
Manufacturing vs. Wholesale: What You Need to Know
If you’re reading this, you’re probably interested in starting your own clothing business or looking to scale your current one. Let’s explore my experiences with both manufacturing and wholesale!
Branding: The Key Difference
When it comes to branding, buying wholesale doesn’t give you much leeway. If you log into vendor sites like FashionGo, you’ll notice that most wholesalers don’t offer services to put your logo on their clothing, add neck tags, or packaging with your company’s name. You’re not the only one buying those items, and that means your customers might see the same top or jeans on other sites, making it hard for them to recognize your brand.
In contrast, manufacturers allow you to customize your items. You can add neck tags, hang tags, and your logo wherever you want. For instance, I always request the factories to add my logo and neck tag to all my activewear because I design my own clothing. I can even choose my own fabrics and prints!
Barcodes and Inventory Management
Barcodes might not be necessary when you’re just starting out, but as your inventory grows, they become essential. In my early years, I didn’t use barcodes because I had a small catalog. However, as you scale, you’ll need a system for tracking your products.
Manufacturers usually provide barcodes at low costs—sometimes even for free. Unfortunately, most wholesalers don’t offer this service. When I first ordered from wholesalers, my clothing arrived in large boxes with no packaging, making it a hassle to manage inventory. It was a mess. We had to package and barcode everything ourselves which took many days!
Design Freedom: Go Wild!
One of the biggest advantages of manufacturing is design freedom. You can choose any color, print, and even the type of fabric. If you love being creative, manufacturing is the way to go. Conversely, when you buy from wholesalers, you’re limited to what they offer. This can feel restrictive and, let’s be honest, a bit boring. Not to mention, you’re selling the same clothing that hundreds of other companies are selling, including Amazon and Shein!
Sizing: Customization vs. Prepackaged
With manufacturing, sizing is entirely up to you. If customers request longer inseams or larger fits, you can accommodate them. You can create clothing for various body types. However, with wholesale, sizing is predetermined. Most wholesalers sell in packs, which means you’ll often get sizes that you don’t need.
Packs: Flexibility in Orders
Manufacturers allow you to order single sizes, while wholesalers typically require you to buy in prepackaged sets. This can lead to excess inventory of sizes that don’t sell, which is a waste of money.
Stock Availability: The Restocking Dilemma
Manufacturers rarely run out of stock. They can keep producing items as needed. If something sells well, you can easily reorder it. On the other hand, wholesalers may not have the same items available when you want to restock, which can be frustrating.
Competition: Standing Out
When you manufacture your own items, you create unique designs that only you sell. This means less competition. In contrast, with wholesale, many boutiques might sell the same dress, making it harder to stand out. Customers will often choose based on price or familiarity, which puts you in a tough spot.
Cost Analysis: Manufacturing vs. Wholesale
Let’s talk about costs. I was quoted $15.57 for the dress below, which includes shipping, barcodes, and packaging. On the other hand, the wholesalers in the USA quoted me significantly higher—$28.17 for the same dress, and you’ll receive it unpackaged and unbranded.
Minimum Order Quantities (MOQs)
Many people shy away from manufacturing because they think they need to order hundreds of pieces. However, many manufacturers offer lower MOQs, sometimes as few as 75 pieces. Meanwhile, wholesalers usually don’t have minimum quantities, but you often have to buy in packs, which can limit your flexibility and make you buy sizes you can’t sell.
Final Thoughts
Ultimately, whether you choose manufacturing or wholesale depends on your goals. If you’re looking for quick profits and a simpler setup, wholesale might be the way to go. But if you’re passionate about fashion and want to create unique designs, manufacturing offers more opportunities for growth and creativity. Your business will have longevity if you go with manufacturing.
You can start your brand using wholesale clothing. Once you are established, you can move over to manufacturers. Profits will always be higher when you work directly with factories. But you must find the right factory.
I can help you find a factory and get samples! Hit me up!
Written by Buffie