One of the biggest decisions you have to make as a cosmetics company is where to sell your products. Should you sell them online through an e-commerce store or should you go down the traditional route of placing them in a brick and mortar store on main street or in a mall?

There’s no doubt that brick and mortar stores have been suffering a lot of late, with 5,524 US stores closing in 2018, and store closures in 2019 expected to exceed this number. 

In this article, we’ll look at what to consider when deciding where to sell your product. Will it do better in an e-commerce store or a brick and mortar store - and which will lead to the best sales for your beauty product. 

Who buys products online vs in-store?

According to industry stats, more than two-thirds of millennials prefer e-commerce stores over traditional physical stores. This compares to only 41% of baby boomers and 28% of seniors who said they prefer online to offline shopping. 

If your beauty products are targeted at a younger market, then you need to have an online store. 

Even people who are shopping in brick and mortar stores end up purchasing products from an e-commerce store. Stats show that a quarter of online shoppers have made an online purchase while they are in a physical retail store.

But, if you are going to open an e-commerce store of your own, then you need to make sure it is optimized for mobile, as more than two-thirds of consumers only use their smartphone to shop online.

Why do people shop online vs in-store?

One of the reasons that prevent people from buying online is the cost of shipping. Another is the inconvenience of returning a product that isn't right for them. If you want to sell products online you need to make sure you can provide low-cost shipping and an easy returns process. 

A factor that people miss from shopping online is the ability to try out products. In a physical store, you can see whether the color is suitable, to smell a perfume, or to look at the size and quality. Shopping online, you can’t see the packaging or how it looks on a shelf. 

On the flip, people love the convenience of shopping online and are more likely to make impulse purchases. 

What about marketplaces? 

There are many different places to sell your beauty products online. You can sell them through your website, through a major retailer, or through a marketplace like Amazon or eBay. Marketplaces are growing in popularity as a major destination for online shoppers. In fact, almost half of online customer journeys begin at e-commerce marketplaces such as eBay or Amazon. 

However, if you want to be successful in a marketplace like Amazon then you need to optimize your product listing for keywords, high-resolution images, and enticing copy. 

It’s also key that you provide photos of your beauty that clearly show the ingredients as, when shopping online, consumers can’t just pick up the package and take a look. 

Marketplaces are profitable channels, but only if you put the work in. 

Want to learn more?

As a company with original products and a private label manufacturer, Schwartz Natural Cosmetics is an expert in cosmetic manufacturing. Get in touch with us to review your contract manufacturing needs, or to ask about our wholesale products. We can even send you samples of our products upon request. Talk to us to learn how you can gain from over 50 years of experience.

This blog post is for educational purposes only.