Insights for Entrepreneurs

How to start an online cosmetic business?

Glory Simmons

Insights for Entrepreneurs · 8 min read

cosmetic online business

8 min read

Are you planning to start an online cosmetic business in 2023? If so, then we are here to guide you professionally to run your cosmetic online business and succeed in the market. We are here to offer you a few best practices that will lift your cosmetic business online and you can stay ahead of your competitors.

The booming digital world has leveraged the cosmetic industry to greater heights. The online presence of cosmetic businesses has given more convenience to communicating with consumers all over the world by utilizing different online channels and platforms. By understanding the benefits of digital transformation every entrepreneur who is in the cosmetic and makeup business has planned for digital transformation.

Why should we transform our cosmetic business online?

There are multiple benefits that any cosmetic business owner gains by moving his brick-and-mortar cosmetic store to an online cosmetic store. A few of them are listed below and hope this will inspire you to start your online cosmetic business without any hesitation.

Reach a wider audience – online shopping has become a trend among consumers nowadays. Most of your target audience will be present online and if you are available online then you can make your brand reach your audience easily. Also, without any geographical restrictions, you can get orders and sell products in huge numbers.

Cost-effective solution – starting an online cosmetic store needs less investment than opening a physical cosmetic store where you need to rent or own a showroom to display your products. Recruit sales personnel to promote the brand. But with an online cosmetic store, consumers will visit your site and will choose the product of their choice. All you need is to have your products in enough stock.

Effective customer support – with a productive online cosmetic platform, you can offer multiple communication channels live chat, messenger, and email support, and let your customers get connected with the customer support team to clear their doubts and queries instantly.

Utilize influencers – consumers are easily attracted to influencers’ feedback. Many social influencers are available online and they keep supporting brands and their followers will also like to use the brands suggested by them. By partnering with those influencers, you can easily promote your platform and get more visitors.

Provide exclusive deals and discounts – customer loyalty can be increased by rewarding points on each purchase. This will boost them to buy more from your brand. In addition to this, you can offer them better deals that will save them money and will make to get more products. This will help you to retain your customers and they never think about trying your competitors’ brands.

Is the cosmetic online business profitable?

So far, we have analyzed multiple benefits that any online cosmetic store owner may enjoy. But still, many of us are concerned about the scope of the business and how well it is performing in the market in terms of profit. Let us analyze a few statistical reports that will give a clear picture of how well cosmetics are performing and gaining control over their consumers.

  • Health and cosmetic eCommerce sales are expected to grow by 77% between 2021 to 2025 (Ascential).
  • $ 17 billion in online sales have been reported by cosmetic retailers in 2022. (Digital Commerce 360).
  • 75% of online cosmetic purchases are made by customers after getting a personal recommendation from the platform. (CB Insights).
  • 74% of consumers trust brands whose official website posts customer reviews on their platform. (Nosto).
  • 62% of consumers are attracted to brands that have user-generated content on their platforms. (Nosto).
  • Augmented and Virtual reality technologies are used by 6% of customers before they decide to buy any cosmetics. (CB Insights).

These insights prove that starting an online cosmetic business will get you good returns as customers are getting used to it. Now we will provide you with a few best practices that you need to follow while running an online cosmetic business.

Steps to start an online cosmetic business?

Starting an online cosmetic business needs more business and market understanding. Without gaining enough knowledge about the customer demands there is no point in entering an online cosmetic business.

If you are very particular about starting a cosmetic online business and have done enough research about the business, then you can get into the development part. We will guide you through a step-by-step process that will assist you in starting an online cosmetic business.

#1. Know about the trend and choose your niche

You need to be more specific about the niche of your cosmetic online business. Customers will look for the latest trends and may expect some special aspects that go with the trend in the cosmetic industry. Study more about your audience and their preferences and set your business goals accordingly.

Analyze your competition in the market. You need to get to know about your competitors’ pricing and marketing strategies that will help you to frame yours. Identify the gap between your audience and your competitors and know your opportunities to get hold of the market.

