The makeup industry is growing at a fast pace. Due to the increasing demand for cosmetics, the number of makeup wholesalers are also increasing. If you are also thinking about starting a wholesale business for makeup, then you are in the right place.
Here we will discuss the steps you need to take to start a makeup wholesale business and manage your sales efficiently.
Before we jump to the steps for starting a wholesale makeup business, let’s check the US makeup industry’s value.
The Makeup Industry in the US
Wholesale makeup is undoubtedly a profitable business. In 2016, the makeup industry in the US generated a revenue of $62 billion. This number is estimated to reach $429 billion by the end of the year 2022. These statistics clearly show the demand and profit in the wholesale business for makeup and cosmetics.
Steps to Start a Wholesale Makeup Business
Check the following steps to know how you can start a makeup wholesale business;
- Conduct Market Research/ Make Business Plan
Market research is a crucial stage in the establishment of any business. The deeper you know the market, the better you can make business decisions. Before entering the makeup industry, you need to understand and know about the in-demand makeup products, market prices, and how much profit they can give. After getting all this information, you can develop a business plan successfully.
- Define Your Audience
Define Your Audience
You must know about your customer’s needs and preferences. By setting your target audience, you will be able to make sales in a better way. You can use business tools like Google Analytics, to check the demographics of your customers, and make use of the advice from places like Qualtrics when it comes to user experience research to figure out things like how customers interact with your brand.
By doing this, you will know where your customers are located, what product they like the most, and which product is not fulfilling their needs. You can also use social media to connect with your customers and ask about their choice of makeup products.
- Select Your Business Name
The next step is to select a name for your business. Remember, your business name plays a huge role in driving your customers in or away. So, make sure that you choose a name that is relatable with the audience and the makeup. Keep your business name short and catchy, which makes your audience curious about your products.
- Select a Niche
The makeup industry is massive. There are numerous makeup products in the market for different purposes. You will also find different qualities of products in this industry. Before reaching the supplier, it is better to decide which niche of makeup products you would be selling.
- Select a Supplier
The next step is to find a supplier. This might be the most critical step for your wholesale business. The selection of your supplier has the power to make or break your business. You should be careful while selecting your supplier. That is because:
- Your supplier will have a long term relationship with you
- Your business running will be depended on your supplier
Keep the following things in mind before selecting your supplier:
- Make sure that you select a supplier that has a good reputation in the market.
- Select a supplier that is trustworthy and understands your business.
- Ensure that your supplier is giving you products at lower rates than the market.
- Choose a supplier that has a no-minimum-order policy.
- Set Up Your Inventory
Firstly, you need to select a location and then set up your inventory. Your inventory plays an essential role in the smooth running of your business. If your inventory is well-organized, only then will you be able to fulfill the orders. Like all successful wholesale businesses, you should use accounting and inventory software to cope with your business handlings. Because cosmetics and makeup items have a limited shelf life, as a business owner you must be quick to respond and sell out their entire makeup inventory. While your overstock cosmetics and makeup products may appear to be lost causes and unrealized money, selling your overstock inventory to cosmetics and makeup liquidators like Closeout Express can help you regain your ROI and recoup your cost.
- How Can You Manage Your Sales?
Managing your sales will be a lot easier if you use an inventory management system. As the market is exploding with inventory management systems, we suggest that you choose the one that is active and reliable. SeeBiz Inventory is a rising inventory management system that includes features for most of your business tasks. Let’s check some of the main features below:
- You can label and assign a unique identification code (SKU) to all your products.
- You can keep track of each stage of your product, from confirmation to packaging, shipment, drop shipment, and delivery.
- SeeBiz Inventory will keep a record of all your sales and purchase bills and receipts.
- This business tool generates regular reports to provide you with insights into the performance of your business tasks.
- You can add all your business contacts to the vendors and customers list and communicate with your contacts within the inventory.
- With the SeeBiz Inventory’s help, you will receive a notification when a product reaches its reorder point. This way, you will never be out of stock.
You can easily manage your inventory with the help of the SeeBiz Inventory. The best thing about this software is that it comes with all the premium features for free until the trial period of three months.
- Promote Your Business
The last step of setting up your wholesale makeup business is marketing and promotion. You can choose different marketing strategies to let people know about your business. Integrating with other wholesalers of similar niche is an excellent way of holding a place in the market.
Final Thought
We hope that the guidelines mentioned above will help you start your wholesale business for makeup products. We suggest that you use online selling platforms to increase your sales and customers. You can also use social media platforms to let more people know about your business. Follow the tips above and see your business flourish.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
really well explained thanks for share