Overview of Business Model

Buying beauty products online is very popular with busy female professionals. They have certain brands they buy regularly, know what they want, and have very little time for shopping. Sometimes they are looking for special products that are not carried by regular vendors. Online beauty stores solve this problem by accommodating the needs of the business professional. Online beauty stores

Can sell everything from lipstick and makeup to bath oils and aromatherapy products. With the increasing product demand for this industry, selling beauty products online provides an excellent online business opportunity.

Skills Needed

Knowledge of health and beauty products is a must.

Cost to Start This Business

The cost to set up and run this type of business ranges from $1,000 to $100,000, depending on how much inventory you plan to carry. Initially, you will have to pay for the design, development, and hosting of your Web site along with your storefront solution and merchant account setup. All additional costs are associated with promoting your business online and offline as well as purchasing and holding inventory.

Number of Employees Needed to start

This business can easily be started by one individual. This business can also be started and run as a part-time venture.

International Potential

This online business has strong international potential as its products are of interest to consumers across the globe.

E-Business MODEL/Payment Processing Method

E-business level 3 or 4 is most appropriate for this type of business. Level 3 is appropriate when the business is online only. Level 4 is appropriate if you have a fairly large operation with many products or where you have an offline location as well, with a Web-compatible inventory system. For more information, see Part 1.

Important Business Issues to Be Addressed

You will have to be very price competitive on those products that are generally available online or locally. Keep in mind that when purchasing from your online store, the customer will have to pay for shipping and handling in addition to product cost. To the extent that you specialize in niche products or hard-to-find items, this will be less of an issue.

Online Marketing Techniques

• Develop a strategic online banner advertising campaign on health - and beauty-related Web sites.

• Participate in newsgroups, discussion forums, and mailing lists related to health and beauty with a cleverly designed signature file.

• Offering health and beauty tips from your site would be a great way to encourage repeat traffic. Perhaps consider setting up a beauty tip of the day that you would send via an autoresponder.

• Practice permission marketing by asking visitors if they would like to be notified via e-mail when you add new products to your Web site.

• Participate in e-zines related to beauty, health, and hair care as well as those e-zines that have the same target market you do—busy professional women and teens. Your participation could be banner advertising, story or article submission, sponsorship, or providing a prize for their contests.

For a more detailed description of these techniques, along with many other effective online marketing methods, I recommend the companion book 101 Ways to Promote Your Web Site. You can also find tons of free resources at Http:// www. susansweeney. com/resources. html.

Additional Income

In addition to selling beauty products, you can also sell accessories such as makeup cases, towels, lather-builders, handbags, and so on. By offering these products, you would not only add value to your online beauty store, you would also have the opportunity to generate additional income for your business. Gift certificates and gift baskets may provide an additional source of revenue. You can also sell banner advertising and sponsorship opportunities to companies that target the same group that you do.

Online Examples

Just for Redheads Beauty Products

Http:// www. justforredheads. com

This is a great online beauty store that uses a Yahoo! Storefront template

Service to sell its products online. It also has a very unique target market—

Redheads!

Life Plus Vitamins

Http:// www. lifeplusvitamins. com

This is a great online site that sells vitamins, beauty products, and other health-and hygiene-related products.