If you ask any entrepreneur, starting a business comes with its fair share of challenges.
Starting a skin care product line requires a great deal of effort, dedication and most importantly passion.
If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.
We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.
💡 Introduction To Starting A Skin Care Product Line
Let's take a look at the search trends for skin care product over the last year:
How To Name Your Skin Care Product Line
It's important to find a catchy name for your skin care product line so that you can stand out in your space.
Here are some general tips to consider when naming your skin care product line
- Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
- Conduct a search to see if others in the space have the same name
- Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
- As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!
Why is naming your skin care product line so important?
The name of your business will forever play a role in:
- Your customers first impression
- Your businesses identity
- The power behind the type of customer your brand attracts
- If you're memorable or not
It's important to verify that the domain name is available for your skin care product line.
You can search domain availability here:
Find a domain starting at $0.88
powered by Namecheap
Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.
It's also important to thoroughly check if social media handles are available.
As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.
Here's some inspiration for naming your skin care product line:
- Iconic Skin check availability
- Pigmented check availability
- The Smeared check availability
- White Esthetic check availability
- Aenogon Makeup check availability
- Beautifly check availability
- PaleSkin check availability
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- Easy Beauty check availability
- Goddess Glam check availability
- Full Makeup check availability
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- Signature Skin check availability
- Skinnetic check availability
- Admirable Makeup check availability
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- The Mere Skin check availability
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- The Glabrous check availability
- The Pancake Makeover check availability
- Intrepid Skin check availability
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- The Dusky check availability
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- The Natural check availability
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- Light check availability
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- Acid Sunscreen check availability
Gia Paddock, founder of Boutique Rye explains how they came up with the name of their business:
What took the longest was deciding on a name and our logo; I wanted it to be meaningful, and I cared so much about what people thought.
Looking back, my advice would be to quit thinking about other people. This is my business, and all that matters is if I am happy the name and logo.
A popular national brick & mortar women’s boutique that many may have heard of is called Francesca’s… How original, right? So we came up with Boutique Rye named after our son, Riley. We put "boutique" in front to be a little different.
Now came the logo… Oh man, was this a task. We hired a graphic designer that we went to high school with, and went back and forth with him for about a month and a half. I wanted something that really described my style which is kind of “boho chic” and decided on a dreamcatcher. The dreamcatcher is also what our son’s nursery was decorated in, so it truly felt like a family business.
Is The Skin Care Product Line For You?
Let's look at the pros and cons of starting your own skin care product line
- Flexibility: One of the biggest advantages of starting a skin care product line is that you can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
- Ability to start your business from home: It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
- Little startup costs required: The cost to start a skin care product line costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.
- Rewarding work: Starting a skin care product line can be really rewarding and fun work. After all, you're bringing joy and excitement into peoples lives.
- Crowded space: Competition is high when it comes to your skin care product line, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
- Finding the right supplier: Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Creating a successful skin care product line means that you will have the ability to sell, provide stellar customer service, communicate with vendors and motivate your team (even if it's down the road)!
- Dermstore (13.2K Alexa Ranking)
- Beauty Bay (19.5K Alexa Ranking)
- Curology (25.8K Alexa Ranking)
- Rodan & Fields (39.8K Alexa Ranking)
- BOOM (45.4K Alexa Ranking)
- Annmarie - Revenue $1M/month
- Tree To Tub - Revenue $500K/month
- Evolue Skincare - Revenue $200K/month
- Alitura Naturals - Revenue $150K/month
- Spinster Sisters Co. - Revenue $125K/month
- Mirai Clinical - Revenue $100K/month
- Tribe Skincare - Revenue $100K/month
- LoLo Body Care - Revenue $92K/month
- AMPERNA - Revenue $50K/month
- Volcanic Earth - Revenue $42K/month
- FATCO - Revenue $40K/month
- w.o.d.welder - Revenue $35K/month
- Emu Joy - Revenue $33K/month
- Soak Society - Revenue $18K/month
- ScrubzBody Skin Care Products - Revenue $16.7K/month
- Heliotrope San Francisco - Revenue $15K/month
- AlmondClear - Revenue $15K/month
- Battle Balm - Revenue $10K/month
- Beach Gladiator - Revenue $8.5K/month
- Natural Skin Science - Revenue $7.5K/month
- The Laughing Tree Organics - Revenue $5.4K/month
- Oh My Balm - Revenue $2K/month
- Aura Sensory - Revenue $2K/month
- TerraCure - Revenue $1K/month
- Lewa Botanics - Revenue $300/month
🎬 How To Start A Skin Care Product Line
Setting Up Your Skin Care Product Line (Formation and Legal)
When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.
