The sale of perfume was a $36 billion industry, as of 2016, according to the Business Wire website. If you love fragrances and want to be involved in the industry, learning how to become a perfume distributor can bring about interesting and lucrative opportunities. Because the perfume industry is adding designers and celebrities contributing their fragrance offerings, the opportunity is there. But the onus is on you, the distributor, to keep up with the trends.
Define Your Selling Strategy
Determine how you will sell your perfumes. If you are selling online, look for large websites such as eBay or Bonanza through which you can sell your product. You can also set up your own website and either promote the items you have on other sites or place products on it directly for purchase.
Set Up a Credit Card Account
If you choose to sell online and you will keep inventory, you must be able to accept credit card payments through your bank or a third-party processor such as PayPal as well as ship the perfumes through the Postal Service or UPS. If you will be drop shipping your products – meaning the manufacturer ships the product after you sell it – you only need to be able to accept credit card payments.
Get a license
Obtain a federal Tax Identification Number (TIN) through the IRS website. Get a vendor's license or retail sales license through your state's tax department or secretary of state office. Contact your secretary of state office to find out what licenses are required in your state.
Define a Suitable Way to Distribute Your Products
Drop ship perfumes through other companies. This is a simple and inexpensive way to distribute your products because you do not have to purchase a large amount of product. Instead, your efforts are concentrated in marketing your products and collecting sales. The items are then shipped by the manufacturer after you send them the wholesale cost. You retain the remainder of what you charged as a profit.
Contact the Wholesale Department
Contact the wholesale department of the manufacturers of your favorite perfume brands or brands you would like to represent and ask to become a distributor. You will need to fill out their application and purchase a certain minimum amount of product in order to qualify.
Become a Distributor
For an investment of between $6,000 and $20,000, you gain access to companies, such as Worldwide Perfumes, and their vast inventory. You are able to distribute the perfumes to salons and boutiques. The company's program provides you with your display cabinets and other sales assistance.
Advertise Your Products
Select stores, boutiques and salons to offer your perfumes to. Look for local flea markets, craft fairs and other festivals as well. Getting the word out about your perfumes by showcasing them in different venues is the best way to make sales.
Inform Your Customers
Market your perfumes online through social media, email newsletters and alerts – informing your current customers of sales and new products as they become available.