When it comes to Amazon’s notorious gray market, makeup is one of the most impacted categories. Here’s how Anastasia Beverly Hills managed to cut through the copycats and make Best Seller status for the first time this year.
Partially out of fear of harming relationships with equity-conscious specialty retailers, prestige brands in particular have been hesitant to invest in measures to help drive their own visibility and rank amidst unofficial copycats. As a result, brands distributing via Luxury Beauty accounted for just 3% of 2018 Makeup Best Sellers. However, Anastasia Beverly Hills, which distributes officially via the Amazon ThirdParty Marketplace, significantly increased investments in Amazon Marketing Services, ramping up its share of Sponsored Products five-fold. These improvements were also captured by Gartner L2’s Amazon Performance Rank, with the brand improving its score quarter over quarter by 11% on average across priority categories of eyeshadow, eyebrow makeup, and bronzers / highlighters. Across 200 unbranded Makeup keywords, Anastasia Beverly Hills owned the third-largest share of Headline Search Ads and the sixth-largest share of Sponsored Products.
Just as Anastasia Beverly Hills can be considered the first specialty retail darling to enter into Amazon distribution, this aggressive uptick in platform-specific investment might be an indicator of future techniques used by other prestige brands approaching Amazon as a growth channel.