How To Sell Cosmetics On Amazon India (Requirement, Process, Earning)
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Do you have an interest in makeup? Do you often browse online sites or follow the makeup tutorials on YouTube? Do you have a passion for cosmetics? If you have enough knowledge about the beauty products or makeup items, then you can also start to sell Cosmetics on Amazon India. Amazon is one of the most trusted selling websites in India.
As per the latest statistical report, the Indian cosmetic and Beauty care market will be growing by 6.32% by 2027. More specifically, the growth rate will reach USD 33.33 Bn by 2027. If you have planned to sell cosmetics on Amazon, then your segment will be based on the products, Outlook, Distribution channel and category.
As it is already mentioned that the selling of cosmetics on online media is very wide, therefore, the sellers should choose the domain at first, on which they should work on.
Before starting to sell the cosmetics on Amazon India check the category wise market segmentation of Cosmetics here and plan accordingly.
- Products: The cosmetics products market will be classified into hair care products, bath and shower, skin care products, cosmetics and makeup, oral care and beauty tools and accessories.
- Outlook: The Beauty care and cosmetics Outlook market is classified into Organic, Inorganic and Vegan.
- Category: Further, the category market is divided into two sub-sections, Premium and Mass
- Distribution Channel: It is categorized into specialist retail stores, hypermarkets, supermarkets, Pharmacies/ Drug Stores, Convenience Stores and Online Retail channels.
Before moving towards the next steps of knowing the steps of selling cosmetics via Amazon India, the sellers should know the current market niche to make the business successful.
- The customers are now inclined towards the vegan and cruelty free cosmetics products
- Colour (both vibrant and nude coloured) cosmetics items
- Rising of awareness among the customers regarding the uses of unnecessary chemicals
Top Tip: If you have a plan of reselling or importing international beauty and cosmetics items in India, then it is required to get a cosmetics registration for the business.
What are Beauty Care Products and Cosmetics?
It is already highlighted that the beauty care products and cosmetics industry in India is very large. The major difference between the makeup and cosmetics is, the makeup is a cosmetics, but not all the cosmetics are makeup. To start selling cosmetics on Amazon India, the sellers should confirm which product they should sell first.
Check the main category under the cosmetics segment here in the following section:
- Skincare products: Shaving creams, Facial washes, toners etc.
- Colour cosmetics: Comprises the makeup and nail care products.
- Personal care products: Deodorants, mouthwash, toothpaste etc.
- Hair Care products: Oils, Shampoos, and other styling products.
- Fragrances: Perfumes, body splashes, colognes etc.
Based on the trends of the past few years, the cosmetics industry of India will be experiencing a steady growth within the next 5 years.
Steps to Sell Cosmetics on Amazon India
Amazon India is the most visited online shopping marketplace across the nation. From placing orders to delivering the products at the doorsteps of the target customers, Amazon is successfully serving its operations. Hence, small scale to the medium sized enterprises are willing to sell their products at Amazon online website.
For instance, approximately 15000 sellers have been associated with Amazon India. Moreover, 3500+ sellers become Crocepati by selling through Amazon. From Fortune 500 organizations to artisan sellers, everybody wants to sell through Amazon, so that the business can be reached to the crores of customers.
To start selling through Amazon, the sellers should know how to register with Amazon. Go through the following stepps. Some of the popular online cosmetics sellers on Amazon India are Lakme, Revlon, Neutrogena, Pantene, Wow, Mamaearth, Vaseline, The Body Shop, Sunsilk, Mamaearth, Biotique and many more.
Approximately 2.5lakhs+ units of beauty products are being sold on Amazon India. The cosmetics sellers of Amazon have been experiencing a steady growth rate of 30% every year. The top selling beauty products on Amazon India are as follows:
For instance, Yash Hisaria, the founder of Beauty and Cosmetics brand St, D’Vence, stated that within a span of seven months, he sold around 1.5 lakh products and made a revenue of 2 crores rupees. Read more.
1. Steps to Complete Registration
To complete the registration with Amazon, the sellers should keep ready the following documents.
- Active mobile number
- GST Number (Not applicable for those sellers, who are not selling the GST-exempted category)
- Active Bank Account
- PAN Details
- Email ID
Note: Some of the GST exempted items are books, certain handicrafts items, some edible goods etc.
2. How to Launch the Business
With the digitization over time (especially after COVID 19 pandemic), the sellers are showing their interest in selling products through online mediums. If one is selling their product online, then he/ she can go with the start up business at a low cost yet on a large scale. Also, online business can minimize the workload, which in turn reduces the business cost.
