E-commerce Working Beautifully for the Cosmetics Industry

The e-commerce growth for the cosmetics industry was largely the result of social media. The content was well-suited to such platforms as Pinterest and Instagram. Consequently, customers would move seamlessly from browsing visually attractive content to clicking “checkout.”

close up of body care cosmetic products on wood

Moreover, endorsements from bloggers and influencers resulted in increased sales. Today, the industry is changing along with consumer expectations.

More so, the pandemic has brought new challenges and a range of opportunities for businesses that are creative and agile enough to capitalize on them. Here are the impacts of e-commerce on the cosmetics industry.

Personalization Trends

One way of appealing to online customers is through personalized services. One trend to watch for is personalization in the cosmetics industry. Nowadays, customers have a higher likelihood of conducting business with a company that provides personalized experiences.

The continued desire for brand connection and personalization has led to the emergence of a new type of hyper-personalization in this industry owing to AI technology. This means that the industry needs to find methods of offering the individual feel of in-store shopping.

woman applying make up

Previously, retailers achieved this through personalized quizzes. Today, AI technology has taken the industry to new heights. As a result, more brands now provide tools for skin analysis, such as where a customer takes a selfie after and then the technology evaluates and determines the most suitable products for that customer.

Pricing and Packaging

New trends in packaging and pricing have equally transformed the cosmetics industry. For instance, smart pricing techniques are helping businesses sustain a competitive edge in the marketplace. E-commerce businesses in this industry have room to adjust their costs competitively without compromising their profit margins.


That is, they can sustain a competitively priced yet lucrative market position to develop their bottom and top-line simultaneously. On the same note, cosmetic businesses are adjusting how they package and sell their products because customers have become increasingly eco-conscious.

One way of implementing environmentally friendly packaging is through recycled plastics. Some companies are also adopting efforts to educate customers on how to dispose of items sustainably.

The Organic and Natural Beauty Market is Expected to Grow

Customers read labels these days. With industries recognizing the climate crisis worldwide, customers are leaning toward vegan, organic, and ethically sourced products.

The size of the organic and natural beauty market globally was $11.05 billion in 2016 and the number is expected to double to $22 billion by 2024.

Natural cosmetics and green leaves on white stone background,

Customers increasingly want to discover more about a product’s ingredients and determine whether production took place ethically. Therefore, companies should evaluate their production policies and ingredient sourcing to meet shifting customer expectations.


Diversity in this industry is becoming increasingly important. More people will purchase your products if you sell products that appeal to different people.

Diverse models for cosmetics in a photoshoot

For numerous Gen Zs and millennials, activism is central in their lives. As such, they’ll support inclusive brands that initiate campaigns that mirror their surrounding world.

Subscription Boxes

Subscription boxes meet numerous consumer needs at the same time. That is, there’s automatic refilling, there’s personalized service, and there’s the thrill of trying new products at a comparatively low cost.

Social media maintains a vital role in the cosmetics industries, with such platforms as YouTube having a great impact on sales. In 2021, companies offering tools for skin analysis and natural ingredients will do well.

Paul Andrewshttp://optiwiseonline.com
If you are looking to sell on eCommerce or are already selling on the platform but looking to scale up operations, then I am that guy you think you’re not looking for! But if you think again you can let me leverage my years of selling experience on ecommerce platforms to provide hands-on, strategic guidance to your brands or private labels to help set up, grow and scale your business.

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