The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.
These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.
- LLC: All income and expenses from the business are reported on the LLC personal income tax return.
- S corp: Owners pay themselves salaries + receive dividends from profits.
- C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.
Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.
Need to start an LLC? Create an LLC in minutes with ZenBusiness.
Determine Which Business Bank Account You Need
There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.
Here are some factors you may want to consider:
- Location - Is your bank close enough that you can easily make deposits or get cash?
- Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
- Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
- Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
- Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.
Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.
How To Find A Supplier For Your Skin Care Product Line
Here are the steps to consider when finding a supplier/manufacturer:
Know your design
One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.
Sketching is one of the most simple ways to get started in the design phase.
What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.
To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.
Decide your supplier type
You'll want to identify the type of supplier you are looking for.
Here are some questions you may want to ask yourself prior to searching for a supplier
- Are you looking for a manufacturer to produce your product idea?
- Do you want to find a supplier that can simply purchase existing products for you?
- Do you want a drop-shipper to supply and fulfill orders?
- Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here
Where to start your search
Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:
Leslie Eisen, founder of AlmondClear discusses how to manufacture products in house
If you want to start a line of unique products, then you have two basic options: you can make them yourself, or you can find a manufacturer to work with that creates custom formulations for their clients.
I knew that I was trying to build a larger-scale business and that the home-made model wasn’t right for me, so I had to find the right manufacturing partner. It took a lot of research, phone calls, and emails before I found the laboratory that met my needs.
I wanted to create unique products (as opposed to private label), so I worked with the manufacturer’s chemist who specializes in skin care formulations. This process takes some time!
First, you have to tell the chemist what kind of product you’re looking for, the ingredients that you want to include or leave out, and what you want the final product to look like/feel like/smell like, etc.
Then, the manufacturer sends you the first sample, you try it out or give it to others to try, and then provide feedback for revisions. In my case, the first two products came together fairly easily because I only needed to make small changes to stock formulations.
There are many, many rules and regulations around cosmetics and skin care products. If you want to sell products that contain FDA regulated ingredients then you have to register and get a permit.
My products aren’t FDA regulated, so I didn’t have to go through this step, but I did have to be aware of the many guidelines and standards around labeling and safety warnings. Some people hire a lawyer to help them through this process, but my manufacturer was able to guide me through the regulatory process.
The entire process, from researching labs to work with to having the first finished products shipped out to me, took around six months.
How Much Does It Cost To Start A Skin Care Product Line
If you are planning to start a skin care product line, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.
