L. Yltävä
Research expert
Online beauty retailers in the United States - statistics & facts
The battle for domination of the beauty e-commerce market in the U.S. is more intense than ever. Online retail giant Amazon is facing stiff competition from pure beauty online stores, spearheaded by Sephora and Ulta. Almost 60 percent of U.S. consumers prefer to start their search on beauty retailers’ websites, instead of online marketplaces. As for the second most popular online destination, one in five shoppers turn to Amazon.
When looking at e-commerce net sales, Sephora is currently the top online beauty retailer in the United States. In 2023, Sephora's web store generated sales of nearly 2.8 billion U.S. dollars, surpassing Ulta, which reached just over two billion U.S. dollars. However, Amazon has emerged as a formidable competitor, capturing a significant one-third of the country’s total health and personal care e-commerce sales share in 2023. The marketplace is forecast to further strengthen its market dominance, reaching an even bigger share in 2024.
Online beauty retail stores in the United States have a bright future ahead due to the market's rapid expansion. To stay relevant in the ever-expanding beauty market, it is crucial for e-commerce stores to develop websites that prioritize consumer-generated content.
Sephora, Ulta and Amazon
The three leading online retailers in the beauty industry each offer consumers a unique shopping experience by catering to different needs. Sephora has a wide selection of mid-range to high-end products. Ulta, on the other hand, offers a diverse selection of affordable cosmetics that will not break the bank, while Amazon provides a wide variety of products from different vendors.When looking at e-commerce net sales, Sephora is currently the top online beauty retailer in the United States. In 2023, Sephora's web store generated sales of nearly 2.8 billion U.S. dollars, surpassing Ulta, which reached just over two billion U.S. dollars. However, Amazon has emerged as a formidable competitor, capturing a significant one-third of the country’s total health and personal care e-commerce sales share in 2023. The marketplace is forecast to further strengthen its market dominance, reaching an even bigger share in 2024.
Cultivating engaging communities
When shopping for beauty products online in the United States, shoppers consider consumer-generated content, particularly written reviews and review stars, as the most important website product details in their purchasing decisions. In fact, in 2023, nearly two-fifths of U.S. women discovered new beauty and personal care products through online reviews, and around two-thirds of them always read reviews while shopping for these items on the internet. Therefore, to keep pace with the significant advantage that social media platforms hold in terms of social selling, beauty retailers will prioritize the development of interactive websites that facilitate peer-to-peer engagement and showcases the fun experiences of other shoppers. This not only allows customers to make informed purchasing decisions by seeing how products perform on various skin tones and lighting conditions, but it also fosters a strong sense of community among digital beauty enthusiasts.Online beauty retail stores in the United States have a bright future ahead due to the market's rapid expansion. To stay relevant in the ever-expanding beauty market, it is crucial for e-commerce stores to develop websites that prioritize consumer-generated content.
