Beauty Ecommerce Key Strategies and Future Trends
Learn the fundamentals of beauty ecommerce including trends, key strategies, and best practices.
Beauty ecommerce has transformed rapidly over the past decade from a niche online segment to a global industry generating billions in revenue. With more consumers turning to online platforms for their beauty and wellness needs, businesses must stay ahead of trends to remain competitive. Top beauty brands take advantage of beauty CRM and ecommerce software in order to grow.
In this article, we explore the current state of beauty ecommerce, effective strategies for success, and emerging trends.
The Rise of Beauty Ecommerce
Digital commerce has changed how consumers discover, purchase, and engage with beauty and health brands. This shift toward online shopping has been driven by convenience, personalized recommendations, social media, and the ever-growing range of products available to consumers.
Today’s beauty market encompasses skincare, haircare, cosmetics, and wellness products, catering to a diverse audience with varied needs and preferences. According to Euromonitor research , in 2023, global beauty market retail sales grew to $446 billion, up 10% from 2022. While much of that success was attributed to price increases rather than volume gains, the rise of beauty ecommerce is undeniable.
Major beauty retailers and independent brands use digital tools such as omnichannel ecommerce platforms to reach new audiences and scale their businesses globally. According to McKinsey regional survey data , this is especially true in the Middle East, Africa, and Latin America. Euromonitor research shows that by 2028, the beauty industry is expected to reach $590 billion, with an annual growth rate of 6%.
Impact of Digital-native Brands on Beauty Ecommerce
Statista reports that 64% of consumers regularly buy directly from manufacturers, as opposed to third-party retailers. A major catalyst for this ecommerce explosion is the rise of digital-native brands such as Glossier and Fenty Beauty. These companies operate and market primarily through online channels and use social media, direct-to-consumer (DTC) models, and social commerce to engage customers. They have disrupted traditional retail by prioritizing digital experiences, influencer collaborations, and community-driven marketing. But brands can no longer be online-only. Marketing acquisition costs online are too expensive, so brands may start online but then they should move into wholesale partnerships with retailers like Sephora, Ulta, Target, and others.
Trends in Beauty Ecommerce
Shoppers are often more loyal to companies that provide consistent interactions across sales, service, and marketing. Having an authentic message, monitoring consumer preferences and trends, and embracing technology are a few ways to get there. The top trends continuing to evolve in beauty ecommerce include:
- Clean and sustainable products: The demand for eco-friendly, non-toxic, and cruelty-free products will continue to grow. To stay competitive, brands will need to lead with messaging that reinforces their commitment to delivering safe and ethical products.
- Hyperpersonalization: Data and AI-driven tools will continue to play a critical role in ecommerce as customers seek out customized product recommendations and tailored beauty regimens.
- Virtual try-on and augmented reality (AR): Technologies that allow customers to virtually try products before they buy enhance the customer experience and improve customer satisfaction. For example, many beauty brands now offer virtual try-on apps that let customers preview lipstick or foundation shades to find the perfect match.
- Omnichannel marketing: Beauty brands need to be everywhere the customer is. By selling across multiple channels and touchpoints — and engaging customers through both online and in-store shopping experiences — brands will reach a broader audience and build customer loyalty.
- Artificial intelligence (AI) and machine learning (ML): By analyzing customer data such as browsing behavior, past purchases, and even skin type, these technologies will assist brands in product development and campaign creation.
The future of beauty ecommerce is bright, and businesses that embrace digital transformation, customer-centric strategies, and emerging technologies will thrive in this dynamic industry.
Essential Beauty Ecommerce Marketing Strategies
Beauty ecommerce is moving away from traditional retailers. A recent Salesforce State of the Connected Customer Report shows that most companies have adopted digital service channels for consumers. These channels are now essential for product discovery, purchase, and customer service.
Social Media Marketing
Social media is a powerhouse for health and beauty ecommerce, offering unparalleled opportunities for brand visibility and customer engagement. These platforms allow you to showcase products and services through livestreaming and via direct links in user’s bios. Brands can share tutorials and demos, offer in-app shopping, feature user-generated content where customers share their experiences, and run interactive campaigns and giveaways. Social-marketing software plays a critical role in this effort, giving retailers the ability to automate and schedule posts, track analytics, create advertisements, and more.
Influencer Marketing and Brand Partnerships
For brands, collaborating with influencers can be an effective way to build credibility and reach new audiences. Be sure to choose the right influencers who would actually use your products and whose audiences align with your target demographics. Then create engaging and authentic content that shows social-media users their favorite creator using and enjoying the product.