We’ve outlined two common scenarios for “pre-opening” costs of starting a skin care product line and outline the costs you should expect for each:
- The estimated minimum starting cost = $12
- The estimated maximum starting cost = $27,209
|Startup Expenses: Average expenses incurred when starting a skin care product line.||Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs.||Max Startup Costs: You have started with 1+ other team members.|
|Office Space Expenses|
|Rent: This refers to the office space you use for your business and give money to the landlord. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space.||$0||$5,750|
|Utility Costs For Office Space: Utility costs are the expense for all the services you use in your office, including electricity, gas, fuels, telephone, water, sewerage, etc.||$0||$1,150|
|WiFi & Internet: Whether you work from home or in an office space, WiFi is essential. Although the cost is minimal in most cases, it should be appropriately budgeted for each month!||$0||$100|
|Total Office Space Expenses||$0 (min)||$7,000 (max)|
|Upfront Costs For Inventory: This includes all upfront inventory you will need in order to launch. Be sure to compare prices of wholesalers to ensure you're getting the best deal and margins remain high.||$300||$5,000|
|Inventory Storage: If you decide to have a physical space for your skin care product line, whether it be used for inventory or as a showroom, you may have monthly rent payment or a large down payment associated with renting/buying the space.||$0||$5,000|
|Package Design: Packaging refers to wrapping and protecting products during distribution, shipping, and sales.Your package design is your customer's first impression of your brand, so it's important you spend some time and energy to get this right from the start.Many businesses design their own packages using design software and tools. There is always the option to outsource this to a design expert, but that route tends to be much more expensive.||$50||$3,000|
|Shrinkage: Shrinkage refers to the loss of inventory at any point between the purchase from your supplier and the purchase by your customer. Although you will try to avoid this at all costs, this does happen sometimes (especially in the learning stages of your business), and it's important to plan ahead financially in case this happens. Fortune states that retail shrinkage costs U.S. retailers approximately 1.4 percent of their total sales.||$0||$1,000|
|Distribution costs: Depending on what distribution plan you choose, expenses such as renting vans, hiring delivery drivers and gas costs can add up. If you are looking to save money upfront, you may want to consider conducting distribution on your own.||$0||$750|
|Total Inventory Expenses||$350 (min)||$14,750 (max)|
|Design Programs & Software: These programs might include the Adobe family of design tools: Photoshop, Illustrator, InDesign and others. This is typically a monthly subscription ranging from $10-$50/mo.||$0||$50|
|Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here.||$0||$100|
|IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals.||$150||$2,000|
|Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses.||$0||$50|
|Project Management Software: You may want to consider using a project management and collaboration tool to organize your day-to-day. This can also be very beneficial if you have a larger team and want to keep track of everyones tasks and productivity. For a full list of project management tools, check out this full list here.||$0||$25|
|Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms.||$0||$20|
|Social Media Management Tools: If you plan to do social media marketing for your skin care product line, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business.||$0||$50|
|Payroll Software: The main purpose of payroll software is to help you pay your team and track each of those payments (so that you don't have to do it manually). If you do not have any employees or have a very small team, payroll software may not be necessary at this stage. Here are the 11 best payroll tools for small businesses!||$0||$200|
|File Hosting Service: It's important to make sure the information for your skin care product line is stored and protected should something happen to your computer or hard drive. The cost for this is affordable and depends on how much data you need to store. To learn more about the different options and pricing on the market, check out this article.||$0||$299|
|Total Software Expenses||$150 (min)||$2,794 (max)|
|Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website.||$12||$200|
|Business Email Hosting Service: An email hosting runs a dedicated email server. Once you have your domain name, you can set up email accounts for each user on your team. The most common email hosts are G Suite and Microsoft 365 Suite. The number of email accounts you set up will determine the monthly cost breakdown.||$1||$15|
|Total Website Costs||$13 (min)||$215 (max)|
|Advertising & Marketing Costs|
|Customer Research & Surveys: Many skin care product line's conduct industry and consumer research prior to starting their business. Often times, you need to pay for this data or hire a market research firm to help you in this process.||$0||$300|
|Affiliate Marketing Commission & Fees: If you want to increase revenue for your skin care product line, affiliate marketing is a great way to promote your product to a new audience. When determining affiliate commission rates you will offer, you will want to take into account the price and margin for your product to ensure affiliate marketing is worth it for your business. According to Monitor Backlinks, the average affiliate commission rate should be somewhere between 5% to 30%. To learn more about how to set commission rates, check out this article..||$0||$250|
|Influencer Marketing: Partnering with like-minded influencers is one of the most effective ways to grow your social media presence. Many small businesses simply gift a free item in exchange for an influencer post, or pay the influencer directly.||$0||$750|
|Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid).||$0||$500|
|Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns.||$0||$300|
|Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here.||$0||$350|
|Total Advertising & Marketing Costs||$0 (min)||$2,450 (max)|
|Total Starting Costs||$12 (min)||$27,209 (max)|
Leslie Eislen, founder of AlmondClear discusses how she raised the money to start her business
To fund the launch of the business, my husband and I put in about $10,000 of personal savings.
