How to Start an Online Hair Business: Tips and Tricks for Success

Do you have a strong passion for hair care and a desire to start your own business? If so, the internet provides numerous opportunities for you to turn your dreams into a profitable reality. The online hair business has seen a significant rise over the past few years, with more and more people opting to purchase hair products and accessories online. Starting your own online hair business may seem daunting and overwhelming, but it doesn’t have to be. With the right strategies, you can quickly get your business off the ground and set yourself up for success.

When it comes to starting an online hair business, the first step is research. Take your time to do in-depth research on the industry, your niche, and your target audience. Learn about the latest trends in the industry and what your target audience is interested in. This information will help you create a unique selling point for your business. Once you have a clear understanding of your industry and target audience, develop a solid business plan that outlines your goals, objectives, and action steps. This plan will help guide your every move as you start and grow your business.

Another essential factor to consider when starting an online hair business is branding. Creating a strong brand identity will help you stand out in a crowded market and attract customers. Give careful attention to your brand name, logo, website design, and social media presence. Make sure your brand identity is consistent across all channels and resonates with your target audience. By following these simple steps, you can start your online hair business with the confidence and knowledge necessary for success.

Conducting Market Research

Before starting any business, it is essential to conduct market research. It is the process of gathering information about your potential customers and competitors to make informed decisions. In the case of an online hair business, market research helps you understand the demand for hair products and identify your target audience.

  • Identify your target audience: You need to know your target market to create products that cater to their needs. Determine the age, gender, location, and income of your potential customers.
  • Analyze your competitors: Look at the websites of your competitors to understand their target audience, pricing, and marketing strategies. You should also analyze their product offerings to identify any gaps in the market.
  • Identify trends: Keep up to date with the latest trends in the hair industry. Look for new products, styles, and techniques that you could incorporate into your business.

Market research is crucial to the success of your online hair business. It allows you to make informed decisions based on data rather than assumptions.

Identifying Your Target Audience

When starting an online hair business, identifying your target audience is crucial to your success. Knowing who your ideal customer is will help you tailor your products, marketing strategies, and branding efforts to best meet their needs. Here are some tips to help you identify your target audience:

  • Research demographics: Look into the age, gender, income level, and location of your potential customers. This information will help you understand their lifestyle, preferences, and purchasing power.
  • Identify their needs: Figure out what problems or concerns your target audience has when it comes to their hair care. Do they need an organic, sulfate-free shampoo? Are they looking for hair extensions that blend seamlessly with their natural hair?
  • Check out the competition: Look at other online hair businesses and see who their target audience is. Are they targeting a specific ethnicity or hair type? Do they cater to a certain age range?

Once you have identified your target audience, you can use this information to create a buyer persona. A buyer persona is a fictional representation of your ideal customer, which includes details such as their age, gender, interests, and even a name. This persona helps you relate to your audience on a personal level and craft messaging that resonates with them.

For example, if your target audience is African American women who prefer natural hair care products, your buyer persona might be named “Nia.” Nia is 30 years old, married with two children, and has a full-time job in the healthcare industry. She loves to shop for beauty products online and is passionate about using natural ingredients on her hair. Knowing this information about Nia allows you to create marketing messages that speak directly to her needs and interests.

Demographic Needs/Wants Competition Analysis
Women aged 25-40 Affordable but quality hair extensions that match their natural hair color and texture Competitors are mainly targeting women of a specific ethnicity, leaving a gap in the market for a more inclusive brand
Men aged 18-35 Low-maintenance hair care solutions for active lifestyles Competition is saturated with products that are too high-maintenance or geared towards older men

Identifying your target audience and creating a buyer persona may take some research and effort, but it is essential for the success of your online hair business. With a clear understanding of who you are targeting, you can create a brand that speaks directly to your customers and helps them feel confident and beautiful.