As per the assumption of Grant Thornton, the ecommerce industry in India is likely to be growing by USD 188 billion by 2025. On the other hand, according to research done by IAMAI and Kantar, Indian ecommerce market will experience a growth rate of 45% by the year 2025.
Considering the growth rate, the sellers are now showing their interest to launch their business online. In this regard, Amazon could be the best option to start a business. So that, being a start up seller, he/ she can reach to the crores of customers. It in turn helps him/her to make a good profit from the business.
Before you launch the business at Amazon India, the sellers should have knowledge about the steps.
- Complete the sign in process process. To get it done, click here. If your phone number is linked to a customer account, then use the email and password for completing the sign in process.
- If your email and password is not linked with a customer account, then go for the “Create a new account on Amazon.in”
- Fill out the legal company name, which is mentioned in your GST
- Verify the mobile number through OTP
- Again provide the store name, product and business address
- Enter the tax details, including the PAN number and GST
- Next, the sellers have to select the “Products to sell” option from the dashboard and then click on “Start Listing”
- Enter the product name or barcode number, so that one can search for the particular product on the existing catalog of Amazon.in
- If you cannot find the product in the existing catalog, then choose “I am adding a product not sold on Amazon” to create a new listing
- Enter the product price, MRP, product quality, condition and your shipping option
- Click on the “Save and Finish” for adding the product to your inventory
- Return back to the selling dashboard, add the remaining details and upload the digital signature
- Click on the “Launch your business”
After successful launching of business, the sellers will get an acknowledgement message on the same.
3. Cost Structure to Sell in Amazon India
The cost structure is different for selling items on Amazon India. Check the selling fee on amazon in depending on the following factors, such as:
- Referral fees
- Closing fees
- Weight Handling fees
- Shipping fees
- Other fees
Referral fee is charged by Amazon India as a percentage of sales made by the selling of any product. Kindly note that the referral fees are varied for several categories. Closing fee is nothing but the addition to the referral fees, which is solely based on the product price.
On the other hand, the weight handling fees incurred for the delivery of order through the Easy Ship and FBA. Lastly, the FBA fee is charged for picking up, packing and storing the orders.
Comparison of Fulfillment Fee Structure
Check out the fee structure here in the following table.
4. Knowledge About Seller Central
If the sellers complete the registration with Amazon India, then they will get access to the seller central dashboard, through which the sellers can manage the entire business. From adding the first product to finding out the tools for growing as a successful brand, one can find out everything for running the business.
- Keep to track of your inventory and then update the listings from the inventory tab
- Download the custom business reports and bookmark the templates you usually use
- Use the customer metrics tools for supervising the performance of the sellers
- If required, the sellers can ask for the selling partner support and raise help tickets using the Case Log
- Do not forget to keep the tracking of daily sales for better understanding
5. How to Sell Via Amazon Seller App
Download the Amazon Seller App on your phone, so that the sellers can manage the business anywhere and anytime. By using the Amazon Seller App, one can get the following benefits.
- The sellers can easily research and sell the products
- Also, the sellers can easily see the status of Amazon Business at a glance
- The sellers will be up to date with inventory stock and will get the pricing alert
- Being a seller, you will be stay informed of your account health
- The sellers can respond back to the consumers’ messages
- Last but not the least, the sellers can expect a variety of support options at any point of time
6. Steps to List Products
If you want to start selling via Amazon India, then you should first list it on Amazon.in. Here you can add the product information, such as product category, brand name, product features and specifications, price and product image. These attributes will be beneficial for your customers to make the purchases.
The sellers can set up the product page for selling the items and for this, they should edit the product details from the ‘Manage Inventory’ section of Seller Central Dashboard.
How to List Products on Amazon India?
In order to showcase the products on Amazon India, the sellers should list them from the Seller Central Account in any of the outlined two ways.
- Adding a new offer by matching the products with the barcode scan or search
- Or, by creating a new listing and uploading the product images and adding details and features
Importance of Product Details
Before making any product, the customers compare different products and look at the product image, video and specifications and think whether it will serve their purpose or not. A complete product details will help the customers to buy the items and it will in turn generate more sales.
Top Tip: While you add product description, the seller should add product swatches, ingredient lists in detail, warning and allergy notices. Also do not forget to mention the texture, finish, application and how to apply/ use the product.
While adding the product details, the sellers should keep in mind some of the following important things:
- The seller should add coloured image
- All the featured should be clearly visible
- It is necessary to upload the image of the products with 1000 pixels height and width, so that the picture quality would not get blurred with zooming
- Images should not exceed 10,000 pixels on the longest side
- The accepted format of the image in Amazon are- JPEG (.jpg), TIFF (.tif)
A successful product launch+completion of product page refers to successfully running the business in Amazon India.