That initial infusion of cash was gobbled up surprisingly quickly, like in a matter of a couple of months, and that was well before any inventory was purchased.
We also took out a home equity line of credit for $100,000. So far I’ve only used $20,000 of the home equity credit, and I intend to never use more than $50,000.
I’m trying to follow the Lean Startup model and well as Profit First, so the goal is to grow the business incrementally as revenue allows, and build a profitable business model from the start.
I know that some people would advise me to get investments or use more of my loan in order to grow the business more quickly, but I’ve chosen to pursue a more lean, build-as-you-go model for now.
We've interviewed several different founders in the skin care product line and asked them how much $ they're making today.
- $1.8M/year in revenue
- Sells skincare products.
- Solo founder
- 6 employees
- $12K/year in revenue
- Sells natural cream
- 2 founders
- 0 employees
- $90K/year in revenue
- Sells high-performance plant-based skincare
- 2 founders
- 0 employees
- $1.1M/year in revenue
- Sells sustainable moisturizers
- Solo founder
- 4 employees
- $420K/year in revenue
- Sells skin care for athletes.
- 2 founders
- 0 employees
- $24K/year in revenue
- Sells kitchen-krafted body products
- 2 founders
- 0 employees
How To Price Your Skin Care Product
One of the most challenging aspects to starting a skin care product line is determining how much to charge for your skin care product.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your skin care product, it's critical that you first identify all of your costs and consequently mark up your skin care product so you can factor in a profit.
The actual cost of your skin care product may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your skin care product, you'll want to create goals for revenue + how much profit you want your skin care product line to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your skin care product is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your skin care product fits best in the marketplace.
All of these factors play an equal part in pricing your skin care product, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
🚀 How To Launch Your Skin Care Product Line
Traditional Launch Strategies For Your Skin Care Product Line:
There are various different ways you can launch your skin care product line successfully.
Here are a few different strategies to get customers excited about your skin care product line:
- Set up a Facebook page for your business. This is a great way to establish an online presence
- Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
- Get Press! Pitch your story to the media and you may just land in an amazing publication
- Live sales to get customers excited
- Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.
Gia Paddock discusses how live sales on Facebook was KEY to her launch success:
Our official launch happened the day after my birthday, July 26, 2017.
I decided to get the word out by going “live” on Facebook. When you have a personal profile, Facebook will allow you to record yourself in real time, and they allow any of your friends to click on the video and watch if they want. I told everyone our background story and that we would have our first live sale that next night, which was a Thursday. Little did we know Thursdays would be “our day”!
Live sales were something that I wanted to do, and it was different than other online boutiques I had seen. Basically, I would go “live” on our boutique’s Facebook page with our new inventory and show each item, give a little description on it, how it fits, price, sizing, etc. It really feels like I am everyone’s own personal shopper, which is amazing!
Our first live sale was pretty successful. Most of our first customers were my friends or acquaintances from school. We decided to start right away and do a giveaway if they shared the live sale video. We gave away a $100 gift card raffle as an incentive to anyone that shared the video.
This would prove to be by far our best strategy to grow the boutique without spending a dime on traditional advertising.
Build A Website
Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).
- Pick a domain name that's easy to remember and easy to type
- Choose a Web Hosting Plan (ie. Shopify, Squarespace)
- Make sure you choose the right theme and design
- Implement the proper page structure (ie. about page, contact page, pricing etc)
To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.
There are a ton of different websites platforms out there, and it's important to choose the right one that will set you up for success
Here's everything you need to know about these two platforms:
Shopify is one of the #1 leading platforms for e-commerce businesses.
Here are some of the main reasons most e-commerce businesses are using Shopify:
- Geared towards supporting store owners. Provides a simple way to launch and manage your online store
- Customer support is off the charts (live chat)
- Easy to use - You don't have to worry about the technical side
- The design is clean and mobile-friendly. There are also hundreds of templates you can use.
- Easy integrations and additional channels (ie. Amazon, email marketing integrations, Facebook, etc).
- Basic Shopify: $29/month
- Shopify: $79/month
- Advanced Shopify: $299/month
Squarespace is a great option for small businesses and is known as one of the easiest platforms to use.
