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Direct sales of cosmetics are still popular, as they benefit not only companies and their distributors, but also consumers, by allowing them to bypass store markups. But the amount of profit in this business depends entirely on the seller.

Direct selling is a good option for your own business, especially if these are your first steps in entrepreneurship. The idea is relevant for women, mothers on maternity leave, students and anyone looking for a part-time job. Direct sales are an alternative to traditional work and a source of additional income. If desired, you can build a full-fledged and profitable business on direct sales. This option is also suitable for novice entrepreneurs. After all, organizing your own business based on direct sales is quite simple: you do not have to rent a room, buy equipment and invest large sums. The main element of direct sales is the entrepreneur himself. The success of the business will depend only on his personal qualities.

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You can start your own business for little money. To do this, you will need to purchase an inexpensive distribution kit. To start making money on direct sales, you need a budget from 0 to 15,000 rubles. This distinguishes direct sales from franchising and other types of investments that require significant costs. It is rather difficult to name the exact amount of investments: each company has its own strategy and policy (both in terms of attracting distributors and paying for their work). Therefore, carefully study the different options and choose the one that seems to best suit your expectations and requirements.

Direct sales are beneficial not only to companies and their distributors, but also to consumers. Firstly, it is a quality service: product demonstration, personal consultation, home delivery and guarantees. Secondly, it is savings - often the prices for cosmetics sold directly are significantly lower. Thirdly, it is an opportunity to purchase unique goods that are not on the shelves of traditional stores.

Direct sales: the situation in Russia

In Russia, the direct sales market has been developing for over 20 years. According to research, the main customers are women aged 30-55, and the average amount of each purchase is about 1,500 rubles.

Most large direct selling companies sell cosmetic products. In this area, high customer loyalty is observed: when purchasing the company's products from one representative, most buyers return with other orders to him. This form of interaction with the client allows for an individual approach and inspires confidence in the buyer. Therefore, it remains relevant. So direct selling is still a popular channel for cosmetic products.

Currently, the market for direct sales of cosmetics is growing rapidly. In 2016, it grew by 11% and reached almost 120 billion rubles and continues this trend. At the end of 2017, direct sales of cosmetics amounted to more than 58 billion rubles. The popularity of direct sales is due to the fact that consumers are trying to save money by bypassing intermediaries (shops) that make a high margin.

You should also evaluate all the advantages and disadvantages of the business in order to understand what working conditions await you.

Advantages and disadvantages of direct selling for the seller

Advantages	Flaws
Interaction with the buyer. The seller sees the reaction of the buyer and can adapt to his needs. Personal presentation of goods for each consumer	Different sellers may interpret product information differently. This makes it difficult to deliver a single cohesive message to all consumers.
No point of sale costs. There is no need to invest in the equipment of the trading floor, utilities and the protection of goods.	Audience coverage is limited by the high cost of this type of sales. Difficult to reach a large number of potential buyers
The level of income from direct sales is proportional to the efforts made	Reaching large audiences through a personal selling channel can be expensive
	The obsession of sellers who by all means strive to sell as much as possible
There are no requirements for education, work experience, financial or physical condition. People of all ages and backgrounds can excel in direct selling.	The success of direct sales largely depends on the personality of the seller and his ability to communicate with people.
Can be used as a source of additional income, flexible working hours
Orientation to a specific market and consumer
Unlimited potential for personal and financial growth
Opportunity to receive support from the company and receive training

Consequently, direct sales of cosmetics have advantages both as a business and as a service format.

How to start a direct selling business

Starting your own direct sales business is quite simple. The main thing is your ability to interest people and the desire to succeed. The rest of the nuances will be taught to you, and as you work, you will gain the necessary experience.

First, let's understand the meaning of direct selling. This refers to the sale of goods or services that occurs through personal contact with the buyer. Such sales take place in a place convenient for the client: office, apartment, restaurant, etc. – outside of standard retail outlets.

