Cosmetics eCommerce: Trends to Watch in 2023 and Best Platforms to Harness Them

With digitally-native brands now proliferating at a rapid rate across social media and digital shopping channels, eCommerce remains the biggest driver of beauty sales globally.

According to Common Thread Co, the beauty and personal care market is anticipated to reach $716 billion by 2025. This is a strong indication that the beauty sector will only get more competitive for cosmetics brands and will lead the way in eCommerce innovation and reinvention.

From clear navigation to hyper-personalized and AI cosmetics products, beauty retailers are constantly looking to improve their customer experience.

Let’s dive into some of the key trends that beauty brands are utilizing to stand out in this cutthroat market and take a look at the best platforms that can push the beauty industry forward.

Top 5 beauty eCommerce trends that shape the industry

The cosmetics market has undergone radical changes as a result of COVID-19, both for consumers and retailers. What will consumers seek out in the beauty sector following the pandemic? And how will businesses need to adjust for it?

It seems that cosmetics eCommerce will have the greatest long-term influence on the industry. Its digital transformation has been significantly accelerated by the current crisis, and businesses should shift their attention to eCommerce, digital media, consumer-centric content, and services.

Combination of online and offline retail

Consumers have been shopping for cosmetics and beauty products offline for decades. Since it allows customers to literally try before they buy, this type of retail is nowhere to go. However, eCommerce provides the convenience that offline retail does not.

Brands are combining both types of retail to provide customers with a seamless experience in an effort to dissolve the barriers. For example, customers can make an online purchase and pick it up at a nearby authorized store. Or the delivery can be made by retail partners.

For brands, it means the creation of the infrastructure needed for extended retail; educating store employees to use this infrastructure; click-and-collect programs and technology to align inventory and sales, etc. Brands that adopt these strategies might eventually attract and keep a larger customer base.

Unparalleled demand for personalization

Today shoppers are expressing a greater interest in experiences that are tailored especially to their needs and pain points. And hyper personalization is more than just using customers’ names when sending emails or giving them a birthday discount. The point is to deliver the right message at the right time.

Some of the ways that personalization is being implemented in beauty eCommerce include: customized product recommendations, virtual try-on tools or skin analysis instruments.

eCommerce retailers are using data on a customer’s previous purchases, search history, demographics and even skin type to recommend products that are likely to be a good fit for their needs.

With the help of augmented reality technology, customers can virtually try on makeup and other beauty products before making a purchase.

Overall, knowing where a customer is in the buying process and personalizing each touchpoint will help beauty brands increase higher conversion rates and engagement.

AI tools to help with product discovery

Beauty brands are increasingly using artificial intelligence to highly customize online customer experiences. Given that customers cannot try on the products from online stores, Augmented Reality (AR) and Artificial Intelligence (AI) come to the rescue to solve this task.

About 61% of customers prefer to shop at businesses that offer augmented reality experiences, showing that there is still a lot of room for this market to expand. For example, AI-driven technology makes product recommendations using deep learning. Based on a photograph, it analyzes the user’s skin, and recommends skin care treatment.

The rise of community-driven content

In the beauty industry, community-driven content can take many forms, such as customer reviews, photos, videos, or tutorials. For example, a customer might share a photo of themselves wearing a lipstick they purchased, along with a caption detailing their experience with the product.

Alternatively, an influencer might create a makeup tutorial video showcasing how to use several products from a specific brand, which can help to drive sales and increase brand awareness.

By leveraging community-driven content, eCommerce retailers can create a more authentic and engaging shopping experience that helps customers feel more connected to the brand. This, in turn, can lead to increased customer loyalty, higher engagement, and improved brand reputation.

New commerce channels

Social media platforms are becoming an important channel, with retailers using Instagram, TikTok, and other platforms to showcase their beauty and cosmetics products and engage with customers. That’s why social commerce becomes more popular and allows users to purchase products directly within social networks.

With the rise of smart speakers and virtual assistants, voice commerce is another emerging trend in cosmetics eCommerce. Now customers can use voice commands to order products, get product recommendations, and access beauty tutorials. Keeping these trends in mind, it’s fair to say that the future of eCommerce is likely to be omnichannel.

What platform is the best fit for cosmetics eCommerce?

