How To Become a Perfume Distributor in 2025

It’s an exciting time to be in the perfume industry, which is on the way to reach $112 billion by 2030. In 2025, the market already stands at $62.11 billion globally, creating major opportunities for businesses in B2B perfume distribution and the broader cosmetics supply chain.

Consumer demand is driving growth. Gen Z buyers increasingly prioritize luxury spending, and TikTok trendsetters are helping perfume surge as one of beauty’s most resilient categories. Many enthusiasts are building “fragrance wardrobes” with multiple scents for different moods and seasons, rather than sticking to one signature scent. That means a lot more Chanel and Le Labo hitting shopping carts.

Distributors buy products from a manufacturer, then resell them to retailers in bulk at a lower cost than the recommended retail price (RRP). If you’ve already poured passion and personal time into perfume as a hobby, you could have a valuable leg up in the distribution business. Still, it takes specialized research and significant planning to become a successful distributor. This guide will help you do just that. 

What is a perfume distributor?

A perfume distributor buys finished fragrances from brand owners or manufacturers, and resells them to retailers (B2B) or consumers (B2C). They are responsible for securing territory or channel rights, importing and storing finished products, and then placing the SKUs with retailers and marketplaces—basically, overseeing the perfume supply chain. 

A good distributor also helps build demand. They can negotiate assortments and launch calendars, supply test kits and visuals, and enforce price and channel rules to avoid gray market leaks, which is when a product is traded through channels not authorized by the original manufacturer. 

Since perfume is a regulated consumer product, distributors are also responsible for label compliance and aligning with industry safety standards for fragrance ingredients. 

B2B vs. B2C perfume distribution models

B2B (business-to-business)

In a B2B ecommerce model, the distributor’s customer is the retailer. The distributor manages relationships with various retailers, helping them meet service levels and forecast replenishment levels. The B2B model offers volume and predictable revenue through large purchase orders, and it’s the fastest way to get multiple brands to market quickly. 

The drawback of B2B is that margins on each unit are lower, and the business is capital-intensive. You have to carry a significant amount of inventory and manage accounts receivable. 

B2C (business-to-consumer)

In a B2C, or DTC (direct-to-consumer) model, the business sells directly to the end customer through an ecommerce site, marketplace, or physical store—or all of them at once. 

There are many differences between B2C and B2B ecommerce. One is that in B2C, you have more control over how your brand is presented and can gain valuable first-party data on your customers. However, customer acquisition costs (CAC) tend to be higher and you’re responsible for fulfillment, customer service, and returns. 

Hybrid and omnichannel distribution

The most successful distributors today don’t choose one path. They master both. A hybrid strategy uses B2B to baseline volume and credibility in a market, then adds a B2C channel to capture higher margins and collect customer data. Done well, this becomes a true omnichannel distribution model—meeting customers wherever they buy.

Running both models can put a strain on operations if managed on separate platforms. Integrations often break and IT teams spend more time fixing problems than developing solutions. That’s why a unified B2B commerce platform is the core of this approach. 

Shopify, for example, allows you to run your B2B and DTC businesses from a single back end, providing a centralized platform to manage inventory, orders, and customer data. This approach helps create seamless buying experiences for all your buyers and reduce total cost of ownership (TCO) by up to 36%.

Current market opportunity in 2025

The perfume market shows no signs of slowing. Mordor Intelligence projects it will reach $112 billion by 2030, with the US having led 2024 growth at nearly 12% year over year. 

Emerging markets like Saudi Arabia and the United Arab Emirates also saw sustained momentum as the market climbed to $3.76 billion in 2024, growing at a 7.5% rate each year until 2034. 

Some analysts flag a moderating pace after 2024’s boom, yet growth continues. Brands are exploring new formats (like oils, body mists, and pens), and emotion-driven launches to keep up the sales velocity. For distributors, this signals strong opportunity: focus assortments on proven franchises while leaving room to experiment with trend formats and niche brands.

How to become a perfume distributor

Convinced that distributing perfume is the next step? Here are the 12 steps to becoming a wholesaler.

1. Research the perfume industry
2. Develop a business plan
3. Obtain necessary licenses and permits
4. Secure startup funding
5. Find reliable suppliers and manufacturers
6. Set up distribution channels
7. Build an online wholesale store
8. Develop a pricing strategy
9. Implement an inventory management system
10. Create marketing and sales materials
11. Focus on customer service
12. Scale your business across borders

1. Research the perfume industry

Follow the perfume industry: the trends, the topline issues, how to communicate to the enthusiasts. Identify your target market and how to connect with them.

