Types of Business Models

It’s critical to start with a structure because it’ll serve as the foundation for your next steps.

These are a few main business models you can choose from:

  • Reseller
  • Dropship
  • Pre-order
  • Private label

Keep in mind that there are a variety of other business models in the fashion industry, including multi-label shops and wholesalers. For the time being, we’ll concentrate on four popular models.

Fashion Resellers have four main business models.

A reseller, as the name implies, buys stocks and resells them for a profit.

What are the signs that it’s right for you?

1.Either at home or abroad, you have adequate space. You’re in charge of inventory management, which includes storage, in addition to stock procurement.

2.Because you’ll be packing and delivering each order, you’ll need time on your hands.

In most situations, you must pay for stocks upfront, so you’ll need a large amount of money to get started.


1.Knowledge of fashion design or manufacturing is not required.

2.It’s simple to set up.

3.A strong brand identity can be built through careful product selection.


1.Your stock supply is highly reliant on your supplier(s).

2.This model is susceptible to deadstock, which could result in a loss.

3.Cash flow management is challenging since equities must be purchased in advance.


The dropship model fills the gap between the customer and the third-party supplier. To put it another way, you’ll be the go-between.

How can you tell if it’s right for you?


1.Knowledge of fashion design or manufacturing is not required.

2.It’s simple to set up.

3.You save time and effort by not having to deal with delivery or packaging.


1.Your stock supply is highly reliant on your supplier(s).

2.Because orders are received straight from your third-party provider, quality control is tough to implement.

Dropshipping for your own creations is, however, an option. tee launch, Printify, and Custom are three companies that help business owners generate t-shirt designs and find a printing partner. However, since inventories, shipping, and logistics are managed by the provider, the information above remains valid.


The business concept is similar to that of a reseller, except that instead of acquiring goods in advance, you only buy when an order comes in. To put it another way, your customers place their orders ahead of time.

How can you tell if it’s right for you?

1.While you will require some storage space for your stocks, they will not be kept for long because all of the stocks that arrive have already been confirmed.

2.You’ll need to set aside some time in your calendar, just like a reseller, because you’ll be in charge of packing and shipping.


1.The chance of stock outage is reduced because you’ll only buy what customers have requested.

2.Managing cash flow is easy because your consumers pay in advance.


1.Your stock supply is highly reliant on your supplier(s).

2.The number of sales channels is limited. Pre-order business models are often not allowed on most marketplaces because they require a quick response.

Printed on a private label

This is the only business strategy that allows for some type of innovation – depending on which option you choose. There are three different types:

  • Print-on-demand
  • Wholesale
  • Cut and sewn to order

All three necessitate the hiring of a manufacturer or fulfillment center, while each has its own set of requirements and obstacles.


Instead of selling things from a supplier, you offer your own designs under this option, which is comparable to Dropshipping.

All you have to do now is choose a print-on-demand fulfillment center after you’ve produced a logo or a visual. When an order comes in, the fulfillment center will digitally print your design and dispatch it for you once you’ve secured one. The following are some popular options:

  • Printful
  • Zazzle
  • TeeSpring

How can you tell if it’s right for you?

1.You don’t have a lot of free time, but you don’t want to sacrifice your originality.

2.Because the product is only made when an order is placed, you don’t need a huge expenditure to start the firm.

3.You’re not ready – yet – to take a big risk with your concepts.


1.There is a low cost of setup.

2.You’ll spend less time and money because you’ll simply be dealing with the design part.

3.Cash flow management is simplified because the fulfillment center prints only when an order is received.

4.A wide choice of products is available to pick from.


1.You have less control over your items because you are not manufacturing and shipping them to customers.

2.The barrier to entry is low due to the minimal risk, which implies there is more competition.


The wholesale approach is comparable to resale, but unlike reselling, it allows you to customize and personalize the garments and clothing products. This is why most brand owners choose this strategy because adding tags and bespoke labels increase the perceived worth of the brand. Screen printing is also an option in some circumstances.

The disadvantage is that you must purchase equities in advance, which has an impact on cash flow management. You’d also be in charge of warehousing, shipping, and logistics.


How can you tell if it’s right for you?

1.You want your brand to appear on every item you sell, including personalizations.

2.You’ll have more time on your hands because you’ll have to fulfill all of your clients’ orders.

3.You have storage space or access to a warehouse where you can store all of the inventory.


1.This model’s brand value is judged to be higher.

2.Using a brand label or custom tagging makes it easy to distinguish yourself from your competition.


1.You’ll need more money upfront because you’ll need to buy stocks.

2.You will be responsible for shipping and deliveries, which will need more time and effort.


Cut and sewn to order

You’re in charge of the entire production process, from sourcing fabrics and textiles to designing. One advantage is that you have complete control over what you generate, providing you more creative freedom.

The disadvantage is that this strategy necessitates a significant amount of cost, work, and time. You’d have to pay for supplies, samples (which can be rather expensive), manufacturing, and logistics.


What are the signs that it’s right for you?

1.You’d like to have creative control over the clothing you sell. Because the stocks are essentially ready-made, the other business models don’t allow it.

2.You’ll have more free time because you’ll be in charge of all aspects of your company.

3.This company plan involves a considerably bigger initial investment because you’re starting from zero.


1.You have complete creative control over your designs and materials.

2.Having a distinct style makes it easier to distinguish yourself from your competitors.

3.There is more possibility for brand loyalty to grow.


1.You’ll need more money because you’ll need to buy materials, employ a factory, and handle logistics.

2.You’ll have to put in more time and effort because you’ll be overseeing production operations and ensuring quality output.

This is a significant decision that should be carefully considered. Take your time, consider your alternatives, and then proceed to the next stage when you’re ready.

Scroll to Top

Get A Quote Now

*We have a health respect for privacy.

Get Free Sample Now

*We have a health respect for privacy