Direct Selling Features:

Direct contact with the client on the territory convenient to him;

Personal presentation of products or services;

Exhaustive advice of the seller;

Opportunity to try the product before buying;

This is both a service and a presentation at the same time.

In general, the algorithm for doing business in direct sales of cosmetics includes 5 main steps. Next, we will analyze each of them in more detail.

Step 1. Choosing a company and products

All direct selling companies are members of the Direct Selling Association (DSA). Choose those that follow the AMS ethics rules and regulations, conduct business ethically, and provide quality service. The list of companies can be found on the APP website.

The main requirement for the product is that it must be a unique and profitable offer that is not available for purchase in regular stores. The market is oversaturated with the same type of offers, so if you find something new (improved, adapted to a narrow target audience, more budgetary, but no less quality) - it will be easier for you to sell such a product. First, you will be able to interest customers. People are drawn to new things. Secondly, you will not lose interested consumers, since you are the only seller of such a product (the only one in the customer's field of vision). Thirdly, it will be easier for you to highlight the key benefits of the product and make an attractive presentation.

Please note that the uniqueness of the offer is not only a new product, but also services. Combine new product and convenient service. Come up with a new service that will make you stand out in the market. Ideas will prompt the buyers themselves. Listen to them, consider their interests and expectations. Your task is to offer the best solution to your client's problem.

When choosing a company to work with and products to work with, ask yourself the following questions:

How much money will it take to cooperate with this company?

Is there demand for your product or service? How new to the market is your product or service?

What training system does the company offer? Give preference to the company that provides education and training.

What is the reward system in this company? Learn all about earnings, bonuses, commissions and liabilities.

What product warranties does the company provide? Is a product return policy available? This is important for both you and your clients. Returns are part of the service.

What are the conditions for exiting the business? The reasons for leaving may be different: you did not like the actual terms of cooperation, you wanted to switch to another business, you did not receive enough profit, etc. Therefore, it is better to clarify all the nuances in advance, so that later you can do without unpleasant surprises. The APP Code of Conduct requires member companies to take back any unused product purchased within the last 12 months in case the seller decides to go out of business. At the same time, compensation for the return of products must be at least 90% of the original cost, if no bonuses and commissions for these products have been paid.

Step 2. Determination of the target audience and methods of sales

It is necessary to determine the target audience and find customers. Your target audience is likely to be women between the ages of 30 and 60. The first buyers, most likely, you will find among your friends. But in order to succeed in this business, you need to continuously recruit and develop a client base. The Internet will help. Find groups and forums where the female population of your city is concentrated. Leave an ad there. Create your work account on social networks and add friends to your potential clients.

The standard method of direct selling involves 2 main ways to attract customers. The warm market is made up of your acquaintances. Cold market - employees of offices, shops where you come with catalogs. But it is not always advisable to spend money on buying a stack of catalogs. If you are looking for clients via the Internet, it will be enough to send a link to the electronic version of the catalog.

The sale of goods involves a phased interaction with the client. It is necessary to think over the strategy and each stage: from acquaintance to the conclusion of a deal.

The success of direct sales depends entirely on the professionalism of the seller, which includes the ability to:

identify customer needs;

present a product;

affect people emotionally

find an individual approach to each client;

deal with failures.

Many aspiring entrepreneurs are stopped by the stereotype that only "natural sellers" can engage in direct sales - i.e. people who are able to sell without special training. However, this is misleading. Everyone can master the method of direct sales - the main thing is desire and a well-designed strategy.

Step 3. Choosing a strategy

First of all, you need to clearly define your goals. In the cosmetics business based on direct sales, there are three key goals:

1. Find products that can be profitable to sell;
2. Sell additional products to the same customers, increasing profits;
3. Build a customer base - i.e. create lists of electronic and mailing lists.

