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How to Sell Private Label Cosmetics on Amazon
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Over the last few years, cosmetics — which fall under Amazon’s Beauty and Personal Care category – are gaining traction online. The segment, which was traditionally limited to brick-and-mortar retailing, is picking up momentum across the e-commerce space, in part due to website personalization, subscription and loyalty boxes, social media marketing and influencers, on-demand services and augmented reality, among other variables.
Cosmetics fell into the third-fastest growing category on Amazon after food and beverage and apparel and accessories in 2018, according to eMarketer. Feedvisor’s AI-based ProductSphere pricing technology for brands and private labels analyzes your ever-changing competitive landscape to understand and autonomously implement the optimal price for your products in real time. When lumped together with health, personal care and beauty made up 44% of total retail e-commerce sales in the U.S. However, with the eruption of many digital-first direct-to-consumer brands in the space, and Amazon’s introduction of its own private label skincare line in March 2019, brands and retailers looking to launch private label cosmetics on Amazon need a detailed go-to-market strategy in order to achieve success.
71% of beauty shoppers say that Amazon is their top destination to purchase beauty products.
1. Find the right manufacturer.
When researching a potential supplier for your private label cosmetics, skincare, or beauty products, narrow your search down to those who have experience in the private label beauty sector, particularly with the specific products you are interested in producing. Get to know them, establish a relationship, visit the manufacturing site, and ask about any minimum order quantities or bulk volume discounts. Ask yourself these additional questions:
- Is the supplier U.S. Food and Drug Administration (FDA) approved?
- Will they print labels and packaging for you?
- What are the associated fees for labels and packaging?
- How does their ordering process work?
- What is the lead time for new orders and reorders?
- Will they be able to send product samples for your review?
- Can they make the specific products you have in mind, such as those with exclusively organic ingredients?
2. Adhere to Amazon’s rules and regulations.
Amazon’s key beauty category requirement is that the products must be new. Amazon defines cosmetics as “products that are usually rubbed, poured, sprinkled, or sprayed onto the body for cleansing, beautifying, or changing the appearance of the body. Cosmetics are products like skin creams, perfumes, lipsticks, fingernail polishes, eye and facial makeup, shampoos, hair colors, toothpaste, and deodorants.”
To sell private label cosmetics on Amazon, you must ensure that the products are correctly described and labeled. The cosmetics must be sealed in the original manufacturer’s packaging, must be unused, and clearly display identifying codes on the packaging from the manufacturer or distributor, such as a lot number or serial number. The labels must be in English and include the following information:
- The name of the product
- The purpose or use of the product (such as moisturizing the skin)
- The amount of content of the cosmetic in terms of weight, measure, count, or a combination
- A full list of ingredients
- The name and address of the manufacturer or distributor and any necessary label warnings
- They must not state that they cure, mitigate, treat, or prevent a disease in humans unless the statement is approved by the FDA
- They must not use the FDA logo and should not say “tester” or “not for retail sale” on the packaging
3. Design your branding, logo, and packaging.
When you commit to a supplier, you will be able to share your logo with them so they can incorporate it on your product packaging. Whatever you decide, make sure your cosmetics logo is attention-grabbing and easy to read and visualize. Keep your target customers in mind as you work through bottle shape and design elements. Would they want something premier and luxury? Simple and minimalistic? Regardless of which channels you will be selling the product on, consistency across your brand presence and messaging will be crucial to social proof and consumer loyalty.
4. Establish a fulfillment strategy that makes sense for your Amazon business.
Amazon consumers frequently filter for products that have the Prime badge, as those indicate rapid, free delivery. When determining if you are going to fulfill your cosmetic products via Fulfillment by Amazon or with a merchant-fulfilled operation — either Fulfillment by Merchant or Seller Fulfilled Prime — think about your catalog. Are any of your products perishable? How fragile is the packaging? The route you choose may vary by SKU or product line.
Upon launching private label cosmetics and beauty products on Amazon, pay close attention to customer feedback. Monitor your Amazon reviews to gain insights on what consumers’ favorite aspects of your products are or if there are any areas of your production that can be improved.
With consumers starting their search for new cosmetic products on Amazon now more than ever, identifying private label beauty products can drive incremental revenue to your catalog and enable you to leverage the many brand-building opportunities that Amazon provides.
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