Amazon’s premium beauty push may be a buffer against Trump’s tariffs
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A worker stacks a shipping trailer with boxed items for delivery at Amazon's distribution center in Phoenix, Arizona November 22, 2013.—Reuters
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New York: Amazon’s defense against taxes for his upcoming prime day? Luxury Goods.
The Amazon Prime Day is now a four -day shopping event for the Amazon prime members, which is taking place from July 8 to July 11 this year. Seattle -based e -commerce company is hoping that the increase in recent sales in high margin cosmetics in the Amazon Premium Beauty category will have the effects of revenue on prime day sales revenue and consumer sentiment.
“Beauty has become more and more important in the minds of consumers, in the past few years,” said Anna Mayo, vice president of the beauty vertical unit.
Amazon Premium Beauty was initially eliminated by luxury cosmetic players who feared the platform would damage their image when the launch of 2013. But those days are over. Now, online retailers are promoting high beauty and haircare brand products, including the civilian civilianism of the East Louder Clinic, Ola Plex and El Oral.
According to Adobe Analytics, during the last year’s Prime Day event, US buyers spent $ 14.2 billion, which is 11 % higher by year. High cosmetics brands can charge high prices and often do not offer discounts on prime day compared to electronics, costumes and household goods.
This year, Adobe Analytics is expected to exempt “light” from 10 % to 17 percent, while electronics deals are expected from 14 percent to 22 percent, said Adobe Digital Insight’s central analyst Vivek Pandya.
In addition, most of the products of small packages with ease of shipping, this means that Amazon Premium Beauty Trade Commercial goods have more margin than other products sold on prime day. Amazon “Advisory firm Invancy and former Amazon executive co -founder Renee Parker said,” They are making a lot of money on the premium beauty products because … (they) are small and expensive, and you can send a ton of them. “For these reasons, vitamins and supplements are successful.
FA Hong Kong Consultancy’s Beauty Industry veteran and partner Alfonso Emanuel D. Leone said that the e -commerce giant deposited the sale of Amazon Premium Beauty Steam after controlling the counterfeiting.
Emanole D. Leone said that earlier Amazon was seen as pyra through luxury beauty brands due to cheap trading goods on the website, but now it is not considered.
‘Huge acne’
According to Nilsinik, sales on Amazon Premium Beauty increased by about 20 % to $ 15 billion between April 2024 and April 2025, which is pushing 14 % growth for beauty products outside the special e -commerce store. Nelsiniq said it also won the annual increase of 5.0 % year -on -year for sale of online stores in the first quarter.
El Oral’s chief executive Nicholas Heronmus said during the company’s annual meeting in April that possessing products on Amazon has led to a “huge speed” to increase its US market share. The East Louder has launched 11 brands on Amazon’s US site from March 2024. More than 75 % of East’s goods sold in the United States have begun in the United States or Canada and is therefore protected from existing trade agreements, Roberto Kenry, executive vice president of the East Louder’s global supply chain, said at a conference in June.
Amazon’s Vice President Lauren Gordon at the East Louder said that Prime Day and other Amazon’s “high traffic shopping moments” give the company an opportunity to “attract both new and existing users”.
Amazon has been “very active” to work with premium brands to determine the effects of tariffs, said Melissa Dale Rei, general manager of health and beauty for US stores. “At the highest level, the sourcing strategy of most premium brands is local, and for that reason, the effect of (tariff) is less close,” said Dell Re said Dell R.
Amazon Premium Beauty is the only invitation program for Amazon and the brands sold by Amazon and a third -party seller. The department has developed more than 10,000 products, and the eligibility of the brands is determined on the basis of the case. Brands like Dyson and Esto Launder Eda give Amazon 15 % additional commission for the sale of each website, and large brands from third -party seller’s point of view allow for pricing and inventory.
Adding prostage brands, including the Dermugica of Unilver, has helped the company compete with the beauty retailer Alta Beauty and Cephara, which is owned by LVMH, and also attracts large, high -income buyers when the tech shop is detected by young consumers.
