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Paying for hair from someone else’s head is a multi-billion dollar industry—2.35 billion dollars to be exact.
Covid-19 may have slowed down the hair extension industry in 2020. However, it’s still a very popular and lucrative industry.
Some of you may have heard this before—”who wants to sell hair nowadays, the market is oversaturated.”
It’s true that there are a lot of people getting their hair snatched bald—not just because of the women donating or selling the hair off their heads. But selling hair can stress you until you’re bald.

A lot of this stress comes from the hair extension industry being a competitive market. However, this shouldn’t discourage you if you’re willing to put in the work. Because the truth is you should want to work in a market that’s “saturated.”
That just means there’s a huge demand for the hair extensions. So, I don’t think aspiring hair entrepreneurs should worry about saturation.
Instead, aspiring hair entrepreneurs should focus on inspiration. Use your competitors to inspire you to make better hair products or improve existing hair products.
So, you can start a hair extension business and make a lot of money if you know the right steps.
Step-by-Step Guide on How to Start a Business Selling Hair Extensions
- Browse social media and online forums.
It’s important that you find out where your customers hang out online and build relationships with these customers. Use these relationships to figure out what customers you want to serve.
- Find a niche within the hair extension industry.
Once you have you have feedback from these potential customers, you should focus on what type of hair products you will provide.
For example, you should talk to these potential customers to see what types (or quality) of hair they need but aren’t receiving. Or you can focus on ways to improve hair extensions for a segment of the hair extension market’s customers.
So, you want to find a gap (or an unmet need) in the market and fill it.
For example, are you going to cater to people suffering from alopecia? Or will you cater to women who want extra long bundles of hair?
Are you going to cater to busy women? Typically, these busy customers need hair extensions that can be quickly installed. For example, quick weaves can be installed under an hour.
Figure out what potential customers need in a hair product. Then, make that your unique selling proposition (USP). A USP is what sets you apart or makes you better than other companies selling hair extensions. - Find a hair extension vendor.
You can look for a supplier within the United States or travel overseas, e.g., China.
However, when looking for a vendor, you want to focus on finding a vendor that provides great communication, excellent customer service, fast shipping times, and consistently high-quality products.
It’s important that you focus on quality control. Since you don’t make the product yourself, you should at least visit the factory or facility a certain number of times. You need to make sure the facility is maintaining certain standards.
This will also allow you to build face-to-face relationships with your vendors. Not every reseller will take the time out of their busy schedules to visit their facility.
So, your repeat visits give your vendor the impression that you’re serious, which makes them keep your business at the front of their mind when it’s time to prioritize shipments and products. - Testing your hair extensions.
Testing your product is the most important step. You don’t want to sell any hair before you actually test it.
It’s best that you order from a vendor more than once. Sometimes a vendor will give you a quality product the first time. Then, that same vendor will bait-and-switch you with a lower-quality product the next time.
So, you should order from vendors multiple times to see if they consistently provide a high-quality product.
When testing out the hair, you should order a straight hair bundle and a body wave bundle. Good quality hair should be able to be bleached without shedding or matting.
So, you should do a bleach test [with at least a 613 color] to see how the hair reacts to color.
Some qualities of good hair include the hair’s luster, the thickness of the hair’s ends, the hair’s movement (or lack of stiffness), etc.
You should also allow friends, family, or potential customers to test your hair. For example, you can reach out to social media influencers and give them the hair for free or at a deeply discounted price.
In exchange, these influencers (or testers) should give you honest feedback.
Hair entrepreneurs shouldn’t just focus on what they like. Because you’re selling the hair and not just using the hair for yourself.
So, you should put more focus on getting other people’s opinions. Remember, it doesn’t matter what you like. It’s important to what your customers like.
Keep in mind that during this testing process, you should compare vendors. You don’t want to just go with the first vendor you order from.
There are plenty of options for finding vendors, but a starting point is Instagram. So, you can search Instagram using the terms “wholesale hair,” “wholesale Brazilian hair,” and “wholesale virgin hair.”
But don’t just hand over your money to any ol’scammerseller on Instagram. Ask that person if they’re willing to Facetime you or use a video chat platform.
If the vendor isn’t willing to video chat with you, that’s a red flag.
If the vendor does agree to video chat with you, then you should make them show live videos of the raw hair. Be mindful that some of thesescammerssellers may use stolen videos [from other vendors].
So, ask that vendor to do something in real time. For example, you can also ask them to show you various types of bundles, e.g., 12-inch hair, 16-inch hair, and 30-inch hair.
It doesn’t matter how you vet the vendor. Just make sure to do it to avoid any costly mistakes. - Determine the price your hair extensions.
You should probably aim for a profit between $35 and $50 per bundle. Keep in mind, other costs will eat into your profit margins, e.g., shipping, marketing, etc. And you should factor in the startup costs for starting a hair extension business.
Remember that you should price your hair according to your customer demographic.
So, you shouldn’t sell your hair for cheap. But if you cater to clients on a budget, then you should make sure the prices are affordable. - Determine the name of your business.
Your business name can be a DBA if you don’t want to register your real name.
Regardless, you’ll need to make sure you use a name that’s not similar or the same as another business. - Register your business (optional).
If you’re going to start a hair business as a sole proprietorship or partnership, then you won’t need to register your business.
However, you’ll need to register your business if it’s a limited liability company (LLC) or corporation. - Create a website.
You should have a professional website to sell hair extensions online. The website should also have professional pictures.
For example, you can hire a photographer to take pictures of the hair extensions on models. You can also use videos to showcase the hair extensions on the models. The models can be professionals, friends, or even family members.
Either way, there will be other costs besides paying the photographer. So, other expenses can include the model’s makeup, hair installation, etc.
You can make your website quickly and cheaply using platforms, such as WordPress, Wix, Webflow, etc.
If you decide to make your website, you need to make sure your website has an eCommerce terms and conditions and privacy policy. So, user agreements are required if the website processes customer’s private information, e.g., card information.
These website user agreements set the rules for your website and it lets users know how their private information will be handled. You’ll also need a solid shipping policy and a refund policy posted on your website. - Marketing your hair extensions.
Create a business social media account [using your business’s name] to market your product. For example, a lot of customers use Instagram to find hair businesses.
However, you’ll need an Instagram business account to run ads. Regardless of which social media platform you use, make sure your social media uses the same consistent branding, e.g., colors, logos, etc. as your website.
The Catch
While starting a hair business can be very lucrative, there can be downsides, too.
The main downside of starting a hair business is that hair is a raw material. So, you can’t grow human hair in a lab (at least not yet).
If there is a shortage of raw human hair [like in 2020], there’s nothing you can do to make the process go faster. On average, it takes 2 years to grow out hair.
So, if there’s no hair available at any given time, it’s not like you can make some human hair overnight.
Wrapping It Up
There will always be a huge demand for selling hair extensions, because women will always want a way to beautify themselves.
Hair extensions can instantly turn a woman’s confidence to an all-time high while protecting their natural hair underneath.
So, if you have the desire to create a successful hair extension business, you should go for it.
A lot of people never get started because they were told the industry was over-saturated. Don’t let that be you. Give it a try and see for yourself.
So, will you get into the hair extension business or is it too hairy?