6 Terms to Know in Wholesale Clothing


For those of you who are interested in the wholesale clothing business and eager to give it a try, we recommend you read this article about 10 terms to know in wholesale clothing. Today, it’s more crucial than ever to know what we don’t know. You no longer have to visit a library or enroll in a class if you want to learn something new. Here, all the information you need is at your fingertips.

1. Payment Terms

When you start a business, you will be required to receive regular cash flow from your customers and wait for them to pay their bills on time. Having a clear understanding of the terms of payment will enable you to determine the payment period as a wholesale clothing owner.

The following are some payment terms wholesalers and suppliers use, which will help you understand the situation more quickly and thoroughly in case there are any issues.

Here are some of the types of payment items you may encounter, for example, Net-10 will require payment 10 days after delivery, while Net-30 requires payment 30 days after delivery.

PIA, Payment in advance, is simply a payment that is made ahead of schedule.

Additionally, there are a few standard ways for people to pay. Check the way funds are received before you start a business. Give details of how wholesale buyers are paying, such as a credit card, a check, PayPal or a bank deposit.

2. Leadtime

The leadtime is the duration of time between the start of a process and its completion. In wholesale clothing, the leadtime is the period between when a process is initiated and when it is completed. An order takes a certain number of days to be shipped from the moment it is placed, also known as turnaround time. In the case of the FondMart, once you place an order, we will start preparing your wholesale clothes right away. The leadtime will be the time it takes before the clothing is shipped.

It is essential to include any extra processing time and clarify nuances in your production process if you own clothing business.

3. Shipping Window

Generally, the shipping window is the period of time beginning before the ship date and ending after the ship date. This refers to the time frame between start ship and cancel dates when vendors are expected to ship.

It’s typical to have a ship window of two weeks; therefore, an order placed on 2/1 would have a cancel date of 2/15. As a vendor, this means you can ship at any time during that period – you can ship right away on /1 or take the full two weeks and ship on 2/15.

4. SKU

Every product you sell needs a unique identifier called a stock keeping unit (SKU) to help you distinguish it from others. It’s not enough to have one SKU for a t-shirt, for example. There should be different SKUs for every variant of a product. In the case of the t-shirt, you will need a unique SKU code for different colors and sizes.

Manufacturers use SKUs when they have a lot of inventory to keep track of. The SKU number is determined by the manufacturer, and SKUs should be as simple as possible

5. MOQ

MOQ stands for minimum order quantity in international trade. In other words, it is the lowest quantity of a particular product that a retailer needs to order. As part of the ordering requirements, retailers must order a specified number of each SKU as well as meet Order Minimums. There are different MOQ standards in each industry, so do your research so you know what they are.

It is also possible for the order quantity for each product to be recommended as a method of replenishment. Additionally, pay attention to the validity of the order, which is determined by the supplier. For instance, the minimum order quantity, the packaging quantity and the method of packing, and so on. Based on the above considerations, the purchaser’s suggested order quantity will be determined.


MSRP means Manufacturer’s Suggested Retail Price. Manufacturers recommend the manufacturer’s suggested retail price as the price that retailers should set for the product they manufacture. The manufacturer’s suggested retail price is contrary to the market theory of perfect competition since it prevents some stores from selling at a price higher or lower than the recommended price, and some stores will only sell at a price lower than the recommended price when they are on sale or clearance. As long as it doesn’t cause consumers to rebound, a high price can be permitted in a perfectly competitive market.

However, the manufacturer’s suggested retail price is more common than perfect competition. The majority of the time, stores sell at the recommended selling price, which is usually determined by the unit price paid by the wholesaler. Generally, the larger the order quantity, the lower the unit price, and vice versa.

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