Beauty Independent’s Post

How can #beauty retailers maintain their edge and stay ahead of competition? Clarkston's Sarah Covill Broyd spoke to Beauty Independent about Amazon’s rise in beauty sales and insights for the industry. "As Amazon grows, I think prestige products will need to figure out if they want to be a leader or a follower, especially as consumers become more comfortable shopping online. Protecting your brand integrity and securing the supply chain should be at the forefront of how prestige products sell online, but they also need to meet their consumers where they are. And, sometimes a consumer may just need mascara or lipstick within a 2 day shipping window." #beautyretail #retailindustry #beautyindustry

Amazon's beauty category is growing at a rapid pace, with a 21% YoY growth in sales. However, it is also becoming more competitive with a 42% increase in SKUs within the category compared to a year ago. Our insights team at Front Row analyzed the total category sales on Amazon and identified the top subcategories within the beauty industry. Surprisingly, 31% of all beauty products sold on Amazon in 2023 were haircare products. #Amazon #beautyindustry.

How Amazon Fits Into the New Beauty Playbook. The mega e-commerce player is set to become the biggest #beauty retailer in the US, but its complexity and inflexibility is a turn-off for many brands with premium positioning. Amazon is too big for #beautybrands to ignore. By 2025, it’s set to overtake Walmart as the biggest US beauty retailer, and represents 14.5 percent of the total beauty market, according to Morgan Stanley. But despite the demand, prestige beauty labels have historically shied away from selling on Amazon, with a disdain for its bare-bones, formulaic interface and the fact that customers can buy toilet paper and their pricey moisturiser in a single transaction. Still, it’s a dominant player that serves over 300 million customers worldwide. Most beauty brands that sell on Amazon are third-party sellers, paying to appear on Amazon’s marketplace, and often, for its logistics, but not selling to Amazon as a wholesaler. Oftentimes, only working with a large, Amazon-recognised agency will help brands get in front of a dedicated account executive. What brands want: In order to access benefits like reseller protection, brands need to opt in the FBA — Fulfilled by Amazon — programme, which also is necessary to participate in Prime, Amazon’s expedited shipping service. To do so, Amazon charges a brand around 10 to 20 cents per unit for warehousing costs, depending on factors such as dimensions or hazmat status. Then there’s another 15.33 percent referral fee paid by sellers to Amazon for listing premium beauty products, though it’s lower for cheaper products. Finally, there’s the FBA last-mile fulfilment costs from Amazon to the customer, which, based on product weight and dimensions, it’s generally around $3 to $5 per unit. Amazon’s fees add up to around 25 percent of the ticket price. Selling on Amazon brings access to a massive customer base, but also carries reputational risks. Unauthorised resellers are the most prominent example. Ultimately, however, selling on Amazon means accepting there will be elements of your business you can’t control. What are your thoughts about beauty brands (and #luxurybrands in general) emerging onto Amazon’s ecosystem? #amazon #amazonselling #beautynews #beautytrends #beautybusiness #beautyindustry #luxuryfashion #sellingonamazon #sellingonline #newsoftheday #newstoday

Our Head of Sales Amir Elam writes about Temu & SHEIN: Amazon's Biggest Rivals? According to CNBC, Amazon plans to introduce a new section on its site featuring discounted merchandise shipped directly from China. This new storefront will offer unbranded items in the fashion, beauty, and home categories, with products priced under $20. However, due to overseas shipping, delivery times will range from 9 to 11 days. This approach aligns with the shipping times, categories, and price points offered by competitors like Temu and SHEIN. Interestingly, Amazon announced this storefront at an invite-only conference for Chinese sellers just over two weeks ago. This move marks a shift from Amazon's traditional focus on fast delivery, a key selling point for many of its customers. It appears Amazon now aims to attract shoppers who prioritise cost savings over quick shipping times—an area where Temu and SHEIN have carved out a niche. Amazon's strategy moving forward will be intriguing to watch. The company is heavily investing in premium beauty brands and encouraging luxury brands to join its marketplace. How a section focused on under-$20 merchandise will coexist with this premium strategy is unclear. On the other hand, leveraging its existing traffic to tap into a cost-conscious shopper segment opens a new market for Amazon, positioning it to compete directly with Temu and SHEIN. Another aspect to monitor is how this new discounted merchandise section will impact private label sellers offering similar products. We will keep a close eye on this journey and provide updates as Amazon navigates this new venture.

