The beauty category is one of the most shopped categories on Amazon, and now the e-commerce giant has branched out with their own private label skincare products. Are you competing yet?
In the past year, Amazon has proven itself a force worth to be reckoned with in online beauty retail. With an estimated $950 million in sales during 2018’s second quarter, the category has increased by 26% year-over-year, landing beauty squarely as the one of the most shopped categories on Amazon.
A study by AT Kearney, Beauty and the E-Commerce Beast, found 67% of online beauty customers turned to Amazon to search and purchase products. These findings put Amazon above Sephora, Ulta, Walmart, Macy’s, Target, Walgreens, and CVS in e-commerce sales back in 2017.
Amazon is keenly aware of these figures as they roll out their new skincare line, Belei, which features moisturizers and eye creams. Their list of private labels, ever growing, now has over one hundred and thirty products. Brands looking to succeed in e-retail can no longer ignore Amazon-branded products or the giant’s customer base –gone are the days of window shopping and trying out products in-store. Retail conversion is created through Amazon Prime’s free 2-day shipping, lockers, Prime Now, and free returns. With roughly 50 million loyal Prime members buying beauty or skincare products since 2017, major beauty brands are long overdue for a wakeup call.
Although many big retailers resist launching on Amazon for fear of depreciating their brand identity, the fact remains that nothing is worse for your brand reputation. As we discussed in this article, Amazon has long been planning to eliminate counterfeit sellers on the platform and the beauty category has been a target of phony manufacturers for some time. Considering this, it should come as little surprise that Amazon is moving to protect this category.
What does Hinge recommend?
The first thing sellers of beauty products should do is get setup on Amazon. There is no better way to protect your brand identity than taking charge of it and controlling how your customers interact with your product. It’s never too late to adapt your e-commerce strategy – and Hinge is always here to help.
If you have questions, we have answers. Get in touch with our experts strategists here.
Hinge is a marketplace performance agency
helping brands thrive in an age where change is
certain and fortune favors the bold.