Is Selling Children’s Clothing Overstock Profitable? Where to Buy Wholesale? What to Note

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1. Is selling children’s clothing overstock profitable?

It is very profitable. It is a low-investment, high-profit and stable small business.
 

High profit

The wholesale price of children’s clothing overstock is very low:

Ordinary short sleeves and pants: $0.30~$1.00

Pure cotton clothing sets: $1.00~$2.10

Autumn and winter coats, cotton padded clothes: $2.10~$5.00

Retail prices for street stalls, town markets and small stores:

Single piece: $2.70~$5.60

Clothing set: $5.60~$8.40

Winter clothing: $8.40~$14.00

The gross profit margin reaches 65%~80%. For every $100 in sales, you can net profit $60 to $80.

Low startup threshold

You can start with only a few hundred US dollars. No shop rental or decoration is required. You can run the business at street stalls, town fairs and night markets.

Stable market demand

Children grow fast and need new clothes every season. Parents are willing to spend on children’s clothing. Repurchase rate is high, and products sell easily.

Stable income

Part-time street stall: $22~$44 net profit per day.

Full-time with good locations and regular market rounds: $44~$85 net profit per day.

It is normal to earn $1,000~$1,500 per month.

2. Where to buy children’s clothing overstock wholesale

1. Zhili, Huzhou, Zhejiang

It is the largest children’s clothing production and overstock base in China. It has the latest styles, rich cartoon designs and complete sizes.

It gathers factory leftover orders, seasonal inventory and foreign trade overstock at the lowest prices. It is the best sourcing place for domestic retailers and export business.

2. Shijing, Baiyun District, Guangzhou

It is the largest overstock gathering center in South China. Major clothing markets including Jindong, Guangda and Qingfeng have large children’s overstock zones.

It mainly supplies brand cut-label clothes, mall counter clearance goods and canceled foreign trade orders. It supports graded lots, bulk packing and mixed wholesale, suitable for large-volume purchasing and street stall retail.

3. Sijiqing, Hangzhou

It features trendy and popular online styles, with a large number of e-commerce returned goods and seasonal overstock. It is ideal for boutique retail and live streaming sales.

4. Local overstock warehouses

Nearly every city has overstock warehouses in suburban and industrial areas. You can search clothing inventory, overstock warehouse on map apps.

You can buy goods locally and inspect products on site, which is perfect for new beginners to buy small trial batches.

3. Important notes when wholesaling children’s clothing overstock

Focus on quality and safety

Children’s close-fitting clothes must be soft, with no strange smell, no color fading and no pilling.

Avoid second-hand recycled clothes, rough fabric, stained or yellowed defective items, which will ruin your business reputation.

Confirm defective rate in advance

Minor flaws are unavoidable for overstock goods. Always confirm the defective rate beforehand. A rate within 3%~5% is acceptable.

Most overstock markets have a no return, no refund rule. Be sure to unpack and check goods randomly on site.

Pay attention to size matching

The biggest problem in children’s clothing business is incomplete sizes.

Standard middle sizes sell best. Buy fewer extra small and extra large sizes to avoid unsold inventory. Try to purchase full size sets.

New sellers should not stock up too much at first

Buy a small batch to test the market first. Restock only after the goods sell well. Do not purchase large quantities at the beginning, otherwise you will tie up capital and pile up inventory.

Avoid outdated styles

Choose simple casual styles, classic basic designs and common cartoon patterns. Do not buy overly old or exaggerated styles, as they are hard to sell in large quantities.

Avoid copyright-infringing patterns

Do not buy clothes with unauthorized brand logos or copyrighted cartoon patterns, to avoid trademark and copyright disputes.

Choose the right purchasing mode

New beginners are recommended to choose selective mixed wholesale, so you can pick styles and check quality personally.

Experienced sellers with large sales volume and regular market stalls can buy graded lots or whole warehouse batches at lower prices.

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