For its benefits, cosmetic products are one of the most used worldwide. Taking into account that, nowadays, it is not only women who are concerned about taking care of their skin, hair and physical appearance, since men have also joined these practices to preserve their beauty over time.
Thus, due to the high demand for this kind of products, there are numerous people who have become interested in distributing or selling cosmetics in order to satisfy the needs of so many people and in the same way, increase their profits day by day. Considering that, cosmetics never goes out of fashion and reveals a constant consumerism.
However, despite their interest in this field of work, such people do not know how to start such a business and especially how to become a cosmetics distributor in a successful way. Below, you will learn more about it.
First of all, what is a cosmetics distributor?
While it is true, a cosmetics distributor is an intermediary that deals with organizing the delivery of cosmetic products from the manufacturer to the consumer. This can be an independent person or company and is distinguished by having the ability to interact with department stores, warehouses or outlets to deliver orders from major manufacturers and even retailers.
Thus, the main objective of a distributor is to deliver a point from their point of manufacture to your point of sale, which is why they are also called “intermediaries”. One of their main peculiarities is that they are usually independent and, therefore, have no loyalties to any of the parties and operate as free agents, according to their aspirations and contacts.
Typically, professional distributors have to manage shipping and process inventory databases in order to anticipate when stores will run out of certain products. In the cosmetics arena, distributors must coordinate delivery and sometimes sort merchandise upon arrival and pick up discontinued items for return to the manufacturer.
Indeed, cosmetics distributors are an essential part of selling cosmetics. Without them, many retailers would not be able to obtain cosmetic products to supply their business and sell to their customers. Even without distributors, large companies would be hampered in their sales by having to handle multiple customers at the same time.
Where to get business opportunities as a distributor?
To have more options or opportunities to become a distributor of a certain product or company, specifically in the cosmetics industry, it is important to know where to go at the most precise moments in order to seek partnerships with other distributors to expand with each other and achieve much more profit.
Therefore, here we specify the main keys to find business opportunities as a distributor:
- Through medium-sized companies that facilitate the distribution of cosmetic articles. Together with them, you can acquire more possibilities to sell because they are workplaces that need to rely on a network because they do not have the capacity to set up a structure in each country.
- At trade fairs and conventions, since these sites allow you to find interesting concepts in terms of distribution to generate profits.
- By tracking industry innovation in other countries, this is a solution that not only allows you to become a distributor, but also helps you to innovate in your area and capture the attention of your target audience.
How to contact the company chosen to be a cosmetics distributor?
Another essential step to become the distributor of a brand is to contact the company directly. If you bet on it, the chances of occupying this position will be greater.
Therefore, if you have the opportunity to participate in a fair with the company you want to exhibit the product, choose to talk directly with their representatives. This can be done from the sales area and once you find the interlocutor, just show your interest in their articles and exhibit your skills as a distributor so that they pay attention to you.
But, in case it is a company that you got after researching the cosmetics market, the best thing to do is to get as much information as possible and seek contact via phone or email with the sales department. This is not difficult as long as the companies are focused on selling and expanding their business.
Now, when presenting your business plan, in any case, it is best that you choose to prepare it beforehand. That is to say, you must present the entire distribution project that you can entrust and carry out to ensure good profits to the company and even you at the same time. You can do this by means of an exhaustive market study together with realistic sales estimates that show the potential of the Spanish market and based on this, show the best distribution option.
The key points of the contract to become a distributor of a cosmetics company
If the company is interested in your business plan, before reaching an agreement between the two of you, it is important that you negotiate some key points that should be included in your contract as a distributor of the brand and/or product. These elements are:
- Exclusivity: With your proposal as a distributor, ideally you want to be the only one of the company for the Spanish territory. Emphasizing that, if you achieve this exclusivity, you can rely on other distributors at your command to get more profits and thus, make more sales in order to exceed the expectations of the company.
- The type of commercial relationship: Keep in mind that being a commercial representative is not the same as being a distributor. In the first case, you will simply work on commission and you have to follow the commercial policy of the company of origin. Whereas, being a distributor means buying the company’s products and having total freedom on how you run your business (depending on the rules specified with the supplier).
