The natural cosmetics market is expected to reach a total value of $41.91 billion this year. If you would like a share of this sizable pie by selling on Etsy, there are some important strategies to consider.

But first, we must explore the current market for handmade cosmetics to determine its size, competition and level of profitability.

Let’s dive right in.

How big is the market for handmade cosmetics on Etsy?

We used Sale Samurai’s “Search” module to conduct a basic keyword search for a few seed keywords.

Whereas the broader search term “cosmetics” gives us an Etsy search volume of 775, the more narrowed down query “handmade cosmetics” produces a count of only around 20.

However, when we expanded our search to Etsy, we found that “cosmetics” yields around 420,867 listings, whereas “handmade cosmetics” brings back around 44,070 listings.

As a result of this, your listings optimization process should start off by targeting “handmade cosmetics” in particular. This is because search queries for “cosmetics” in general can be confused with “cosmetics bag”, “cosmetics pouch”, “cosmetics label”, “cosmetics organizer”, “cosmetics jar”, “cosmetics travel bag”, and more.

Related keywords

Moving on, we also explored related keywords, as well as their Etsy search volume (above 200) and listings count.

This is what we found:

• “Cosmetics”: search volume – 775; listings count – 44,070
• “Cosmetic”: search volume – 695; listings count – 420,843
• “Kylie cosmetics”: search volume – 398; listings count – 1,192
• “Lush cosmetics”: search volume – 397; listings count – 558
• “mba cosmetics”: search volume – 377; listings count – 609
• “ra cosmetics”: search volume – 351; listings count – 632
• “eccentric cosmetics”: search volume – 212; listings count – 614

From the above, it becomes apparent that our research needs to be narrowed down further. The reason behind this is that the word “cosmetics” is quite broad and does not encompass specific cosmetic products.

We refined our approach, conducting the same search for related keywords, search volume, and listings count, but this time, with more precise keywords.

Here are our results:

• “Lip gloss”: search volume – 2,927; listings count – 31,425
• “Make up”: search volume – 2,575; listings count – 83,910
• “Nail polish”: search volume – 928; listings count – 51,140
• “Arnica cream”: search volume – 162; listings count – 603
• “Body lotion”: search volume – 147; listings count – 13,010
• “Cream”: search volume – 83; listings count – 454,380
• “Hand cream”: search volume – 69; listings count – 32,264

Finally, we were able to conclude that lip gloss and nail polish, in addition to makeup in general, is what consumers are looking for. These are also the types of handmade cosmetics offered by sellers the most.

Tags

Tags are useful in helping sellers position their handmade cosmetics products in front of an audience. This is why we also explored the tags related to the handmade cosmetics niche and found the following regarding their search volume:

• “Gifts for her”: search volume – 26,658
• “Personalized gift”: search volume – 26,611
• “Gift woman”: search volume – 26,604
• “Gift for women”: search volume – 26,601
• “Best friend gift”: search volume – 3,493
• “Makeup”: search volume – 2,196
• “Beauty”: search volume – 135

What becomes apparent here is that cosmetics items are overwhelmingly bought as gifts on Etsy. This means you’d be well positioned to compete in this niche if you, too, optimize your listings using such keywords.

Pricing

Prices are a further factor for exploration and will impact your sales and profitability. This is why we explored the different prices for some of the seed keywords.

We found that the lowest price for handmade cosmetics products is $3.95, the highest price is in the region of $90.00, while the average price is between $21 and $22, or $21.64 as of the time of writing.

What are some of the best-selling merchants doing right?

Along our research journey, we also explored some of the star sellers on Etsy in the handmade cosmetics niche. We identified two in particular, which have strong listings and great profitability.

The first star seller we identified is NonaLuisa. They have created the “All-natural Birthday Box for Her | Handmade cosmetic gift, bath bomb, cold process soap, lip balm | Birthday for Her, Birthday Present”. This item has received five out of five star ratings and is making waves on Etsy.

The second star seller is FeinsteSeifen. Their item is titled “Natural cosmetics set *GlücksBox* Mango unchained – decorated gift box with natural oil soap, skin care and loofah slice”. This seller has also received ratings of five out of five.

