's not really unique though. Loads of people offer free shipping. Which in reality isn't free as all as is included in the price.

 

[Mr D]

is it possible to consider free shipping as the unique selling point?

Shared by millions of sellers.

If you haven't got a USP don't worry about it. It isn't required to start up in business, some develop one much later. And some simply do not bother.

 

[Mr D]

It's not really unique though. Loads of people offer free shipping. Which in reality isn't free as all as is included in the price.

The customer is not paying anything extra. Hence free to them.
In reality everything free is paid for by someone - you don't get a free pen for enquiring about life insurance without it being paid for. You don't get free cup of coffee after buying 5 cups of coffee - its paid for somehow.

 

[Chris Ashdown]

From my own experience in selling clothing (Workwear) there was a good 15% returns for reasons like did not like the colour or did not fit, or also change of size)

With one sex they are confused buy the labelling of items what is a size 12 in one shop range is size 16 in another so its important to give as precise measurements as possible, that then allows them to totally ignore your advice and send the item back for a new size two sizes larger seldom smaller

I never tried Fashion clothing but would expect about 30% at least to be problematic

Charging for the second delivery is the cause of a ten min argument as it was not their fault they ordered the wrong size

Sending back a garment worn for once and then sent back is a way of life also sending back with half a ton of makeup or screwed up into a small ball seems to be the normal with many of this sort of person

With drop shipping it would be hard to make a profit as prices are so competitive on the web and buying in quantity to get discounts is really the only way to stand a chance

As with all selling via the web you really need to understand the government regulations so you understand the buyers rights, and also the behaviour of some of the assistance services like eBay and PayPal, where there are tons of horror stories on this forum and others

 

[Pish_Pash]

Personally I can't think of anything that would give more grief than selling women's clothes online ....the returns must be horrific.

 

[RobertN]

Choose a very specific niche for clothing and you can succeed only by liking competitor pics on Instagram while having better quality pics / better-looking clothes on yours.

There is another type of contract called - consignment however nowadays only big stores/names can easily sign these type of agreements with suppliers. But you can always try to ask for it.

Buying clothes and reselling you have to know what you're buying. Normally E-commerce stores etc hire buyers for reason and a good buyer who follows fashion world and who knows exactly what is trending is basically the head of the category or business in my opinion. This is why some business is ahead with great fashion buyers - who can predict fashion future and are always ahead of their competitors who are building a business without knowing about fashion world.

Do not buy something you'd like to sell as you are not sure if it's trending unless that's a very niche type of thing. So one day or another you'll find your customers.

 

[RobertN]

I cannot edit post twice! Not competitor pics, but people who like competitors

 

[benco01]

Many people use it, some succeed and some fail. But if you believe in yourself and have a competitive advantage than I wish you all the luck!

 

[effie9]

It's not really unique though. Loads of people offer free shipping. Which in reality isn't free as all as is included in the price.

I mean that the shipping is free to all countries and there is no need to order a particular amount to get a free shipping. I did not see many companies doing this. But probably I have to check more companies. Thank you!

 

[effie9]

Shared by millions of sellers.

If you haven't got a USP don't worry about it. It isn't required to start up in business, some develop one much later. And some simply do not bother.

Thank you! Nice to know.