Three Growth Barriers Threatening the Ecommerce Beauty Industry

The pandemic caused an explosion in the ecommerce beauty industry as more customers turned to online marketplaces like Amazon to source their beauty needs. The results of an Ideoclick 2021 shopper survey revealed that in the past year alone, 67% of consumers shopped online for beauty products, while 80% shopped for health & personal care. Despite the increased traffic, beauty brands still encounter several barriers to sustained growth, especially in the Amazon marketplace. 

Challenges That Ecommerce Beauty Brands Face

When looking to drive awareness, engagement, and overall success online, there are three primary challenges that beauty brands will likely face:

1. Look-Alike Products, Counterfeits, and Fake Reviews

Ideoclick’s 2021 shopper survey reported that 52% of beauty product consumers and 54% of personal care consumers have expressed concern about counterfeit products online.

Look-alike and counterfeit items are an ongoing problem for beauty brands and consumers in the ecommerce world, and cutting through the clutter is harder than ever. In fact, Ideoclick’s 2021 shopper survey reported that 52% of beauty product consumers and 54% of personal care consumers have expressed concern about counterfeit products online. Customers also have a difficult time distinguishing reputable products from replicas. As a result, it’s easy for consumers who are not familiar with the brand to mistakenly buy look-alikes.

2. Lack of Ability to Provide Personalized Shopping Experiences

Well-known beauty retailers like Sephora and Ulta provide a highly personalized shopping experience for their customers through loyalty programs, seasonal promotions, and more. Unfortunately, ecommerce platforms can lack the ability to customize the category experience for their shoppers. Because of this, beauty brands often find that an inability to provide personalized experiences slows their overall growth.

3. Managing Ecommerce Profitability is a Barrier to Growth

Low retail selling prices and high shipping costs cause beauty products to have narrow profit margins in the ecommerce world. Beauty brands might also find themselves in pricing wars as retailers tend to price-match overlapping products. This cuts into both retailer and brand margins, which ultimately impacts profitability.


Overcome Growth Barriers With Expert Guidance and Strategies

While these barriers might make growth on Amazon more challenging for beauty brands, there are several strategies to overcome them. Read Ideoclick’s Beauty Guide for expert guidance on how brands can effectively address the challenges of customer trust, lack of growth drivers, and challenges to profitability.

About The Ideoclick Team

About Ideoclick
Founded in 2008 by former Amazon executives and harnessing over 200 years of Amazon experience, Ideoclick provides the industry's leading e-Commerce Optimization Platform, delivering a unique combination of cloud-based software, subject matter expertise and insight to businesses that sell on Amazon. Today, Ideoclick helps hundreds of brands achieve transformative results, representing more than $4 billion in annual e-Commerce product sales. For more information, please visit: www.ideoclick.com.

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