Well-optimized titles and descriptions

So, what have they done to get in front of an audience and be classified as star sellers? The first clue is in their titles. They have used an overarching keyword “cosmetics” and have included other words in support, such as “handmade” and “natural”. Offering gift sets for the primary audience of women is an important strategy in terms of catering to search queries, as seen above in our analysis of the tags.

Furthermore, their descriptions are extremely detailed, indicating what buyers need to know: what ingredients are used in the cosmetics creation process and whether there is plastic involved. Many people who purchase organic or natural cosmetics are also environmentally conscious. So, catering to their audiences by offering plastic-free packaging is another important strategy to gain customers.

Pricing around the average and generating reviews

Both sellers have also priced around the average of $20.00. This means that their products are accessible to a larger audience.

Finally, both have generated multiple reviews ranging from just over 200 to above 2,000. This is a strong indicator that previous buyers are satisfied with the products. It also means that others reading these reviews will likely be swayed to purchase from these sellers, too.

How profitable is this niche?

NonaLuisa’s “All-natural Birthday Box for Her | Handmade cosmetic gift, bath bomb, cold process soap, lip balm | Birthday for Her, Birthday Present” has generated 1,059 sales at a price of $22.46. Multiplying the sales number by the price gives us an estimated turnover of around $23,785.14.

FeinsteSeifen’s “Natural cosmetics set *GlücksBox* Mango unchained – decorated gift box with natural oil soap, skin care and loofah slice” has generated 7,935 sales at a price of $20.00. This gives us a lovely turnover in the region of $158,700.00.

It’s therefore evident that if you target your products effectively, price appropriately, and optimize your listings, your turnover has the potential to go from over $20,000 up to and over $150,000. These are quite significant amounts indeed.

Our recommendations for sellers seeking to enter this niche

Based on the above research, we have extracted some best-selling practices that you can emulate if you want to enter the handmade cosmetics niche.

Clear and concise use of keywords

Since most of the best-selling products are gift sets targeted at women, it’s important to specify this point in your titles and descriptions. It’s also important to emphasize the materials you’ve used to create your natural cosmetics set (such as mango, Arnica, rose, buttermilk, citrus, lavender, and others). Expressing your keywords in a natural sounding and unstuffed manner is another critical component. Remember that you are writing for humans, and not for bots.

As a result, ensure that your description is as thorough as possible by mentioning what comes in the box and what’s excluded. Specifying shipping days and times can also help you draw in more customers. This is because the more details you provide there, the better the customer’s experience will be.

Pricing around the average is a must

While some sellers are offering really top-range products that are priced at around $90.00, you want to avoid going for high prices unless you are sure of the success of your products and their quality.

This is why it’s highly recommended to offer your natural cosmetics gift sets in the region of $20.00. Both of the bestsellers identified above have employed this strategy to great effect.

Use all 10 image slots, include video

images should be used to their full potential. This is why utilizing all 10 spaces allocated by Etsy is a crucial part of your “shop display” strategy. However, looking at the practices of the two bestsellers above, we have identified some discrepancies.

Whereas NonaLuisa has utilized all 10 spaces and includes an unboxing video in her presentation, the second seller FeinsteSeifen has only utilized two images. This can be improved upon for better presentation of products in a lifestyle setting so that customers know exactly what they’re getting.

Garner ratings and reviews

We conclude our discussion of recommendations by focusing on reviews. Ratings and reviews are an excellent way of helping you generate more sales. The reasons for this are evident.

More and more shoppers look at reviews to inform their purchasing decisions. Although you cannot outright solicit for reviews, you should be aware that these play a crucial role in your overall success.

Concluding thoughts

The handmade cosmetics market on Etsy has the potential to earn you hundreds of thousands of dollars. Yet, a strong sales strategy must be followed in order to achieve success. In this post, we’ve outlined some of the key performance metrics for this niche to help you get a bird’s eye view of what you can and should do to get in front of an audience.

Of course, our research would not be complete without the help of the industry keyword research monster – Sale Samurai.

This is a highly effective tool with various modules that can help you optimize your listings to their fullest potential. At only $9.99 per month, it’s a minimal investment into your Etsy business that can help skyrocket your sales.