After you have decided what products you will sell, you need to choose a method of work. The first option is to purchase the most popular products and sell, first of all, the existing assortment. Two advantages converged here: product demonstration and instant purchase. This makes the service more convenient for the buyer. After all, cosmetics are products that are better to choose not from catalogs, but in reality. Catalogs cannot convey the exact shade, structure, smell of cosmetics. So the presence of the proposed product will locate the client to you. In addition, people do not always buy cosmetics for the future - many remember that they need to buy mascara when it is over. In such cases, it is unlikely that the client will wait several days until the order goes through the entire chain from you to the manufacturer and back. Therefore, the opportunity to buy products "here and now" also increases consumer loyalty. The main disadvantage of buying goods is the money issue. This will require considerable investment, which may not pay off. There is a possibility that some positions will not be able to be sold, and they will hang like a dead weight among the assortment. This can be avoided if you clearly understand the needs of your audience.

The second option is to act as an intermediary, and thereby do without investments. In this case, you will proceed as follows: you fill out a receipt for each individual order and send it to the wholesale supplier, who forms the order and mails the goods directly to the customer. That is, in fact, the wholesale supplier acts as a warehouse. Your profit is the difference between the wholesale and retail price. It is possible that the generated orders are returned to you, and you personally transfer the order to the client. With the main advantage, everything is clear - you do not have to invest your own funds and take risks. But the disadvantages should include:

the cost of time and postage for the delivery of orders to the supplier;

the wholesale purchase price goes up and your profit goes down.

In most cases, entrepreneurs use both options in their work: they invest in the stock of the most popular product, and use intermediary for rarer items.

Ready-made ideas for your business

Another important step is data collection. Be sure to record information about each customer, including information about what exactly and when he purchased. This will help to assess the demand for specific products and determine the needs of each client in order to interest him in the future with a new offer. Also collect the names and addresses of your customers. This is how you build your mailing list. If you use the collected data wisely, it will become the basis of your success in the field of direct sales.

It is best to compile a computer database. The mailing list should contain the following information: the client's name, postal and e-mail address, phone number, notes with data on when and what the client ordered. By the way, your mailing list itself can become a valuable commodity - some intermediaries will be willing to pay for a customer base.

Step 4. Researching the Legal Question

Whatever area of ​​business you work in, it is important to know the legal nuances of your activities.

Direct sales in Russian legislation are considered as a peddling trade and are a type of non-stationary retail trade. Currently, direct selling companies in the course of their activities rely on:

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Legal aspects, equipment selection, assortment formation, premises requirements, production processes, sales. Complete financial calculations.

Cosmetics and perfumery are among the ten most popular products sold through the network. After household appliances, books, clothes and shoes, delivery of flowers and pizza. At the same time, breaking into this market is no longer as easy as it used to be. True success can be achieved if you love a particular brand or create your own production. To date, the procedure for creating creams and lotions has been greatly simplified due to the availability of a wide variety of quality ingredients. That is why you can safely pay attention to the point of creating your own cosmetics. You can start with simple things like lip balms or eyebrow wax, and then expand the range. Fortunately, the country does not lack in the shops of ingredients for soap making.

But, even if you do not plan to create your own line of cosmetics at all, then you have every chance to conquer the market using our little tips. The benefits of the cosmetics trade are many. First, you can find a brand that you really like and sell only the products of a single company, or even a single product. Secondly, you know the product so well that it allows you to provide professional advice. Thirdly, you do not need to aim at the entire market and win a piece of the pie from companies that import mass-market products and have huge turnovers. You find your niche where there is no competition at all. If you love a particular brand, you are unlikely to have difficulty finding customers and expanding your online store. Now for the promised tips.

1. Find a product or a dozen products that you genuinely want to sell. As practice shows, if you love the product that you sell, then it seems to sell itself. If you don't have any feelings for the product, then it can hurt your sales. Especially at the first stage, when the network of clients has not yet been expanded and there are no sales. Your enthusiasm and ability to tell about a cosmetic product with fire in your eyes is the first and most necessary sales tool in the absence of an advertising budget. Is there at least 1 product you would like to sell? Get down to business, and later it will be possible to expand the range to 10-20 products. Remember that niche stores have one important advantage - they can be completely independent of the assortment. Even a single product can be learned to sell and do business on it.