Research the demographics, preferences, and buying habits of perfume buyers. Analyze market trends, competition, and consumer behavior to find a niche for your business. Maybe it’s selling to small retailers in shopping malls who are looking for trendy scents this holiday season. Once the holidays pass, perhaps it’s selling fruity and floral perfumes—the popular summer choices—in shops tourists frequent. 

It’s a good idea to focus on smaller retailers, rather than shooting for big box retailers right away. For new distributors, it’s easier to get products in boutique stores, and they tend to take smaller cuts. Working with smaller storefronts will also ease you into finding order volumes that work for you. 

2. Develop a business plan

A well-crafted business plan is essential for setting clear goals and outlining strategies to achieve them. Your business plan should include research on the perfume market, financial projections, marketing strategies, and operational plans. This will help you secure funding, attract investors, and make informed decisions. 

Define your mission, vision, and values. This will lay the foundation for a unique, defined identity once your business starts to establish itself. 

3. Obtain necessary licenses and permits

Understanding legal requirements and regulations is essential for compliance, paying taxes, and avoiding legal issues. In the perfume industry, buyers are particularly wary of fraudulent and imitation products, so making sure your licensing is on point will help you earn a good reputation.

Wholesale distributors, in the fragrance industry and elsewhere, must obtain specialized business licenses to resell products. These reseller licenses typically cost $50 to $500 per state, with total startup licensing costs usually ranging $1,000 to $5,000 depending on your footprint. You’ll need a separate reseller’s permit in every state where your business operates. 

MoCRA compliance requirements for 2025

If you’re selling in the US, perfume is treated as a cosmetic, so the Modernization of Cosmetics Regulation Act (MoCRA) applies. In practice, this requires distributors to ask themselves two questions: 

1. Is your company the responsible person on the label?
2. Do any of your operations count as manufacturing or processing?

The “responsible person” is the manufacturer, packer, or distributor whose name appears on the label. If your name/brand is on the bottle (including private label), you are the responsible person.

Facilities that manufacture or process cosmetics must register with the FDA, and each product must be listed. Pure distributors that only store and ship products are generally exempt, but if you repackage, relabel, or fill containers, your site counts as a facility and must register.

In addition, MoCRA requires distributors to:

• Maintain product safety substantiation
• Ensure labels disclose fragrance allergens where required
• Report serious adverse events related to cosmetic use to the FDA

4. Secure startup funding

As mentioned above, perfume distribution is inventory-heavy. Launch buys, minimum order quantities (MOQs), and seasonal allocations all require cash up front—and not everyone has it right away. 

For distributors running on Shopify, Shopify Capital is the easiest way to fund those cycles. Availability and product type vary by country. For example, you can receive a loan in the US and Australia, as well as merchant cash advances in Canada, the UK. and the Netherlands.

Here’s how they work:

• US loans: You receive a lump sum with a fixed borrowing cost and repay the total payment amount via a daily percentage of your sales until the balance is cleared.
• Merchant cash advance: Shopify advances a lump sum for a fixed fee and automatically remits a set percentage of gross daily sales until the total to remit is met. There’s no fixed deadline. 

So, if your distribution plans require sizable launch buys, Shopify Capital can bridge inventory and marketing outlays without adding a fixed monthly bill. 

5. Find reliable suppliers and manufacturers

To consistently source high-quality products—and get a good deal—you need to find the right fragrance suppliers. Research and identify reliable wholesale suppliers who offer what you’re looking for. Evaluate how these suppliers meet the requirements of the retailers you’re selling to. 

You can begin to assess the playing field through online directories. Attending perfume trade shows is a great next step. It’s a chance to network with industry professionals and gain IRL perspective in a sensory-based industry. 

Avoid counterfeit products

The fragrance market is a prime target for counterfeiters and dupe fragrances. Your first line of defense is to buy only from authorized vendors who can prove their legitimacy.

Here is a checklist for verifying authenticity:

1. Require documentation: Always ask for a letter of authorization from the brand, along with batch/lot records and official GS1 barcodes.
2. Request certificates of authenticity: Obtain certificates and supporting documentation like IFRA standards or safety data sheets (SDS).
3. Conduct physical inspections: Check for inconsistencies. Inspect the quality of the seals, caps, and atomizers. Compare the printing on the bottle and box to official brand imagery.
4. Use legal protections: Add anti-diversion clauses to your contracts to prevent products from being sold to unauthorized sellers. Where possible, use serialization to track products through the supply chain.
5. Work with established suppliers: Consider sourcing initial inventory from established platforms like FragranceNet or FragranceX before negotiating direct brand authorizations, especially when first starting out.

