How to Start Private Label Cosmetics: The Ultimate Guide

Background: Global Cosmetics Industry Worth 

Aurora Global Brands is a Private labeling cosmetics and OEM company with over 20 years of experience in the industry trade and dealing with clients seeking to start their makeup lines. We develop your perfect collection with your private label cosmetics brand name. And we work with experienced packaging and top-notch raw material suppliers to give you high-quality products that are cruelty free.

With the development of new business models, private labels are an authentic way to create your own beauty line. In 2022 beauty products had about US$530 billion as the share worth and could grow annually by 4.46%. The projections translate to a bright future in the industry!

Aurora Global Brands is your manufacturing company partner for all your custom-branded products. And because we understand your needs, our tips on starting a successful private label will assist in kickstarting your business.

Why creating your Own brand Is Important?

Branding is essential because people connect with whatever you stand for in the beauty industry. It’s what sets you apart from your competition.

For this to work, you need to maintain branding consistency. Lower quality products equals less customers and little profits. If people know you for affordable, and quality products, this should reflect continuously in all your products. Your unique identity helps you connect with your target audience and build trust and credibility.

With a strong name and cruelty free offers, you could charge more for your beauty products. You could also attract potential customers and enhance loyalty among your existing clients. Invest in your brand and see it grow rapidly in the competitive world.

Why Start a Brand with Private Label Cosmetics?

Creating your beauty enterprise can be a great way to get started. And understanding the benefits can help you maximize and stay on the right path. Here are some benefits to consider:

No Minimum Order Quantities

As a startup, investing in your perfect collection requiring low minimum order could deter you from starting your business. Private label cosmetics no Minimum Order Quantity (MOQ) feature can be a good deal and reduce your startup costs. Verify whether the supplier has production limitations. So if you’re in the first phase of your project and hesitant to place large orders, lack of MOQ will be a plus.

Other models like Custom manufacturing may state you order a minimum of 1000 units or cosmetics products worth US $1000. While this benefits the private label makeup companies by ensuring they get profits, its absence is a plus, especially if you’re starting a new private label cosmetics company.

Customized Formula

Your private label manufacturer could deliver cruelty free products with standard formulas and issue you with a list of stock formulations. With so many formulas, this makes it simpler for you than having custom own formulas per your needs. With custom formulations, you could probably have various ideas that might take time for the original design producer to implement

Fast Turnaround

Having to wait for long periods for your cruelty free cosmetic products to start selling can wear you down. You want to start the ball rolling by launching your private label cosmetic company. Thus, with such a company, you’ll only wait four weeks or less as opposed to custom-manufactured private label cosmetics brand products, which could take up to 4 months.

Getting Started with Your Private Label Cosmetics Company

Whether you’re a start-up or a big brand needing to introduce new beauty products, it’s essential to know how to create your own brand and keep it running on the right path. Your project gives you more flexibility.

At Aurora, we thrive when you thrive. So, we’ve rounded up some key pointers on what you need to do to start your private labeling cosmetics and gain more flexibility.

Prepare a Budget for Your Brand, Packaging, and Logo

Before you start budgeting for your private label brand, you must know your startup costs. They include the cost of product packaging, your logo design, and the private label products. And this is where private labeling cosmetics comes in handy. The manufacturers have predefined packaging options for you to select.

Hence, you won’t have to go to extra lengths to design or have the supplier design custom-fit product packaging. What’s more, the process of placing your order will be faster. Cumulative contract manufacturing costs will vary depending on the number of products you order.

You will also need to factor in shipping and handling costs. Once you have the total cost for your own packaging, you can start to work on your logo design.

A budget prepares you for any financial eventualities. For instance, a miscellaneous amount can cover increased shipping costs from inflation. And this applies if you’re catering for shipping costs or whether it’s part of the amount to pay the producer.

Your logo is an integral part of your company’s identity. It should be unique and memorable and help you stand out from the competition. Your prospective customers need to recognize your brand through your logo. And if you develop trust with them, you could have a steady stream of clients. Work with a professional designer to create a logo that represents your branding in a positive light.

Identify Your Niche in the Crowded Market

Many sellers crowd the beauty world. There are so many product categories and so various brands you can select. How do you know which to sell? And more importantly, how do you find your niche in this crowded industry?

With a logo in place, it’s essential to understand the different types of private label products like makeup and skin care products. There are various makeup products. For example, makeup includes foundation, concealer, powder, blush, eyeshadow, mascara, and lipstick. Decide which category or categories you’re interested in. Are you interested in private label lip liners? Perhaps, Private label makeup? What are the latest trends? 

Once you’ve narrowed your options, it’s time to start researching. Selling what you’re not passionate about could lead to losses later. So start your research by brainstorming your identity. Ask yourself:

•   What am I passionate about? Do I want to be a lip gloss vendor? Or offer oil-free makeup remover?
•   What should my brand be about?
•   What interests me most in the cosmetic industry?

