If you are thinking of starting a wholesale business for makeup, then this guide would be helpful. In it we discuss the steps to take in order to start your own startup and manage sales properly.
The Makeup Industry in the US
The makeup industry in the US is growing and lucrative. In 2016, it generated a revenue of $62 billion. It's estimated to reach $429 billion by 2022! These statistics clearly show how much demand there is for wholesale business surrounding beauty products like make-up 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 And Make Business Plan
Market research is a crucial step in starting any business. If you want to know how much profit the makeup industry can give, it's necessary that before entering this market you understand and are familiar with the most sought after products, their prices, etc. Once all of this information has been collected through thorough analysis and investigation, developing an effective plan for your new company should be possible without too many problems or unexpected setbacks along the way.
- Define Your Audience
You have to know your customers. You can use tools like Google Analytics, which will help you figure out where they are located and what products they buy the most or purchase less of from you so that next time around, you'll be able to better sell them on these items - it's all about knowing exactly who your target audience is!
- Select Your Business Name
Many people have no idea that the name they choose can play a huge role in driving customers into or away from their business. The chosen company's name should be relatable to its audience and products, so make sure it is short and catchy for viewers' curiosity about new items!
- Find a Niche
The makeup industry is massive. There are numerous products in the market for different purposes and you will find varying qualities of these products too! Before reaching out to a supplier, it's better if you decide which niche product line(s) would be best suited for your business goals.
- Select a Trusted Supplier
When it comes to finding a supplier, you need to be careful. It is the most critical step for your business because if you mess up this part then there's no hope of surviving in wholesale otherwise!
You should select someone carefully and always make sure that they're reliable, trustworthy and able to provide quality products at fair prices so that both parties are satisfied with their relationship. You wouldn't want anything bad happening now would you?
- 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 & Manage Your Inventory
To run a successful wholesale business, you must select a location to set up your inventory. The success of the company depends on how well-organized and efficient it is. You should use accounting and inventory software that can handle all business needs in order for everything to be streamlined properly.
- How Do You Manage Your Sales?
Using an inventory management system will make managing your sales much easier. As the market is exploding with these systems, we suggest you choose one that's reliable and active. Let’s look at some of their 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.
- 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.
- Promote Your Business
You've done all the hard work, now it's time to market your business. There are many ways of doing this that will ensure you have a place in the makeup industry and don't get run over by larger companies. Integrating with other wholesalers is an excellent way of holding a space in the market because together we can grow our small businesses into something bigger for everyone!
It is possible to start a wholesale makeup business by following the simple steps outlined in this article. All you need are some products, an online selling platform like eBay or Amazon marketplace, and good marketing skills. Social media platforms can also help as people post about their experience with your goods on Instagram every day!