How to Start a Private Label Cosmetics Business


According to stats by Zippia, the global cosmetics industry had an estimated value of 380 billion dollars with an average annual growth rate of 5.3 percent. With such impressive numbers behind it, it is not surprising that so many entrepreneurs want a slice of the private label cosmetics industry pie. However, having the idea or dream of creating a cosmetics line that enhances the beauty of women and men everywhere is the easy part. Implementation is a whole other ball game. The industry is competitive and difficult to break into as consumers are usually careful about the products they apply to their skin. There is a lot of work that goes into making a private label cosmetics line that will fly off the shelves. The following are some of the steps to take when creating a private label cosmetics business:

1. Do adequate research

To start a private label cosmetics business, you need to do a lot of groundwork. You need to research the market to understand what you are getting yourself into. You need to research your target market to understand what they like and don’t like. For example, if you wish to create foundations, you may research the different shades for different skin tones and the challenges customers face when selecting the right shade. You also need to know the best ingredients, as well as ingredients that are approved or banned by the FDA, especially if you are starting a private label cosmetics USA business. As a selling point, you can also research current trends in the cosmetics industry. For example, a lot of millennials and Gen Z clients are really into products that are sustainable, environmentally friendly, and that are cruelty-free. Ensure you follow these trends and highlight them when marketing your products.

2. Define your niche

Determine your target market and what they are looking for in cosmetics products. For example, you can decide to focus on personal care and skin care products for teens. Such clients may have hormonal acne and need skin care products that treat this or makeup products that help provide complete coverage. You can also decide to create cosmetic products for women or unisex products that everyone can use.

3. Financial planning

Before starting the manufacturing process of a private label cosmetics product, it is crucial to calculate the cost of the whole endeavor and source financing. When it comes to financial planning, there is no one-size-fits-all as it depends on several factors. You’ll spend the most money when ordering samples and for the initial production run. However, other costs may include advertising, website creation, marketing, packaging, and creating a brand identity.

Cash flow may be one of your biggest hurdles for your new business. In the beginning, most of your working capital may be tied up to inventory. The best solution is to start small and not invest too much money in inventory until you are sure your products will sell. If you are unsure about demand, partner with a private label cosmetics supplier with low minimum order quantities.

4. Find a private label cosmetics supplier

Unless you have an entire lab team and Research and Development department at your disposal, a private label cosmetics company is the easiest way to get quality and safe products with minimal effort. The purpose of a private label cosmetics USA supplier is to help you with the complicated and stressful process of developing a formula and manufacturing the products. These companies are perfect when starting when you only need smaller quantities. The advantage of using a private label cosmetics supplier like Audrey Morris Cosmetics is that it lowers your production costs and allows you to concentrate on perfecting your brand as you can be sure the product is of good quality. Another advantage of using established private label cosmetics suppliers is that they are familiar with regulations and they’ll ensure your products pass all safety tests.

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5. Create your brand

The next step after settling on a supplier is creating a brand. You may need to work with a graphics designer to help you design product packaging and a logo for your products. Attractive packaging helps reflect your brand while appealing to your target audience.

6. Select a platform

Platforms you can use to sell your product include a brick-and-mortar store, a website, or an online marketplace. Physical stores ensure customers can pick your product from a shelf whenever they need it. If clients like your product, the store will continue to buy your stock. For your new brand, try partnering with a reputable retailer to help build trust with their existing customers. However, pitching these products to the store may require a lot of effort. A second retail strategy involves creating your website. The advantage of this is you don’t have to convince other people to sell your products. The disadvantage is that the cost of advertising and promotion might be high. A third retail strategy involves e-commerce marketplaces such as eBay, Etsy, or Amazon. These sites already have millions of customers who can buy your products. However, you have to work hard to build your reputation on these marketplaces

7. Market your products

After getting the product and developing a retail strategy, the final step is to market your product. For a new business, the easiest way to market the product is through blog posts, websites, and social media.

A personal website gives you more control over your brand’s voice, price, payment options, and product information. You may need to spend money on advertising to promote your website. A blog is another way to shine a light on your products by creating compelling content. When done right, a blog can be one of the most cost-effective ways to market your cosmetics brand.

Social media has made it easier to connect with potential consumers. You can promote your product on platforms such as Instagram, Facebook, and TikTok. You can also use video content to showcase your product through tutorials and demonstrations. Another social media strategy is to give your product to social media influencers to try it out and review it. However, you should note that a lot of influencers with a huge following will charge fees to review a product. Fortunately, about 49 percent of consumers rely on reviews from influencers to purchase a product, so you’ll likely get a return on your investment.


Having an idea and an execution plan is the best way to succeed in the private label cosmetics space. Follow these steps to launch a successful private label cosmetics USA company that your consumers will love.

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