2. Write at least 3 product articles every week. This is simply a necessary condition for promoting a product. Content is declared king, and even if you are going to use contextual advertising, then you cannot do without content. It is written not only for search engines, but also for people. Content increases people's trust in your project, so this is an extremely important component in the promotion of any product.

3. Use contextual advertising. Even a budget of several tens of dollars can bring success in sales, provided that contextual advertising is used correctly. Learn to find the most profitable words to promote. Learn how to properly manage your advertising budgets and get the best return on investment - this will come in handy. Even with $10, you can already start getting your first customers.

4. Conduct webinars and workshops. This is a great way to engage your audience and build trust. Nothing helps build confidence like hosting live workshops or online webinars. You can also record a master class on video and use it to constantly attract a new audience. One video can work for your name forever, provided, of course, that it provides users with valuable information.

5. Invite a good beautician to visit. It's so important to get expert advice! Interview beauticians and make-up artists, give their real names and phone numbers. In general, agree on cooperation! Tips from a good beautician will help you sell a lot more cosmetics. Professionalism is judged by what kind of advice and advice a specialist gives. So take the trouble to find a good professional. If you manage to get good interviews and advice, then your content will seriously increase your credibility.

6. Go to forums and niche blogs. There you can find the most "hot" and prepared audience. People can buy from you right away if you communicate your unique selling proposition to them and it suits them.

7. Show that people are already buying from you and orders are coming in all the time. For example, take a photo of the number of orders that you have packed and send by courier today. Such photo reports clearly show that people buy and order from you, that you can be trusted, you should try to buy from you.

8. Photograph makeup and experiment with it. Do you sell cream or organic shampoo? Wonderful. Try experimenting with them. For example, add some white or blue clay to your shampoo. Take a photo of the recipe. Apply the cream as a mask. All this advice is very rarely something outstanding. But they show that your cosmetics can not only be safely in jars, but that it is a working tool for beauty and youth.

9. Show your face and record some video messages. Record at least 1-2 videos with your participation. All for the same trust. Without it, there will be no sales, whatever one may say.

10. Find a USP and remember to remind your audience of it. Finally, remember the unique selling proposition. Without a formed USP, you will not be able to tell the buyer why he should try your product. It doesn't matter how wide your range is.

In this article, I will describe to you in detail and give an example of a presentation that helped me out many times when selling cosmetics, even in the most unpredictable situations, and the scheme by which I present my product is the simplest:

Selling cosmetics, I noticed a long time ago that it is very difficult for women to choose blush, they are either not noticeable, or too bright or poorly emphasize cheekbones. I suffered for a long time until I found Faberlic velvet blush.

Firstly, they are delicate, applying them layer by layer, you adjust the intensity of the color yourself, in any case, they are more likely to accentuate the beauty of your cheeks than make them red. They are easily applied with both fingers (in road conditions) or with a brush.

After this discovery, people around me began to notice that I have cheekbones. And especially men, strangers began to compliment me.

Most importantly, they will be a nice bonus for those who have close blood vessels, red stars on their face, or their own too bright blush.

For such women, this blush will be a real discovery, because properly toned facial features, combined with this blush, will hide your flaws, and at the same time your cheeks will NOT look red. ”

Let's take a look at my presentation, and consider the scheme by which it works.

1 . “Usually so…”

I join this phrase to the problem of women, to the problem of my client, and this is how I show that I understand her very much.

options:

- Have you noticed...

- It's often like that...

- I know that …

These phrases connect you to the client, which makes her listen to you.

2. The product itself

The product is like an incredible invention, the product is like a solution to a problem, the product is like a way out of a situation. Here it is already very important to touch more feelings: show the product, put it on your hand, give it a try. The more senses are involved, the more likely the client will understand you correctly.

