How to start a sunglasses business: a founder's guide

Launch your sunglasses business with our proven blueprint. Get a clear roadmap for funding, licensing, and insurance to avoid costly mistakes.

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How to start a sunglasses business
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Starting a sunglasses business is a rewarding venture that blends a keen eye for fashion with business savvy. The market is worth billions, with consistent demand for eyewear in fashion, sports, and daily wear.

This guide will take you through the practical steps of validating your business concept, building supplier relationships, and acquiring inventory to help you launch a successful sunglasses business in the U.S.

Step 1: Create your business plan and validate your concept

First, define your niche. Selling "sunglasses" is too broad. Instead, focus on a specific category like sustainable wood-frame sunglasses or performance eyewear for cyclists. This focus helps you stand out. Use Google Trends to compare search interest for different styles and identify what customers want now.

With your niche in mind, analyze your future competitors. Use a platform like Semrush to see the keywords that drive traffic to their sites. Study their product photos, prices, and customer reviews to find weaknesses you can exploit. Your goal is to find a gap in the market.

Estimate your startup costs

Your initial investment will likely range from $2,000 to $7,000. Your largest expense is initial inventory. A starting order of 100-200 units might cost between $1,000 and $3,000. You can manage this initial outlay with a smaller test batch order first.

Other costs include business formation (around $100-$500 for an LLC), building an e-commerce site on a platform like Shopify (about $200-$600 for initial setup), and branding elements like a logo and custom packaging, which can run from $500 upwards.

Here are 3 immediate steps to take:

  • Use Google Trends to compare search volume for three potential sunglass niches.
  • Analyze two competitors’ websites, and note their pricing, bestsellers, and customer reviews.
  • Create a simple spreadsheet that lists your top three startup expenses: inventory, website, and branding.

Step 2: Set up your legal structure and get licensed

You should consider forming a Limited Liability Company (LLC). It protects your personal assets if the business faces debt or lawsuits. An LLC also offers pass-through taxation, so you report business profits on your personal tax return, which avoids the double taxation of a C Corp.

Many new owners mistakenly form a C Corp, which adds complexity. An LLC is simpler for a solo venture. Once you choose a structure, get an Employer Identification Number (EIN) from the IRS. You will need it to open a business bank account. The online application is free.

Now for industry rules. The FDA regulates sunglasses as Class I medical devices. Your products must meet impact-resistance standards under regulation 21 CFR 801.410. Your manufacturer should provide documentation that confirms compliance, so be sure to ask for it.

Next, handle state and local permits. You will need a seller's permit from your state's department of revenue to collect sales tax. Also, check with your city or county for a general business license. These typically cost between $50 and $150 combined.

Here are 4 immediate steps to take:

  • Register your business as an LLC with your state's Secretary of State.
  • Apply for a free Employer Identification Number (EIN) on the IRS website.
  • Obtain a seller's permit from your state's tax agency.
  • Ask your potential suppliers for proof of FDA impact-resistance compliance.

Step 3: Secure your business insurance

Your top priority is product liability insurance. It protects you if a customer claims your sunglasses caused an injury, such as from a lens that shatters. Many new sellers assume the manufacturer is solely liable, but you can be named in a lawsuit. This is a significant risk.

You should also get general liability insurance. This policy covers claims of property damage or injury related to your business operations, like a copyright issue with your marketing. You can often bundle these two policies together to save money.

Key insurance policies and costs

For a new sunglasses brand, a $1 million product liability policy is a standard starting point. Annual premiums typically range from $500 to $2,000. Your final cost depends on your sales volume and the specific materials used in your products.

When you look for quotes, consider providers that specialize in e-commerce, such as Hiscox, The Hartford, or CoverWallet. They understand the risks of online retail and can offer policies tailored to your business model. A general agent may not find the best coverage for you.

Here are 3 immediate steps to take:

  • Get quotes for a $1 million product liability policy from two different providers.
  • Ask potential insurers about bundling general and product liability coverage.
  • Review your supplier's liability insurance certificate to understand their coverage.

Step 4: Find suppliers and manage your inventory

First, decide between dropshipping and private label. Dropshipping has no inventory costs, but you have less control over quality and shipping. Private label means you buy inventory upfront from a manufacturer who adds your brand logo. This offers better margins and brand control.

