How Beauty Brands are Adapting Their Amazon eComm Strategy

Updated: June 17

Despite the global pandemic, the beauty eCommerce industry is booming. Projected sales on Amazon alone are set to reach $22.9 Billion in 2020, which reflects 45.2% year-over-year growth.  

Pacvue’s Melissa Burdick and Rina Yashayeva from Stella Rising came together to talk about how the beauty industry has changed, and what brands can do about it. They also touched upon the big sales opportunities on Amazon, and strategies brands can use to advertise on the platform.

 

 

If you missed that informative webinar, here are the key takeaways:

Current Trends That Are Defining the Beauty Industry

COVID-19 has totally redefined the consumer buying habits. With salons and spas closed, consumers turned to DIY solutions. This has led to an increase in sales of hair care products, nail products, and waxing kits while the sales of hair styling products, sunscreen, accessories, and fragrances have declined.

When it comes to online shopping, 75% of consumers still end up on Amazon to make the final purchase for beauty products. The top motivators for that are price, convenience, fast and inexpensive shipping, and variety of products.

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Educate Consumers Through Great Content

Great content has always been important, and it’s only going to grow in significance going forward. Specifically, creating educational content and using it across different platforms, as well as leveraging influences to spread the word about the brand.

Another way to educate consumers is through A+ content. It can be used to explain how to use the product, what kind of details it has, and show off the ingredients. A+ content can result in higher conversion rates, increased traffic, and increased sales up to 10%.

Make Your Brand Seen With Advertising on Amazon

Unfortunately, it’s not enough to just have great products available on Amazon.  

You have to have a set budget for Amazon advertising just like you would for Google or Facebook. This builds awareness, drives traffic, and increases sales, but it also protects your brand from the competition, and feeds the Amazon Flywheel.  

It’s important to make sure your brand shows up in the paid placement when consumers search for products. There are two strategies you can use for advertising: defense and offense.

The defense strategy is used when consumers are searching for your brand specifically, which gives you an opportunity for upselling. On the other hand, when consumers are searching for a non-branded term, you have the opportunity to create awareness for your brand through offense strategy by offering lower ASPs and different count and pack sizes than the organic results.

Invest in AR and TikTok

Going forward, it’s also highly beneficial to invest in AR, especially when it comes to color matches and color swatches. If you are not working on this tech already, this is a good time to start.  

Similarly, TikTok is a social media platform to watch. During quarantine alone, TikTok users grew almost 50%, with Gen Z being the top users of the platform. It’s a place to include both influences and celebrities, as well as involving consumers.

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To follow the latest news, product updates and best practices for eCommerce advertising, follow the Pacvue Blog.

Start diversifying your ad portfolio today. Contact us to set up a free demo and learn how to balance your budget across Amazon, Walmart and other ad platforms, increase your ROI and reach more customers.