A Comprehensive Guide to Setting up a Business to Sell Cosmetics
The cosmetic industry is growing at a scary pace, up to 7% each year, to be exact. This is twice the rate of growth of the GDP of the developed world. According to analysts at Goldman Sachs, the beauty industry is worth more than $95 billion today, which includes hair care products (38 billion), skin care ($24 billion), makeup ($18 billion) and perfumes ($15 billion). Therefore, this is the right time to start a cosmetic business. How do you start a cosmetic business? You might ask. Well, here is a step-by-step guide:
You must acquaint yourself with the regulations before you sell cosmetics online
Selling of cosmetics is a susceptible industry. Some quacks may take advantage and start producing and selling counterfeit cosmetics that can harm users. That’s why the industry is highly regulated. You might find yourself in trouble with the authorities if you start selling cosmetics without knowledge of the regulations. Acquaint yourself with the relevant bodies’ cosmetic regulations. If you live in the U.S.A., check with the FDA.
Select a niche to sell cosmetics efficiently
This means selecting an area of focus within the cosmetic industry. For instance, you can choose to focus on skin care, hair care, or perfumes niche. If you choose to focus on makeup, you will still need to niche down because it’s is broad. Maybe you can pick organic makeup, special effects makeup or lip care. Choosing a cosmetic niche that you have high affinity with or experience in is advantageous, as you can surprise clients with facts, details and new information about your products. And this will only lead to one thing: Massive sales.
Figure out where to sell cosmetics
After choosing your niche, you’ll have to decide where to sell your cosmetics. There are many options, including through your website, e-commerce store, off-line stores, online auction websites or forums. Selling your cosmetic products online is the cheapest option. You’ll only need to set up your blog or e-commerce store and sell to your audience through it. Marketing won’t be an issue with an online platform. You can use social media advertising, which is free. However, include other offline options to maximize your reach.
Acquire the necessary licenses to sell cosmetics
Like any business, you need a license or permit to run a business, whether online or offline. For example, in certain states in the U.S.A, you’ll need a certificate of the business name, sales tax permit, including sales and use tax resale certificate if you’re looking to buy cosmetics through wholesales, instead of making them yourself. Make sure you have all the needed licenses to avoid problems with the authorities.
Buy the materials required to produce the cosmetics to sell cosmetics profitably
If you want to make your cosmetics, purchase the materials required from the manufacturer such as colorants, jars, natural butter, tops, lip-safe flavoring oils, exfoliants and essential oils. You should also acquaint yourself with the regulations about making your cosmetics. They are quite different to those related to buying cosmetics from wholesalers and selling to consumers.
If you plan to buy from wholesales, you’ll have to create an account with them. The criterion is to provide your business documentation. You’ll then be required to make a minimum order of $50 to $200.
Devise a marketing plan to sell cosmetics online
Face it; cosmetic products won’t sell themselves. Even if you’re selling online, you will not just display them on your website, and people start to buy. You must create awareness through marketing. You can use cost-effective marketing strategies such as social media marketing, email marketing, and forum marketing.
Well, that is a complete rundown of how to sell cosmetics online. Like any business, your cosmetic business might not pop at the onset. Don’t panic, just be patient and market rigorously. Soon you’ll have a big audience of loyal customers to buy your cosmetic products.