How to start selling cosmetics online
The demand for beauty products will always be steadily high. Women want to look young and beautiful. This article will show you how to open an online cosmetics store. What should be applied to make the business profitable.
First and foremost: almost 100% of the consumers of the cosmetics store are women. Even during crises, when sales of equipment and electronic devices are predictably falling, the demand for beauty remains unchanged.
Please note: good demand is always noted for goods with medium and low price policy. This type of product tends to run out, and girls have to regularly replenish supplies. Usually, the fair sex is looking for a store where you can buy suitable cosmetics profitably and conveniently, and remain its customers for a long time.
Conventionally, the beauty industry can be divided into several main groups:
Care series for body, face, hair.
Natural cosmetic lines.
Baby skin care products.
Various accessories for cosmetic procedures.
To create your assortment, you can choose any combination of categories. One of the most popular business questions lately is how to open an online store of Korean cosmetics. Asian brands have won the love of consumers because of their naturalness and potency.
The beauty industry is developing rapidly. Selling manicure products through an online store is a great idea for a profitable business. The demand in this niche does not depend on seasonality, and it has been consistently high for several years in a row. Because salons every day need consumables - gel polishes, tools, decor.
The niche of selling nail service products - what is the specificity
The peculiarity of this type of business is manifested in the following - without knowledge of manicure wisdom there is nothing to do here. For stable sales growth, it is important to attract professionals in their field to buyers, so you just need to navigate the intricacies:
understand the algorithm for performing hardware, trimming and combined manicure and pedicure;
own technologies of gel polish coating, nail extension;
understand fashion trends, designs and keep abreast of new products in the nail industry;
have a clear idea of what tools and tools a manicurist needs when working in a salon, and which are suitable for home use.
If you have an idea of manicure, you can try to implement the idea of opening an online store of goods for manicure and pedicure. The big advantage of choosing this niche is a fairly high profitability, the relevance of goods on the market, independence from the season, and a significant target audience.
On the other hand, there is a lot of competition in the niche. In order to competently detach from competitors, you need to clearly think over a business plan, correctly identify the target audience and select a range of products for an online store.
Target audience definition
Drawing up a portrait of a future buyer of an online store is an important stage. It will depend on who to target the assortment - professional manicure masters, amateurs who prefer to care for nails at home, or both at the same time.
Answer a few questions to create your target customer's image:
In a crisis, you need to think not only about saving savings, but also about increasing them. Of course, you can put money in the bank, but now the rates are very low. Everything that comes over in a year will be "eaten" by inflation. Starting even a small business from scratch is risky. You can burn out if you do not know all the business intricacies.
A smart and simple solution is to open a store selling Asian cosmetics. It does not require large investments, and a proven brand and quality products will provide a stable income.
We will tell you how to open an online store with Asian cosmetics on your own, what you need for this and how much you can earn from it.
How does your online store of Asian cosmetics differ from a franchise
To start selling cosmetics, you do not have to pay an entry fee for a franchise, and then give interest on profits every month. You also don’t have to buy expensive equipment or look for premises for a store - you can work right from home.
Golden Patch offers a turnkey solution for starting a business with detailed instructions - from setting up Instagram ads to scripts for communicating with customers. You do not depend on anyone and you can open an online store under your own brand.
Why will people buy cosmetics even in times of crisis
Girls always want to be beautiful and use cosmetics at any time of the year, which means that the online store does not depend on the season. Even during the restrictive regime, demand increased as women needed to look their best during online work meetings. For example, in April, when everyone was still at home, sales of cosmetics increased by 17%, and the average check was 1,330 rubles.
Asian cosmetics are recognized and known all over the world. The demand for it has quadrupled over the past 5 years. Girls know that it is made from high-quality natural ingredients that provide excellent skin care. Moreover, it is much cheaper than its European counterparts. Even in difficult financial situations, people will buy it.
Why is it easy to open an online store
Golden Patch online store has been selling cosmetics for 2 years. During this time, the number of clients has reached 300,000 people, and the revenue for the year amounted to 135 million rubles. The company's specialists are ready to share their experience, they will provide everything you need to open and help you reach a profit of 100,000 rubles per month.
The website of the online store, filled with content - the interface and design have already been tested in practice Golden Patch. You don't have to spend time and hundreds of thousands of rubles on development and editing before launch.
Statistics show that cosmetics sales are growing on average by 5-10% annually.
The trend supports increasing production and expanding sales networks of large enterprises in the industry. The retail trade in cosmetics also develops.
Among the promising ideas in this direction is the opening of an online store, due to the small amount of initial investment, quick payback, and high profitability.
Is it profitable to sell cosmetics
The number of online cosmetics purchases is growing steadily - the average frequency is less than half that of conventional stores. But due to lower prices for the same goods, shoppers are more likely to purchase expensive products, which increases the average price of online purchases compared to offline stores.
