The Scope & Importance of Cosmetics in the E-commerce Industry

E-commerce Industry

Ecommerce industry hasn’t left any business sector untouched. Still you’re in the dilemma, whether is it doing any good for the cosmetics industry? Or, is it a good idea to take your cosmetics business online? Being in this industry I can tell you the truth, read on.

The global beauty and personal care industry is expected to worth more than $725 billion by 2025, according to a report by Avendus, which is up from around $59 billion in 2018. Also, the fledgling Indian market is expected to grow to $28 billion by then, which is why, it’s not just about expensive department store cosmetics brands anymore. With the rise of online shopping and social media, more and more consumers are buying affordable products directly from manufacturers and beauty brands. In other words, yes, e-commerce has disrupted the cosmetics industry.

With this blog, you will learn about the scope of cosmetics in e-commerce industry and significantly, why it matters to your company’s strategy. If you sell beauty products or plan to do so in the future, you might be interested in continuing reading to learn why now is the right time to enter the e-commerce market as a manufacturer or seller of cosmetics products.

The essentials of Cosmetics e-Commerce Market

Before diving into the cosmetics e-commerce market, let us discuss the makeup industry in general & about some gaps in the overall makeup market that e-commerce has helped to fill despite of its impressive growth.

Consumer’s Behavior

“I think the winner will be the consumer because she will be spoilt for choice. This is great because I think as more supply comes in, some of the leading brands will be compelled to continue the cycle of innovation to stay ahead of the pack, and also outperform them on execution and thinking,” said Sakshi Chopra, Principal at Sequoia India.

Hearing this, from the consumer’s point of view, on one side, there are occasional buyers who purchase a few items per year, and the heavy users who buy many products each month.

Understand this, the cosmetics e-commerce market is primarily focused on heavy users who buy makeup frequently and in high volumes as heavy users tend to shop for makeup online because they can easily compare prices and read reviews from other customers who have used the product before.

They may also prefer to shop online because they can do so at any time and from anywhere. As such, e-commerce has become the dominant sales channel for cosmetics. In fact, online sales of cosmetics have grown by more than 50% over the last few years and are expected to continue growing in the future.

How Cosmetics Shoppers Behave in E-Commerce


Dealing in the cosmetic market, there are several key shopping behaviors specific to cosmetics in e-commerce you must know. As these apply to both brand manufacturers and resellers of cosmetics products who sell online, let’s find out!

Price-focused customers

Some cosmetics shoppers care mostly about price and may be willing to compromise on quality for the best deal. For example, they may not mind buying a low-quality foundation that’s $5 per bottle instead of $25 per bottle to make the deal. In simple words, they make huge profits while maintaining competitive pricing and that’s a win-win situation!

Product exclusivity and novelty

Some customers may be drawn to the exclusive products available only on certain cosmetics websites. Others may purchase a product they heard about on social media because they’re curious to try it. Now, this can be a challenge for brand owners who sell their products exclusively online and rely on social media marketing to drive sales.

Speed-focused shoppers

Many cosmetics e-commerce shoppers may prefer to buy products as quickly and easily online as possible. For example, they may want to click a few buttons and have their makeup delivered in a day or two instead of waiting for a package to arrive in the mail. This is reasonable enough, right?


The Reasons Why Cosmetics in E-Commerce Matters Now

Not to deny the fact you’ve been in this industry for some time now and instead of knowing how you can expand the sales you rather focus on why market isn’t turning towards you! Well, I’ve true reasons why now is an especially good time for cosmetics brands to expand their sales online.

Growth of e-commerce industry in cosmetics

It should come as no surprise that the market for cosmetics has grown as e-commerce has become more popular. As previously mentioned, more shoppers are willing to buy makeup products online as long as they can find the products they’re looking for and read reviews from other shoppers.

Today, even the leading cosmetic companies are providing in-person beauty consultancy to their customers by developing online beauty assessment systems by deploying their beauty experts, data scientists and developers. However, most of the companies are using this kind of personalization to bridge the gap between their online stores and worldwide customers.

Interestingly this way, most cosmetic businesses are surpassing the experience their customers might get at an offline makeup counter giving rise to e-commerce industry rapidly.

Rise of cosmetics influencers online

You too know this, the beauty industry has seen a rise in the number of influencers marketing cosmetics products via social media. These influencers are increasingly selling makeup products online be it beauty blogger Manny Gutierrez partnered with Amazon after moving to the online marketplace, they’re doing so well online.

Growing popularity of subscription boxes on websites

Try to get this, consumers are more willing than ever to subscribe to recurring beauty subscriptions that deliver products like makeup, hair care, and skin care to their homes once or twice per month. This has opened up opportunities for cosmetics brands to expand their sales through e-commerce.


E-commerce is the future of cosmetics business

The cosmetics e-commerce industry has much potential for growth thanks to the industry trends discussed above. Also, while the beauty industry has been there for about a century now, modern cosmetic businesses have become even more technology-driven.  

For instance, recently, a Japanese cosmetics company Shiseido launched IoT powered skincare system that assesses a user’s skin condition via mobile app entering in e-commerce market. And well-known brand, L’Oreal has also, successfully developed a wearable sensor that tracks the user’s sun exposure, again, along with a mobile application that calculates the sun damage to the skin of the user.

And as the cosmetics e-commerce sector is extremely competitive, and many brands struggle to succeed online as for this they need to find the right e-commerce platform. While many cosmetics brands may have success selling on Amazon, there are also other online marketplaces worth exploring. This has surely given us an advice that we should consider selecting the right platform for selling and expanding our retail store.

Finding the right marketplaces

To make the most of your cosmetics e-commerce strategy, you need to find the right marketplaces for your products. The best place to start is by researching which online marketplaces host the most traffic. You should also choose marketplaces that will help you thrive and provide you with the best possible ROI.

As “For us, both opportunities exist. We will bring brands that meet the needs of the consumer either through our own innovation or through acquisition,” said, Kavita Angre, director of consumer & market insights and media at L’Oreal India.

Like this, when leaders in the market are still expanding why not you!?

What’s next for the Cosmetic E-commerce Industry?

In this competitive era, brands will continue expanding their sales through e-commerce and compete for customers’ attention across multiple online marketplaces. This will lead to an increase in the use of digital marketing tools and an increase in competition for digital ad spending.

Meanwhile, more brands will start selling their products exclusively online. This shift away from brick-and-mortar stores will make it more important than ever for cosmetics brands to find the right e-commerce platform.

“Brands need to cut the noise and bring out a story through which they can connect with the consumer. They are always looking out for the next best ingredient to differentiate themselves from the market.”,” said the cofounder of Juicy Chemistry, Pritesh Asher.

My Final Say for You!

So, this is how the E-commerce is definitely impacting the growth of the cosmetics industry, of course, in a positive way. Now you know, the introduction of new technologies and market trends, beauty brands are undergoing a great transformation and growth. Thus, it is the right time for you to hire a reliable e-Commerce agency and take your cosmetics business online for exponential growth and success.

And if you’re planning for the digital transformation of your cosmetics business or looking for a great start in the online cosmetics industry, then for you to worry less, we’ve arranged it all for you just check https://greenfroginteractive.com and get in touch with us. As we can help you establish your online beauty brand and grow your business like never before. Contact us today!

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