Various niches in the beauty and cosmetic industry

  • Skincare
  • Hair care
  • Oral cosmetics
  • Colour cosmetics
  • Toiletries and deodorants
  • Hygiene and personal care products
  • Make-up and beauty appliances

Latest trends in the cosmetic industry

  • Customers are more interested in vegan and chemical-free cosmetic products.
  • Multi-color cosmetic products.
  • More awareness about the chemicals being used in cosmetics.

#2. Decide on your business model

The business model needs to be decided at the earlier stage as it will help you in integrating relevant features into your online cosmetic platform. It will determine the way you will carry out your business operations. To select your business model, you need to know all available business models for your online cosmetic business.

Dropshipping model

This model will let you run your cosmetic business without holding an inventory. Your cosmetic platform will act as an intermediary where the buyers will order products from sellers. Sellers will arrange the shipping and delivery. You will earn a commission for letting sellers get orders through your platform.

White label model

In this model, the product will be manufactured by a company and the products will be sold to many resellers without any brand name on it. The reseller can put his brand on the product and can sell them on the market. You need not spend on manufacturing as you can directly get the product and place your brand and sell them online.

Manufacturing model

In this model, either you can be the manufacturer or can partner with any leading manufacturer and get products under your brand name. You can legally sell products with your brand name. the only challenge is to find the right manufacturer.

Wholesaling and warehousing model

This model is quite expensive to run as you need to buy products in bulk from manufacturers, store them in your warehouse, and sell them to customers through your cosmetic platform. You need to spend on buying products in bulk and should maintain a warehouse for your spending.

#3. Create your online cosmetic store

Soon after you finalise your business model, you need to build your eCommerce platform that suits your business model. You can build your platform with all extensive features that will satisfy buyers and sellers. Find a perfect app development company and build an excellent online cosmetic business store and start getting orders.

Ways to build an eCommerce cosmetic store

Build the e-store from scratch – you can share your requirement with the development team and get your platform developed from scratch. You need to have a huge budget to use this method. It will also take more time to complete the project. On the other hand, you can have complete control of the operation and can have a customized solution.

Use a readymade clone script – a ready-made clone script will be an MVP with all basic and essential features integrated with the platform. You can instantly launch your online cosmetic store and can start your online cosmetic business in less time. The readymade clone script solution is very cost-effective and less time-consuming.

#4. Promote your eCommerce store

Your eCommerce store is your main pillar to reach your audience and get orders. This can be done only through proper marketing strategy and promotion. You need to know by what means you can get connected to your audience. Make sure you use multiple marketing channels to gain better branding in the market.

Ways to promote your cosmetic eCommerce store

  • Make use of search engine optimization and get organic page ranking that will let have more traffic.
  • Spend on Google Ads to get your cosmetic eCommerce store to be listed on top of search pages.
  • Use affiliate marketing and let your affiliates promote your brand on your behalf.
  • Never miss email marketing as they are very effective in promoting your brand.
  • Run campaigns on all social media channels and get connected with your customers and sellers.

Hope you are clear about how to start an online cosmetic business with simple steps. This is the right time you need to implement your learning and understanding and stay more competitive in the cosmetic industry.

Partner with the best eCommerce builder to build your online cosmetic business

The entire business functions around the website you use for selling cosmetic products. More attention is needed in developing the platform. For this, you need to rely on a premium eCommerce builder who can understand your requirement and come out with a cost-effective solution.

Appkodes have delivered thousands of eCommerce websites to the user for more than a decade. The team of professionals has perfect market understanding and developing skills that will assure you get the right cosmetic website to reach your audience.

The development team can build you an excellent cosmetic eCommerce platform from scratch or you can even choose a ready-to-deploy cosmetic store script that will help you start your cosmetic online business instantly with less investment.

Get connected to our support team and book your demo session.

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Glory is a creative content writer whose writing has a deep connection with users and can provide SEO-friendly tech-driven content. Being a freelance content writer, all her writings meet the demands of any online business, solopreneur, start-up, and brand.