How Much You Can Make Selling Clothes Online
Setting up a business selling clothes online can be a great way to make some extra cash or even become a full-time job. However, before taking the plunge, it’s worth considering whether selling clothes online is really profitable. Here’s what you should know to make money selling clothes online.
The fundamental step to determining profits from online clothing sales is knowing your costs. This includes the cost of getting the inventory, such as sourcing the clothing. Next, you must consider operational costs, including:
- Website hosting – pay for hosting and the cost of registering a domain name.
- Marketing – for pay-per-click campaigns, SEO work, and other items needed to reach online customers such as social media ads.
- Packaging and shipping – cover the cost of packaging and shipping materials and fees.
Markup to Profit
Once you know your cost of goods, you can determine the cost of a sale. Aim to price your clothing to maximize profit margins. Most successful online clothing businesses mark up their clothing by 40-50%. For example, if your cost of goods for a single item of clothing is $10, you can price it for $15-20.
Gaining an Edge
To maximize your profits, look for ways to lower your costs while simultaneously increasing demand. For example, offer discounted prices on clothing or bundle multiple pieces together. Also, consider offering perks such as free shipping or offering discounts for returning customers.
In conclusion, you can make plenty of money selling clothes online by doing the right research and knowing your costs. By researching and knowing your costs and figuring out how to price your items with a healthy mark up, you can maximize your profits. Additionally, look for opportunities to bundle items or offer perks to customers to give yourself an edge in a competitive market.