How to Start a Skincare Business Online

Starting an online skincare business has become increasingly accessible for entrepreneurs. If you’re passionate about skin health but unsure how to start a skincare business, there are plenty of resources to help get your project off the ground.

Launching your own skincare line is a thrilling prospect but must be backed up by solid groundwork. Take the right steps from day one to find your corner in the skincare business and see your skincare brand grow.

1. Do Your Research

It is crucially important to perform market research before you begin, especially in highly competitive spaces like the beauty industry. In 2023, skincare accounted for 96 billion euros in retail sales in Europe alone, suggesting a thriving industry with huge demand—and competition. The good news is that rapidly evolving trends in skincare products present opportunities for newcomers.

Target Market Analysis

Decide which target market you will focus on and research this market’s needs and purchasing habits. This information will help you identify potential products and price points and make it easier to identify your competitors.

Competitor Analysis

Find out what your competitors offer. Which products are more and less popular? What types of packaging do they use? How do your competitors pitch their products? Identifying what’s already succeeding with your target market (and what isn’t) is invaluable information for your brand.

Trends Analysis

Keep an eye on innovations and movements within the industry to see which products might have demand in the future. Tools like Google Trends are helpful for visualising the direction in which interest in a certain product or ingredient is going.

2. Find Your Niche

Let’s face it: skincare is a hugely popular industry and the giants already have many of the most popular trends covered. Newcomers can make a splash by identifying underserved audiences and exploiting gaps in the market. Indie brands can also lead the charge by spotting trends before they emerge.

Make sure though that you don’t leap on a trend that’s too fleeting; your idea should be sustainable long term. Focus your efforts on innovation rather than jumping on the bandwagon. Get close to your niche market and develop a product that targets a specific pain point. After all, trends change while problems are forever!

Possible Niches to Exploit

Identifying a target market with a specific pain point is a great way to make your mark in the industry. Some ways to make yourself stand out could be:

• Vegan, natural, or organic skincare products: These concepts are fairly standard for many indie skincare brands and may be expected by customers.
• Targeting specific skin characteristics like dry or oily skin, or skin conditions like eczema or rosacea.
• Skincare with cosmetics like sun creams that double as foundation.
• Adaptive skincare: Products that respond to individual skincare needs.
• Innovative products: Identify a new product that could transform the industry.
• Simple formulations that don’t include common allergens.

3. Write a Business Plan

Use all the research you’ve done so far to write up a viable business plan. You should set out a clear roadmap to reach your objectives, anticipate potential problems, and clearly establish your financial goals and how you’re going to achieve them.

Use your business plan to outline:

• Who your target market is
• How you’re different from your competitors
• Your financial projections for your new business
• Your start-up costs and when you anticipate the brand becoming profitable
• How you’ll market your product(s)

Make the goals you set out in your business plan realistic and attainable. Remember that success doesn’t come overnight and that it’s normal for brands to need time to become profitable.

Setting unrealistic goals at this point will undermine progress you make further down the line. Rather than setting out your best-case scenario, plan for a range of potential scenarios and how you will respond.

4. Build an E-Commerce Store

Website-building platforms like Shopify and WordPress are perfect for constructing your skincare product store. Using a website builder allows you to build your own online store even with no coding experience and avoids the need to hire a web developer. You will find plans that fit your small business’s needs and optional add-ons if you require extra features.

Remember that a skincare website should be visually stunning and reflect your brand identity. For example, a high-end brand’s website should tell a different story from a brand selling products to teens at lower price points.

Skincare brands must include the following in their e-commerce store:

• A beautiful homepage: Your home page should reflect health and well-being and mirror what you want your customers to associate your brand with. Make your homepage look professional and include clear calls to action.
• Separate skincare line pages: Make it easy for your customers to find what they’re looking for by categorising your products by use, ingredients, or price point.
• Product pages: Include information about how to use each product, its ingredients and allergens, its benefits, and evidence-based claims about the results customers can expect.
• About Us: Your brand should speak to your customers. Your About Us page is a great place to explain what motivates you as a brand and what sets you apart from the rest.
• An easy-to-use check-out process: Streamlining your check-out process is one of the top tips on how to increase your online sales. Make the payment process quick, easy, and secure to streamline the experience for your customers and reduce the likelihood of cart abandonment.

5. Set Up Payment Processing

The best way for new skincare brands to set up skincare payment processing is to integrate an API-hosted global payment gateway into their e-commerce websites. The process for this is simple: apply to a payment service provider who can issue you with a merchant services account after an initial underwriting process. This enables your business to receive electronic payments.

Payment processing must be one of the features you prioritise when setting up your e-commerce store. Working with the right payment processor will allow you to accept different payment methods and currencies and facilitate secure payments for your business and its customers. This is especially important for European skincare brands that plan to sell across the continent.

6. Stay on Top of Legal Issues

Part of launching a successful skincare business involves understanding the relevant legal requirements. The legal aspects are every bit as important as producing a great product, as you carry a great deal of responsibility when you sell products for people to use on their bodies. Staying compliant with industry regulations is also vital to protect your business.

Make sure you understand the legal aspects of:

• Product shelf life
• Labelling laws
• Skincare stability and safety
• Any licences you need to sell beauty products online

7. Spread the Word

Launching your own skincare products online is exciting but highly competitive. That’s why a robust digital marketing strategy is crucial to your short- and long-term success.

Social Media Platforms

Social media is likely to be a key part of your customer acquisition strategy and can also help to keep current customers loyal to your brand. The best social media posts have the potential to go viral and garner a huge amount of visibility for your business.

Your social media marketing strategy requires careful planning, as each social media platform has its own unique culture. A successful skincare brand must understand how to use each platform to achieve the best possible customer reach and engagement. For example, Instagram is a perfect option for stunning professional photos of your product while TikTok is the best option for instructional videos on how to use different products.

Influencer Marketing

Influencer marketing is an interesting prospect for new brands. While social media stars command a significant following and influence, their endorsement tends to come with a hefty price tag. If you decide to go for it, make sure you choose an influencer who aligns with your brand’s values and is respected for their integrity within the skincare community.

8. Continue Your Upward Trajectory

You’ve almost made it; your journey towards launching your skincare product line is almost complete! Your job going forward will be to find strategies to maintain and grow your online sales, encourage customer loyalty, and continue to develop your brand.

At this point, you may want to consider adding new products to your line and diversify the ways in which you reach new customers. Maintain a strong focus on your digital marketing strategy, look for new angles, and keep your existing customers happy. You should finally begin to see the fruits of your labour and enjoy the journey as you become an integral part of your customers’ skincare routine.

Find Your Space in the Global Skincare Market

Starting a business in the skincare industry can be a rewarding and fulfilling endeavour. By following the steps outlined in this guide, you can create a successful and profitable business that caters to the growing demand for effective and safe skincare products.

Focus on building a strong brand, providing excellent customer service, and staying up-to-date with industry trends. You too can turn your dreams for your own skincare brand into reality with the dedication, passion, and strategic approach to see it through.