You may find yourself in a decision on whether you should choose Squarespace or WordPress.
The main difference between the two platforms is that Squarespace is known to be more turn-key than WordPress, and does not involve as much management and upkeep.
Benefits of using Squarespace:
- Great for beginners who have little to no coding experience
- Flexible and stylish designs
- You can easily switch up templates (and not feel the need to completely start over)
- Over 55,000 plugins
- Personal Plan: $12/month
- Business Plan: $18/month
- Basic: $26/month
- Advanced: $40/month
The simple way to tackle the complexity of selling online
BigCommerce, a leading ecommerce platform, has everything you need to launch and grow your online business. You can get started quickly with a drag-and-drop visual editing tool, and sell multi-channel on social media and marketplaces such as Amazon, eBay, Facebook, Instagram, TikTok, Walmart, and more. BigCommerce enables you to build a beautiful online storefront that caters to your unique business needs and is designed to jumpstart your business growth from your very first sale onwards.
- Standard: $29.95/mo
- Plus: $79.95/mo (most popular)
- Pro: $299.95/mo
- Enterprise: Contact sales
Make Sure You Get The Package Design Right
The way you package your skin care product line is often the first impression your customer has - so it's important to get it right.
You may want to ask yourself these questions:
If my product is on a shelf next to hundreds of other similar products:
- Will my skin care product line stand out?
- Will the branding/packaging create a connection with my customer, and hence, lead them to buy?
There are hundreds of tools you can use to help with packaging and design:
- Canva - Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
- Stickermule - High quality custom stickers you can include on or in your packaging.
- Noissue - Custom tissue paper and compostable mailers
- Rollo Label Printer - A great tool to print all shipping labels at home
Packaging and Design Example
Because of our higher costs, we knew that we had to go for the premium market, and that certainly influenced our branding and design.
We even included a small drawstring bag of Soapberries in our packages, just so people can experience it in its rawest form!
We knew the packaging needs to be elegant, and it needs to be able to tell the story of the Soapberry.
There are various different marketplaces that you can effectively sell and promote your skin care product line, whether that's local or online!
Here are some of the most common ones:
- Your own website! Shopify is known to be the best for e-commerce stores
- Local places! Gift shops, farmers markets, festivals, grocery stores etc
- Etsy - E-commerce website for craft supplies
- Craft is Art Marketplace to buy and sell handmade crafts & fine art
- Aftcra Online marketplace where you can buy and sell handmade products
- Storenvy Marketplace for authentic brands
Etsy Tips From Founders
Etsy is one of the most common marketplaces for this business type, however, there are some tips and tricks from other founders you'll want to consider prior to listing:
Financially speaking, Etsy is a really great way to start a business because it’s essentially free until you start selling. It cost nothing to launch besides my 20 cent listing fees.
Etsy has been encouraging free shipping with a lot of pushback from sellers, but I built everything into our prices about a month ago and introduced free shipping shopwide, which seems to have improved conversion rates and search visibility already.
I honestly attribute the bulk of my success to photography. I was a photographer first so obviously very lucky to have no issues launching with great images and it’s something I consistently produce.
With Etsy especially, there are a ton of mediocre amateur photos so it was an easy way to set myself apart from the start, and I don’t think Etsy themselves would feature my products and market them so often otherwise. We’re also able to compete fairly well on price because 80% of customers are American, and our dollar is much weaker.
Consider Selling On Amazon
In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.
Here are some pros and cons of selling on amazon:
- Easy and seamless process to get your product listed on Amazon
- There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
- Can help grow your business exponentially and reach new audiences
- You may encounter some "copycats" and counterfeit products
- Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
- If you already have a low-markup, amazon may not wrth your while and you could end up losing money
- Commissions and listing fees are high - it's easy to lose control of your offering
Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:
Leslie Eisen, founder of AlmondClear discusses how Amazon grew revenue by 20% month over month:
The other big part of launching my business was getting my products approved to sell on Amazon. This used to be a quick and simple process, but Amazon now has “gated” categories in which you have to be approved to sell, and beauty is one of those gated categories.