7. Steps of Delivering Products
After launching the products/ business to Amazon India, the sellers should focus on the storing inventory, packaging products, shipping and delivering of orders. Amazon offers three different order fulfilling options, such as:
Fulfillment By Amazon (FBA)
If the sellers opt for the Fulfillment by Amazon facility, then they should first send the product to the Amazon Fulfillment centre and then Amazon will take care of the rest. Once the sellers will receive the order from the customers, then the concerned person of Amazon will start packing and delivering the products to the buyers. In the meanwhile, Amazon will also deal with the customer queries (if any).
Here in the following section, the advantages of using FBA has been discussed:
- Offers unlimited free and fast deliveries to the consumers
- Store the products in Amazon India’s fulfillment centres and Amazon will look after the rest of the things such as- picking up the order, packing and shipping
- In addition, the customer service and return will be managed by Amazon India
Top Tips: Become a prime seller with FBA and then increase the sales up to three times more.
Amazon Easy ship is nothing but the end to end delivery service for Amazon India sellers. At first, the packaged item will be picked up by Amazon from the seller’s location by the Amazon logistic delivery associate and will deliver to the buyer’s location.
Go through the advantages of taking Easy Ship here:
- Fast and safe delivery by Amazon India
- Control over the inventory and there will be no storage cost
- Similar to the FBA, customer service and return will be managed by Amazon India also in Easy Ship
- Select your own packaging
If you are a registered seller of Amazon India, then you can choose to store, pack and deliver the products to the target buyers with the help of the third party carrier or own delivery associates.
Check the potential benefits of using the Self ship here:
- The sellers will have complete control on the business
- The sellers can use their own resources for operational purposes
- Amazon will pay the closing and referral fee to the sellers
- Sellers can enable the prime badge in the area with local shops on Amazon and get the score of discovering
8. Work on Payment Procedure
It is one of the important factors, on which the sellers should work upon. Kindly note, the payment will be generated through the Automated Clearing House (ACH) or electronic transfer in case of selling via Amazon India.
Once the buyers will complete the payment, the amount will be received by the sellers after 5-7 business days (tentatively). The Seller Central of Amazon India will send you payment reports and summary on your product sales.
Amazon assures its sellers a seamless and delightful shopping experience. Amazon sellers always check the key metrics.
- Estimate the business performance through sales dashboard and reports
- Ensure compliance with Amazon India’s policies
- Supervise the product review through feedback manager
- Utilize the voice of the customers for identifying the highlighted product issues
To uplift the performance of your online business, customer reviews are working as the most integrated part. Both the sellers and buyers will get benefits from the customer reviews. From the reviews, the customers will get an idea about the product quality before they purchase. Whereas, good customer reviews will help the sellers to maintain a good will of their online business. Customers will like to purchase more from the brand.
Tip: Better performance = Better Customer Service = Better Seller Ranking
Tools to Help the Online Cosmetics Brand to Grow with Amazon India
To grow the online cosmetic business with Amazon India, the ecommerce website will give the sellers some essential tools for managing the business.
- FBA: If you are prime sellers of Amazon, then FBA will take care of the customer queries apart from looking after the entire delivery process. Apart from that, the sellers with a prime badge will get a chance of getting the Buybox.
- If you will get the prime badge, the customers will also show their interest and will like to purchase the cosmetics from your brand compared to the competitors.
- Sponsored Products (SP): Amazon India makes targeted ads through the SP, with which the customers can easily find your cosmetics. The cosmetics sellers can start bidding from INR 1 and pay per click.
- As per the experts, SP has a strong effect on the business to get viewed their products on page 1 on Amazon India search result. In a nutshell, SP helps the brands to increase their visibility. Consequently, it will be beneficial to boost up the sales of the businesses by targeting the relevant potential customers.
- On the other hand, the sellers will have to pay only when the advertisement is clicked. Note: If you are a new seller and launch your cosmetics brand at Amazon India, then you will get a 2000 Rs SP credits in free.
Top Reasons to Sell Cosmetics on Amazon
Amazon India is one of the most visited shopping destinations of the nation. Approximately two million small to medium sized brands are there, which are selling their products on Amazon and the average third party sellers are making approximately $200,000 per year. Consequently, Third party sellers now generate 60% of Amazon's Ecommerce sales.
The primary reason for choosing Amazon India for selling the cosmetics on Amazon India is customer acquisition. Apart from that, one of the major reasons for choosing Amazon India over other ecommerce websites is its secured delivery service.