Build relationships with niche brands

Niche and artisanal brands present a massive growth opportunity, but they require a more delicate approach than established players. These brand owners value storytelling and brand integrity over mass-market volume. They are highly selective about who sells their products.

Present a clear plan for which retailers you'll target (aka, your door lists), your strategy for sampling, and how you'll educate retail staff. Share sell-through data and user-generated content (UGC) to help them understand what’s resonating with customers.

6. Set up distribution channels

Traditionally, distributors picked a lane. You were either a distributor servicing retail stores, or ran a DTC brand. Today, success depends on being everywhere your customer shops, which means managing an omnichannel distribution strategy from a single system.

Brick-and-mortar distribution

Perfume is a product customers often want to experience in person. Distributing products to department stores, specialty beauty chains, and boutiques helps validate brands and lets customers sample the fragrance firsthand. The goal is to secure accounts in high-value locations and support them with testers, samples, and in-store education to drive sell-through.

Online distribution

Digital channels expand reach and margins. Ecommerce sites, online marketplaces like Amazon, and B2B wholesale portals give you direct access to customers with higher profit potential than traditional retail. Keep the product visible, while staying in control. Set clear pricing rules, track products through the supply chain, and protect against unauthorized resellers.

Australian fragrance label WHO IS ELIJAH implemented custom pricing across their eight expansion stores. Each region had its own catalog and price matrix, which helped international wholesale revenue to climb 50% year over year.

“One of the reasons we needed custom pricing for our wholesale customers was that many of them fall into different B2B categories; some have hard margins, and some we can control,” says the brand’s technical leader, Brylee Lonesborough. “The custom catalog capabilities in B2B on Shopify meant we could set individual pricing categories and attach them to the various types of B2B customers we have so they get a more personalized experience.”

👉 Read WHO IS ELIJAH’s story.

7. Build an online wholesale store

Once you’ve mapped your distribution channels, the next step is designing a buyer-friendly webstore. This is where you centralize operations and provide a seamless ordering experience for retail partners. 

Decide whether to go with a dedicated B2B storefront or a blended store that combines B2B and B2C. A blended approach lets you manage all your customers from one unified back end, while a dedicated B2B site may make sense if you keep wholesale and consumer inventory separate. Best practices for building a B2B ecommerce website include:

• Define your business goals and design the store for your target buyers. 
• Incorporate responsive design and prioritize a great user experience.
• Optimize for easy, efficient search and navigation. 
• Integrate with systems like customer relationship management (CRM) and enterprise resource planning (ERP) to sync customer and inventory data.
• Implement secure payment processing and ensure compliance.
• Use content marketing and search engine optimization (SEO) to raise your store’s visibility.
• Thoroughly test your site before launch.
• Analyze performance and optimize regularly. 
• Plan for scale and growth. 

Out of the box, Shopify can help a wide range of B2B retailers build modern, intuitive wholesale experiences. Check out our eight essential B2B ecommerce features to look for in choosing an ecommerce platform.

8. Develop a pricing strategy

Distributors sell products in bulk at prices below RRP, but you still need to make sure you’re earning enough profit to make your business worthwhile. Set prices that create a healthy profit margin, while meeting retailer needs—if their discount is too small, it won’t make sense for them to buy from you. Wholesale distributor margins often range from 40% to 50%, with niche and luxury fragrances sometimes higher due to exclusivity.

Aside from profit margin, consider the guiding B2B principles of customer acquisition cost (CAC) and customer lifetime value (CLV). How much does it cost you to attract new customers? And once you’ve brought them in, how much value does each customer present? To maximize CLV, consider tiered pricing that rewards larger orders with better rates.

Also, keep payment terms in mind. Many wholesale customers pay on net 30 or net 60 payment structures—meaning 30 or 60 days after invoicing. Decide how long you’re willing to wait when establishing your business’s payment rules. 

9. Implement inventory management systems

You don’t want to launch your business and quickly find your storage space swamped with $10,000 of perfume boxes you’re unprepared to sell. Managing wholesale inventory and fulfillment is essential for ensuring timely delivery of products and reducing costs. 

