Start A Cosmetic Store - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
The cosmetic industry is growing rapidly. Starting a cosmetic shop can be highly profitable, but only if you stock trendy, skin-friendly products.
If you are passionate about the beauty industry, consider starting a cosmetics brick-and-mortar shop.
Cosmetic shops sell products ranging from anti-aging, aromatherapy, lotions, beauty spa, cosmetic store, and even make-up.
To start a cosmetic store, research the market and source products from well-known brands in the beauty industry.
Starting a cosmetic store requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell cosmetic, or selling cosmetic online, you can use this page as a guide for everything you'll need to know.
Key Stats
Startup Costs
Min Startup Costs | Max Startup Costs | |
---|---|---|
Equipment & Supply Expenses |
$66 |
$1,200 |
Retail Business Expenses |
$1,250 |
$11,650 |
Inventory Expenses |
$350 |
$14,750 |
Advertising & Marketing Costs |
$75 |
$9,636 |
Software Expenses |
$0 |
$425 |
Website Costs |
$13 |
$215 |
Total Startup Costs |
$1,754 |
$37,876 |
Case Studies
Successful Businesses
Business | URL | Rank | |
---|---|---|---|
|
Nykaa |
nykaa.com |
5,259 |
|
Style Korean |
stylekorean.com |
21,570 |
|
Kylie Cosmetics |
kyliecosmetics.com |
25,133 |
|
Jeffree Star Cosmetics |
jeffreestarcosmetics.com |
53,572 |
|
Beauty Packaging |
beautypackaging.com |
100,418 |
|
Besame Cosmetics |
besamecosmetics.com |
134,182 |
|
Pixi Beauty |
pixibeauty.com |
151,484 |
|
Stila Cosmetics |
stilacosmetics.com |
154,902 |
|
cosmeticsdesign.com |
cosmeticsdesign.com |
160,513 |
|
Becca |
beccacosmetics.com |
190,276 |
|
Mented Cosmetics |
mentedcosmetics.com |
199,584 |
Pros & Cons
Pros | Description |
---|---|
Rewarding work |
Starting a cosmetic store can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
Meaningful business connections |
You never know who you will meet as a cosmetic store . This could be the start of an incredible business opportunity! |
Daily physical activity |
Cosmetic Store 's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health. |
Amazing perks and discounts |
Working in the cosmetic store comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts. |
You are your own boss! |
With starting a cosmetic store , you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating! |
Local Community |
One of the best parts of starting a cosmetic store is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers. |
Cons | Description |
---|---|
Crowded Space |
Competition is high when it comes to your cosmetic store , 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. |
Motivation of employees |
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees. |
Low margins |
The gross margins for your cosmetic store are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability. |
High employee turnover |
In the cosmetic store , employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment. |
Taxes |
As a cosmetic store , you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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