COSMETIC RETAIL BUSINESS: Startup Guide & Tips

COSMETIC RETAIL BUSINESS
COSMETIC RETAIL BUSINESS

Cosmetic Retail Business

A cosmetic retail business is one that is run by an individual or a group of person, that is to say a cosmetic retail simple means buying from the manufacturer or distributor and sell directly to the consumers.


The cosmetic industry is worth billions of dollar and daily entities are cashing out huge profit. In the cosmetic retail business world you have variety of products to choose from.

Being a retailer of cosmetic product you can choose more than one niches and sell brands from multiple companies as long as you can afford it and there is a readily available market for the products. 

You don’t need to be a makeup artiste or a beautician to own a cosmetic retail business all that is required is having enough capital, the right plan the retail business can grow to become a conglomerate.


There a steps to take to starting a cosmetic retail business.

  • The location of your retail store will determine how much sales you will make. Take your time to find a suitable location that will give your target customers quick access to your business. The location should have a good parking space, you can either rent or buy a space depending on how much capital investing you have.
  •  Branding creates an emotional attachment to customers, that’s why when naming your business which the first step to branding there should be a melodic rhythm to the business name that will be easy to remember and pronounce, and if you are going to take your store on the name should be easy to spell so it can be found online easily. Lastly create a logo that will leave a lasting positive experience in a positive way, it can be easily recognized and simple.  
  • The success of any business lie in the hand of Marketing, after you have setup your store your next plan should be how to get people to know and patronize your brand, what that means is build a marketing strategy that will include offline, online and face to face.

Mediums you can catch on will be radio ads, television ads, create a website and open social accounts (Instagram, Facebook, Tiktok, and Pinterest).

  • Business Plan is the wings on which the business flies, with the right plan and adequate plans the sky is above the limit for your brand. The business plan will show in details the mission and vision statement, objections of the cosmetic store, investment capital, financial projection, competition analysis, marketing and future plans.
  • Employees since it’s a cosmetic store business you will need help, it is advisable to employ staffs depending on the size of the retail store, but it’s important to state how many you need, this will help project your finances, keep the store clean and a security staff that will protect against shop lifters.
  • Government Permit before you set a cosmetic business there is need to get approved by the state regulatory board, for example the condition and types of product will be looked into, there are you need to get the government’s regulations, policies and requirements before setting up a cosmetic retail store, if not you can get sanctioned. 
  • Legal Entity, it’s possible to start as a sole proprietor if you have the startup capital with will determine the size or you can choose a partnership business which will entail bring on board one or two persons to share in the investment capital. 

How to Start a Cosmetic Retail Business at Home


Thanks to the fast growing cosmetic industry there are plenty of opportunities if you chose to set up a cosmetic retail business from home.

  • A Business Model is every important when it comes to setting up a business are home, for cosmetic do you want to produce your own brand and what line of products are you looking at for example makeup products, hair products, body product, colon products etc. Or do you intend to sell other people’s brands from your home.

Choose a niche and research on the financial cost (Current market value of raw materials or products you intend to sell), your competitions loop holes and how best to create a take over the market and the marketing strategy you intend to employ.

  • There are numerous Retail Strategy you can choose from, some sell from the back of their car booth, others sell from their website, Instagram, Amazon, Facebook or spas. You have to decide what works for you and how best to achieve it.
  • Marketing is a key factor to the success of your home cosmetic retail business, create a plan that best suit what you sell and invest funds into advertising your products. For example stickers, flyers, online ads and offline face to face ad.
  • Business Plan no matter how small you intend to start write out a plan that will involve the financial growth of the business, the mission, your plan to overdo your competitions errors, if you are going into home production then include your production plans, market value of similar products, funding. Business forecast.
  • Financial planning can seem overwhelming but it’s essential to your setup and running. You must have an updated view of your finances that’s why you need to equip yourself with business management knowledge like pricing, labor cost, marketing, packaging, and branding.

Items to Sell in a Cosmetic Retail Shop

There are quite a number of products you can sell in your cosmetic store that are in trend and hot demand. Before choosing a product to sell in your retail store there are factors to consider.

  1. It is product sell-able; no matter how good a product is can you sell it to your targeted customers? If the answer is yes then add it to your list.
  2. Profitability: can the profit from the item take care of your overhead cost? The product may be fast selling but it can’t cater for your indirect and direct cost then it shouldn’t be in your shelve or else you have other means of selling the products that will bring in the desired profits.
  3. Consumable Value: the profit margin might not be so much but it sell fast off the shelve and it’s also in high demand, bear in mind a happy customer will always refer more customer to your business.
  4. Trends: timing is very important when you want to sell what’s trending and what will be great is if you have an eye for products that will do well in the market.
  5. Competition is good they keep you on your heels and in other to do well in the face of competition is selling unique products and price.
  6. Sell quality products this will build your reputation and attract more customers.

Cosmetic product you can sell in your retail shop

  1. Hair care products are hot in demand especially with the new trend of organic product and virgin hair care products. Hair extension products like attachments, weave-on, crochet etc.
  2.  Make-up products have varieties that you can major on, know your targeted audience, makeup are essential products for women’s beauty next to skin care products.
  3. Skincare products are high in demand and they range by types, most women either want to tone their skins or maintain a certain complexion, skin care products are food to the skin for both young and old.
  4. Fragrance are of different types for example body spray, deodorant, roll on and perfumes, there are good profits to make from fragrance sale as everyone wants to smell good.

How Much Investment Needed to Start a Cosmetic Shop

There is no definite investment capital when it comes to starting a cosmetic business, therefore with as little as $100 dollar you can start with only makeup brushes if you so desire.


The initial capital you have will determine the size of your shop, what is important is your drive to take the business a $100 shop to a billion dollar shop.

In the cosmetic industry there is always room for growth and expansion all you have to do is be consistent in your service delivery.


Cosmetic Retail Business Online

 If you desire to own a cosmetic retail business online here are a few tips to getting started.

  • Distributors: make a list of the products you want to sell and get in touch with their distributors, the market is broad and there are lots of brands to choose from. Research the website of products distributors and make contacts with the right people and strike a deal according to the investment capital you need.
  • Software; your online platform for example your website or app would need the right software that will give shoppers variety of options, and look for the right shipping integration like UPS, FedEx, and DHL that works between the platform, lastly find a software that is right for a shopping cart.
  • Design: your online cosmetic brand should be appealing to your targeted audience most especially women, it is crucial you use software that gives rooms for custom design and hire the services of a professional programmer.
  •  Comparison shopping sites: in starting an online cosmetic business you will have to learn how to use cross-promotional channels, it will help you build a bank of loyal customers. Run daily deals this will bring in a huge number of shoppers to your site.  

ALSO READ …. COSMETIC BUSINESS: Best ideas to start online (+ Quick guide)

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