Once you have formulated your business plan and studied how to operate your wholesale company, there are some practical things you must consider to get your beauty business started.
1: Register your business and obtain a wholesale license
If you want to wholesale beauty products, you must first register your business to obtain a sales tax license, and then obtain a wholesale license.
In some countries, the wholesale license is a legal requirement. Even in regions where there is no mandatory requirement, the wholesale license allows enterprises to trade at competitive prices and benefit from some exemptions (such as import and export taxes). More importantly, proper licensing can help enterprises become more credible in the eyes of potential customers.
2: Set price and minimum order quantity
When starting your wholesale beauty business, it is important that you determine your price and minimum order quantity. Before setting prices, it is necessary to do some research to see how your competitors price their products, so that your products will not be overpriced or underpriced. Your goal should be to sell the product at a price 2.5 times the purchase cost, but you can find the perfect price point by comparing the production cost and the required profit.
The main purpose of setting the wholesale minimum order quantity is to quickly increase your income by encouraging customers to order your products in batches. With the MOQ, you can focus on more profitable customers, who value your products, so they are more likely to buy in bulk.
When calculating the MOQ, you should consider the following factors:
Raw material cost
Average order size vs expected quantity - this step applies to established enterprises, not newly established enterprises
Average profit per item
Prepare for the worst
Determining the MOQ will help you track your business and goals while maintaining profitability.
3: Marketing your beauty wholesale business
To ensure customers, it is important to market your wholesale beauty business in different ways and through different channels. Social media is a good platform for marketing your cosmetics business, so use these websites to promote your products. This is also a good way to contact potential customers, so make sure your content is interesting and interactive. For example, through your appearance on Instagram, you can share the beauty tips of using your products and link to your website.
It is also important to promote your products in a more traditional way. For example, you can advertise your business in newspapers and magazines, or post posters locally. The way you promote your products depends largely on your customer base and the best way to improve your business visibility.
4: Create a list to keep your inventory organized
From the beginning, you need to establish an inventory and update it regularly according to the turnover of the inventory. Keeping inventory is a necessary condition for effective business operation. This is a huge corporate asset that can help the company plan for the future, stay within budget and remain profitable. No matter how large your enterprise is, keeping inventory can help you track the operation of your company. It can also save you any pressure and headache by keeping inventory in order. Inventory can help you understand trends over time, so you can more accurately predict when certain products will run out.
To run a successful and efficient beauty wholesale business, creating and regularly updating inventory is a necessary condition to ensure that your company remains profitable.
5. Know all the information about your industry
Keeping abreast of trends and developments in the beauty industry is equally important for both wholesalers and retailers. Understanding the origin and details of your beauty field, such as K-Beauty, will enable you to stand out from your competitors and let you deeply understand the best products for customers. Through UMMA, members can gain exclusive industry insights on the latest K-Beauty trends, enabling wholesalers to simply track the most popular products in the market. By regularly expanding your industry knowledge, you can differentiate yourself from the competition and become an expert in your field.
If you handle it properly, starting a wholesale business may be a profitable opportunity. Develop a business plan, build a strong relationship with your retailer, become an expert in your niche market, and make your wholesale beauty business successful.