To get a better glimpse of your prospective product rates in the real world, look up Amazon, Walmart, or any other online local retailer. These sites usually have categories. So check out where your product of interest falls and note top-performing products that align with your ideals.

After identifying your niche, you should consider what your potential customers need to derive from your cruelty free products. Whichever goal you settle on, maintain consistency for long -term profits.

Define Your Target Market

Identify your target audience and begin formulating the products. The key reason why some enterprises fail is trying to satisfy everyone. Not everyone will love your offer. Some people are loyal to other products, others love experimenting, and others are new and need encouragement.

Perform an audience survey to ascertain which potential customers need your makeup. What are their spending habits? Is the target audience large enough to attract profits? How can you reach them?

Also, check on their demographics:

•   What are their ages?
•   What is their income bracket?
•   Are they men or women?

You should customize your cruelty free offer to resonate with their needs and explain how your products will help them achieve their objectives. Invest in a sizable profitable market segment and leave less room for failure.

Explore Profitable Products 

Ignoring top companies is a sure way to have a failing project. You need to survey the competition. See what they are doing and what their products are like. You must find a way to make your branded products stand out from the rest. 

If you’re interested in eye shadow, here’s what you could ask: 

• What is your competitor’s selling point? 
• Is it the shade ranges? 
• How do they market? And so on.

And because your private label cosmetic company will be online, check out who sells most on amazon and others. If there’s an exhibition within your locality, attend and check out the competition. Once you identify what makes your competitors tick, pick those strategies that could work for you and implement them.

You can also develop your creative strategies based on competitors’ actions. Competition is healthy. It drives businesses to make profits and produce better products for clients. With competition comes a better-satisfied customer and less room for disappointment.

Research Private Label Cosmetics Manufacturer

Picking any private label manufacturer for your enterprise can harm your establishment. So perform exhaustive research. Where are you going to source your cruelty free products? Will you get it locally or import it? Are the contract manufacturing deals within your budget? This means conducting dedicated research on prospective cosmetic line suppliers. What do clients say about their branded products and services? Do you want an eyeshadow manufacturer? What shade ranges interest?

The following tips will help you find a private label company that matches your goals.

1. With a niche, perform an online search for directories of private label cosmetic  companies. These directories will provide you with a list of producers that meet your product criteria.
2. Visit their websites and analyze their product offerings. Are there product limitations? Do they offer wholesale prices? Do they have own formulas? Pay attention to product quality and the manufacturing process.
3. Pay attention to audience reviews.
4. Contact cosmetic manufacturers directly to discuss your project requirements. Be sure to ask about lead times and pricing.

Whichever method you use, the goal is to find cosmetic manufacturers to manufacture your cruelty free products for your beauty brand

Ask for Product Reviews and Samples    

Any professional supplier will provide samples of the product of interest. It makes perfect sense to try a product before selling it to your audience. Something may look great online but could be different in real life.

So, request samples directly or through an account manager, do the testing, and evaluate the packaging. Try the sample, and check the ingredients and color where applicable. If you love the makeup, most likely, your customer will love them too! The goal is to make sure that your clients get what they see.

Go to social media or search engines. Look for reviews on the companies to get a feeling of their genuineness and services. 

• What are past clients saying? 
• Is their production process reliable? 
• Does the company make cruelty free products?

With this, you can filter potential private label cosmetics retailers.

Confirm Cosmetic Products Adhere to Regulations

Makeup product components include synthetic elements, pigment molecules, preservatives, and others that could lead to allergic reactions in your clients’ facial skin. To ensure that your branded products are safe and compliant with regulations, working with a reliable and experienced partner is essential.

Additionally, follow the local legal requirements in your country of operation strictly. For instance, in the United States (US), the Food and Drug Administration (FDA) approves color addition in cosmetics.

Formulate How to Sell Your Private Label 

A product with less visibility may perform poorly. Whether starting with a small client base or offering retail or wholesale prices, marketing allows you to stamp authority in your niche.

Here’s how to promote your business

Go Online   

Getting your branded products to prospective buyers through Email marketing can increase your audience base. You can use your website, social media, and face-to-face interactions to contact and encourage people to subscribe to your emails. To prompt them to make a purchase of your cruelty free products, you could give discounts on your clients’ initial orders on signing up to receive your emails.

Furthermore, most people like to feel they’re saving or getting value for their money. So, when your new email subscribers make their next order, offer them free shipping. You could even spruce it up by allowing your subscribers to win prizes for joining your list.

Maximize Social Media

When the Covid-19 pandemic hit, most people turned to social media for information. And the habit never left. Does your project have an Instagram, TikTok, Facebook, or GMB page? The list is endless.

