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How to Build Your Private Label Skincare Brand and Sell Cosmetics Online

Between 2018 and 2019, there were over 62,000 new businesses in Australia. Out of these, 20% probably didn’t make it through the first year.

It’s a pretty dismal statistic, but it’s true! It also shows that to survive you need to make sure your business is at the top of its game. 

This is where we can help. We partner up with people selling cosmetics constantly, helping them to grow their brand and reach a wide audience. So, if you’re thinking of starting a private label makeup line, we’ve got the advice you need.

Take a look at our tips to sell cosmetics online successfully. 

1. Always Do Your Research

Before you start your own private label cosmetics brand, there’s a lot of research you’ve got to do. To get you started, take a look at these questions:

  • How much will your startup costs be?
  • How long will the development process take?
  • How will you create your beauty products?
  • Who is your target audience?
  • What is your product’s unique selling point (USP)?
  • Where will you sell your products?

If you’re overwhelmed, don’t panic! We’ll run through some of these questions with you. For the rest, do as much research as you can to become a pro on private label cosmetics and business before you start. 

2. Find a Niche, Market-Friendly Product

All cosmetic vendors will tell you the importance of finding a niche product. This will actually be a part of your initial research. You need to look at the current beauty market to find out what’s selling and then see if there’s a gap.

At the moment, for example, organic beauty is on the rise. This section of the market is set to be worth $84 billion by 2027, which is a big increase from $53 billion in 2018!

To find out more about which products are on the rise, take a look at Google search figures, Amazon’s popular buys section, and what’s new in your local beauty shops.

3. Focus on Branding

Creating a brand for your business is like creating a personality, and it’s often what draws people in. In fact, you could have a pretty standard product but if you get the branding right you’ll probably have a hit on your hands.

Just take a look at these branding statistics:

It’s not hard to see how important branding is! Check out this branding cheat sheet to learn more. 

4. Seek Expert Guidance

The importance of having mentors has been spoken about for years across industries. In the beauty industry, we recommend looking to experts for their advice. By reading this, you’re already on your way!

From getting business help from CEOs to beauty talks with our experts, it’s never a bad idea to gain from other people’s knowledge. 

5. Consider Growth

Once you’ve found your best private label cosmetics products, it’s time to manufacture. As you plan your products, make them scalable so you can grow your business.

In the beginning, you’ll probably be working with short runs, but over time you could see demand increase. This is why you should avoid things like personalised packaging which doesn’t work with mass production. We’d also suggest looking into how you’d produce your products in an external lab.

Make sure every stage of your product manufacture can be scaled up so that you’re not held back in the future.  

6. Keep Testing

With cosmetics, it’s so important that you keep testing your products. This means using them on yourself and some close friends or family to make sure they work. We also recommend testing your products in a lab like we do to make sure everything’s completely safe.

Testing covers more than the safety actual product, though. It also covers its usability. Making sure that the packaging is suitable for the application of the product, for example. Learn from Kylie Jenner’s lip-kit applicator disaster and always quality check your packaging!

If you can, visit the factories where your packaging and products are being produced, or test them yourself at home. 

7. Sell Cosmetics Online and In-Store

Where to sell your products comes down to your market research. You should know where your target audience shops and aim for these places. 

This includes choosing between in-store and online, or whether you should stock in both. But it also goes deeper than that.

For example, look at the budget of your target audience so you can pick shops that fit that price range. You can also base the shops you stock with on the location of your target audience.

When it comes to online, there are so many places you can sell and market your product. Take a look at what age ranges head to different social media platforms and if a website is worth it (hint: it usually is!). 

Doing research on where to sell your product can hugely impact your sales. If you’re not exposing your brand to the right audience, get ready to flop. On the other hand, put in front of the people who want it and you’re going to see big profits!

Start Formulating Your Beauty Products

If you think you’ve done all the research you can and know exactly what you’re going to make, why wait? Get started straight away and take the first step towards a flourishing business!

At H&H, we help people develop, formulate, and sell cosmetics online. For more information on what we do and whether we could help you, take a look at our FAQs or contact us