3 . Use certain words

These include: unsurpassed, chic, velvet, which help to consider in more detail the image in which a woman wants to see herself. You are not selling a product, you are selling an image, an image of a woman in this product, an image of a woman with this product.

4 . nice bonus

This is exactly the bonus that will help your customers bring more customers to you. Why did I give an example of women who find it difficult to find blush? Because they have a vascular network? Yes, this is indeed a problem for many, and it’s a sin not to voice it, even if the client does not have such a problem, but her mother or friend does. She will certainly remember this and order such a product as a gift.

Practice in front of a mirror, and then the number of your potential customers will increase!

If you understand cosmetic brands, then by studying the topic of how to open a cosmetics store from scratch, you can become the owner of a profitable business.

♦ Capital investments – 450,000 rubles
♦ Payback - 1.5 - 2 years

If the automotive business can be called masculine, then activities related to cosmetics and perfumery can be a great startup for the fair sex.

If you are well versed in cosmetic and perfume brands, then, having studied the topic in detail, from scratch, you can become the owner of a profitable business.

The launch of this startup does not require the purchase of special trading equipment or large capital investments. But decorative cosmetics, personal care products, consumables, perfumes will always be in demand among consumers.

How to open a cosmetics store: advertising and competitive advantages

For new stores, the main thing is not an expensive advertising campaign, but a favorable location (in a place with high traffic), a reasonable pricing policy, a good assortment of goods and satisfied customers.

1. Beautiful and large sign, which would be visible from afar.
2. A cot placed on the sidewalk in front of the store, which will attract the attention of customers.
3. Leaflets handed out around the opening of the market.
4. Social networks and urban forum.

It is also very important to take into account the high level of competition in this sector in order to be able to distinguish yourself favorably from other stores.

Your competitive advantage can be:

• promotions and sales during the pre-holiday periods;
• discount system for regular customers;
• selling a unique cosmetic or perfume brand;
• friendly and qualified sales assistants;
• low prices;
• free gift bags if the client purchases a gift set;
• the ability to pay not only in cash, but also by card, etc.

How to open a cosmetics store: assortment and suppliers

Whether your store will be profitable or not depends largely on how competently you form the assortment of goods and on how profitable terms you conclude agreements with suppliers.

No matter how much you want to save money, work only with those suppliers that can provide you with a guarantee of quality, otherwise during the check you may run into a fine, and if someone suffers as a result of using cosmetics purchased from you, then the punishment may be even more serious.

You can work both with foreign manufacturers and with domestic ones, the main thing is that their products are certified.

You can only work with professional brands, those that make products for the work of cosmetologists, in this case you will have to study the nuances of how to open a professional cosmetics store.

Here are some tips for forming an assortment for those who want to open a cosmetics store:

1. Sell ​​well-known brands (both expensive and economy class) that people like and the wave suits your customers with value for money.
2. Try to find a manufacturer of unique cosmetics and perfumes, whose products are not represented by others.
   This will become your competitive advantage.
3. Do not clutter up your store (especially if it is a small store) with a large abundance of goods.
   You are unlikely to have time to sell it before the expiration date, and it will be difficult for the client to navigate.
4. Expand your customer base by selling products for men, women, and children.
5. Your store should sell not only decorative cosmetics, but also:
   • care products for your face, body, hands, feet;
   • consumables: washcloths, cotton pads, manicure and pedicure supplies, etc.

The two most effective ways to place a product are by:

• manufacturers;
• purpose (shampoos, balms, face creams, hand creams, mascaras, lipsticks, etc.).

How to open a cosmetics store: registration

Interesting fact:
In the Dead Sea region, archaeologists have discovered an ancient cosmetic laboratory from the 1st century BC. On its territory were found millstones for grinding medicinal herbs, cauldrons for aromatic mixtures, amphoras with fragrant substances.

