How Much Does It Cost To Start a Clothing Brand?

Curious about how much it might cost to start a clothing brand? Kiwi Sizing provides the tools and information you need to ensure success online.
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Team Kiwi Sizing

Last updated on May 2, 2024

Funding is a major concern for an aspiring business owner. How much does it actually cost to start a clothing brand? Do you have what it takes to launch your company?

Even online brands need substantial financial assistance, and understanding these costs is key to getting your enterprise off the ground.

Calculating Costs for Your Clothing Business

Costs of starting a clothing brand

Not every entrepreneur will have the same expenses when starting their clothing businesses. The size of the venture plays a major role in the total cost of start-up, and larger brands can require as much as $50,000. 

When it comes to small and medium-sized businesses, start-up costs are usually a lot less expensive. A small brand may only need about $500, while a medium-sized company can get off the ground with $1,000 to $5,000.

Diving Into Start-Up Cost to Start a Clothing Brand

To truly understand how much it costs to start an online clothing brand, you must drill down into the specifics. Expenses can vary, but most business owners will need money to cover the following:

  • Payroll, which includes regular wages as well as bonuses and benefits
  • Inventory and materials
  • Shipping fees
  • Equipment (such as laptops and other items)
  • Marketing expenses 
  • Website management and hosting costs
  • Trademarks and copyrights

There are other costs to consider when it comes to your venture, including insurance coverage, professional consulting, business entity fees, and permits and licensing when applicable. 

Securing Financing

how much does it cost to start a clothing brand

Not everyone has access to the kind of funds they need to launch their clothing brands. As a result, you may need to secure financing to ensure you can cover the costs of launching your business. Financing options include:

  • Small Business Loan — You can procure a loan from a bank, credit union, or other financial service provider. 
  • Investors — Some business owners choose to secure financing from investors, who will want a share of your company in return for their investment. 
  • Crowdfunding — Crowdfunding is a newer form of financing that involves presenting your business to consumers in exchange for their financial support. 

Do plenty of research before deciding on a financing option. Remember that what worked for another clothing company might not make sense to yours. 

Keeping Expenses Manageable

Taking steps to reduce costs associated with your e-commerce business is another crucial factor in your success. Online clothing retailers face unique challenges when it comes to returns, as customers are unable to try on items before buying them. As reported by USA Today, handling a return for a customer can equal up to 39% of the sale price. 

Because return costs can really take a toll on your business, online retailers must find smart solutions to sizing issues. Consider investing in an apparel size recommender tool to make the process easier for customers. Other expenses require additional steps, such as:

  • Inquire about bulk discounts from suppliers
  • Be mindful when it comes to marketing efforts
  • Seek out cost-effective packaging and shipping
  • Automate tasks whenever you can

Remember that even small money-saving measures can make a big difference when launching an e-commerce clothing brand. 

Give Your Customers the Service They Demand

Kiwi Sizing helps online clothing brands provide their customers with the best possible service. Our sizing tools and plugins make the online shopping experience a breeze, and help you avoid unnecessary expenses related to returns. Contact us today to learn more. 

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