Drawing from our deep expertise in navigating the complexities of online marketplaces for beauty brands, Market Defense continues to share our 2024 predictions! Shelley Swallow, our VP of Brand Protection, predicts a significant shift towards a 'Back to Basics' approach, where brands will reassess and reinforce foundational practices in supply chain management, relationships, and global brand protection. But that's just the beginning! Shelley, along with our team of seasoned experts, offer further insights and predictions that could fundamentally impact the success of beauty brands on platforms like Amazon, Walmart, and more. Read more here ➡️ https://lnkd.in/e25TMXGs #MarketDefense #BeautyBrands #BeautyIndustry #BeautyBusiness #AmazonAgency #Walmart #Amazon

Beauty isn't just skin deep, it's a top seller on Amazon too. Amazon's Big Spring Sale wasn't just a clearance event—it was a revelation. Health and beauty products weren't just part of the inventory; they were the stars, capturing half of the shoppers' attention and dollars. Why does this matter? Because it's a clear signal. The health and beauty sector on Amazon is not just alive; it's thriving. For brands, this is more than an opportunity—it's a call to action. The implications are huge. This isn't about a one-off sale; it's about understanding consumer trends and capitalizing on them. If you're in the health and beauty space and not leveraging Amazon's platform to its fullest, you're missing out. Big time. Here's the takeaway: Amazon's Big Spring Sale is a case study in consumer behavior and market demand. For those of us in the business of brand management and strategy on Amazon, it's data gold. So, what's next? Dive deep, understand the trends, and align your strategy. Amazon is not just a marketplace; it's a goldmine for those ready to dig deeper. Let's not just participate in the market; let's dominate it. Check this out: https://lnkd.in/d29vdnBC

The junkification of online retail is gaining traction with shoppers, according to the The Wall Street Journal. Retailers who ship dirt-cheap goods directly from China to the U.S. are hiring current and former Amazon staffers as they grow their U.S. logistics operations. TikTok and Temu are posing a threat to Amazon, and Amazon is trying to figure out how to respond. 💡 Perhaps this is an opportunity for true premium Brands to shine on Amazon? ❗ Big changes to how Amazon runs its marketplace and works with sellers are going to be critical to its success. #brandidentity #brandmarketing #amazonseller #ecommercesuccess

Amazon is deeply entrenched in consumers' lives, forever changing how we shop—including how we shop for beauty. The platform has shifted consumer expectations and raised the bar on the competition, racking up sales and market share. As Amazon continues to increase its foothold in the beauty sector, the question has become “how”, not “if”, your brand will be on the marketplace. It’s not easy being first, but it was worth the effort in the case of Carbon Beauty—a clean beauty retail platform that sells a coveted assortment of clean beauty brands on Amazon. They have effectively turned the third-party model on its head by migrating the classic retail shopping experience, like Credo or SEPHORA, to the Amazon ecosystem. Carbon Beauty is “essentially a website within a website” with a robust, customer-focused storefront. #sponsored #beautybusiness #beautyindustry #cleanbeauty #retail

Expect Amazon-based retail sales to keep growing at a double-digit pace in the United States, retail consultancy Momentum Commerce stated, singling out big Amazon sales gains in categories such as food and other day-to-day needs. #Amazon #Beauty #Grocery #MomentumCommerce #PersonalCare #PetSupplies

As a buyer for luxury beauty I would avoid launching brands stocked on Amazon. The pandemic changed the playing field but often it can still be looked down upon. Amazon can be a double-edged sword for brands. As a brand it’s not one to ignore and as with many things it’s better the devil you know! ⬆️ On the plus it offers unmatched reach and scale, allowing you to tap into a massive customer base and next day delivery on prime. ⬇️ But it poses challenges around protecting brand equity, maintaining pricing control, and differentiating yourself in a crowded marketplace. I am so excited to dive into this at dinner next week with brand leaders: I’ll be talking about “Amazon, Friend or Foe - How to Win on Marketplaces While Protecting Brand Equity” on Thursday, September 12th, 2024, at a private members club in Soho with Pattern® I’ll be diving deep into: • The strategies behind some of the fastest-growing beauty brands • How to protect brand equity while scaling and gaining market share • Consumer expectations for 2025 and beyond If you would like to join us for an evening of shared insights and networking, where you’ll leave with fresh strategies to enhance your business if Amazon plays a significant role in your growth. To apply to attend head to the comments #Amazon #Marketplace #BeautyBrands #eCommerce