When you think of cosmetics and beauty, you probably think of makeup, right? While makeup is definitely a top player in the industry, it only begins to scratch the surface!
So what products are classified as cosmetic and beauty products when it comes to eCommerce?
Order Fulfillment for Cosmetics
The entire eCommerce beauty and cosmetics sector can be broken down into five main product categories:
- Skin Care
- Hair Care
- Facial Care
- Personal Care
- Treatments
The beauty and cosmetics industry has a current estimated market value of over $511 billion.
The beauty and cosmetics market value rose by $73 billion in 2020, bringing the market value up to a whopping $511 billion for 2021. By 2025 it's expected to pass $716 billion! (Common Thread)
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How Popular are Cosmetic & Beauty Products in eCommerce?
The cosmetic and beauty eCommerce industry has exploded over the last several years. The United States is a major player in this sector, with the highest valued beauty and cosmetics eCommerce market worldwide.
As a result, American consumers have gone on to establish standards and create trends in the beauty and cosmetic direct-to-consumer (DTC) sector industry. With others following the United States’ lead, it hasn’t taken long for the cosmetics and beauty industry to dominate markets worldwide.
By 2020, the Asia Pacific region had a 46% market share in this industry, while the U.S. held 24%. Western Europe holds the other largest market share at 18%. The global expansion of the beauty and cosmetics industry can largely be credited to the simultaneous growth of digital marketing and electronic commerce consumerism.
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As millennials' buying power continues to increase, so does the prevalence of eCommerce shopping as a whole. Recent research found that between the years 2018-2021, eCommerce channels had grown between 5.3%-6.5% each year. With online sales steadily growing, offline sales channels faced the consequences, dropping 1.2% during these years. So if you’re already in the beauty and cosmetic industry, it is probably time to shift gears to focus on online sales.
Making a large shift towards online sales can cause some growing pains for businesses accustomed to traditional retail. Managing eCommerce orders and fulfilling larger volumes of online orders presents different challenges - from postage costs, to storage solutions, to delivery logistics.
Overcoming Fulfillment Challenges for DTC Cosmetics Brands
Oftentimes utilizing an order fulfillment center can really help online sellers maximize profits and deliver a quality customer experience. A fulfillment center can still package orders exactly the way you want while saving you money on shipping costs, saving your business space by outsourcing storage, and getting the fastest possible delivery. But not every fulfillment center is the right partner for your business if you sell high quality cosmetics eCommerce products. That's why it's smart to make sure you're partnering with a fulfillment center that is experienced in the storage, handling, and packaging of beauty and cosmetic products.
As mentioned, the fulfillment and packaging of cosmetic and beauty products presents special challenges. First off, the industries’ typically expensive and varied product lines require the best warehouse organization. Also, the packaging must be able to protect easily breakable cosmetics products. Plus, various health and safety regulations that apply to the beauty and cosmetic industry that complicate matters even more! All of this makes it really important that you're partnering with an order fulfillment center that knows how to store, pack, and ship beauty and cosmetics products to your online customers.
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Due to most cosmetics brands offering a wide array of products, effectively locating the correct SKU’s can present additional challenges as well. While popular with consumers, customizable cosmetic kits and the increasingly expansive shade ranges of certain products have not aided in simplifying the fulfillment aspect of this industry. Because of cosmetics consumer's preference for more complex product lines, a well-organized warehouse is essential for successful fulfillment. PackYak Fulfillment keeps its warehouses highly organized, keeping each SKU in a protective bin to be sure that your products are safe, correctly labeled, and ready to ship out as soon as an order is placed!
Shipping & Packaging Cosmetics Products
Today, packaging standards go far beyond merely protecting the product. Through popular consumer trends such as unboxing videos on YouTube, social media influencers have placed a new importance on product packaging. Packaging is a useful way for cosmetic companies to differentiate themselves from competitors in a saturated market. At this point, consumers expect aesthetically pleasing packaging - with the majority looking forward to the opening of a package and that initial experience.
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The cosmetic and beauty industry is filled with regulations put in place to protect health and safety. Much like food products, many cosmetic products require temperature control and have expiration dates. With most cosmetic products being directly applied directly to the skin, it’s crucial to work with a fulfillment center that can monitor your products and their expiration dates and quality as part of the storage and order fulfillment process. Also, a variety of cosmetic products like perfume, nail polish, and hairspray, are classified as hazardous materials, which requires additional precautions to avoid mishandling or carrier fees and penalties. Fulfillment centers must use special labeling that follows guidelines specified by OSHA, EPA, and DOT when handling these hazardous materials.
Contact PackYak today for a free order fulfillment consultation if you are curious about how a fulfillment center can help your beauty and cosmetics eCommerce business. A cosmetics fulfillment expert is ready and waiting to answer any questions you might have about working with a 3PL, no strings attached! Get a customized pricing estimate today and find out how you can save on shipping costs, ensure fast and accurate order delivery, and utilize our fulfillment warehouses for your DTC cosmetics eCommerce brand!
That's all for this week's edition of The New Yak Times, tune in next week and subscribe below!