Creating a Brand Identity

When starting an online hair business, creating a strong brand identity is crucial to standing out in a crowded market. A brand identity encompasses the visual, verbal, and emotional elements of your brand that communicate your values, mission, and unique selling proposition. Here are some steps to consider when creating a brand identity:

  • Define Your Ideal Customer: Knowing your target customer’s demographics, psychographics, and pain points is essential to creating a brand identity that resonates with them.
  • Create a Brand Story: Share your company’s mission, values, and unique selling proposition through a narrative that evokes emotion and connects with your ideal customer.
  • Design a Logo and Visual Identity: Your logo should be memorable, timeless, and represent your brand’s personality. Develop a visual identity system that includes a color palette, typography, imagery, and graphic elements that are consistent across all branding touchpoints.

Once you have established your brand identity, it’s important to consistently use it across all marketing channels, including your website, social media, packaging, and communication with customers. By developing a strong brand identity, you can build trust and loyalty with your target audience and differentiate yourself from competitors.

Developing a Business Plan

Starting a successful online hair business requires more than just sourcing high-quality hair extensions. You need to develop a comprehensive business plan that covers every aspect of your business, from marketing and pricing to delivery and customer service. Here are some key elements to include in your business plan:

  • Your business goals and objectives, including short-term and long-term targets
  • An analysis of the market and competition, including your unique selling proposition
  • Your target audience and marketing strategies to reach them

Your business plan should also include financial projections, including sales forecasts, operating expenses, and cash flow analysis. This will help you determine how much capital to invest, how much revenue you need to generate, and when to make adjustments to keep your business profitable.

Start-up Costs

One of the most important aspects of your business plan is determining your start-up costs. These will vary depending on the size and scope of your business, but some key considerations include:

  • The cost of sourcing hair extensions, including shipping and customs fees
  • The cost of website design and development, including e-commerce functionality
  • The cost of marketing, including paid advertising and social media management
  • The cost of shipping and handling, including packaging materials and fulfillment services

Once you’ve determined your start-up costs, you can begin to develop a pricing strategy that will allow you to cover your expenses and generate a profit.

Pricing Strategy

Pricing your products and services is a delicate balance between staying competitive and profitable. Too high of a price point, and you risk pricing yourself out of the market. Too low, and you may not be able to cover your expenses. When developing your pricing strategy, consider the following:

  • The cost of sourcing and shipping your products
  • Your overhead expenses, including website hosting and maintenance and marketing costs
  • Your profit margin goals, including how much revenue you need to generate to cover your expenses and earn a profit
  • The prices of similar products offered by competitors

By carefully considering these factors, you can determine a pricing strategy that aligns with your business goals and appeals to your target audience. Remember, pricing isn’t set in stone, and you may need to make adjustments as your business grows and evolves.


Developing a business plan is a crucial step in starting a successful online hair business. By taking the time to research the market, analyze your competition, and determine your start-up costs and pricing strategy, you can position your business for long-term success and profitability.

Major Takeaways
Develop a comprehensive business plan that covers every aspect of your business
Determine your start-up costs to develop a pricing strategy that covers your expenses and generates a profit
Carefully consider your pricing strategy, taking into account your overhead expenses, profit goals, and competitor prices

By following these principles, you’ll be well on your way to launching a successful online hair business.

Establishing a Website and Social Media Presence

Starting an online hair business can be a bit overwhelming, but with the right strategy and tools, it’s easier than you think. One of the most important aspects of starting your hair business is to establish a website and social media presence. Here’s how you can do it:

  • Choose the right platform for your website: You can either create a website from scratch or use an e-commerce platform like Shopify, WooCommerce, or BigCommerce. Choose a platform that suits your business needs, budget, and technical skills.
  • Pick a catchy domain name: Your domain name is the URL people will use to find your website. Choose a name that’s easy to remember, relevant to your brand, and available to register.
  • Create engaging content: Your website’s content should be customer-focused and informative. Add product descriptions, high-quality images, blog posts, and FAQs that can help customers make informed decisions.