Along with it, Amazon is offering secured payment and brand protection to the customers for delivering the products. Moreover, Amazon assures to deliver the products across 100% of India’s serviceable pincodes. Selling cosmetics on Amazon India has some major benefits for the sellers.
Go through the benefits of selling cosmetics here in the following section.
1. Secure Payment Facility: Once the payment will be done from the customer's end after making any purchases, the amount will be directly credited to the bank account of the sellers, even for selecting the cash on delivery option every seven days. Hence, the entire payment facility will be secured and safe.
2. Excellent Delivery Service: Amazon India offers excellent and stress free shipping service for the customers. If the sellers choose Fulfillment by Amazon (FBA) or Easy Ship, then the sellers do not need to be bothered about the delivery to the customers and also about the return (if required).
3. Supreme Customer Care Service: The sellers can avail the paid customer care support from the Amazon empaneled third party professionals, in case of product photography, account management and much more.
4. Keep the Brand Protected: Amazon India assures the sellers to provide a control of Amazon product pages, which feature the brand name and logo with the Brand registry.
5. Notification about New Customers: The sellers will be able to find new potential customers with the targeted advertisements and pay only when the buyers click.
6. Sell the Products Worldwide: If you want a brand recognition to the global market, then you should sign up with the Amazon Global Selling, so that the sellers can reach to the global customers as well, even upto 200+ countries.
7. One Click to Get Help: Along with the seller support, one can get seller University, Help Guides and Forums, only with one click.
8. Flexibility in Managing Business: The sellers can download the relevant app for operating the business online. In addition, the sellers can solve the issues, and also respond to the consumers from anywhere, anytime.
9. Unsolicited Referrals: The algorithm of Amazon India Ecommerce website can catch the recommended items checked by the customers. After that, based on that recommendation, Amazon’s marketing team tries to get connected with the customers. Along with it, the ecommerce website has a wide range of networks of affiliating the buyers.
So that Amazon can attract the customers through their featuring ads on their own website. In turn, the customers feel attracted and want to check out the product and visit the website. It is one of the important ways of increasing the sales of the business.
10. Voice of Customer Dashboard: Amazon customer service views the customer feedback on the products, so that the sellers get a chance to understand how the customers are responding to their cosmetics.
Based on thor feedback, the sellers can optimize the inventory. Hence, Amazon dashboard helps the sellers to minimize the returns and negative feedback and simultaneously increase the profitability percentage.
How to sell Online Without Amazon India?
Though Amazon is good at connecting millions of customers for increasing the sales of the businesses, there are some certain loopholes in doing online business with Amazon India. The first and foremost reason is, the cost of running business with Amazon India is a bit costlier.
In addition, the ecommerce website does not provide any free ride to the sellers. Apart from that, since Amazon is one of the well known Ecommerce websites, therefore, a ton of cosmetics sellers are there. Hence, being a start up online cosmetics seller, he can think of a substitute option.
One can sell the products online without Amazon India, also by making their own business websites with the help of Fynd Platform within a 30 minutes time span. Fynd platform is the omnichannel ecommerce platform, which helps the sellers to grow their business, so that with the passage of time, they can experience a rising market share of the business.
If the sellers are not able to bear the cost of running the online business with Amazon India, then they can think of investing for one time to build their one websites. So that the sellers can directly sell their products from their websites. In addition, after COVID 19 pandemic, the concept of retail store business has been largely shifted to Ecommerce marketplace.
To create your own business website using Fynd platform, the sellers need a valid and activated mobile number and email address, so that the sign up process can be done easily.
After that the sellers should complete the following business details:
- Your business name and address
- Your GST/ Pan card details
- Your Brand logo (not compulsory, it can be added later)
Once you fill the above mentioned details, you will be one step closer in creating the dream website. Next, there are multiple steps left to completely start your own business website.
1. Add Your Product First
To add the products of your brand in Fynd platform, the sellers should follow any of the two ways. Here are the two ways:
- The sellers can add bulk products either through CSV sheet and excel with various attributes and parameters. Fynd platform will provide the real time inventory integration to its sellers, so that they can easily upload their products.
- The second option is, the sellers will have the access to manually adding the products. Along with it, they can easily upload the images through the easy to fill form. There are some predefined categories, from where the sellers can choose the options
Apart from that, there are some unlimited product lists, irrespective of the plan the sellers select.
2. Add the Sales Channel
The sales channel is nothing but the window to the catalog/ inventory/ communication of the website/ analytics/ themes. When you add the sales channel, try to select a free domain by the Fynd platform or the sellers can integrate their own domain name.
