L2’s Insight Report: Amazon Beauty (released this week) finds that brands with a no-engagement policy in regards to Amazon have more of their products for sale on the platform. Parent company Shiseido has the highest number of Amazon SKUs (2,389), followed by Estée Lauder with 1,881 listings. L’Oréal is an exception as it does engage with Amazon and has a large number of SKUs on the platform, most attributed to its mass brands (L’Oréal Paris, Garnier, Maybelline, and Essie).
When a brand doesn’t entertain media buys or official stores on Amazon, it receives no third-party inventory regulation from the retailer. Keeping third-party listings unregulated is a key part of Amazon’s strategy, and is often what pressures brands to forge a relationship with it.
L2 researched fragrance SKUs available on Amazon and five discount retailers, and found that Amazon had far more SKUs for all brands except Chanel and Burberry. Chanel is one of few brands that have managed to maintain tight control over distribution, and Burberry officially distributes is products through Amazon.
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