Email Marketing and SMS
Direct communication remains a powerful tool in ecommerce, helping brands nurture relationships with customers. Emails, newsletters, and SMS are ways to get your brand’s message straight into the hands of the consumer, literally. Take advantage of advanced tools — such as artificial intelligence (AI) — to create and distribute messaging as well as to collect personalization data and feedback. Additionally, you can use email marketing software to track engagement and performance and collect leads. And be sure you always reach out with a purpose; don’t spam users with constant communications.
Video Marketing for Beauty Products
Video content is one of the most engaging ways to showcase beauty products. Create inspirational or educational videos that will grab your target audience’s interest, establish a consistent upload schedule, and engage with consumers through direct messages, comments, and live Q&A sessions.
Search Engine Marketing (SEM)
If no one sees your content, it defeats the purpose of creating it. When possible, use targeted keywords and hashtags in social or ad copy to boost brand visibility. Monitor and optimize SEM campaigns for better return on investment (ROI) using technology such as AI or ecommerce and marketing solutions.
Promotions and Discounts
By providing promotions and discounts, you attract new customers and retain established ones. Offer customers “limited-time” promotions to drive purchase urgency or gamify discounts to boost the entertainment and engagement factor. Gather data about which promotions garnered the most attention and use that information to develop future incentives. Keep in mind that there’s a delicate balance between discounts and brand positioning. To create an air of exclusivity, luxury beauty companies offer fewer promotions than most superstores or drugstores.
Best Practices for Beauty Ecommerce Brands
Success in the competitive beauty ecommerce landscape requires more than just offering desirable products. Brands must cultivate consumer trust and deliver an exceptional online shopping experience. Here are a few best practices to try.
Build Trust and Transparency
Being transparent about ingredients and manufacturing processes is crucial when selling and marketing beauty products. Providing detailed product information and third-party certifications can help build trust with existing consumers and attract new customers.
Streamline the Checkout Experience
Creating a user-friendly, mobile-optimized checkout interface that simplifies navigation and reduces cart abandonment can enhance the customer experience and increase conversion rates. One way to accomplish this is with shopping-cart software. Give users the ability to pay wherever they’re shopping — either through third-party payment processing services such as PayPal and Venmo, Apple Pay, or with digital wallets. This can cater to a wider range of customer preferences and reduce friction for first-time buyers, making the process quicker and more convenient.
Manage Returns and Logistics
Creating customer-friendly return policies, optimizing shipping and delivery processes, and using trusted ecommerce shipping services are a few ways to uplevel ecommerce logistics. Helpful features are baked into solutions such as order-management systems.
Make the Most of AI and Technology
Improve engagement by implementing consumer goods AI to create unique product imagery and descriptions for ecommerce campaigns. Or use AI agents in consumer goods to analyze customer data, automate routine tasks, and create personalized customer experiences.
Build Loyalty Programs
According to the Salesforce Consumer Goods Industry Insights Report, 56% of consumers are more likely to buy from a brand with a loyalty program, but only 70% of consumer-goods companies say they have their own proprietary loyalty program. The same report notes that 61% of consumers say they’d use loyalty programs if more companies automatically applied rewards to purchase. So, why not take advantage of this opportunity?
Today, consumers are used to racking up points and redeeming rewards directly with retailers. More personalized and interactive loyalty programs have better customer retention and offer upselling and cross-selling opportunities. Remember to use AI-driven automation to keep the conversation going with post-purchase email or text communications and incentives.
This article is for informational purposes only. This article features products from Salesforce, which we own. We have a financial interest in their success, but all recommendations are based on our genuine belief in their value.
Beauty Ecommerce FAQ
The beauty ecommerce market is global and includes all generations. According to Statista, the beauty and personal-care market in the U.S. is the biggest in the world. Last year, the national market was expected to generate approximately $61 billion.
Skincare, cosmetics, haircare, and fragrance are the highest-grossing beauty categories in the online market, driven by consumer demand for innovative and high-quality products. Euromonitor research shows that skin care is the largest category, accounting for 44% of the market. Fragrance is expected to lead category growth looking forward, followed by makeup and skin care.
While competitive, the beauty industry continues to evolve. Brands that adopt the latest technology, showcase a unique and authentic point of view, focus on sustainability, and specialize to meet the needs of specific customers will undoubtedly find space in the industry.