The competitiveness of Amazon beauty brand is enhanced, but the cost is increased


Author:Wu Shuai
Source: ennews

In the beauty field, Amazon is becoming more and more competitive.


In order to break into the territory of Sephora andUlta Beauty and other majorsplatformThe leading market, Amazon has entered the beauty field in the past few years. stayIn 2013, luxury beauty salon was launchedCategoryAfter, it recentlyCategoryRenamed"Advanced Beauty"premium beauty, andIncreasing presentThis category hasFrom Elizabeth ArdenMolton Brown, Rituals andBurberryEtcMore than 6000 products.


itstillIn 2018, an independent beauty company was establishedMakeupShop,Main sales competitionEmerging brands that competitors cannot provide.In addition, Amazonlast yearstillintroductionHasSpecialized hair care department, own skin care brand and Amazon hair salon in the UK.


Amazon's investment in beauty products was reported。 according toProfitro data, fromthis yearFrom January to the end of November, AmazonplatformThe beauty sales of13%。 Sales increased by 56% compared with 2019. Profitero said that AmazonIn addition to the impact of the epidemic, it can win market share because it providesCompetitive prices andA series of newFunctions, including the ability to automatically supplement products.


However, the cost of selling beauty products on the Amazon platform is also increasing.


Beauty brandDavid Manschool, founder of Alleyoop, said:"Amazon is more like a payment platform todayitnowadaysofAdvertising costs are higher than two years ago.


according toAdvertising optimization platformPacvue's quarterly report, Q2It's inAmazon's average daily advertising spending grew year-on-year82%, the CPC of sponsored product advertising rose by 36% to 1.22 dollars over the same period. these two items.dataIn the third quarterThere is no decline


according toProfessionalsThe rise in advertising costs is caused by two factors:reasonPromoted by:epidemic situationDuring this period, the brand shifted its marketing expenditure toOnline platform, and AmazonAcquirerofImpact ofThese acquirersAcquisitionAfter the store, it will increase the sales by increasing the advertising expenditureNot too concerned about short-term profitability.


These factorscausea large number ofadvertisementexpenditureIt flows into Amazon and other platforms, and causesHasCompetition, which in turn drivesCPC growth.


even ifRising costsIncrease, beauty brands also saidAmazon is a sales channel that cannot be ignored."NoAmazon SalesIt's like I'm not hereSame on Google searchA beauty brand executive said

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