How to start an online cosmetics and perfume store?

Opening your own online store is a profitable and beneficial venture. Almost all types of businesses have moved online, and perfumery is no exception. However, achieving the expected results as quickly as you would like is impossible. From the business idea to the desired return, you need to go through quite a journey. First and foremost, you need to choose the right strategy and plan each step.

Niche Features and Planning

Since our article is dedicated to creating an online store for perfumes and cosmetics, we will clearly talk about fragrances and creams. These products do not belong to the first necessity group, but the demand for them is quite high. Statistics show that women and girls are willing to spend 12% of their monthly earnings on cosmetics and perfumes. Not a bad figure for non-essential goods. And if we conduct an average calculation, it results in a substantial amount.

Interestingly, this category of goods has always been and will remain relevant. To thrive in this area, it is better to focus on the female part of the audience from the start. Research has shown that positive dynamics are maintained for budget and mid-range products.

Selling cosmetics and perfumes is a profitable business, even for those who have never been involved in sales. In the table below, we will consider the advantages of this niche.

Every niche in business has its downsides, and perfumery is no exception. The buyer cannot smell the fragrance of the product being sold. Many prefer offline stores. To eliminate such moments, it is enough to focus on well-known brands.

Another tip: provide detailed descriptions of perfumes and colognes. You can also create a section for "reviews".

Market Features

To avoid "going bankrupt" with your online store, you need to conduct a market analysis right away. In cosmetics and perfumery, you will need to study:

• International standards;
• The legislative framework and norms of Ukraine;
• Regulations governing e-commerce activities.

Of course, while researching the market, be sure to pay attention to your competitors and target audience. This will help you build your strategy correctly. Start by studying your potential audience.

• Age, gender, marital status, income level, and other priority parameters;
• Scale of the target audience;
• Reasons motivating them to make a purchase in an online store;
• Degree of interest and important characteristics of the product for the buyer.

To study your target audience, you can use already known services. A good option is Google Trends.

Main Directions

Cosmetics and perfumery are divided into:

1. Care products. Creams, face masks, shampoos, balms, gels, etc.;
2. Decorative cosmetics. This includes: lipsticks, foundation creams, blush. In general, everything that can be used for makeup;
3. Perfumes of elite brands;
4. Perfumes and toilet water of the mid-price category;
5. Budget perfumes.

As mentioned earlier, before opening a store, you need to study the target audience, which will help you determine the direction. As an example, we present a table of two interesting options.

Business Models

The perfumery niche offers you three business models:

1. You are a manufacturer. The ideal option. You have your own factory or a small enterprise. Yes, even if you make creams from natural ingredients in your kitchen, this business is not new to you. In this case, it will be easier to create an online store, as there will be no problems with suppliers.
2. You are a mediator. The standard scheme: you find a supplier, negotiate the purchase of goods at wholesale prices, and sell them on your platform with a markup of 100-200%.
3. You are a dropshipper. All you need to do is organize the interaction between the supplier (manufacturer) of cosmetics and the buyer. You just need to promote your website, and having cosmetics in stock is not necessary.

Target Audience

Without understanding your audience, a businessman cannot offer clients a quality commercial product. It is important to understand your client. This is what allows you to emphasize the individuality of the project.

Studying the target audience is the basis for saving your money. Create a portrait of the future potential buyer considering the following indicators:

• Regional features;
• Sociological data;
• Purpose of the product;
• Pricing policy;
• Selection criteria.

Speaking of a perfume and cosmetics store, the target audience here is women and girls. This is the main part of the buyers. Why do women make more purchases? It's simple:

• They often make spontaneous purchases based on packaging.
• They love to take care of themselves;
• They keep up with the times.

Business Registration

An online store also needs to be registered, just like any business. The registration procedure is carried out in the relevant local authorities or online. First, you need to think about the following questions:

• Optimal form of organization, LLC or individual entrepreneur.
• Appropriate tax system.
• Feasibility of opening a settlement account.

Of course, it is better to open a company settlement account in a bank. This indicates the reliability and responsibility of the firm.

Speaking of the name of the perfume online store, it should be attractive, bright, and memorable.

Writing a Business Plan

An important stage of planning is writing a business plan. It will provide an understanding of future profits and allow you to set the right pace for development. The approximate structure of the plan looks like this:

1. The essence and purpose of the project.
2. A brief description of the company.
3. Market analysis.
4. Marketing strategy.
5. Finances.
6. Organizational plan.

Each item must be clearly thought out!

Creating an Online Store

The "face" of the online resource is its website. You can create an online store from scratch, of course if you know how, or turn to professionals. You can also try to create a platform using builders. But again, you need to understand what you are doing.

Website Development

The website should be bright, encouraging potential buyers to take action. It is best if the platform has simple navigation and a clear structure. The product range should be divided into logical blocks:

• Perfumes for her/him;
• Face and body skin care;
• Decorative cosmetics;
• Hair care, and so on.

Be sure to think about what interests the client. We recommend including the following blocks:

• Promotions and discounts;
• Bonus system;
• New arrivals;
• A blog with tips.

Do not ignore photographs. In the perfumery and cosmetics niche, quality images are important. Buyers are attracted to them.

Finding Suppliers

If you are a manufacturer yourself, then you do not need to look for a supplier. However, if you decide to build your business on products from well-known brands, then you need to choose a reliable partner. There are several options here:

• Purchasing goods directly from manufacturers (foreign or domestic);
• Collaborating with retail chains;
• Finding a supplier on trading platforms like TaoBao or AliExpress.

Before purchasing a batch of goods, ask the supplier for quality certificates and discuss all the details of cooperation. It is best to request samples of cosmetics. Pay special attention to lesser-known brands.

Organizing Delivery

Aside from the product aspect, another important point in organizing the store is delivery. It is necessary to ensure that the client receives their order quickly. Since cosmetics are small in size, there should not be any logistical problems in principle.

If you plan to sell cosmetics solely in your region, it is enough to find a courier. If delivery will be made to other cities in the country, you can collaborate with delivery companies or send orders by mail:

• Ukrposhta;
• Nova Poshta;
• Intime;
• Avtolux.

Hiring Staff

At first, you will manage on your own. While the turnover is small, managing accounting and delivery is easy. When sales in the online store grow, it is worth considering expansion.

For an online perfume store, it is advisable to hire:

• An accountant;
• A sales manager;
• A courier;
• A marketer;
• An IT specialist.

Promoting the Cosmetics Online Store

Any website needs to be promoted, especially one that will generate profit. There are several methods that are worth noting when promoting:

1. Create the right semantic core that corresponds to relevant search queries;
2. Be sure to use contextual advertising. Do not skimp on it;
3. Communicate with clients through email newsletters;
4. Price aggregators. Upload your products to aggregator websites for a fee;
5. Create business pages on social networks and maintain active engagement there;
6. Distribute valuable and useful viral content.

When promoting the perfume online store, utilize the maximum number of channels. This approach will allow you to achieve excellent results in a short time.