Within the beauty industry, skin care is this year’s golden child. Skin care sales grew 13% and outpaced both color cosmetics and fragrance categories. Specialty and mass retailers alike saw growth in the category year over year, however no other retailer, even Sephora, outpaced Amazon in total online sales of skin care. Gartner L2’s Beauty US: Supporting Assortment Within Increasing Competition Insight Report found that, on Amazon, color cosmetics sales were dominated by lower-priced masstige products. A similar phenomenon holds true for skin care sales on Amazon as well.
On Amazon’s Skin Care Best Sellers page, the average product price was just under $16 in Q2 2019. Even on Amazon’s Luxury Skin Care platform, a curated space for higher-priced beauty brands like Elemis and Malin + Goetz that choose to officially distribute on Amazon, the average price of Best Sellers was just $26. These price points lag both Ulta and Sephora’s average skin care product best seller prices at $32 and $41, respectively. This indicates that even Amazon Luxury Beauty skews in favor of masstige-focused brands, like Mario Badescu or La Roche-Posay.
Although skin care brands at any price point can rejoice in overall interest in the category, prestige skin care brands should be cognizant that Amazon may better support lower-priced assortments and brands.