The easiest way to launch a startup from scratch is to register as an individual entrepreneur.

This form does not require a complex registration procedure and is suitable for aspiring entrepreneurs.

As for the form of taxation, you can also go the simplest way and choose - UTII, however, in this case, the area of ​​​​your premises should not be more than 150 squares.

But novice businessmen will not need a larger room, because in order to open a large cosmetics and perfumery store, you need to have a huge start-up capital for rent, purchase of commercial equipment, and so on.

When registering, select the code corresponding to your future activity in OKVED: 52.33.

The prerequisites for starting a business also include:

• opening a bank account;
• obtaining permits for the operation of the premises from state bodies: Rospotrebnadzor, Fire, Sanitary Service, etc.

Where exactly should you open a cosmetics store?

For the profitability of the business, the location you choose to open a cosmetics store is very important.

If you, wanting to save money, rent a room somewhere on the outskirts, then you will go bankrupt pretty quickly.

It is very important that the cosmetics and perfumery market is located in a place with high traffic of people.

Ideal locations are:

• shopping centers;
• markets;
• a separate room in the city center;
• densely populated residential areas.

It would also be nice to find a place near your potential customers, for example, hairdressers.

Of course, these specialized establishments will not buy cosmetics from you, but consumables in the form of cotton pads, sticks and other things - yes.

Where to open a cosmetics store?

In order to open a small cosmetics store from scratch, a trading floor of 20-25 squares is enough.

This area is enough to accommodate all commercial equipment and demonstrate your product in the most favorable light.

In addition to the trading floor, you will have to equip a service room for staff, a small storage room + a bathroom.

That is, to open even a small business, you need an area of ​​​​at least 40 square meters. meters.

If you dream of a mini-supermarket with a large selection of cosmetics and perfumes, then look at the premises of 100-150 square meters.

Attention should be paid to the interior of the future market.

If you want to sell luxury cosmetics and perfumes, then do not spare money on decorating the premises, because you will be visited by wealthy clients.

In this case, it is better to invite a professional designer to develop an interior concept for you.

If you decide to open an economy-class cosmetics store, then you can limit yourself to light walls and ceilings so as not to distract attention from the product itself.

But, whatever the concept of your future business, take care of high-quality lighting of the premises so that buyers can have a good look at the products being sold.

Commercial equipment for a cosmetics store

There are no uniform requirements for what trade equipment should be in a cosmetics store.

Each owner is guided by the area of ​​his premises and the concept of the market.

For example, if you open something similar to a supermarket and label products with anti-theft elements, then you can buy more open windows and racks.

If we are talking about a small shop with one seller, then it is better to order closed glass shelves and display cases to reduce the chances of thieves to steal.

Let's say you decide to open a small (sales area - 25 squares) store of inexpensive cosmetics and perfumes.

In this case, you will have to purchase such trading equipment:

Item of expenses	Amount (in rubles)
Total:	100 000 rub.
Glass showcases	30 000
Open shelving fenced off with glass showcases	20 000
Closed hanging shelves	20 000
Cash machine	10 000
Other	20 000

And also take care of the equipment of the service room and bathroom for the staff.

You can buy a minimum set of furniture for 40,000 rubles.

Another 10,000 rubles. will go to a rack for storing goods in a warehouse or in a service room.

That is, spending on commercial equipment for a small cosmetics store is about 150,000 rubles.

Who should be the staff of a cosmetics store?

Of course, you need sales assistants, because they are the ones who sell the goods.

How many salespeople to hire is up to you, based on the size of your store and its opening hours.

If you decide to open a small cosmetics store, then it is quite possible to get by with one seller per shift.

Since most markets are open seven days a week, you will need two vendors to work in shifts.

And every store needs a cleaning lady and an accountant (at least part-time).

You can deal with procurement and administrative issues yourself.

The payroll costs of a small cosmetics and perfumery store would be:

How much money do you need to have to open a cosmetics store?

