E-Commerce Trend: Dropshipping Beauty Products

The beauty products industry possesses a good number of characteristics that make it the perfect fit for starting a dropship retail business.

Dropshipping Beauty Products

What is Dropshipping?

Dropshipping is a form of business model where a retailer receives customer orders on its website and then arranges for the order to be shipped directly from a manufacturer or wholesaler directly to the customer location. The dropship retailer incurs no upfront cost of purchasing inventory, no warehouse storage costs, and no cost of operating a brick and mortar storefront. The complexity of managing the logistics between the manufacturer and wholesaler and the delivery of the product to the customer is also avoided. It is for these reasons that dropship retailing represents one of the easiest and lowest risk propositions for someone looking to start a new business.

Why is Dropshipping a Good Fit for Beauty Products?

The beauty products segment possesses a number of characteristics that make it particularly attractive for dropshipping including

  1. A large number and variety of beauty products are sold including lipstick, eyeliner, skincare, haircare, nailcare products and more. Traditional beauty product retailers must source these products from numerous manufacturers and wholesalers, store them in warehouses and distribute them to store locations. Dropship retailers need only to set up an e-commerce website where, after partnering with one or more wholesalers, they can take customer orders online and leave fulfillment of the order to the wholesaler
  2. Beauty products are relatively small in size and light in weight compared to many other retail segments. This keeps shipping costs down which means the dropshipper can charge a higher price to keep profit margins up. Retail segments where products are bulkier and heavier like furniture are less attractive because shipping costs eat into the dropshipper’s profit margin.
  3. The beauty products market of today is dynamic, segmented, trend-driven and very responsive to creative marketing approaches. This plays perfectly to the strengths of the dropship model since the entrepreneur starting a dropship business can mix and match products to the changing requirements and evolving niches of the beauty products market without having to make any changes to the infrastructure of her business. According to IBISWorld, “The growing prevalence of broadband and mobile connections has underpinned changing consumer habits by facilitating the ease of online shopping and allowing consumers to quickly compare prices among retailers.”

How Does Someone Start a Dropship Beauty Products Business?

There are a few steps to think through if you are planning of starting your own beauty products dropshipping business:

  1. Do your market research and pick the beauty segment(s) you want to attack. Here you want to think about factors such as which segments are most likely to be the ones where you can outwit your larger competitors with your creativity and knowledge of market trends. For example, perhaps you focus on cosmetics and haircare products for millennials where your dropship model has the flexibility to respond to rapidly changing consumer preferences.
  2. Evaluate the products of the various beauty product manufacturers in your target segments and also ensure that wholesalers exist who you can partner with to sell these products on your website. Later down the road when your sales volumes are higher you may be able to source directly from manufacturers yourself but in the beginning, you will need a partner like GreenDropShip that specializes in providing dropship retailers with wholesale beauty products for resale. Your wholesale partner will also help you with delivery to your end customers. This will include being able to negotiate lower shipping rates with transportation companies than you would be able to obtain on your own.
  3. Develop the marketing strategy for your dropship business. Use a mix of traditional and web-based advertising including extensive use of social media platforms like Facebook, Twitter, Snapchat and Instagram. Become familiar with the highest buzz websites and social media influencers for the beauty products segments you are targeting. And don’t be afraid to experiment with your choice of product selection, website design and marketing approaches. This is especially true early on when you are looking to validate your dropship strategy.

If you are considering starting a dropship organic beauty products business, please consider getting in touch with us here at Green Drop Ship. We would be happy to provide you with details about the full range of products carried by our manufacturers and about the services we would provide to help you start up your own dropship beauty products business with no upfront cost or risk!

Victoria Usher is a graduate of Arizona State University and a Content Writer at GreenDropShip.com. When she is not engaging in her passion for writing, there is a good chance that Victoria is out and about with her friends, eating peanut butter, or watching re-runs of her favorite television show Buffy the Vampire Slayer.