Cosmetic & Beauty Fulfillment

Storing, fulfilling, and shipping cosmetic and beauty products presents a unique set of challenges. First off, the industry's typically expensive and varied product lines require the best warehouse organization. Also, the packaging must protect these often easily breakable products. Also, a lot of regulations apply to beauty and cosmetics products in the US - making it crucial that you partner with the right fulfillment center for the fast, effective delivery of your beauty products!
Read Time: 5 minutes
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Order Fulfillment for Cosmetics

When you think of cosmetics and beauty, you probably think of makeup, right? While makeup is definitely a top player in the industry, it only begins to scratch the surface! So what exactly falls under the umbrella of cosmetic and beauty products then?

The entire beauty and cosmetics industry can be broken down into five product categories: skin care, hair care, face care, personal care, and treatments. ​Modern cosmetic is way past satisfying basic personal hygiene these days. With new and innovative cosmetic products hitting the shelves almost daily, the industry has broadened to encompass a much greater variety of products to suit consumers needs.

The beauty and cosmetics industry has an estimated market value of over $511 billion

The beauty and cosmetics market value rose by $73 billion in 2020 - bringing the market value up to a whopping $511 billion in 2021.

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Cosmetic & Beauty eCommerce Growth

To say the least, the cosmetic and beauty industry is… booming! And the United States is a major player in this industry, with the highest valued beauty market worldwide in 2018.

As a result, American consumers have gone on to establish standards and birth trends in the cosmetic industry. With others following the United States’ lead, it hasn’t taken long for the cosmetics and beauty industry to dominate markets worldwide. By 2020, the Asia Pacific region had a 46% market share in this industry, while the U.S. held 24%. Western Europe holds the other largest market share at 18%. The global expansion of the beauty and cosmetics industry can largely be credited to the simultaneous growth of digital marketing and consumerism.

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Beauty & Cosmetics are taking over eCommerce!

As millennials' buying power continues to increase, so does the prevalence of online shopping as a whole. Recent research found that between the years 2018-2021, online sales channels had grown between 5.3%-6.5% each year. With online sales steadily growing, offline sales channels faced the consequences, dropping 1.2% during these years. So if you’re already in the beauty and cosmetic industry, it is probably time to shift gears to focus on online sales.

Making a large shift towards online sales can cause some growing pains for businesses accustomed to traditional retail. Managing eCommerce orders and fulfilling larger volumes of online orders presents different challenges - from postage costs, to storage solutions, to delivery logistics. Oftentimes utilizing an order fulfillment center can really help online sellers maximize profits and deliver a quality customer experience. A fulfillment center can still package orders exactly the way you want while saving you money on shipping costs, saving your business space by outsourcing storage, and getting the fastest possible delivery. But not every fulfillment center is the right partner for your business if you sell high quality cosmetics, which is why it's smart to make sure you're partnering with a fulfillment center that is experienced in the storage, handling, and packaging of these products.

Cosmetics & Beauty Order Fulfillment Challenges

​When it comes to the fulfillment and packaging of cosmetic and beauty products, a unique set of challenges arise. First off, the industries’ typically expensive and varied product lines require the best warehouse organization. Also, the packaging must be able to protect easily breakable cosmetics. Plus, various health and safety regulations that apply to the beauty and cosmetic industry complicates matters even more! All of this makes it really important that you're partnering with an order fulfillment center that knows how to store, pack, and ship beauty and cosmetics products to your online customers.

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PackYak is a pro when it comes to fulfilling beauty and cosmetics products

​Due to most cosmetics brands offering a wide array of products, effectively locating the correct SKU’s can present additional challenges as well. While popular with consumers, customizable cosmetic kits and the increasingly expansive shade ranges of certain products have not aided in simplifying the fulfillment aspect of this industry. Because of cosmetics consumer's preference for more complex product lines, a well-organized warehouse is essential for successful fulfillment. PackYak Fulfillment keeps its warehouses highly organized, keeping each SKU in a protective bin to be sure that your products are safe, correctly labeled, and ready to ship out as soon as an order is placed!

Today, packaging standards go far beyond merely protecting the product. Through popular consumer trends such as unboxing videos on YouTube, social media influencers have placed a new importance on product packaging. Packaging is a useful way for cosmetic companies to differentiate themselves from competitors in a saturated market. At this point, consumers expect aesthetically pleasing packaging - with the majority looking forward to the opening of a package and that initial experience.

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(JK PackYak doesn't sample products, but doesn't he look nice?!)

The cosmetic and beauty industry is filled with regulations put in place to protect one’s health and safety. Much like food products, many cosmetic products require temperature control and have expiration dates. With most cosmetic products being directly applied directly to the skin, it’s crucial to work with a fulfillment center that can monitor your products as part of the storage and order fulfillment process. Also, a variety of cosmetic products like perfume, nail polish, and hairspray, are classified as hazardous materials, which requires additional precautions to avoid mishandling or carrier fees and penalties. Fulfillment centers must use special labeling that follows guidelines specified by OSHA, EPA, and DOT when handling these hazardous materials.

Contact PackYak today for a free order fulfillment consultation if you are curious about how a fulfillment center could help your beauty and cosmetics eCommerce business - we're happy to answer any questions you might have about working with a 3PL, no strings attached! Get a customized pricing estimate today and find out how you can save on shipping costs, ensure fast and accurate order delivery, and utilize temperature controlled warehouses!

That's all for this week's edition of The New Yak Times, tune in next week and subscribe below!

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