Beauty Store Business - August, 2019

It's Official: Amazon Launches Professional Beauty Store

While many professional beauty products have already been available on Amazon, the online retailing behemoth made it official earlier this week, announcing the launch of the Amazon Professional Beauty Store. The e-commerce behemoth will officially sell beauty supplies typically found in professional retaliers, salons and spas to stylists, barbers and aestheticians. It will carry a wide selection of top-notch brands, including Wella Color Charm, RUSK, and OPI Professional, to name a few. Amazon’s professional-use offerings requires a license to purchase products, such as state-issued cosmetology, barber, or aesthetician licenses.

“We are pleased to offer those in the professional beauty industry even more selection through the convenient shopping experience our customers love on Amazon Business,” Steve Kann, director of customer driven experience at Amazon Business, said in a blog post. “Stylists can find more of what they need at great prices with convenient delivery options, freeing up their time to focus on what’s important: their customers.”

Sally Beauty’s stock plunged nearly 17% and Ulta fell 2.6% following the news, according to CNBC. Ulta Beauty is not expected to experience serious long-term effects from the competition as professional products make up a small portion of its offerings and it has a large, loyal customer base. However, experts estimate a larger toll on Sally Beauty's sales, as its stocks were hit harder and analysts estimate that 30% of Sally Beauty's sales come from beauty professionals.

The extent to which the launch will effect other professional beauty retailers and salons remains to be seen.