Start and scale your clothing brand
Manufacturers
Manufacturers are the starting point in the supply chain. They turn raw materials into products you use every day. These companies can be small, making unique and handcrafted items, or really big and producing lots of different products for many brands.
For example, Hanes manufactures its own apparel basics and also supplies other retailers with unbranded stock.
Retail wholesalers
Retail wholesalers are the middlemen. They buy products in big quantities from manufacturers and sell them to stores. They get discounts for buying in bulk, which means they get the products at a lower price per item.
Wholesalers will sometimes sell products with their own packaging and label. They also have a good understanding of market trends, so they likely always have the best products available for sale.
A great example is Costco—which buys from multiple manufacturers and resells those goods in bulk to consumers and smaller retailers.
Merchant wholesalers
Merchant wholesalers buy products directly from manufacturers, and then sell them either to stores or directly to consumers. They have different ways of selling, including cash-and-carry, dropshipping, and online sales, sometimes even showcasing products in warehouse showrooms.
Shein is a popular merchant wholesaler. They can be found selling in bulk and to consumers on Alibaba, eBay, Amazon, Poshmark, and their own retail website.
How to buy wholesale in 6 steps
Buying wholesale is simple on paper: bulk in, margin out. The real trick is knowing how to find the right suppliers, cut smart deals, and keep your cash flow intact.
Here’s your road map to how to buy wholesale for your business:
1. Prepare to buy wholesale
If you want to buy in bulk and sell individually, you need a license (and some other documents—more on this in a moment).
A wholesale license is often referred to as a reseller’s license, a reseller’s permit, a reseller’s certificate, or a sales tax permit.
In addition to permits, it’s a good idea to have insurance in the event that something goes wrong—especially if you’ve just started learning how to buy wholesale.
There are a few different types of insurance you may want to consider. For example, you may want to invest in limited liability insurance. You can also get commercial insurance to minimize other business risks.
📚Read more: Ecommerce Business Insurance 2025: Affordable Options
Required licenses and documentation
Before you place your first wholesale order, you’ll need paperwork that proves you’re a legitimate reseller. At a minimum, this usually includes:
Reseller’s license/permit/certificate (US). This allows you to buy products wholesale without paying sales tax, then collect tax when you sell to consumers.
Sales tax permit. Legally required in most US states if you’re selling taxable goods.
Taxpayer Identification Number (TIN). This is issued by the IRS; needed if you’re collecting and remitting sales tax across state lines.
Check out the US Small Business Administration’s website to determine which licenses and permits you may need.
💡Note: Requirements vary by country and even by state. For example, California issues a seller’s permit through its Department of Tax and Fee Administration, while Texas retailers apply for a sales tax permit through the comptroller’s office. Outside the US, licensing rules may look very different—always check with your local government before ordering wholesale.
Setting up your business structure
The legal structure you choose for your business impacts how you buy wholesale, pay taxes, and limit personal liability:
Sole proprietorship. The simplest structure, but your personal assets aren’t protected if the business runs into trouble. Some wholesalers may still sell to you under this setup, but others prefer more formal registration.
Limited Liability Company (LLC). Popular among small retailers; separates your personal and business assets and often makes you look more credible to wholesalers.
Corporation (C corp or S corp). More complex, but can be useful if you’re scaling quickly or seeking outside investors.
Most new retailers start with an LLC—it’s affordable, protects you legally, and often opens the door to more wholesale accounts.
2. Identify the wholesale products you need
There’s no shortage of wholesale products to sell. The difference between winning and wasting money comes down to how well you know your customers: their tastes, their habits, and the paint points they can’t solve elsewhere.
Start with market research: Use tools like Google Trends, social media chatter, and industry reports to spot what’s rising, what’s fading, and what’s missing entirely. Study competitors closely—if they’re selling it, ask yourself whether you can sell it better, faster, or cheaper.
Then carve out your lane. A defined niche—whether that’s eco-friendly home goods, affordable fashion basics, or specialty foods—keeps your buying decisions focused and your marketing messaging sharp.
3. Research and verify potential wholesale suppliers
When you’re vetting vendors, keep your eyes open for red flags.
🚩Here are some supplier red flags to avoid:
Unverified business addresses or contact details that don’t check out
Requests for Western Union or wire-only payments with no secure payment options like PayPal, credit cards, or escrow
Stock photos instead of original images of inventory, warehouses, or products
Wholesale prices that are way below market rate; usually a sign of counterfeit or poor-quality goods
Legit wholesale companies won’t flinch if you ask for proof of credibility. Request a copy of their business license, reseller permit, or sales tax ID, and verify it against state or country databases.
💡Pro tip: In the US, you can check business registration through the Secretary of State’s online records.
But don’t stop at just verifying paperwork:
Use tools like Better Business Bureau, Trustpilot, or Alibaba’s Verified Supplier badge to double-check their reputation.
Marketplaces like Faire remove a lot of this hassle by pre-vetting brands and handling payments online. Or, if you’d rather test products before committing, use Shopify Collective to connect with other Shopify brands and sell without buying inventory upfront.
Your supplier should act like a partner, not just a vendor. If they know their niche inside out—like the wholesale soap supplier, Noble Otter Soap Co., run by two passionate soap makers—they can pass along that expertise to help you sell.
Finally, be realistic about your budget. Factor in promotions, slow-moving products, and unexpected costs before locking in an order.
Remember to shop around. Many wholesalers carry the same or similar products, but their pricing, terms, and service quality can differ dramatically.
4. Contact the suppliers you’re interested in
Once you’ve shortlisted several wholesale vendors you’re interested in working with, it’s time to reach out to learn more about them.
When reaching out to suppliers, refer to questions like these to gather the information you need to make an informed decision:
Where are your products made or manufactured?
What are your wholesale delivery lead times? (As a retailer, quick turnaround is essential; running out of stock means missed revenue.)
What is your minimum order quantity (MOQ) for wholesale?
How long has your company been operational?
Do you sell products directly to consumers?
Can I buy samples before I make a purchase?
What is your return policy for any damaged items within an order?
Do you have a digital wholesale ordering system, or will I need to place an order on the phone, by email, etc.? (These systems help eliminate things like order errors and fulfillment delays.)
What happens if my order arrives late?
Some vendors will have already answered many of these questions on their website’s FAQ page, so you may be able to save some time by searching their sites first.
5. Purchase and receive your wholesale items
Before you cut a check, align with your supplier on the fine print: product specifications, quantities, pricing, delivery dates, and any special conditions. Put it all in a detailed purchase order.
Terms vary: Some suppliers want full prepayment, others offer net 30 (payment due 30 days after delivery). Negotiate terms that protect your cash flow. If you’re handling shipping yourself, use a reputable freight forwarder to manage logistics, customs clearance, and documentation.
When your order lands, inspect it immediately. Count everything, check product quality, and note damages or defects. If something’s wrong, refer back to your purchase order and agreed terms, then quickly contact your supplier to negotiate a replacement or refund as needed.
Reference: https://www.shopify.com/blog/how-to-buy-wholesale