Due to their high margins, Prestige Beauty brands are more attractive from an e-commerce perspective than mass beauty brands. Accordingly, 11% of prestige beauty brands are sold online vs. 6% of mass beauty brands. However, mass brands can bundle their products with other items from traditional retailers with an e-commerce site or pure play online retailers like Amazon and Drugstore.com.
E-tailer handoff is an opportunity for brands without DTC to guide consumers down the purchase funnel, which many brands in L2’s mass beauty Index fail to leverage. For example, even though two-thirds of mass beauty brands distribute their products on Amazon.com, just half link to Amazon from their brand pages. Most brands that link to Amazon on their site belong to larger enterprises such as P&G, Johnson & Johnson, and Unilever, who have made significant investments in their Amazon presence.
Furthermore, brands that do link to e-commerce partners do not provide a seamless experience. For example, of the mass beauty brands linking to commerce partners, just ten link to product pages and 11 allow consumers to transfer carts to retailers they partner with.
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