It's possible to make good money selling cosmetics directly to the public. In fact, you can make a markup of at least 50 percent on some items from certain cosmetics manufacturers. Whether you're looking to add cosmetics to your existing product range or are planning to start a retail business based on makeup and other related products, the process of applying to cosmetic retailers to become an authorized dealer is relatively straightforward.
Find premises to sell your cosmetics from if you're not already trading from a retail site. Look for a commercial property in a busy part of a large shopping area. The rent won't be cheap, but you'll benefit from heavy footfall.
Contact your local Department of Revenue to find out if you need to apply for a license to start reselling cosmetics products, and register to collect sales tax. Licensing and tax laws will vary, depending on where you're planning to trade.
Assess the demographic makeup of the area where you're planning to trade. Use what you find to help you identify brands that are likely to sell well to your potential customers. You can use U.S. Census Bureau data to get an idea of the average income and age of the general population in your area. If you live in a high-income area with a relatively elderly population, you may want to steer clear of applying to cosmetic brands that are aimed at teenagers.
Submit an application to become a reseller to cosmetic companies whose products you want to stock. Some will allow you to apply online, while others may require you to phone or write on first contact. You may be asked to submit additional details about your business or undergo and interview and an inspection of your premises to make sure your company is line with the brand values of the cosmetics firms you approach. If your application is turned down, ask for feedback as to why your business was deemed unsuitable. You can then take steps to get your house in order and reapply.
Only stock cosmetics that have been approved by the U.S. Food and Drug Administration or the Personal Care Products Council. Although cosmetics manufacturers are not legally obliged to register with these bodies or report data on the ingredients they use, your customers will enjoy greater peace of mind if your suppliers are accredited by a recognized regulatory or industry body.
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