starting own online fashion business!Help with where to start

kirstycobie

hiya,

im thinking about starting a online fashion business on ebay, but dont have a clue where to start.

i have found a few websites that i can buy the clothes and accessories from but the problem is do i need a business bank account? also would i be able to get any grants to help me start off with buying stock in bulk?
and what else do i need to think of? i really am clueless on this but i know i have the drive to suceed in this business as its somthing ive always wanted to do.

thanks in advance

paddyrg

Blimey - fashion is a TOUGH industry at the best of times, especially if you've little experience. You have to carry sizes for everyone, choice of colours, etc., and you have to get that stock at the right price upfront. No, there are no grants to buy clothes with, you will have to risk your own money, or find an investor/partner.

GoodNewmover

kirstycobie wrote: »

hiya,

im thinking about starting a online fashion business on ebay, but dont have a clue where to start.

i have found a few websites that i can buy the clothes and accessories from but the problem is do i need a business bank account? also would i be able to get any grants to help me start off with buying stock in bulk?
and what else do i need to think of? i really am clueless on this but i know i have the drive to suceed in this business as its somthing ive always wanted to do.

thanks in advance

1. those thinking of starting their own business online/offline - the sole trader way should inform HMRC. Sole trading is the simplest way.

2.those thinking of starting their own business online/offline - the limited company way should inform Companies House.

It is advisable that you have a business bank account if you are operating as a sole trader. Good for separating personal from business especialliy when you complete your self-assessment. Most banks have 12 or 18 months free business banking for start ups.


HMRC (legal and general info)
http://www.hmrc.gov.uk/index.htm

HMRC/Business Link (starting a business)
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1084367281&r.i=1084368952&r.t=CAMPAIGN&type=CAMPAIGN

paulwf

If you're buying clothes from a few websites and banging them out on Ebay chances are 100 other people are too. Ebay is a very hard place to make money unless you either have something unique (i.e. handmade/restored) or can buy in large bulk from China and have streamlined logistics.

Think of other ways you could source clothing ranges and then sell them that would add value. As others have said though you have to carry a large amount of stock to sell clothing, you're going to need plenty of cash behind you.

kbh4031

Personally I wouldnt start it if you do not have the capital to outlay for at least 6 months.
There is BIG competition on ebay, especially with the Fashion Oulets being advertised so much and the fees have risen
I looked at a wholesale website recently and found some lovely dresses that I thought I could make a decent profit on...went onto ebay and found 3 other people selling exactly the same dresses for a price that I would have made £2 on minus fees.
Please do your research before you buy stock you just cannot afford to hold on to

easyhost

kirstycobie wrote: »

hiya,

im thinking about starting a online fashion business on ebay, but dont have a clue where to start.

i have found a few websites that i can buy the clothes and accessories from but the problem is do i need a business bank account? also would i be able to get any grants to help me start off with buying stock in bulk?
and what else do i need to think of? i really am clueless on this but i know i have the drive to suceed in this business as its somthing ive always wanted to do.

thanks in advance

find a good dropshipper and then you dont need to hold any stock, say a dropshipper charges your £5 for an item, you list the item for £10 when someone purchases this and pays you, you pay the dropshipper their £5 and give them the buyers details and they then send the item to the buyer and you have a £5 profit

paddyrg

The problem with the dropship concept, mind, is that someone else not under your control is responsible for your reputation with your hard-won customer, and you have to maintain live/current information for availability/sizes/colours in a high turnover sector. It is made worse by the fact if the dropshipper says £5, there will be someone else using them saying £6 whilst you are trying to push £10... All that said, if you can get the right dropshippers supplying your fashions, and they are reliable and good quality, it will save a bunch of upfront cost.

soolin

I agree dropshipping is a dangerous game even some of our regular sellers over on the ebay board have lost everything when the drop shipper suddenly runs out of stock or starts get a little slip shod with what they send.

Although i am using ebay as an example the same applies to however you sell as you are bound by all the same rules and regulations. You sell something and place the order with your dropshipper who eventually gets round to sending goods. Buyer doesn't like them for whatever reason and wants a return, and assuming you are advertising yourself as being in the UK (you get more sales that way) the item comes back to you and you give a full refund, including all the original postage paid.

I have tried sellign clothes but found it to be one of th emost difficult markets, just think how many things you buy from a catalogue or online that you find don't fit quite right or you don't like and return, as a seller you lose the postage on all those items.

Also remember that if dropshipping from overseas this must be declared as buyers could well face duty and tax on delivery to the UK , and that will put off a great many people.

pinkclouds

paddyrg wrote: »

You have to carry sizes for everyone

Perhaps the OP could focus on a narrow audience? Like petites or plus sizes? Sizes 8 to 18 are widely stocked everywhere, including catalogues and supermarkets at very low prices. Better to compete with fewer retailers? You could narrow it even further with tall petites or short plus sizes. Goodness knows where you'd source the clothes from though - it's certainly not on the high street!

easyhost

one of the most respected and used dropshipper is http://www.dhgate.com. these are a china company but have a UK warehouse. I have used them for several years without any problems.
Also another good respected dropshipper is http://www.fragrancex.com if you want to sell fragrances.

mizzbiz

I agree with the others - this is a tough old business and you have some real veterans on Ebay who are pulling out because there is just no money to be made. What is important is margin and there isn't much margin in clothes on Ebay. With such low margins, the only way to make much (some) money is a high turnover. Are you in a position to cope with the demands of high turnover? Do you have plenty of storage etc.

One thing I will say is that unless the clothes are from a recognised or upcoming label then you have next to no chance of making much money. Most people look for niche items on Ebay, designer stuff going for a song or maternity wear from decent labels. Nice dresses from Warehouse and Karen Millen do well, for example. Generic jeans and T-shirts from China just ain't going to cut the mustard unless you're selling them for pennies. Your biggest competitor in this case is Primark - and they don't charge postage either.

Seriously, think bout this long and hard - you could end up losing a lot more than you ever bring in. Unless you're in manufacturing or technology, money making businesses these days are low investment, service orientated models that build business through networking and clever advertising. Buying and selling is a mugs game if you ask me.