On average, a successful online store attracts 5-15 thousand visitors daily, making 30-150 orders. When selling inexpensive cosmetics, the net profit of the site owner is at least 40-150 thousand rubles. per month.
There are 2 ways to register:
- individual entrepreneur working under the simplified taxation system (STS). This option is preferable if in the long term limited sales (up to 20-50 orders / day) are planned, there is no regional network, employees (or 1-2 people in the state). Advantages - minimum reporting, ease of access to funds.
- Companies in the form of LLC. This choice is for a store working with retail and wholesale volumes, regional warehouses, and a staff of sales consultants.
Business is not licensed. Permits (conclusions of the SES, fire department) will be required in the case of renting an office, warehouse.
- 47. 5. Retail trade in cosmetic and perfumery goods, except for soap in specialized stores;
- 47. 1 Retail trade by mail or on the information and communication network Internet;
- 47. 9 Other retail trade outside shops, stalls, markets.
To solve the issue with the assortment will help:
Cosmetic and perfumery products are products that no woman can do without. However, this is not the only reason why this investment project, that is, a cosmetics store, will be attractive. One of the advantages of this line of business is the low threshold for entering it. If you want to open a beauty store, you need a fairly low investment to start. Let's take a closer look at all aspects of the cosmetics stores business plan with the calculations presented below.
Market and Competitor Analysis
The first factor to know about this type of business is that the entrepreneur is expected to have very high profitability. It rarely drops below 25-30%. That is why this type of business is called a very promising direction that can bring a stable income.
Even taking into account the unstable economic situation in Russia, the number of shops selling cosmetic products is growing steadily. Businessmen are attracted not only by the minimum investment at the start, but also by the quick return on investment. Cosmetic products today belong to the goods of regular use, they are in high consumer demand, which ensures a quick turnover of funds and a stable income.
Before starting to draw up a business plan for opening a cosmetics store from scratch, an entrepreneur should quite clearly understand what exactly this segment is. The domestic cosmetics market has grown significantly in recent years. About 10 years ago, the key mass of trade and industrial organizations in the segment were in large megalopolises of the country, but today we can observe an increase in their number in small towns. This suggests that entrepreneurs are likely to face a fairly high level of competition. Therefore, it is recommended to consider several factors before starting your business:
- it is recommended to explore the intricacies of the cosmetics business. This will help you avoid problems: both at the start and in the process of trading. The necessary knowledge will help you decide on the assortment of the outlet, the choice of suitable suppliers;
- the assortment will become one of the most important points that you will need to work through. It is very bad to choose a trading option for everyone. This option will be risky because it will require a fairly high investment at a time. In addition, you will not be able to determine the target audience of your enterprise;
- According to statistics, about 30% of all cosmetic products are contraband or counterfeit. If you do not want to lose customers due to low-quality products, carefully select suppliers of goods;
- studying competitors in your city or region will help determine the direction of work and the format of the store. First, it helps to understand consumer demand for goods. Secondly, you will be able to offer your customer an exclusive, which will be a clear advantage;
- it is necessary to study trends not only in the field of cosmetics, but also in the life of a modern person. For example, now a lot of attention is paid to ecology. People buy organic food, and also want to use cosmetics that are made on the basis of natural ingredients. Opening an organic beauty store would be a great idea, but only in a big city - where this trend is on the way.
The cosmetics market in Russia is developing at an accelerated pace, which gives businessmen confidence that opening their own cosmetics store is the right decision. However, the presented market sector develops according to its own laws, which you need to know. Otherwise, there will be no success in this business. For example, you must understand that the sale of cosmetic products has a clear seasonal dependence. The most profitable trade will be conducted on the eve of solemn events, on the eve of the New Year, spring holidays. Traditionally, cosmetics and perfumes are one of the most popular gifts.
Choosing a business format: choose a franchise or open yourself from scratch
Before you start planning the opening of a retail outlet, you need to choose one of two options for doing business. An entrepreneur can become an official distributor of one of the well-known cosmetic or perfume manufacturers. The second option is to sell products independently. Each of the options presented has its own advantages. In the first case, you get support from the official manufacturer, and in the second, you can present a wider assortment. Let's consider both options in more detail.
Working as a distributor in Russia offers an entrepreneur great opportunities. This business entry option is especially beneficial for aspiring entrepreneurs. Partnerships with large companies allow you to open your own store, avoiding high marketing and advertising costs. A partner, that is, the owner of a well-known chain, will help at all stages of the store opening. It is more like franchising.
Although the benefits of partnering with a large enterprise are obvious, many entrepreneurs choose to run their business in free float. In this case, you independently choose the line of the assortment, independently set its cost, and also promote yourself. However, you can make other decisions yourself. For example, working on a franchise for a cosmetics manufacturer, you will have to adjust to its requirements for the choice of premises or personnel. When working independently, everything will depend only on you.
Organizational and legal issues of opening a cosmetic store