In order to get approval, I had to submit lots of documentation, and I also needed to have a functional, professional-looking website up and running. Amazon is trying to discourage private label sellers from clogging up their platform with identical products, so they now look for unique products that already have established businesses outside of Amazon.
I got very lucky in getting approved; if you search through Amazon Seller Forums, you’ll read lots of stories of people who invested in large amounts of inventory and then were denied approval on Amazon. I highly recommend that if you’re thinking of selling on Amazon, that you secure approval before buying large amounts of inventory.
Once my products were listed on Amazon, it was easy to gain exposure through sponsored product advertisements, and a trickle of sales began to come in nearly immediately, and these sales grew steadily over time.
For the first nine months it grew like crazy, with an increase in revenue of about 20% each month! I was happily surprised by how much of a market there turned out to be for mandelic acid products, and Amazon was a great platform on which to launch our products.
I know that there are a lot of Amazon naysayers out there, but for my business Amazon was a Godsend, and I wouldn’t have a viable business without it. I’d really encourage any entrepreneur selling a physical product to include Amazon in their launch plan.
Yes, Amazon is far from perfect (you can’t contact your customers directly and Amazon frequently changes their seller rules and regulations), but where else can you increase sales by 20% per month without doing any marketing?
🌱 How To Grow Your Skin Care Product Line
Consider Working With Instagram Influencers
Partnering with like-minded influencers (within your industry) is one of the most effective ways to grow your social media organically.
Industry influencers already have an established and loyal following. With one post, your product immediately establishes a connection with a brand new audience. It's that powerful.
When finding influencers to promote your product, do your research and make sure that their following will actually be interested in your product.
It's easy to be blinded by any influencer with a huge following, but if those followers don't resonate with your product, there may not be any value there... so make sure you do your research!
Evan Marshall, founder of Plain Jane discusses how "micro-influencers" have impacted his business:
Influencer marketing has been huge for us. Our approach is pretty simple. We give out samples of our products and ask people to post about us on social media aka a micro-influencer strategy.
We really like this approach because we get authentic stories and content. We cannot really control the messaging so the product has to speak for itself. We don’t really take product photos at all. Our customers take the photos and we ask to reuse them.
With any influencer strategy, you have to be very sure you’re targeting the right people and engaging with them. You can make sure you’re targeting the right influencers by looking through their posts and then looking through the profiles of their engaged followers.
It takes more time per influencer but the payoff is certainly worth it. Make sure their followers look like your existing customers.
It takes a ton of time and work to grow a social media following this way but it’s worth it. Other accounts have tried to grow themselves through botting or other manipulations. As a CBD company, we didn’t want to give Instagram any reason to shutdown our account so we’ve done everything through content and real engagement. It’s not magic to make this happen. You just have to post consistently and then reply or like every single comment you get. It takes months but it works
Social Media Advertising
Social Media Advertising is one of the leading ways to get the word out when it comes to skin care product line.
There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.
Let's talk about a few of the main platforms and what makes them unique:
- Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
- Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
- Twitter Advertising- Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
- Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
- LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses
It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:
Here are some different questions to ask yourself as it relates to your goals:
- Do I want to simply drive brand awareness?
- Do I want to drive users to my website to gather information?
- Do I want to increase sales and get my customer to take action?
From there, choose the platform that targets your audience best and start experimenting!
Learn more about social media advertising ➜ here.
Founder Andy Hayes talks about mastering FB ads and the pixel:
The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.
We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.
Some of the most important things to know when it comes to FB Ads:
- Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
- Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
- Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
- Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.
Host A Social Media Giveaway
People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.
If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.
One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.
This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.
Grow Your Email List
The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.
One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.
This could also be anything from:
- Fascinating case study
- Video series
- Free week of the product
- Discount on the product
Learn more about how to grow your email list and improve email marketing ➜ here.
Improve Your Email Marketing
Different types of emails
Here are the most common types of email campaigns you can send to your customers and their benefits:
- Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
- Newsletters - a great way to give customers updates or send out your latest content
- Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
- Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
- Abandoned cart emails - give your customers a reason to complete their purchase!
Here's a great resource for finding curated email designs, for all types of email campaigns!