- Sales targets: In order not to disappoint the company or brand in question, you have to negotiate the lowest possible sales target. This way, you won’t run the risk of them underestimating your professionalism and instead, you’ll have a better chance of surprising the brand positively.
- Pricing: Another of the most vital elements in order to be a good cosmetics distributor is to agree on a price with the company that will help you make money or, in other words, ensure optimal profit margins. In this case, it is essential to study your business plan perfectly to fight for the most competitive prices you want to get.
- Marketing and sales costs: By nature, any commercial or marketing action you take to promote the brand’s products will benefit the brand in the short, medium or long term. In fact, we recommend you to make sure that the company participates in the commercial effort so that both are successful.
Once you have agreed on all the points outlined above, you can build a contract that promises to be mutually beneficial to both parties. Taking into account that, in addition to these key elements, it is appropriate to add some useful clauses that are favorable and beneficial. This is best done in conjunction with a specialist lawyer.
Among these favourable and important elements, we highlight the following:
- The financial conditions: This refers to the payment terms which, above all, must be flexible.
- The duration of the agreement: As with any agreement, an end date must be specified and when choosing one, it is best to opt for a permanent agreement. If this is not possible, the best thing to do is to renew it before it expires.
- Exit conditions: Breaching certain conditions allows either party to terminate the agreement. Therefore, it is good to try to introduce some condition to be able to break the agreement, in case of any unfavorable situation.
- The after-sales procedure: Don’t forget to detail important agreements about this procedure, especially when the products are defective from the factory.
The challenge starts after becoming a distributor of a brand.
Once you have managed to apply and designate yourself as the distributor of a brand or company, is when the real challenge begins to fulfill your business plan, meet the expectations of the company and show your professionalism, efficiency and exclusivity. For this reason, it is appropriate to perform the following actions after becoming a distributor:
- Optimal communication strategies: You need to create a quality communication policy, depending on the cosmetics you are going to distribute. Either with classic advertising (on radio, television or press) or through a strategy based on opinion leaders, influencers and/or social networks.
- Establish good procedures and practices in relation to the company: After signing the contract with the company, it is important to define efficient procedures and practices to operate in an agile and effective way in order to show the best distributor skills to the brand.
- Go through trial and error processes until you find the key: As in any process, it is common that there are difficulties or frictions on both sides. But, this will allow you to experience trial and error processes with which it will be easier to refine your commercial actions to achieve good results and at the same time, improve the relationship with the company.
Real success story: 500Cosmetics
The Spanish company created in 2004, today, is a leader in the manufacture and distribution of high quality cosmetic products. Which, over the years, has been characterized by providing various solutions in order to meet the needs of its customers in terms of health, beauty and wellness. In addition to this, it is recognized for its strength and experience in the field of beauty both in Spain and worldwide.
Now, its main philosophy is based on offering efficiency and innovation in terms of aesthetics and health, adapting to the requirements of its customers at all times. Taking into account that, besides being a high quality online store, it has also focused on providing good prices to serve as one of the best distributors of cosmetic products in Spain.
It should be noted that, to increase its popularity, the company has opted to sell natural cosmetic products that, apart from benefiting the skin and hair care, also act sustainably to protect the environment and generate a positive impact on the planet. This was one of its most innovative ideas to capture the attention of a wider audience and to expand.
As if that were not enough, through its dropshipping mode with which it helps many entrepreneurs to start their cosmetics business, it has also managed to ponder itself as an optimal choice when it comes to suppliers of such items. Taking into account that it guarantees benefits based on minimizing the initial investment and expenses, to acquire profits much more easily. Above all, for its constant discounts and delivery times quite effective.
Brief summary to become the best distributor of a product…
- Analyze the market to locate the most recognized and quality cosmetic brands.
- Specify how you can establish direct contact with the brand or company that catches your attention to create an alliance.
- Prepare a compelling business plan that captures the company’s attention and ensures real efficiency.
- Define good distribution conditions that allow you to work with total freedom to ensure optimal results.
- Negotiate exclusivity with the brand and company, for many more opportunities to produce jobs and earn money.
- Seek professional help from an attorney to build a contract concerning your goals and objectives.
- Take care of the relationship with the supplier at all times to acquire positive results, guarantee professionalism and benefit from an excellent partnership.