Start by creating an inventory management plan. This plan should include tracking stock levels, managing storage, and optimizing shipping. As your business grows, transition from spreadsheets to inventory management software (such as QuickBooks Commerce and Ordoro), so you can automate inventory tasks and maximize efficiency. 

Set up a distribution network to manage the flow of products. From there, create a logistics and transportation plan to ensure timely delivery. Consistent inventory and fulfillment will gain you the trust of buyers and grow your business over time.

Storage and handling requirements

Fragrance is a sensitive product that requires specialized handling to protect its integrity.

• Store in a temperature-controlled environment away from direct sunlight and high humidity. 
• Keep products in their original packaging whenever possible. 
• Rotate stock using FIFO (first in, first out) to protect shelf life.
• Record batch and lot numbers for traceability in case of recalls.

Perfume is regulated as a cosmetic, so proper storage isn’t just good practice—it also supports compliance with industry and safety standards.

10. Create marketing and sales strategies

You’ve fine-tuned your webstore to sell your perfumes to buyers—now it’s time to get the word out. 

To attract early customers and establish an online presence, develop a marketing strategy that includes digital marketing, social media, and advertising. Consider launching an email newsletter—a great way to offer your customers value (news and insights about the perfume space) while simultaneously marketing your products to them. 

You may also want to identify influencers relevant to the perfume space and explore potential relationships to further establish your business.

One more key: B2B customers consult search engines during the purchasing process. Utilize B2B SEO strategies to help turn your browsers into buyers.

11. Focus on customer service

B2B wholesaling involves significantly more follow-up with customers than B2C sales. Check in with early buyers: What did they think of their purchases? How did their customers respond? Be ready to attend to concerns. 

Ensuring customer satisfaction and retention is crucial for long-term success. Strategies for retention include loyalty programs, discounts, and exclusive offers. 

Remember: You’re much more likely to get sales from repeat customers than new customers. Repeat customers have already put in the legwork, and their shoppers have likely responded positively. Foster these relationships. 

12. Scale your business across borders

Once you’ve established a foothold, consider expanding your operations to bring your perfumes to new markets. 

Aside from the obvious benefits of increasing sales, cross-border B2B ecommerce can help your operations endure regional sales slumps, enhance your products’ lifespans, and extend selling seasons (for instance, by boosting sales internationally in months beyond North America’s’ fourth-quarter holiday rush). 

Scaling internationally is easier when you already have an omnichannel distribution strategy in place. The same systems that connect your wholesale and DTC channels can also support multiple regions with localized catalogs, pricing, and payment methods.

Shopify makes it simple with Managed Markets, which lets you customize product content, prices, and payment methods for each country or region—all from a single back end.

Common challenges and solutions of perfume distribution

Dealing with established brand gatekeeping

Prestige fragrance operates on selective distribution. Brands vet doors, restrict third-party marketplaces, and often require proof that you’ll protect their equity and pricing. 

To get in, lead with proof. Provide sell-through data from comparable doors, MAP enforcement plans, and a launch calendar. If you’re blocked, start with niche houses—many are looking for partners who value storytelling and authenticity—then return to the bigger players with results in hand. 

Managing cash flow in wholesale

It takes a lot of working capital to run a distribution business. Cash is usually tied up in inventory and accounts receivable, which can feel like a constant financial squeeze.

Work with your suppliers to get more favorable payment terms. This will give you more time to sell through inventory before your own bills are due. For new or unproven retail accounts, require an upfront deposit on their first few orders to reduce your risk.

Tools such as invoice financing or a line of credit can also help bridge the gap between paying for inventory and receiving payment from customers. 

Competing with gray market sellers

The gray market is made up of unauthorized sellers who acquire authentic products through illicit means, like buying retail in one country to resell in another, and then selling them online at a steep discount. These sellers can undercut your pricing and damage a brand’s image, which can impact your retailer relationships. 

The most critical step is to buy inventory only from the brand itself or its officially authorized master distributors. Your contracts with both suppliers and retailers should also include strict anti-diversion clauses that forbid them from selling products to unauthorized third parties.

Let’s build together 

Perfume has been popular for millennia, and the current boom of fragrance commerce is coming into focus. Perfumes are increasingly likely to sell online, but giants like Amazon aren’t necessarily equipped to dominate the space. Wholesale perfume buyers—and their enthusiast customers—value expert acumen and full confidence that their purchases are 100% authentic. This gives specialized distributors a unique opportunity in the market. 

Shopify powers leading fragrance distributors with unified B2B and DTC commerce. Let’s explore how we can jumpstart your plans.