Improve your SEO
SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site, and ultimately, converting leads into customers.
One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."
Here are some tools that can help you choose the right keywords for your skin care product line.
- Google Ads Keyword Planner invaluable for discovering search trends.
- Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
- Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.
Publish Great Content
Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.
There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.
So let's discuss what google considers "good content:"
- Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
- Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
- Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
- Ensure pages load quickly - This will also help with engagement and time spent on your website
- Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).
Another element of creating good content is creating consistent content.
If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.
Planning out your content with a content calendar is key to staying consistent.
Here are a few great content calendar tools that can help you:
Backlinks are an important piece to SEO, as they allow for other websites to link to your content.
Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.
Of course, some links are more valuable than others and can affect your site in different ways.
For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.
Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:
- Create infographics with relevant data that people want to share
- Promote your content on different sites/look into "guest blogging"
- Contact influencers/journalists/bloggers and ask them to mention you!
- Write testimonials for other sites in exchange for a backlink
- Leverage existing business relationships
How To Optimize SEO For Your skin care product line:
Example from Brandon Wong, founder of Photo Booth Supply Co
SEO is a pretty difficult world to understand. I suggest finding the best talent you can and letting them do what they’re best at.
Sometimes that means bringing the service in house, sometimes it involves an outside agency. For us, the ROI on our spend here is huge. It goes back to what I said about picking the trade show your customers attend. Pick the channel your customers use.
Don’t worry about what you like, where you think you’ll find them, or anything like that. We started hearing from our customers that they found us by searching and so we had to honor that. It has worked very well. The kind of entrepreneur who does research and compares their options tends to land with us. That’s great. Our SEO has changed alongside Google, of course.
When we got started, a lot of people found us through our photography company. They eventually started landing on us for searches about which photobooths had the best picture quality. It’s a natural transition for sure. Trust is big with Google, and people immediately trusted a photographer to have made a great photobooth. It makes sense.
Build A Blog
One of the most effective ways to build brand awareness and grow your business is through consistently blogging.
We've outlined some useful tips for you to consider when creating content:
Consistency and Quantity
Quality is important, but it should be the standard for any content you publish.
What’s more important is consistency and quantity.
Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.
This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.
The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.
This is nonsense.
There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.
For every person that tells you you are posting too much, there is another person that wants even more of your content.
You should ignore people’s opinions on how much you post.
Patience & Persistence
Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.
The only thing you have control over is your content.
You can’t control how people will react to it. You can’t control pageviews, likes, or shares.
So the only metric you should focus on is how much content you can put out in a week, month, etc.
Where to share your blog content
I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.
Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.
Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.
An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.
Reddit is one of my favorite places to promote content.
It is a very scary place because you will often get banned or heckled, but it can really pay off.
Create social media accounts for your blog, the main ones I use:
Twitter Facebook Instagram LinkedIn
Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.
Automate this as much as possible. I automated all of my social media for Starter Story.
When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.
🏃🏼♀️ How To Run Your Skin Care Product Line
Word of Mouth
The most tried and true way to grow a skin care product line is through word of mouth - some entrepreneurs would say it's more important than all social media.
Why you should focus on word of mouth:
- Consumers trust word of mouth above all other forms of marketing
- 92% of consumers believe recommendations from friends and family over all forms of advertising
- 64% of marketing executives indicated that they believe it is the most effective form of marketing
Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜
We really only have 2 tools to attract and retain customers. The first is word of mouth. TANYA HEATH Paris has never spent a cent in press or in marketing so we rely on happy customers talking about us. They find us by walking past one of out boutiques or they have been following the brand after hearing about us via some kind of press.
Our best retention tool is customer service. Some of my best customers started off as customer services disasters. But by taking their concerns seriously, and by problem solving and by working with them we are able to reassure them and solve their problems. In fact if you look at the comments on our Facebook pages clients often talk about our customer services. This makes me very proud!
I am in the Paris boutique all the time and I’m always interacting with clients so I know what they like and what they think we could be doing better. This insight goes into each new collection that I design. I also know that I don’t know everything, so if I’m in doubt about something, I ask my clients.
Provide Great Customer Service
Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.
Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.
Just remember: customer service represents your brand, values, vision and YOU as a person.
Customer service is huge for us. Like I talked about, building a community has been one of the best bi-products in the shop.
We want everyone to feel loved, cared for, and appreciated.
If we have a customer that comes in quite a bit, we will begin to notice what they buy and reach out to them if something new comes in if we think they will like it. We also try to call people by name and greet them as if they were entering my home, not just the shop.
Another great way we retain customers is through a loyalty point system. When a customer gains enough points through their purchases, they are rewarded with a discount. It’s our way of saying “thank you” for having them be a great customer.
If you can afford to hire someone to help support your skin care product line, outsourcing is a great way to save you time and energy.
Most importantly, outsourcing can help you focus on the core growth of your business, versus spending your time on day to day tasks that other people can do just as well!
If you do plan to outsource your work, it's important to be hyper-familiar with the actual work involved.
Why is it important to be hyper-familiar with the work?
- So you can understand how long it takes
- So you understand the full process, edge cases, things that can go wrong.
- So you can explain it in detail to your employee.
- So you can make sure it actually works (for example - how do you know cold email works for your business if you’re not on the ground floor trying it out?)
- Understanding the tasks at a deep level will save you a lot of time and money.
Diversify Your Product Line
Adding new products to your business is a great way to expand into new markets and grow your business.
It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.
Here are some reasons you may want to considering adding/diversifying your product
- Meeting the needs of your customers
- Establish yourself as a top provider in your industry and stay ahead of the game with competition
- Resistance to downturns/trends fading
- Create new revenue streams
We put together the best resources on the internet to help you start your skin care product line.
- Social media tools such as Instagram, YouTube, Tiktok, Snapchat, Twitter, Pinterest, LinkedIn, Hootsuite, Buffer, Facebook or Vimeo
- Payroll tools such as QuickBooks, TimeStation, TSheets or Intuit
- Advertising tools such as Instagram Ads, Pinterest Ads, Google ads, Facebook Ads, Google Adwords, Bing Ads, Google AdSense, Twitter Ads or Amazon Ads
- Reviews tools such as Stamped.io, Smile.io, Okendo, Judge.me, Product Reviews, YotPo or Growave
- Platform tools such as Etsy, WooCommerce, BigCommerce, Bing Shopping, Canva, Shopify, eBay, Google Shopping, Amazon or Weebly
- Productivity tools such as Notion, Trello, Asana, Microsoft Office 365, Google Suite, Dropbox, Slack, Evernote, Calendly, Teamwork or Doodle
- Analytics tools such as Google Analytics or Sumo
- Email tools such as Omnisend, Klaviyo, Mailerlite, MailChimp or Kickbox
- Payments tools such as Square, Paypal, ReCharge, Shopify Payments, Apple Pay, Venmo, Stripe, Amazon Payments, TransferWise, Braintree or Zelle
- Customer service tools such as Zendesk, ManyChat, Facebook Chat App, Chatra or Re:amaze
- Accounting tools such as A2X, Xero, Wave, Freshbooks or Quickbooks
- Stock images tools such as Envato Marketplace, Pixabay, Getty, Unsplash, Dreamstime, adobestock or Pexels
- Shipping tools such as ShipMonk, UPS, Stamps.com, ShippingEasy, USPS, ShipStation, UPS WorldShip or Endicia
- Design tools such as 99designs, Adobe Suite, Canva, Pic Monkey or pixlr
- Blog tools such as WordPress
- App tools such as Zipify
- Wholesale tools such as Wholster (app), Bulletin, Faire.com, Peeba (Asia), Spocket (drop ship), Handshake or Carro (drop ship)
- Web hosting tools such as WP Engine or GoDaddy
- Fulfillment tools such as Amazon FBA
- Crm tools such as Hubspot or LoyaltyLion
- Freelance tools such as Fiverr, Upwork or TaskRabbit
- Affiliate tools such as Amazon Associates or Refersion
- Inventory tools such as Craftybase
- Education tools such as Ecommerce Fuel
- Sales tools such as SentryKit
- Crowdfunding tools such as Kiva
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