Indie Skincare Brand Experiment Breaks New Ground with Amazon and Sephora Partnership
In a significant shift within the beauty retail landscape, indie skincare brand Experiment has successfully transitioned from an Amazon-only model to securing prime placement in Sephora, a move that underscores the evolving dynamics between online and brick-and-mortar retail. This development comes after just six months of selling its products on Amazon, a platform that has historically been viewed with skepticism by premium retailers.
The Changing Retail Landscape
Traditionally, many high-end retailers have discouraged brands from selling on Amazon, fearing that it would dilute their exclusivity and reduce profit margins. However, as Amazon’s influence in the beauty sector has grown, brands are beginning to recognize the platform’s potential for reaching a broader audience. According to Lisa Guerrara, co-founder and CEO of Experiment, “Amazon is reaching an entire audience that Sephora is probably not reaching.” This sentiment reflects a broader trend where brands are leveraging Amazon’s vast customer base to enhance brand visibility and awareness.
Experiment, known for its affordably priced clinical skincare products like the Super Saturated Serum, priced at $28, opted to launch on Amazon while simultaneously negotiating with Sephora. Guerrara noted that the decision was driven by the immense sales potential, projecting over $1 million in sales on Amazon in its first year. This strategy aims to create a “halo effect,” boosting sales in Sephora as well.
Amazon as a Strategic Tool
Experts suggest that rather than viewing Amazon as a competitor, retailers can utilize it as a valuable resource. Renee Parker, co-founder of the Amazon advisory agency Invinci, emphasized that “smart retailers” can use Amazon data to enhance in-store sales. This data can help retailers understand customer demographics, identify purchasing patterns, and improve demand forecasting.
Divya Gugnani, a beauty investor and entrepreneur, highlighted that platforms like Amazon and TikTok Shop facilitate faster community-building for brands. “Being native on TikTok Shop and Amazon with organic and affiliate content gives a brand more support in retail,” she explained. This approach allows brands to cultivate a loyal customer base that can transition to in-store purchases.
Data-Driven Insights
To effectively harness Amazon’s data, retailers must adopt both quantitative and qualitative approaches. Tools like Helium 10 can provide granular insights into customer behavior, including the keywords driving traffic to specific products. This information can be invaluable for retailers looking to tailor their offerings and marketing strategies.
For instance, if a brand ranks highly for a specific product, such as a hydrating serum, it can create a positive feedback loop. Customers who discover the product on Amazon may be more inclined to purchase it in-store after seeing it at a retailer like Sephora. Guerrara noted, “If someone searches for a hydrating serum and we’re ranking really high for that, they might be more likely to purchase it there because it’s that final stamp of approval.”
Bridging the Gap to New Customers
While specialty retailers often cater to dedicated beauty enthusiasts, they may struggle to attract more casual shoppers. These “shy buyers” may prefer the convenience and anonymity of online shopping. For Experiment, being available on Amazon allows the brand to reach a broader demographic, including middle American consumers who may not frequent specialty beauty stores.
Interestingly, Amazon shoppers are not solely focused on low-cost items. Parker pointed out that even luxury brands, such as Augustinus Bader, have found success on the platform, with high ratings and positive reviews. This indicates that Amazon has the potential to cater to a diverse range of consumers, from budget-conscious shoppers to those seeking premium products.
The Role of Influencers
Another critical aspect of Amazon’s ecosystem is the rise of “Amazon influencers,” content creators who specialize in promoting products available on the platform. Collaborating with these influencers can significantly enhance a brand’s visibility and awareness. Many consumers who discover products through influencers may later choose to visit physical stores to experience the products firsthand.
Ultimately, both retailers and brands must adapt to the evolving role of Amazon in the customer journey. It serves as a platform for initial brand discovery, product validation through reviews, and education about product features. Parker succinctly stated, “Retailers have realized that they can’t fight the tide. The customer has spoken, and the old playbook isn’t working.”
Conclusion
The partnership between Experiment and Sephora marks a pivotal moment in the beauty retail industry, illustrating how brands can successfully navigate the complexities of online and offline sales. As the landscape continues to evolve, the ability to leverage platforms like Amazon for brand awareness and customer engagement will be crucial for both emerging and established brands. The future of beauty retail may very well depend on how effectively brands can integrate their online presence with traditional retail strategies, creating a seamless shopping experience for consumers.
