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Newbies need advice please help!

Discussion in 'Wholesale and Trade' started by Panda101, Jan 21, 2020.

Demand for babyclothes

Poll closed Feb 18, 2020.
  1. High

    100.0%
  2. Average

    0 vote(s)
    0.0%
  3. Low

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    0.0%
  1. Panda101

    Panda101

    Joined:
    Jan 21, 2020
    Messages:
    4
    Hi
    I'm looking to start an online baby clothes wholesale business. I have reached out to a relative who is a clothing manufacturer in china. However, as I am new in this industry, I am unsure of the amount of stock to start with. My initial budget for the stock is around 10-15k is it enough or too much to start with? Do I need to set aside some money for the import tax? If so how many percents? I would appreciate it if anyone in the clothing business can offer me some advice.

    Thank you in advance!
  2. Erik

    Erik

    Joined:
    Sep 26, 2012
    Messages:
    2,825
    Hi!

    I believe your budget should be enough should you like some clothes manufactured in China, as definitely manufacturing costs there tend to be cheap. But you must also consider the quality of your clothing, which as you said, have a relative in China, then all the better as he / she could assure that part for you.

    I think your biggest advantage here is your relative, as you can get advice from him / her about efficient ways to get to start your business. Maybe consider saving up some of them for shipping, and while taxes will be a sure consideration, best to ask an expert about it. I believe some of the shipping guys in here can answer that question for you. Tagging in @Import Expert here, and maybe they could give you some tips about it.

    As for your budget and the amount of stocks, best advice is to spend wisely. You are still not sure how fast will you be able to sell those stocks, so best bet for now is to start small. Get the lowest MOQ you can from the manufacturer as your trial stock then sell it. That 10 - 15k budget should be more than enough to get you started on a small lot, depending on how many types of clothing are you going to sell. Once you have sold those initial stocks, then perhaps you could get more.

    All the best!
    Import Expert likes this.
  3. Panda101

    Panda101

    Joined:
    Jan 21, 2020
    Messages:
    4
    Thank you for your reply Erik!

    I am still unsure how the shipping and taxes work, say if I wanted to import £1000 worth of baby clothes, how much money do I need to set aside for shipping cost and duties and taxes? From what I’ve been told is to use a freight forwarder so the duties as taxes are taken care of for us so we won’t get hit again with fees once the package has arrived at the English port. Is this the best way forward?

    thanks again!
  4. Import Expert

    Import Expert

    Joined:
    Oct 6, 2011
    Messages:
    3,437
    Hi Panda,

    If you know the manufacturer then it makes it a bit easier. Import wise Duty on baby clothes would be around the 9-12% mark depending on the type of clothing and what its made from. Duty is paid on the CIF Value - So Cost of goods, Insurance and Freight (Shipping cost). Baby clothing should be zero rated for VAT.

    Shipping wise, the more you send over in one go, the cheaper it will be per item. Buy on FOB terms and a UK forwarder such as ourselves can arrange shipping to door UK. I would say that unless you are expecting a flurry of initial sales then 10-15K of stock sounds a little too much to me. (However I'm no expert on that side of things) . You should firstly find out what sells and what doesn't, and what the current trends are. You don't want to be stuck with large volumes of a line that doesn't sell.

    Good luck!
    Darren.
    Erik likes this.
  5. Panda101

    Panda101

    Joined:
    Jan 21, 2020
    Messages:
    4
    Hi Darren thank you for your reply!

    I was wondering if you could explain to me how the process work with a UK forwarder such as yourselves? As we have no experience in dealing with shipping we would like to get to know more about it.
    Or perhaps we could exchange emails and talk more privately there?

    Thanks again for your input
  6. Import Expert

    Import Expert

    Joined:
    Oct 6, 2011
    Messages:
    3,437
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