A cosmetics and makeup platform for online retail should be equipped with several features to provide a seamless and enjoyable shopping experience for its customers. Some of the key features include:

• Product information needs to be detailed, accurate, and persuasive because cosmetics are personal care products. The product description should include the ingredients, usage instructions, and any precautions that need to be taken. This information helps consumers make informed decisions about which products are suitable for their skin type, hair type, or other specific needs, as well as easily navigate through the extended product catalog.
• Effective assortment management for eCommerce businesses with thousands of SKUs requires integration with PIM, ERP, and WMS solutions for real-time stock status and delivery time and prices displayed through supplier APIs. Automation of routine processes and bulk import of catalog data, including pictures, meta tags, prices, and attributes, is necessary for selling cosmetics.
• Personalized recommendations. All discounts, loyalty programs and online store suggestions should be tailored for customer needs based on configured customer roles and stored data. Cross-sells, upsells, and related product features let you offer your clients the best options while raising the average purchase value.
• Easy checkout. The platform should provide a simple and secure checkout process, with multiple payment options and the ability to save billing and shipping information for future purchases. It’s recommended to provide one-page or anonymous checkout so that customers can experience comfortable shopping.
• Social media integration. The platform should integrate with social media platforms like Instagram and Facebook, allowing customers to easily share their favorite products and purchase directly from social media posts.
• Scalability for success. If the eCommerce platform does not allow room for growth, it might be best to avoid it. The ideal platform should fully support the overall vision, including scalability. As your business grows, so should your eCommerce platform.

There are several eCommerce platforms that meet these requirements and are well-suited for beauty eCommerce, each with their own unique features and benefits. Here are some of the best platforms to consider:

nopCommerce — for those seeking an all-in-one solution

nopCommerce is a beauty and health products eCommerce platform with the source code available. Its powerful structure and inherent flexibility provides several benefits for cosmetics businesses, including:

• Customizability: nopCommerce allows you to customize every aspect of your online store, from the design to the functionality. You can choose from a wide range of plugins developed by certified experts or create your own.
• Scalability: nopCommerce is a scalable solution, which means that it can grow together with your business. You can start with a small store and add more products and features as your business expands, with the platform capable of ensuring its smooth operation.
• SEO-friendliness: nopCommerce is designed to be search engine friendly, which means that it can help you to optimize your website for search engines like Google or Bing. As a result, this can help to increase your website traffic and boost sales.
• Security: nopCommerce is a secure platform that uses the latest security features to protect your website and your customers’ data (SSL encryption, two-factor authentication, PCI compliance, anti-fraud measures, user access control, etc.)
• Mobile-friendliness: nopCommerce is designed to be mobile-friendly, which means that your online store will look great and function well on any device, including smartphones and tablets. What’s more, there is a mobile app developed by the core team.
• Payment and shipping options: nopCommerce supports a wide range of payment and shipping options, making it easy for you to provide your customers with the payment and shipping methods they prefer.
• Multi-store support: If you have multiple online stores, you can manage them all from a single nopCommerce dashboard. This can save you time and make it easier to manage your enterprise-level company.

Overall, nopCommerce is an excellent choice for cosmetics businesses looking to establish or expand their online presence. With robust features, it can help you to create a successful online store that meets your unique business needs and doesn’t face platform-based limitations.

Shopify — for small to medium businesses

Shopify offers a range of features that make it a good choice for cosmetics eCommerce. For example, it has a built-in inventory management system that allows businesses to track their stock levels and automatically update their online store when products are sold. It is also equipped with such marketing and promotional tools as discount codes and email marketing, which can help cosmetics businesses to reach a wider audience and increase sales.

While Shopify offers numerous benefits as a beauty eCommerce platform, it also has some drawbacks that should be considered. One of the main drawbacks is the limited control over the backend. Despite a user-friendly interface, it can be difficult to make necessary adjustments. Furthermore, the fees can add up quickly as businesses add more features and functionality to their online store. And there are transaction fees for using third-party payment gateways, which can further increase costs.

Salesforce — for the most complex projects

Salesforce is a cloud-based customer relationship management software that can provide several benefits to cosmetics eCommerce businesses. One major benefit is that Salesforce can help businesses manage and automate their sales processes, including lead management, account management, and opportunity tracking.

Another benefit of Salesforce is its ability to integrate with other software tools and platforms. This can help businesses to better manage their customer data and communications, including social media, email marketing, and other channels.

However, there are also some potential drawbacks to using Salesforce. One potential concern is once again the cost, as Salesforce can be quite expensive, particularly for smaller businesses. Another potential drawback is the complexity of the platform, which can require significant training and expertise to use effectively. Finally, some businesses may also be concerned about data privacy and security when using cloud-based solutions.

Ultimately, the best eCommerce platform for your beauty store will depend on your specific needs and budget. It’s important to consider factors such as customization options, scalability, and ease of use when selecting a platform.

How to win the game in beauty eCommerce?

While the beauty and cosmetics industry evolves along with the trends, the challenges stay the same. No matter how many new channels a brand or distributor incorporates into their sales strategy, they ultimately need to integrate them for seamless selling, more visibility, and better control.

With the right eCommerce software, brands can also improve their competitive edge and prepare for sales seasons. So, their ultimate goal in the beauty and cosmetics industry should be building a reliable tech infrastructure to strengthen their position, customer interactions, sales, and overall performance across different channels.