Amazon and the Beauty Industry

November 5, 2021

by Sam Boyle

Amazon's intentions within the Beauty sector have not exactly been clandestine, especially in Europe and countries like the United Kingdom: Amazon is moving in and it's here to stay.

Along with launching its own Skincare line, Belei, Amazon has even launched its own high-tech, covid-safe hair salon in London's Spitalfields Market. It will allow users to make the most of augmented reality technologies and try new styles and makeup digitally before purchase. 

Whilst such innovations are undoubtedly good news for faithful Prime customers, brands who wish to make an impact and increase their share of the US behemoth's Marketplace need to take note: Amazon’s market share of UK cosmetics was already significant, and post-pandemic figures are unlikely to see this number decrease.

Across the pond too, Amazon's influence with Cosmetics has been going nowhere but up. Purchases of cosmetics in the US represent 24% of the global share, and online purchases of  health and beauty was the third most purchased category on Amazon US in 2018.

Meanwhile in the UK the cosmetics sector is no slouch, either. The health and beauty category is expected to reach £31.4 billion in 2021 following an estimated 4.3% compound growth rate since 2016. Whilst this growth can of course be attributed to the pandemic, other factors, such as an older population's increasing reliance on anti-ageing products, have been pointed to in a report by Globaldata.


Our data solutions for the Beauty market

Shalion’s own clients within the Cosmetics sector cited common pain points when researching for this blog post, the industry is going digital and there’s no turning back.

For our clients right now it’s particularly important the maintenance and continuous audit of one’s brand online and its Digital Shelf: price-tracking, out-of-stock alerts, assortment, product content optimization and monitoring competitor SKUs. As well as tracking one’s promotional campaigns against those of your competitors on eRetail media. 

Once these fundamentals of eCommerce are in place, tracking Amazon Market Share is the next major milestone for our clients.

Nevertheless, any brand's obstacles to growing one's share on Amazon Marketplace remain obdurate and irresoluble; competition, price wars, customer returns and category restrictions to name but a few. 

In order to accurately measure one's success online it's important to be able to track growth within the Amazon Marketplace. This includes overall share of one’s brands and products, as category and subcategory share on Amazon but also monitoring stock, rating analysis, related product displays, and seasonality.

That’s why we recently launched an innovative solution to help all brands in the Beauty industry discover their share on AMAZON. If you'd like to know more about discovering your market share (and your competitor’s) across all Amazon categories I will ll be happy to jump on a call to help you out.

Sam Boyle

Commercial Manager UK&I


Meanwhile, here you can discover how one of the world's leading cosmetics manufacturers - Revlon - was able to optimise their Digital Shelf at scale (including Amazon’s) with the help of Shalion. 

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