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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

Shoppers are due to plunk down $14 billion in purchases this Prime Day, according to Adobe Analytics, over 10% more than what they spent during the 2-day event last year. With mind-boggling numbers like these, it's no surprise that Amazon is becoming a more formidable player in the beauty retail landscape; especially as prestige beauty brands that once eschewed it jump enthusiastically on the platform. So, how can beauty retailers like Ulta, Sephora, Target and Walmart keep their competitive edge? I asked Joël Palix, Aaron Chatterley, Tina Henry Bou-Saba, Cristina Nuñez, Taylor Barry, Karen Hayes, Neil Saunders, Susannah Dellinger and Sarah Covill Broyd for their thoughts. Beauty Independent https://lnkd.in/eSVUfdyS

Just in time for Amazon #PrimeDay! Erica La Sala sparks a timely conversation on Beauty Independent about Amazon’s efforts to win market share in Premium Beauty, and what this will mean for other industry retailers. Prestige and luxury brands have historically shunned Amazon but this is changing. The Estée Lauder Companies Inc.’s pivot on this was arguably a watershed moment for the industry. Brands often enter Amazon once they find their products are already sold there grey market, in an effort to ensure consumers are getting authentic goods and to control unsactioned pricing. Amazon will work with brands to scrub the channel, but only if you sign on as an authorized seller. And as more brands come online, they appreciate the advantage of Amazon data and, to state the obvious, customer reach. In turn consumers, myself included, love it because of Amazon Prime free and quick shipping - it’s just so easy, and are willing to make the trade-offs of a sub-par shopping experience, especially for replenishment. But the experience is getting better as Amazon invests - The Outset ‘s 3D virtual Amazon store front is a great example of how Amazon is providing more tools for brand expression and creating a better experience for Beauty shoppers. Thank you once again Erica La Sala, Rachel Brown and the other esteemed contributors for the insightful dialogue: Joël Palix, Aaron Chatterley, Tina Henry Bou-Saba, Cristina Nuñez, Taylor Barry, Neil Saunders, Susannah Dellinger and Sarah Covill Broyd.

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

If you don’t have a merchandising strategy for your Amazon brand store, you’re likely missing out on 5-10% more revenue Too many brands treat a brand store like a catalog They list their categories and have a subpage for every category However, you have the data sets for what consumers are most likely to buy Amazon gives it to you in sales reports, brand analytics, ad reports, and store insights Your job is to guide them to buy what they are most likely to buy AND get them to buy more Your store should make it easier for them to buy more Not be an endless shopping experience Sure, there might be an exception or two for highly technical product categories But by and large, if you adhere to the advice above, you’ll increase your revenue and average order value Below are homepages from brand stores we’ve done recently for Made In, Earth Rated, Gotham Steel, and Hero Cosmetics If you’re struggling with your content, don’t hesitate to reach out to us #amazonsellers #amazonvendor #amazonadvertising

"Target is one of the most successful retailers in modern times. And while it’s true that Walmart is bigger and Amazon sells more, there is plenty of room in the retail landscape for Target – and countless other retailers for that matter – to grow and flourish," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "Target is already doing many things right, from their expanding array of private brands to their successful store-in-store presentations, and they have room to grow in these areas. However, one area that Target might consider focusing on is their grocery offering. Grocery is the ultimate traffic driver and recurring revenue stream, and an expanded grocery offering would help drive sales in discretionary categories." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Ken Morris, Jeff Sward, DeAnn Campbell, Cathy Hotka, Neil Saunders, • Shep Hyken, Nicola Kinsella, Bob Amster, Gary Sankary, Lisa Goller, MBA, Scott Benedict, Kai Clarke - (L.I.O.N)., Dick Seesel, Mohammad Ahsen (Socially Ahsen), Richard George, Anil Patel, Trevor Sumner, Mark Self, and Brian Numainville.

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

Let’s talk about your Amazon brand store. Is it optimized to showcase your best sellers? It’s time to think like a merchant because, unlike a PDP, the brand store is the place to flex your merchandising powers. Create a strong “above the fold” experience. On average, brand stores updated within the past 90 days had 11% more repeat visitors and 13% higher attributed sales per visitor. (according to Amazon) Invest the time, money, and talent into your brand store like you would your website. This is the place where you can make it easy for your customer by creating a space that showcases what they want. The brand store isn’t the place to throw every item you sell. It’s the place that should be easy to navigate, surprise and delight, and highlight your best sellers. Check out the simple and effective brand store our team did for Whisker, the makers of Litter Robot. Here’s your to-do for 2024: optimize your brand store and let us know if you need help! #amazonsellers #ecommerce #amazon

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.