It is difficult to name the final amount that is needed to launch this startup.

It all depends on how big a cosmetics store you decide to open.

For example, to become the owner of a small (25-30 squares) store, you need to have at least 450,000 rubles.

Item of expenses	Amount (in rubles)
Total:	450 000 rub.
Registration	20 000
Repair of the store premises (cosmetic)	80 000
Equipment	150 000
Purchase of the first batch of goods	150 000
Advertising	10 000
Additional expenses	40 000

But the monthly expenses (which the owner of the market must expect) directly depend on the city in which you are going to open a cosmetics store.

For example, prices for rent and wages in a small district center will be small, but in Moscow or another metropolis of the country, this amount will increase several times.

How to open a cosmetics store: a calendar plan

After you have thought through all the stages of launching a startup and calculating how much money you need to open it, make a calendar plan so that you understand exactly when you can open a cosmetics store.

Usually, such business projects can be implemented 4–6 months after the idea has arisen.

Stage	Jan	Febvre	Mar	Apr	May	June
Registration, account opening
Rent and repair
Purchase of equipment
Recruitment
Formation of a product line
Advertising
Opening

how to choose the right cosmetics in a specialized store:

Possible income of a cosmetics store

The trade margin for cosmetics and perfumes is 30-100%.

The lower the selling price of a product, the higher the markup will be, and vice versa.

The average profitability of this business is 10%, that is, you can recoup capital investments no sooner than in 1.5–2 years.

Prepare for the fact that in the first few months you will operate at a loss, because few customers will shop in your newly opened market.

Your task is to attract customers as quickly as possible.

In six months, it is quite realistic to reach such indicators of daily revenue: 5–8,000 rubles per day. If your store will work seven days a week, then the monthly revenue will be 150–210,000 rubles.

From this amount, 100,000 (mandatory monthly expenses) should be deducted and at least 30,000 rubles should be set aside for the next purchase.

Thus, the net profit of a cosmetic store with a formed customer base will be 20–80,000 rubles per month.

Before the holidays (March 8, February 23, February 14, New Year), these figures will increase significantly.

Popular stores can collect quarterly revenue during the two-week pre-holiday period.

As you can see, the income indicators of this business are not too high, but for many entrepreneurs they are enough to get interested in the topic, how to open a cosmetics store.

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Today, almost any goods can be purchased on the Internet, and the owners of online stores often have good earnings.

An example of a product that is sold online is cosmetics. Recently, selling cosmetics via the Internet has become an increasingly popular activity, so we can conclude that selling cosmetics online is a profitable business. Trading on the World Wide Web has many advantages that can be listed for a long time. For example, there is no need to rent an office or premises for a shop, there is no need to spend money on security guards, sales assistants and other employees that might be needed. That is why young businessmen are increasingly wondering how to open an Internet site and sell goods with it. It is worth knowing that for this you need to have cosmetics.

An interesting fact is that the niche of perfumery and cosmetics in the Russian segment of the Internet is represented by about a hundred stores, most of which are inactive or do not receive any orders.

Analyzing the leading sites selling cosmetics via the Internet, it is worth knowing that their attendance is about 5000-15000 visitors per day.

Several dozen mid-level stores have approximately 30-40 orders per day. It is worth striving to bring our cosmetics business to such indicators in the first six months.

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What is the cost of opening an online cosmetics store?

Opening a store on the Internet requires the following expenses:

• organizational expenses for online;
• organizational expenses for offline;
• working capital;
• site maintenance costs each month.

It should be understood that there are two ways to create an online store:

• making a website from scratch;
• launch on the basis of an existing company.

If the choice fell on the first option, all components of the listed costs are important. In the event that the website will be created on the basis of a ready-made company, part of the offline costs can be waived, since some issues related to this have already been resolved. Costs can be reduced if the entrepreneur initially works at home and acts as an online store manager, and the goods are not purchased, but simply picked up from the supplier’s warehouse to order.

