The cosmetic industry is one of the world’s most profitable and fastest-growing industries. The global cosmetic industry is rapidly growing and is predicted by experts to surpass $800 billion by 2025. So, starting up your online cosmetic store in Pakistan would be a good investment since there is a huge demand for cosmetic products in Pakistan. In this article, we will talk about how to set up an online cosmetic store and get you up and running.
You always begin with collecting all the details about any business you want to start. The goal is to understand how the business works. You can gather information through your friends and family members who have experience in the online cosmetic business. The alternative is to search on Google, which will give you all the information you require.
Search a popular online cosmetic store in Pakistan like GuruApp and investigate how they operate. We recommend searching at least ten online cosmetic stores. The idea is to assess their business model. For the best results, assess five Pakistani stores and five international ones.
Once you have gathered all the necessary information and understood how an online cosmetic store operates, the next step is to make a business plan. Individuals often neglect this step since they think a business plan is not required for an online business.
However, this is not true. Most online businesses do not fail because they fail to attract customers. Rather they fail due to insufficient planning. A business plan provides you with a road map. If you don’t create a road map, how will you succeed? There are a lot of business plan templates available online. You can use those as a reference point.
The idea of the business plan is also to identify the differentiation point. What makes your online cosmetic store different from others? For instance, in the case of GuruApp, all products are imported. Some stores offer only branded products from leading cosmetics brands. You will need to develop a differentiation point to attract customers.
Before allocating a budget, you need to know how much income an online cosmetic store generates. There are distinct business models, and all have different expenses and income generation types. For instance, if you plan on creating your online cosmetic store, you can generate income through a joint commission with wholesalers. Conversely, you can earn a commission by selling the product if you plan to work from home.
So, allocating a budget depends on the type of online store you want to open.
Budget allocation is also a part of a business plan. Initially, you will need to estimate the expenses and budget. We recommend that you use tried and tested estimation techniques rather than whim. But onwards, you are required to analyze your expenses and budget comprehensively.
One way of identifying how much money you need to allocate is, to begin with, the start-up cost, marketing campaign and advertising expenses etc. In the case of an online cosmetic store, the most crucial thing is marketing. The reason is that there is so much more competition online than offline. When it comes to marketing, you will need to set aside the budget for SEO, content marketing and other digital marketing methods. These are responsible for bringing customers to your website.
The cosmetic industry is very diverse. There are lots of product categories that are not confined to a single niche only. Product categories include skincare, make-up, beauty care, mineral cosmetics, hair etc. So, you need to select and identify which products you want to offer.
You should go for the product which you are most passionate about and have a good understanding if you want to start small initially. Don’t be afraid of introducing and selling new niches on your website. However, we recommend you not sell all the products initially as it will become difficult to manage. Gain expertise and knowledge and make your way accordingly with time.
Once you have sorted out everything, now is the time to create your online website and sell the products. Select a good name for your store which represents a strong brand name. Create a user-friendly website and make sure it is highly attractive and professional.
You should hire a professional to create your website as he knows all the ins and outs. Of Course, you will need to allocate more money for it, but in the long run, it will be highly beneficial for your business. Go to a well-established online cosmetic store website and see what you like, and get it implemented on your website.
It concludes our article on how to set up an online cosmetic store in Pakistan. Although the article is brief, it can set you on the right path and help avoid the common pitfalls associated with running an online business.