Vet your suppliers

Use platforms like Alibaba or Global Sources to find manufacturers. A common misstep is to skip the sample phase. Always order samples from 3-5 potential suppliers to test the quality firsthand. This small investment prevents a large loss on a bad bulk order.

When you contact them, confirm their Minimum Order Quantities (MOQs). These often range from 100 to 300 units per style. Also, re-verify they can provide the FDA compliance documentation mentioned in Step 2. Do not move forward without it.

Prepare for fulfillment

For great product photos, you do not need a fancy studio. A simple photography lightbox ($50-$100) and your smartphone can produce professional images. You will also need a shipping scale (around $30) and a thermal label printer ($100-$200) to streamline your shipping process.

Here are 4 immediate steps to take:

  • Request quotes and samples from three private label sunglass suppliers on Alibaba.
  • Ask each potential supplier for their FDA 21 CFR 801.410 compliance certificate.
  • Compare the unit cost and MOQ for your top two supplier choices.
  • Create a budget for basic photography and shipping equipment.

Step 5: Set up your payment processing

Choose your payment processor

Your e-commerce site, like Shopify, will have a built-in payment solution. These typically charge around 2.9% plus 30 cents per transaction. This is your baseline for online sales, but you should also plan for selling in person.

Many new owners focus only on online sales and miss opportunities at markets or pop-up events. Without a mobile payment option, you are limited to cash and could lose sales. You need a way to accept cards on the go.

For businesses that need to accept payments on-site, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and you are done. It is particularly useful for selling at outdoor markets or festivals.

At just 1.99% per transaction with no hidden costs or extra hardware, the rate is much lower than the average commission from other providers. This makes a real difference to your profit margin on every pair of sunglasses you sell in person.

Getting started is straightforward.

  • Get Started: Download JIM app for iOS
  • Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
  • Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers

Here are 3 immediate steps to take:

  • Compare the transaction fees of your e-commerce platform’s built-in payment processor with JIM.
  • Download the JIM app to explore its interface for in-person sales.
  • Decide if you will sell at in-person events like markets or pop-ups in your first six months.

Step 6: Fund your business and manage finances

Secure your startup capital

Many founders bootstrap with personal savings. You can also use a business credit card, especially one with a 0% introductory APR, to get a short-term, interest-free loan for your first inventory order. It’s a quick way to get started.

For more formal funding, look into the SBA Microloan program. These loans, which go up to $50,000, are offered through local nonprofit lenders. The average amount is around $13,000 with interest rates typically between 8% and 13%.

Manage your working capital

With funding secured, you need a plan. A common mistake is to spend everything on inventory and leave nothing for marketing. You must have a budget to attract customers, otherwise your great products will just sit on a shelf.

Plan for at least $3,500 to $5,000 in working capital for your first six months. This covers a potential inventory reorder, a modest marketing budget, and software fees. Also, open a separate business bank account immediately to keep finances clean.

Here are 4 immediate steps to take:

  • Open a dedicated business bank account to separate your finances.
  • Calculate your estimated working capital needs for the first six months.
  • Research one SBA microloan lender that serves your area.
  • Compare two business credit cards that offer a 0% introductory APR.

Step 7: Build your team and set up operations

Hiring your first help

In the beginning, you will be the entire team. Many new owners burn out because they try to manage every single task. A better approach is to delegate small, repetitive jobs early. This frees you up to focus on growing the business.

Consider hiring a part-time Virtual Assistant (VA). They can handle customer service emails, process returns, and schedule social media posts. You can find skilled VAs on platforms like Upwork for $15 to $30 per hour, depending on their experience.

Streamlining your daily workflow

Your e-commerce platform has built-in features to manage orders and inventory. For marketing, use a social media scheduler such as Later or Buffer. This lets you plan a week of content in one afternoon, which saves a lot of time.

As you grow, a good revenue target is $150,000 per full-time employee. This metric helps you decide when it is time to hire. No specific certifications are needed for staff, but you should train them on your brand story and product details.