Next, the sellers should select the themes and then work on the structure of your website. The sellers will get multiple free and paid themes on the Fynd platform.
3. Add Your Team
If you are not operating your business not on your own, and if you have a team for running the business, then you can add your team mates. Fynd platform will give you the flexibility of inviting multiple people and give them access to the dashboard.
If required, you can also add people as admin or staff. Kindly note: Fynd platform is able to maintain the privacy of your website. If you don't want to give access to your dashboard to your teammates, then they won’t get it.
4. Search Engine Optimization
Along with the website development, Fynd platform also helps the online cosmetics sellers in search engine optimization (SEO). Apart from the paid marketing campaign, the sellers can get few sales organically. In this regard, SEO has been playing a major role in getting organic rankings of the website. The better the quality of the website, the higher it will rank.
5. Marketing for Online Cosmetics Business
Apart from traditional marketing approach and customer feedback, influencer marketing has a strong impact on the online cosmetics selling business. The approach of influencers can post a small promotional video on behalf of your brand, so that a number of customers will be able to know about the newly launched brand and their selling items. Ask the influencers to share personal stories to reach out to more customers.
Apart from that, the sellers can think of starting giveaways. Providing the customers something of your products for free as a ‘thank you’. It will be better if you provide them with some samples of your cosmetics brand. Click here. Or else, the sellers can increase the satisfaction level of the customers through the ‘Redeem Award’. It is one of the effective marketing tool of Fynd Platform.
Once you complete the website launching program with Fynd platform, you should work on the following tool to get a greater return of the brands.
- Logistic Integration: Fynd platform has a strong influence in the in-house logistic integration. Once the order comes to the brand, Fynd platform assures to deliver the items to the customers by collaborating with the lowest costing delivery partner.
- Payment Gateway Integration: Fynd platform has a collaboration with some of the major gateways like RazorPay, Stripe and JustPay. This will in turn help the sellers to get a smooth access in online payment process in terms of credit card/ debit card/ wallets/ pay laters and more.
- Communications Integration: Being an owner of the brand, the sellers should focus on the communication integration, so that the queries of the customers can be solved within the specific time period.
- In this regard, to get connected with the customers, the sellers can use the in-house marketing tool of Fynd platform. Along with it, you can take the help of mailers for communication purposes with the customers.
- Analytics Integration: The sellers can integrate the third party applications like Google Analytics, Pixel, Facebook etc for making the informed data driven decision.
Once you will be able to create your online store successfully with the help of Fynd Platform, you can also proceed to build Android and iOS apps for your brand. Apart from that, the sellers will avail some of the exclusive business features offered by Fynd, such as creation of online stores, seller management, partners and business affiliations, community and forums, POS and Digital marketing, etc.
Similar to Amazon India, Fynd platform also offers an internal dashboard for the online cosmetics sellers, which can be accessible only after creating their own business websites with the help of Fynd. There are seven sections in the dashboard, which highlight the real time metrics and charts.
These seven metrics are:
- Catalog and Inventory
- Cart and payment
- User behavior
Hence, Fynd platform offers an entire suite for running the business online, It helps the entrepreneurs to reach the business to a superior level. The sellers can request for a demo before launching business at Fynd platform. The team will reach to you to serve the best services.
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
How to register at Amazon for selling cosmetics?
To complete the registration at Amazon India for selling the cosmetics, the sellers can follow the below mentioned steps:
- Create your account on Amazon and submit the following details
- GST and PAN information
- Active bank account details for payment
- Listing the products
- Complete the delivery to the customers
- Get the payment every 7 days
How to manage the orders and returns?
The sellers should go to the ‘Manage order’ on the seller central page and then track the shipment status, shipping service, payment mode and keep yourself updated with the latest information, so that you can avoid mismanagement.
In order to manage the return order, the sellers should click on the ‘Return reports’ under the Reports section. Track the return shipments and refunds. Or else, the seller can join FBA for experiencing the hassle-free business.
How can I increase the product visibility?
To increase the product visibility, by following the below mentioned steps:
- Use the relevant keywords (which are top searched or trending)
- Advertising (to reach to a large base of customers with your brand/ products)
What are the best places for starting an online cosmetics business?
Some of the best platform for starting online cosmetics business are listed in the following section:
- Facebook marketplace
- MUABS etc.
Is online makeup business profitable?
In India, online makeup business is very successful since the sellers can draw a higher profitability margin from it. For instance, the profitability margin in online cosmetics business has been increased by 40% to 80%.
How much money do I need to start a cosmetic business in India?
One needs approximately INR 10000 to INR 20000 to invest, so that he/ she can start an online cosmetic business in India.