The newborn apparel industry generated $10 billion last year, and sales are Wholesale trends clothing expected to grow in the next five years. For this reason, many entrepreneurs have determined that starting a store that offers unique baby clothing is a great strategy. However, setting up shop involves more than just picking a location and coming up with a name. One of the most important business decisions that a storeowner will make is where to purchase their merchandise. The owner might choose to stock the biggest brands, second-hand goods, or travel to exotic locations to find unique goods to offer. Another option that they should strongly consider would be to re-sell wholesale baby products. Entrepreneurs will find that this option cuts down on cost, yet still offers enough variety to keep customers coming back. One recent trend to watch out for however is the rise of bulk distributors who set their prices at retail levels, then call themselves wholesalers to trick unsuspecting buyers. The tips in this article should help storeowners avoid scams when shopping for wholesale baby products.

Legitimate wholesalers are distributors who sell items in bulk only to other businesses. These sellers do not have their own storefront, which means that they do not have to pay costs associated with consumer marketing. However, it also means that they need a steady stream of orders to stay in business. For this reason, customer loyalty is emphasized, and wholesalers offer discounts if orders hit certain quantity thresholds, or if repeat customers place the orders. Certain procedures have also been put into place so that wholesalers can guarantee that they are only working with retailers who might become repeat buyers, and not bargain hunting grandmothers. Therefore, when storeowners try to order wholesale baby clothing, they will be asked to provide several items to prove that they are really a business.

The first thing that wholesalers will want to see is that you are incorporated. These distributors only want to work with legal businesses, and even though it is possible for a business to be operational without being incorporated, it is impossible to complete the remaining steps without doing so. The next thing that wholesalers will want to see is a sales tax ID, or a reseller’s tax ID. This is because the store will be the entity collecting sales tax on baby products, so distributors need to have a sales tax ID on file to show the government at the end of the year, or else they would be forced to pay the taxes themselves. While not always required, it is also a good idea to have a business checking account or a business credit card. Wholesalers typically require a business to have at least one banking reference, so having a checking account or credit card will take care of this requirement.

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