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Organizational costs for online

First you need to register a domain. The cost will depend on the zone that will be selected. "RU", for example, will cost approximately 500 rubles annually.

The next thing to order is the exclusive design of the online store. The design cost will be approximately 30,000-60,000 rubles.

In order to launch an online store, you will need to purchase an online store management system along with hosting and technical support. It is important to note that payment can be made both monthly and once a year. Approximate costs - 2000-5000 rubles per month or 24000-60000 rubles per year.

Total costs - from 55,000 to 120,000 rubles.

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Organizational expenses for offline

The first thing you need to take care of is registering an enterprise in the form of an LLC. Then you will need to open a bank account, if you don’t have one yet, and also deposit a minimum authorized capital of 20,000 rubles.

The next step will be to organize the manager's workplace, which should contain the following elements:

• laptop;
• printer (inkjet or laser);
• cash machine.

The cost of this equipment is approximately 40,000-60,000 rubles, depending on the selected manufacturers and type of printer.

The total offline expenses will be approximately 60,000-80,000 rubles.

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Working capital of an online store selling cosmetics

If it is planned to place about 1000 positions on the site, of which about 75 are popular, then it makes sense to keep only the last ones in stock, and provide the remaining 925 to customers on order.

If one item, for example, costs 1,000 rubles, and it needs to be purchased in at least two copies, the costs will be approximately 150,000 rubles.

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Costs for the monthly maintenance of a cosmetics store on the Internet

The total costs will consist of the following items:

• rent of a small room for an office-warehouse - 20,000 rubles per month;
• accounting support - 15,000 rubles per month;
• payment of utility bills for telephone and Internet - about 5,000 rubles every month;
• office expenses - 1000 rubles per month;
• payment for the work performed by the manager (if such an employee is hired) - 25,000 rubles every month;
• contextual advertising - from 20,000 rubles per month;
• store promotion in search engines - about 20,000 rubles per month;
• additional advertising experiments - another 10,000 rubles per month.

The total costs will be approximately 116,000 rubles.

At the very beginning, the owner of an Internet business can handle the functions of an order manager and an assortment and price manager on his own in order to save money. In the event that the store develops and the number of orders grows, it is recommended to hire individual employees to perform the duties of managers.

Courier delivery is a separate cost item, but it is often included in the cost of the order. That is why, until the online cosmetics store organizes its own delivery unit, it is recommended to use the provided courier services that specialize in the delivery of goods from online stores.

It is worth noting that it is possible to save on some items of expenditure, if there is a desire and need. However, the minimum cost of creating a business selling cosmetics on the Internet is 100,000 rubles, and the monthly maintenance costs are from 30,000 rubles. Price examples are given for Moscow.

The total cost of creating an online store may vary, so the amount must be calculated in each case individually.

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What you need to do in order for the online store to pay off and bring a stable income

In order for an online store to become self-sustaining, the amount of net profit must be no less than the cost of monthly maintenance, taking into account all taxes and additional possible expenses.

For example, if in order to reach payback, the profit must be 1.5 times greater than all of the above costs, we can conclude that the monthly profit should be about 170,000 rubles. In this case, the store will pay off.

If the average cost of one unit of goods in an online store is 1000 rubles, while the trade margin is about 70%, then in order to reach payback, it is necessary to sell about 400-440 goods per month, that is, about 20 goods every working day. To sell 20 products per day, site traffic should be about 2000 people per day.

Regarding advertising, it is worth saying that after the first few months of promotion, a situation may occur in which 40% of visitors will come themselves. This is due to personal recommendations from customers and repeat sales. The other 40% can be obtained through contextual advertising and search engine optimization, and the remaining 20% ​​will come from links on third-party sites. In this case, the conversion will be 1%.

In order to promote the online store at the initial stage, it is recommended to recruit as many users as possible, who will have their first positive experience of buying in the store. The quality of service must be monitored so that customers return and make purchases of other goods.