Social media is a dynamic tool to promote your hair business and reach a wider audience. Here’s what you can do:

  • Set up social media accounts: You don’t have to be present on all social media channels, but choose the ones that your target audience frequents the most. Create a business page on Facebook, Instagram, Twitter, Pinterest, and other relevant platforms.
  • Create high-quality content: Share engaging photos, videos, and stories that showcase your products, customer testimonials, and behind-the-scenes content. Use hashtags, captions, and calls-to-action that attract and engage your audience.
  • Engage with your audience: Social media is a two-way conversation. Reply to comments, messages, and inquiries promptly. Show your personality, professionalism, and empathy in your responses.

Here’s a sample breakdown of the time, effort, and cost it takes to establish a website and social media presence for your hair business:

Task Time Effort Cost
Pick a domain name 1 hour Low $10-$20 per year
Create website content 5-10 hours High $100-$500 one-time
Create social media accounts 1-2 hours per platform Low Free
Create social media content 3-5 hours per week High $0-$100 per month

With these tips, you can establish a professional website and social media presence that will help you attract and engage with your target audience. Remember to be consistent, authentic, and customer-focused in your approach.

Sourcing Hair Products and Supplies

If you’re starting an online hair business, one of the most important things you need to consider is where you will get your hair products and supplies. Sourcing high-quality hair extensions, styling tools, and other hair products can be a challenge, especially if you’re just starting out. Here are a few tips to help you find the best products for your online hair business:

  • Research hair product suppliers in your area or online. Look for suppliers who specialize in selling hair extensions, hair care products, and styling tools. You can check online business directories, trade shows, and hair product forums to find suppliers.
  • Ask for recommendations from other hair business owners. If you’re part of a hair business community or network, don’t be afraid to ask other owners for recommendations on hair product suppliers. They may be able to offer valuable insights and tips on sourcing high-quality products.
  • Check reviews and ratings before making a purchase. Before you place an order with a hair product supplier, check online reviews and ratings to see what other customers are saying. Look for suppliers with high ratings and positive reviews.

When you’re sourcing hair products and supplies, it’s important to remember that quality is key. You want to find suppliers who offer high-quality hair extensions and hair products that your customers will love. Here are a few other things to keep in mind:

Be wary of suppliers who offer prices that seem too good to be true. Cheap hair extensions and hair products may be of low quality and may not meet the needs of your customers.

Consider partnering with a few key hair product suppliers. Building strong relationships with suppliers can help you reduce costs, streamline your ordering process, and ensure that you have a steady supply of high-quality products on hand.

Ultimately, sourcing hair products and supplies takes time and research. But by following these tips and working with reputable suppliers, you can ensure that your online hair business is successful and profitable for years to come.

Setting Prices and Profit Margins

Setting prices and profit margins is an essential component of starting and running a successful online hair business. There are several factors that you need to consider when it comes to determining prices and profit margins. In this section, we will discuss the key aspects that you need to keep in mind when setting your hair business prices and profit margins.

  • Research Your Competition: You need to determine the prices that other online hair businesses are charging for similar products. Use this information to set your prices competitively. However, be cautious about setting prices lower just to compete with other businesses, as this could lead to lower profit margins and may not be sustainable in the long run.
  • Cover Your Costs: You also need to factor in the costs related to your business, such as the cost of purchasing the hair, shipping, and packaging. Make sure to price your products in a way that covers your costs and provides a reasonable profit margin.
  • Know Your Target Market: Consider the demographics of your target audience and adjust the prices according to their purchasing power and preferences. A premium target market is more likely to have higher purchasing power and could be open to paying a higher price for quality products. On the other hand, a budget-conscious target audience may not be willing to pay a high price.

Setting prices too high or too low can significantly impact the success of your business. Make sure to conduct market research and analyze the costs, demand and competition before setting your prices and profit margins.

To help you get started, here is a simple pricing model that you can use for your hair business:

Cost Profit Retail Price
$10 $5 $15
$25 $10 $35
$40 $15 $55

As you can see, the retail price is the sum of the cost and profit. In this model, the profit margin is kept at a reasonable level, while still covering the costs of the hair and other expenses related to running the business.