Here are 4 immediate steps to take:

  • List five repetitive tasks you could delegate to a virtual assistant.
  • Research hourly rates for e-commerce VAs on Upwork or Fiverr.
  • Create a free account with a social media scheduler like Later to test its features.
  • Draft a one-page training guide about your brand and top-selling products.

Step 8: Market your brand and acquire customers

Focus on visual platforms

Your marketing should live on visual platforms like Instagram and TikTok. High-quality product photos and videos are your most powerful assets. You can run a user-generated content (UGC) campaign that encourages customers to post photos with your sunglasses for a chance to be featured.

Many new brands chase big influencers. A better approach is to partner with micro-influencers who have 5,000 to 20,000 followers. They often have higher engagement rates and may collaborate in exchange for free products instead of a large fee, which protects your budget.

Use paid ads strategically

Once you have some content, you can start with paid ads. A small budget of $20 per day on Facebook and Instagram can be effective. Target users interested in competitor brands or complementary hobbies like surfing or hiking. This helps you reach a relevant audience quickly.

Track your Customer Acquisition Cost (CAC). For a new sunglasses brand, a CAC under $35 is a healthy target. A typical e-commerce conversion rate is 1-2%, so do not feel discouraged if sales are not immediate. Use the data to refine your ad creative and targeting.

Here are 4 immediate steps to take:

  • Identify five micro-influencers in your niche to contact for a collaboration.
  • Outline a user-generated content (UGC) campaign for your Instagram page.
  • Set up a Facebook ad campaign with a $20 daily test budget.
  • Calculate your target Customer Acquisition Cost based on your product margin.

Step 9: Price your products for profit

Determine your pricing model

A simple starting point is keystone pricing, where you double your cost. If a pair of sunglasses costs you $20, you sell it for $40. This 100% markup is a common retail standard. For premium or unique designs, you can aim for a 200-300% markup.

Many new sellers price too low to compete, which can devalue the brand. Your price sends a message about quality. Instead of just covering costs, price for the perceived value your sunglasses offer to the customer. This approach helps fund your marketing budget.

Analyze your competitors' pricing

Look at 3-5 direct competitors in your niche. Note their price range for similar styles, but do not just copy them. Analyze their brand position. Are they a budget option or a premium label? Your pricing should align with the market segment you want to capture.

If your materials and quality are superior, your price should reflect that. For example, if competitors sell basic plastic frames for $40, you could price your sustainable wood frames at $65 to signal higher value and attract a different customer.

Here are 4 immediate steps to take:

  • Calculate the total Cost of Goods Sold (COGS) for one pair of your sunglasses.
  • Research the prices of three direct competitors in your specific niche.
  • Set a test price for your main product using a 150% markup over your COGS.
  • Compare your test price to competitors and adjust it based on your brand's perceived value.

Step 10: Maintain quality and scale your operations

Implement a quality control system

Once your inventory arrives, you are the final line of defense for quality. Your manufacturer should confirm FDA impact resistance and UV400 protection, but you should still spot-check. A common mistake is to blindly trust supplier reports without a personal inspection.

Create a simple inspection process. Check 10-15% of each shipment for hinge tightness, lens scratches, and frame alignment. Your goal should be a defect rate below 2%. This protects your brand reputation and reduces returns down the line.

Scale with a data-driven approach

As your sales grow, you will need to decide when to expand. A good benchmark is to consider hiring part-time help or exploring a third-party logistics (3PL) service once you consistently process 20-30 orders per day. This frees you up to focus on marketing.

Let sales data guide your inventory decisions. If a specific style sells out within 30 days, you might double your next order. When spreadsheets become cumbersome, you can look into inventory management systems like Cin7 or Skubana that integrate with your store.

Here are 4 immediate steps to take:

  • Create a quality inspection checklist for your incoming inventory.
  • Set a target defect rate, such as under 2%, for your products.
  • Define your daily order threshold for hiring your first part-time help.
  • Use sales data to identify one product to reorder in a larger quantity.

You now have a clear path to start your sunglasses business. The key is to build a brand people love, not just a product they wear. Your unique perspective is your greatest asset. Go make your mark on the market.

And when you sell in person, a simple solution like JIM makes life easier. It turns your phone into a card reader for a flat 1.99% fee, no hardware needed. Be ready for every sale. Download JIM.

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