Small clothing wholesaler selling to local shops

Independent boutiques, gift and souvenir shops, market and pop-up sellers, and small online retailers buying for resale.

You sell at wholesale prices with minimum order sizes and margins above your landed cost. Regular reorders from a core group of shops provide most of the income.

• Buying and spotting trends
• Sales and negotiation
• Inventory and bookkeeping
• Managing suppliers and shipping

• Stock ties up cash, so start with a narrow range and test demand before buying deep
• Imported clothing may involve customs duties, labelling and bilingual (English and French) label rules, so check with the Canada Border Services Agency and Competition Bureau
• Register for GST/HST and check provincial sales tax rules for resellers, since wholesale buyers may provide resale exemptions
• Commercial general liability and contents or stock insurance are worth checking
• Check zoning and lease terms for the unit, including rules on customer visits
• Fashion and seasonal stock can go out of date, so plan for markdowns

Estimates suggest startup costs typically around $5,000 to $25,000, depending on how much stock you buy and the cost of your rented unit. Starting with a narrow range helps limit the cash tied up in stock.

Monthly revenue is typically estimated at around $2,000 to $10,000, depending on your range, how many shops you sell to and order sizes. Seasonal stock can go out of date, so plan for markdowns.

Check customs duties and bilingual (English and French) labelling rules with the Canada Border Services Agency and Competition Bureau if importing, GST/HST and provincial resale rules, zoning and lease terms for your unit, and commercial general liability and stock insurance.