Social media gives you online visibility and lets you connect with potential consumers and beauty and cosmetics communities. It works well for cosmetics, including makeup and skincare products. 

Should you need influencers in the cosmetic industry, Youtube and TikTok are your answer. Taking advantage of influencers who can help you amass a vast customer base is a good idea if your brand is consistent.

Open an In-Store                                                       

Letting your clients try out new beauty products can be beneficial if you’ve got a walk-in store. For instance, they could swatch the cruelty free makeup or skincare products on their hands and see how they look before they buy them. By doing so, they won’t have to worry about buying something they’ll not like.

Additionally, your salespeople or customer service reps may advise them on what products to buy. 

Offer to Retailers                                   

Selling products directly to consumers may give you prevent you from making huge gains. So, to enjoy high-profit margins you can research cosmetics retailers and offer them your products. Once you’ve got the number of retailers you need, make sure to offer competitive terms and excellent service. And this includes things like competitive pricing and flexible payment.

Consider Shipping and Inventory Options

It matters to your enterprise where you store and how you ship your cruelty free branded products.

Ways to ship your branded products

There are two factors to consider. Cosmetic goods are fragile and need care during shipping. And you’ll also need to factor in the costs involved. You don’t want the consumer to shy away from buying your makeup or skincare goods because shipping costs more than that foundation or eye shadow.

Again you want the product to get to the retailer or end user in its original state. Selecting solid packaging from the private label cosmetics companies at the manufacturing stage can reduce the chances of damage to makeup during shipping.

Additionally, you can offer flat-rate shipping, free shipping, or free pick-up. Whichever option works for you and your customers is your best bet.

Inventory options

There are several inventory options to choose from:

•   Dropshipping
•   Home
•   Warehouse

Should you decide to go the dropshipping way, you’ll be shipping directly from private label foundation manufacturers to the consumer. Or it could be from a liquid lipstick manufacturer. It all depends on what you seek.

Dropshipping is a fulfillment method that allows you to focus on promotion and gives you reduced warehousing costs. But controlling shipping time is beyond your control. And products like skincare and makeup may delay getting to the end user.

If selling from home, you could use it as your warehouse. Consider the room temperature. Some makeup doesn’t thrive under intense heat and moisture, so check whether your home is conducive for storage. Also, in inventory management, take inventory and check on expiry dates. You don’t want to offer expired products to your future clients.

Make your Order with the Manufacturer   

Now that you’ve identified your supplier, it’s time to order the products you need to create your cosmetics business. Having spoken to a representative from your preferred manufacturer, making an order should be simple.

To be successful, prepare to pay for your order upfront through credit cards. And to avoid misunderstanding in pricing, verify label printing and product pricing are accurate.

Sometimes your order may be unsatisfactory. And because most suppliers don’t accept returns, ensure you get your order right the first time.

Your orders could take up to 4 weeks. How can you use this time well? Make your social media accounts active, launch your website and set up your ecommerce enterprise on online retailers like Amazon.

Conclusion                                                                         

Whether makeup or skin care, launching your private label cosmetics is cheaper and simple. It can be satisfying to start your dream makeup line! All you need is to use our guide and be on your way to becoming an authority in the competitive era of cosmetics.

Businesses slowed down during covid-19 pandemic and then picked up right after. To enjoy high-profit margins, you could launch your makeup line now that companies are picking up. Should the world economy stall, private label cosmetics companies will keep thriving.

At Aurora, we understand your need for an expert supplier and quality service. With so many formulas on offer, our development team works to attain high-standard cosmetics formulas and uncover new packaging designs. And this is to develop a safe product that is irresistible to your audience. We help you stand out from your rivals to give your company a competitive edge. Contact us today, and we’ll scale your business together!

FAQs

1. Are private label cosmetics profitable?                               

Yes, it is! Private labeling can be successful if you sell the correct goods and have a competent wholesale partner. Selling branded products to a select group of customers can result in substantial earnings.

1. Which cosmetic products are most profitable?                   

Cosmetics that are in demand include makeup, skin care products, perfumes, hair care, deodorants, toiletries, deodorant, and dental hygiene items.

1. How can I start a beauty brand with no money?         

It’s possible to begin your makeup project with no money. You should open a free online store and set up your project.

1. Can I run my private label cosmetics from home?                 

Anybody could create a home makeup line company. And you don’t need a lot of equipment, so you’re ready to launch if you’re sure of your abilities. A home cosmetic company is a dream career or even a side hustle for certain people.

1. How long does it take to start your own cosmetics line?  

We highly recommend that you reserve enough time for preparation. The time for niche research and logo design is usually not clear. Still, generally speaking, in off-peak seasons, it takes 1-2 months to select a reliable supplier, check the sample, place an order, communicate the logo and packaging design, and finally transport and receive the goods.