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7 Things to Consider When Starting An Online Clothing Business This Year

By: SmallBizClub


an online clothing business owner

The online clothing marketplace is large, and it is only continuing to grow and evolve. The revenue from this sector will reach over $100 billion in 2019  in the US and is expected to double by 2024. 

With so much potential on the horizon, leaping into the world of the online clothing business can be a good idea. However, starting an online clothing business can be hectic if you don’t prepare well. 

This article will guide you on everything you need to consider when starting an online business. Without much ado, here are what you need to put in place if you want to create a successful online clothing business: 

Startup Costs

Though an online clothing business may require very little capital, you will have to plan for this little capital. Know the equipment you will need to purchase and what they will cost. 

You will need one or more computers or a specific type of phone, open a website and purchase a domain name. You also have to factor in the shipping cost in your budget.

If you plan to hire employees, you will have to include that in your budget too, plus your own living expenses. In other words, the startup cost will depend on your requirement, and it’s important to know how much you need before starting your online clothing line. 


How you get money for your startup cost is also worth considering. This may be your personal servings, a business loan from credit from family or friends, banks, grants, from the government, or other organizations.

You also have to think about the long-term effect the loans can have on your clothing business. If you decide to get a loan, you wIll be paying back the loan for some duration. For that reason, you should make formal arrangements on how to pay back the money to avoid disagreement with the lender. 

Business Structure

Consider whether you will partner with others or run a sole proprietorship. If you need to work with others, research what type of business structure will work for your clothing business. 

You should start a limited liability company (LLC) if you want liability protection or a business structure with taxation flexibility. Though a corporation also has these benefits, LLC is cheaper to form and requires little paperwork. 


Consider the broad market your online clothing business can serve. Online businesses have the advantage of serving the global market, but as a beginner, that can’t be your target. You can not be Amazon overnight.

You will start by serving the local market. Focus your effort on that geographical area you can serve comfortably. 

Specific Audience

After knowing your market, you can narrow it down to a specific audience. Consider the kind of people that might need your services most. Knowing what type of person you would want to appeal to will help you make a good decision on the type of clothes you would like to produce and marketing requirements

It would be best if you concentrated on aspects such as:

  • Age
  • Location
  • Hobbies
  • Work
  • Income level
  • Values
  • Political and religious convictions
  • Other interests

Marketing Plan

After knowing your target audience, you can proceed to create a marketing plan. How you market your online clothing business will be crucial for its growth. There are many marketing channels, but you may fail in your marketing without a good marketing plan. 

Reaching out to many potential customers is one thing and convincing them to purchase your product is another. You need to create a plan that best conveys information about your product and services.

If you feel you cannot create a good marketing plan, consider hiring a marketing consultant to make one for you. 


Before starting your online clothing, you need to research the businesses that produce similar products to what you want to offer. You aim to be unique and solve problems that they don’t. Consider what your business can do that the competitors don’t.

Knowing what you alone can contribute to the market can help articulate the value of your brand. If your competitors serve a similar age group, gender, or demographic, you may consider targeting a different market.

You also have to borrow some of their ideas that you feel make them stand out. For instance, consider what advertisements work for them. You can use this knowledge and your personal values to create a unique brand that sets you apart from others.


The online clothing business is good to start, given the upward trend and numerous models that allow for flexibility. Starting an online store can be easy if you consider all the factors we have listed in this content. When backed with a strong business plan, you can use our guide to bring your clothing store dreams to life.

Published: June 10, 2022

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