Yes, you can start a hair business with no inventory by going through the dropshipping route. This way, you can start your hair business with no inventory since the vendor will ship the hair or wigs directly to your clients. Dropshipping is an order fulfillment model that does not warrant a business owner to keep products in stock.
Note that this business model can quickly help you start and run your new hair business without incurring much expense or stocking inventory. Unlike other business models, the dropshipping business model is very beneficial to new business owners.
You will not need to rent or own a warehouse to store your inventory. In this way, you don’t need to bother about the inventory and investment, once your customer places an order, your job is to let your supplier know where to ship the goods.
Aside from not needing a store or warehouse to keep inventory, this business model also allows you to save the cost of logistics and packaging since your supplier will package and ship the goods to your customers directly. However, it is always imperative you first confirm your vendor’s product quality.
Also, know what they supply, test the sample, and maybe visit their local office or warehouse. Once you are done analyzing the quality of the products, you can then start your dropshipping business.
By leveraging the drop-shipping model, your major purpose will then become marketing and customer acquisition. Owing to that, it is always necessary to ensure your hair product appeals to impulse buyers, especially those with sizable income.
You can leverage Google’s Keyword Planner and Trends to analyze some common search terms associated with your potential niche. Also, remember that building an interactive website is paramount for a long time of success in this business.
How to Start a Hair Business With No Inventory
If you are interested in this business model, here are critical steps to consider.
Understand the Industry
Anyone can start a business at any time, but it is also imperative to realize that there is nothing like easy money, especially for individuals who think that easy money entails making money without working or studying. You need to have detailed knowledge of different types of hair. You also need to know about hairdressing products. You can acquire all this information via the following free channels:
- The internet
- Locate platforms for more personal experiences, like working for local hair businesses such as barbershops and wig retailers
- If you already have a trusted hair/wig product supplier, it is also another way to get more comprehensive information from your partners.
Know Your Customer Base
After you must have garnered enough knowledge about the industry, it’s time to determine your customer base and sales channels.
The hair industry is very massive and new gaps in the market have been discovered that can be filled. The most important objective of any profit-making institution is to generate income; you have to therefore make a detailed plan on how to do it even before you open shop.
Find Reliable And Efficient Hair Vendors
Collaborating with the wrong vendor will hamper your business so it’s very critical that you don’t rush this step. Take your time to conduct proper due diligence.
A good number of dropshipping suppliers are located overseas, making communication a very important factor, both in terms of response speed and also business understanding. Once you feel you are not entirely confident about the communication abilities of a possible supplier, just move on and continue your search.
Also, remember to check the hair product’s quality first before initiating a long-lasting working relationship with any hair manufacturer. Note that you can check their samples or visit their office/warehouse to see the quality for yourself.
Create Your Brand
In the hair industry, your dropshipping business will have more value if you can rebrand whatever it is you are selling and pass it off as your own.
Therefore, when seeking suppliers, endeavor to aim for a supplier or manufacturer you can white label and sell as your brand with custom packaging and branding. Consider selling something that isn’t available locally. Natural and premium virgin hair can bring in more customers and can ensure you become more attractive to a possible customer.
Have a Website or Use Social Media
You can start by uploading photos and videos of your hair on social media accounts such as Instagram. If you do this well, in no time you will start getting people inquiring about the hair you sell. From there people will also want to visit your website and before you know it someone will place an order. When they place their order, they will check out with Stripe, PayPal, or the exact payment processor you use on your website
Order From Your Vendor
Once the customer’s payment is cleared or if you choose to use your own money, you can then place an order with your vendor. This process will only work if your vendor accepts small orders. After you pay your vendor, they will put together your order and ship out your order. Have it in mind that you have 2 options at this point:
- They can send the hair directly to your customer for you, which is genuinely referred to as drop-shipping. Via this option, you won’t get the chance to see the actual product, but it is still necessary to ask your vendor if they provide this service (most likely will have to pay additional fees).
- The vendor sends the hair to you.
If you choose to go with the second option, then once you receive the hair from your vendor, you can choose to replace the vendor packaging with your own. Add your custom labels, business card, and thank you notes.
Improve Customer Retention & Keep Unlimited Sales
To start a hair business with no inventory, online sales should be your main strategy. Social media as a high-speed information dissemination channel is a less expensive and most often free marketing tool for your hair business.
Know the trending influencers in your industry and affiliate with them; or you can create explosive topics (such as free competitions, hair extension tutorials, and wig tips) yourself to draw in unlimited attention and boost your sales. Always strive to provide your customers with excellent online services, and offer discounts for specific long-term loyal customers (such as salon owners, beauty students) to obtain stable repeat customers.