Amazon is a fulfillment leader in the U.S. but is far from becoming an authority on beauty products. It may be where beauty junkies flock to for discounted items, but offers little in terms of product discovery. The majority of beauty brands, especially prestige ones, have not embraced Amazon and therefore do not take advantage of all of its guided selling tools (i.e. product images, brand or tutorial videos, sampling to bolster reviews). As a result, Amazon.com resembles an online warehouse of third-party sellers offering their products at real or perceived discounts.
In Germany, however, Amazon is closer to a Sephora. The e-tailer-owned “Beauty Trends” blog – advertised on searches for beauty brands – features hair and makeup tutorials that link to relevant product pages. It also features content by vloggers Madame Tamtam, Desi and Nisi of Teeth are Jade, Pearls of Success, and Primer & Lacquer, who star in video tutorials, review product, and create a favorites collection to guide browsers to purchase. Furthermore, 27% of Beauty brands in L2’s Digital IQ Index: Beauty Germany officially distribute on Amazon, on par with other German retailers with the exception of Douglas. And 64% of the brands that hand off to third-party e-tailers from the brand site link to Amazon.
These partnerships with brands and vloggers to create localized content have been paying off. Germany is Amazon’s second largest market after the U.S. and 57% of German shoppers name Amazon as their favorite e-commerce destination. Amazon plans to expand its offerings largely by fulfillment centers in Berlin and Frankfurt airport.