Remember, pricing is not set in stone, and you can always adjust it based on market demand and changes in your business expenses. By following these guidelines and regularly monitoring your prices, you can set competitive prices and margins that will help your business thrive.

Marketing and Advertising Strategies

Marketing and advertising are crucial elements for any online business, and your hair business is no exception. In order to attract and retain customers, you need to create awareness about your store and make sure that your products are visible to your target market. Here are some effective marketing and advertising strategies that you can use:

  • Social Media Marketing: Social media platforms such as Facebook, Instagram, and YouTube provide an excellent opportunity to promote hair products, share tutorials, and engage with customers. Build a strong social media presence by creating visually appealing posts that showcase your products. Consider collaborating with influencers and bloggers in your niche to reach a wider audience.
  • Email Marketing: Build an email list of potential and existing customers and send them regular newsletters and promotions. Personalize your messages and tailor them to the specific needs and interests of your audience.
  • Search Engine Optimization (SEO): Optimize your website for search engines to increase your visibility and attract more organic traffic. Use relevant keywords in your content, meta tags, and product descriptions. Build quality backlinks from reputable websites in your niche.

In addition to these strategies, you can also consider using paid advertising methods such as Google Ads and Facebook Ads to target your ideal customers and boost your sales. However, before investing in paid advertising, make sure that you have a clear understanding of your target audience, your budget, and the ROI you expect to achieve.

Here is a table summarizing some of the pros and cons of these advertising strategies:

Strategy Pros Cons
Social Media Marketing Cost-effective, high reach, visual appeal Time-consuming, requires consistent effort
Email Marketing Personalized messages, high conversion rates, low cost List building can be challenging, risk of being marked as spam
Search Engine Optimization (SEO) Cost-effective, high ROI, long-term benefits Requires time and effort, results may take time to show
Paid Advertising Precision targeting, quick results, measurable ROI Costs can add up, requires expertise to optimize

Remember to track your marketing and advertising efforts regularly and adjust your strategies based on the results you are getting. By being consistent, flexible, and creative, you can develop a strong brand presence and grow your online hair business.

Fulfillment and Shipping

Running an online hair business requires a seamless process of fulfilling orders and shipping them out to customers. Without a reliable and efficient system, you risk losing customers and damaging your reputation. Here are some tips to help you streamline the fulfillment and shipping process:

  • Invest in a good inventory management system: This will help you keep track of your stock levels, avoid overselling, and ensure timely replenishment of your hair products.
  • Create a packing checklist: Having a detailed checklist of the items to be included in each order will minimize errors and ensure consistency in packaging.
  • Partner with reliable shipping carriers: Choose shipping carriers that offer affordable rates, timely delivery, and good customer service.

Once you’ve received an order, the next step is to fulfill it. This involves picking the product from your inventory, packing it, and shipping it out to the customer. To ensure a smooth fulfillment process:

1. Create a process: Develop a standardized process for fulfilling orders. This could include assigning specific tasks to team members, standardizing packing materials, and creating a shipping schedule.

2. Conduct quality checks: Inspect each hair product before packing to ensure it is in good condition and meets customer expectations in terms of quality and quantity.

3. Double-check orders: Have a quality control step in place to match the order with the packing checklist before shipping it out. This will minimize the risk of sending out the wrong item or missing any items in the order.

Shipping hair products can be tricky, as they are delicate and can easily be damaged or lost in transit. Here are some tips to ensure successful shipping:

1. Take photos of the packaging: This will serve as proof of how the product was packed in case of any damage during transit.

2. Choose the appropriate packaging: Use sturdy boxes and protective fillers to cushion the hair products during shipping.

3. Provide tracking information: Share the tracking details with the customer so they can track the progress of their order. This also helps to build trust with your customers.

