If you are looking for a sideline that will combine your do-it-yourself skills and creativity, a lip gloss store is the place for you.
Is Lip Gloss Selling Profitable?
Selling lip gloss has three key things that work in its favor.
First, the startup costs can be low. Lip gloss startup kits can cost less than $ 100 if you know where to look, and these kits contain everything you need to get your private label up and running.
Note that if you are looking for higher quality products you will pay more money, but even then the cost / benefit ratio is reasonable.
Second, it’s relatively easy to create your own lip gloss. You don’t have to pay for tuition and you usually get it right on the first or second try, which means no supply is wasted.
Third, the lip gloss business is a growing industry.
According to Grand View Research, the lip care industry reached a valuation of $ 820 million in 2020. Grand View Research predicts the industry will grow to $ 1.17 billion by 2025. In other words, sales are increasing.
Why is the lip care industry trending?
One of the reasons the lip care industry is growing is because people are looking for more variety.
Some important changes are taking place in the industry, according to the Grand View Research report.
For one thing, consumer demand is changing. People are now looking for natural components in their lip care products, including beeswax, essential oils, aloe vera extract, green tea extract, and shea butter, to name a few.
People are also looking for something more in their lip care products, such as sunscreen.
The market is also expanding. Men are starting to look for personal care products, including lip care products.
These changes are things to consider as you start building and growing your lip gloss brand.
Homemade lip gloss business types
One of the great things about the lip gloss business is choosing to create a type of gloss that speaks to you.
Makeup brand L’Oreal has a breakdown of the types of lip glosses you can create for your brand, including:
- Transparent lip gloss – Transparent lip glosses “… often offer a light shade or are clear, so they are perfect for rounding off a lipstick that has a more colorful effect.”
- Pigmented lip gloss – “Shimmer-free, but just as shiny as any other lip gloss, [pigmented lip glosses] ensure strong color that doesn’t last as long as lipstick. “
- Shimmering lip gloss – “Packed with finely ground shimmer, [the shimmer lip gloss] This kind of lip gloss was a staple in the early 2000s. “
- Glitter lip gloss – Glitter lip gloss is a bit chunkier than shimmer lip gloss, but it also has a lot more shine.
- Matte lip gloss – No shine, just a matte finish.
Things You Need to Start a Lip Gloss Business
Once you’ve decided what type of lip gloss to create, it’s time to gather the ingredients. The Naturally Handcrafted blog says you will need:
- Grapeseed oil or olive oil;
- Coconut oil;
- Cocoa butter (if you want your lip gloss to have a chocolate flavor) or shea butter;
- Vitamin E Pills (should be D-Alpha Tocopherol Vitamin E, which is natural);
- Lip gloss tubes / containers;
- Mica powder (the color depends on what color you want to use for your lip gloss);
- Essential oils (the scent depends on how you want your lip gloss to smell).
You might also want a double boiler, but you can use a glass measuring cup and saucepan of water to achieve the same result.
Naturally Handcrafted also has a recipe and step-by-step guide to get you started on your lip gloss journey. You can find it here.
Create your own line of lip gloss
Now that you’ve made your lip gloss, it’s time to create your brand.
Possible names for your lip gloss line
The first thing you need to do is come up with a name for your lip gloss brand. If you are at a loss, there is a lot of help available.
Marketing branding agency Soocial brainstormed and created a list of 469 possible names for a lip gloss brand. Even if some of the names are already taken, you’re sure to find one you love.
The Biz Name Wiz site has compiled a list of more than 1,000 other potential names.
When you find a name you like, google it. If nobody has it, grab it yourself.
Legal requirements for starting a lip gloss line
The Food and Drug Administration (FDA) is the federal agency that oversees the cosmetics industry. While you don’t need to register your line of lip gloss with the FDA before putting it on the market, you need to adhere to FDA guidelines.
Guidelines include making sure your cosmetics are unadulterated and free from fake brands. They must be labeled accordingly with all the ingredients listed. If you add color additives, the additive must be FDA approved and you must use it as intended.
The FDA has compiled questions and answers for people looking to sell homemade cosmetics. I suggest you read it before you start labeling and selling your products. You can find it here.
Do I need a business license to sell lip gloss?
In addition to the FDA regulations, you also need to consider the basic business needs of your new line of cosmetics.
For example, do you need a trade license? Some states require you to have a trade license and some do not. Usually the answer depends on whether or not the state collects sales tax.
If you need more guidance, I’ve investigated the problem in this post here.
Do i need insurance to sell lip gloss?
The blog Modern Soapmaking has taken on this topic. While the site specializes in soap, it has also looked into lip gloss and balm. The bottom line is that you need product liability insurance.
“Product liability insurance protects you from claims against you as a manufacturer and seller of your products, including soaps, lotions, lip balms and more. It is a common misconception that if you properly formulate your products you don’t need product liability insurance because nothing can go wrong, ”writes Modern Soapmaking.
Get insurance. Don’t stop your business before it starts.
Branding your own lip gloss line
Now that the legal issues are cleared up, it is now time to start thinking about branding your lip gloss business. You need to create a logo that people will associate with your business.
You will also need to create stickers that you will apply on your lip gloss. These stickers contain your company logo, all ingredients of the lip gloss and other requirements of the FDA. Even if you haven’t read the FDA questions and answers, read them!
You can find it here.
Where to sell your homemade lip gloss
Now that your lip gloss is packaged and ready to go, you now need to find some customers.
You can sell your lip gloss locally. That said, you’ll visit local beauty salons, talk to other artisans, and attend local events to promote your brand.
The advantage of selling locally is that you get involved in the grassroots. You will meet with your customers in person and receive instant feedback on your brand and products.
The downside is that building such a brand takes a lot of time.
Your other option is to sell your products online. For a small extra charge, you can create a website and online store, and then market your brand on social media like Facebook, Instagram, and Pinterest.
If you’re not sure how to start an online shop, turn to a pre-built marketplace like Etsy to sell your products.
There is also the hybrid option which can offer the best of both worlds but also requires more work for you as a small business owner. You can create an online store, but you can also attend local events to promote your product.
Whether you sell online, locally, or both, running a lip gloss business can be a very fulfilling and profitable sideline.
Having your own lip gloss line doesn’t cost a lot of money and is relatively easy to learn. As you get better and your sales increase, you can increase your production accordingly.
Like many of the small businesses we offer, a lip gloss business can be as much or as little as you want. It all depends on how you incorporate it into your lifestyle.
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