Shipping Carrier Estimated Delivery Time Cost
FedEx 1-5 business days Varies based on weight and destination
USPS 1-3 business days Flat rate or varies based on weight and destination
UPS 1-5 business days Varies based on weight and destination

By following these tips, you can ensure that the fulfillment and shipping process of your online hair business is efficient, effective, and customer-friendly.

Providing Exceptional Customer Service

When it comes to starting an online hair business, providing exceptional customer service should be at the top of your priority list. It’s important to create a positive experience for customers so they will keep coming back and refer others to your business. Here are some tips for providing exceptional customer service:

  • Respond promptly to customer inquiries and concerns.
  • Be friendly and personable in all your interactions with customers.
  • Offer solutions or alternatives when issues arise.

Going above and beyond for your customers will set your business apart from the competition. Consider offering personalized recommendations based on customers’ hair type and preferences, or providing a free consultation to help them find the right products for their needs.

Managing Returns and Refunds

Managing returns and refunds can be a challenge for any e-commerce business, but it’s especially important for an online hair business. Customers want to feel confident in their purchase, and knowing there is a clear return and refund policy can help ease any concerns they may have. Here are some tips for managing returns and refunds:

  • Create a clear return and refund policy that is easy for customers to understand.
  • Be responsive when customers request a return or refund.
  • Process returns and refunds quickly.

One way to minimize returns and refunds is to provide detailed product descriptions and images, along with accurate sizing and color information. Additionally, consider offering samples of your products so customers can try before they buy.

Soliciting Customer Feedback

Finally, soliciting customer feedback is a valuable way to improve your business and show customers that their opinions matter. Encourage customers to leave reviews and ratings on your website, social media pages, and other online platforms. Monitor these reviews and respond to any concerns or issues that arise. Here are some tips for soliciting customer feedback:

  • Make it easy for customers to leave feedback by providing clear instructions and links.
  • Offer incentives, such as discounts or free samples, for leaving feedback.
  • Take feedback seriously and use it to make improvements to your business.
Benefits of Exceptional Customer Service How to Provide Exceptional Customer Service
Increased customer loyalty Be responsive and personable in interactions
Positive reviews and referrals Offer personalized recommendations and solutions
Increased sales and revenue Create a clear return and refund policy

Providing exceptional customer service is key to the success of any online hair business. By responding promptly to customer inquiries, managing returns and refunds effectively, and soliciting customer feedback, you can create a positive customer experience that will keep them coming back for more.

FAQs About How to Start an Online Hair Business

1. Do I need to have a physical store to start an online hair business?

No, you don’t need a physical store to start an online hair business. All you need is an e-commerce website or a page on a marketplace like Amazon or Etsy.

2. Do I need to have a degree or certification to start an online hair business?

No, you don’t need any degree or certification to start an online hair business. However, it’s always advisable to take some classes or online courses to improve your knowledge and skills.

3. Do I need to have a large inventory to start an online hair business?

No, you don’t need a large inventory to start an online hair business. You can start with a limited inventory and gradually increase it as your business grows.

4. How can I source my products for my online hair business?

You can source your products from wholesalers, manufacturers, or distributors. You can research online or attend trade shows to find the right source for your products.

5. How can I market my online hair business?

You can market your online hair business through social media, search engine optimization, paid advertising, and influencer marketing. You can also collaborate with other businesses or offer referral programs to increase sales.

6. How can I handle customer service for my online hair business?

You can handle customer service through email, phone, or chat support. It’s important to have clear policies for returns, refunds, and exchanges to avoid any misunderstandings.

7. How much money do I need to start an online hair business?

The amount of money you need to start an online hair business varies depending on your product selection, market, and business model. You can start with a few hundred dollars or invest in a larger budget for marketing and inventory.

Closing Thoughts

Starting an online hair business requires hard work, dedication, and a commitment to customer satisfaction. With the right approach, you can build a successful business that offers products and services that customers will love. Thank you for reading this guide, and we encourage you to visit our website again for more helpful business advice.