You all are aware of the term e-commerce, and probably the meaning as well so let’s not go deeper into it.
Coming to the topic, cosmetics E-commerce with personalization is booming in countries like the US, UK, Canada, China, and India.
The venture capital funds for eCommerce have also increased in the last few years. Small brands are becoming competitive with big players in the market due to their exceptional digital marketing strategies.
However, E-commerce is no longer a new concept but the new trends in e-commerce are awakening the demand and increasing the market size as well.
And D2C cosmetics is one of them. Over the past few years, there has been a steady rise in consuming cosmetic products, and the male segment of cosmetics has also contributed to the whole industry.
Due to an increase in self-care awareness after COVID-19 healthcare industry and self-care industry were dominating the overall economy by increasing their market size.
New players are coming up with innovative, problem-solving ideas and products in the cosmetics industry.
But setting up and scaling up e-commerce stores is not everyone’s cup of tea. As a result, digital integration can help you scale your business.
So, we are here with some exceptional tips and advice which can help you grow your e-commerce business.
While let’s start with how e-commerce helps you scale your business…
How can e-commerce help you scale your skincare brand?
The cosmetic industry is filled with lots of difficulties and challenges which don’t let it expand at a faster growth rate. Some of the few challenges are
- Lack of regulations
- Chemical Catastrophe
- Difficulty in accessing beauty education
- Less profit
- Cost reduction
- Marketing myth
- Managing inventory
- Customer retention
- Difficulty in reaching a larger audience
- High operating costs
Moreover, for cosmetic brands setting up distribution channels is also an overwhelming process that includes wholesalers, retailers, agents, and so on.
Setting up this process consumes a long time, meanwhile, competitors can cover up more market share. But let’s say the brand is able to set up the channel successfully then managing the distribution channels is another challenge waiting for you.
For that, you need to hire sales experts who are skilled in CRM (customer relationship management)
However, presence in offline stores is essential but at the initial stage, it requires a lot of capital to set up stores in multiple locations and hire staff to manage those stores.
This eventually increases your expense and your revenue would not be enough to cover it which later on turns out into an unprofitable business.
As a result, building e-commerce can help to fix these issues as it has several benefits such as
- Improves customer experience
- Reach a higher customer audience
- Manage your inventory easily
- Increase retention rate
- Reduces capital expenses
- Increase brand equity
Apart from this, the most beneficial part of building an e-commerce store is getting access to analytical data which will help you to understand customer needs and wants.
For instance, one can find out which products consumers are purchasing more and what products they don’t. So, that will help brands to find out which products they should focus on.
Whereas you will get direct customer feedback on your table. That would help you to improve your product and services.
While, if you are operating offline channels through a distribution network, it’s difficult to understand customer needs and get accurate feedback which sometimes becomes the cause of the decrease in sales.
However, to get desired results the brand needs to optimize the highest potential of e-commerce technology.
Moreover, such technology is also optimized in healthcare to provide home care facilities using home care scheduling software.
Things to consider before building an eCommerce store
The most important thing to consider before building an e-commerce website is that it should be aligned with your business goals and visions.
And if it does then there are other factors you should consider initially before developing an e-commerce store.
- Understand your target market
- Designing your e-commerce business model
- Features and customization
- Identifying your competitor and what technology they are utilizing
- Define roles and responsibilities
- Social media integration
- Structure SEO team
- Determine the USP of your brand and product
- Marketing strategy
Apart from that, there are also some technical things that should be considered before developing an e-commerce website.
- User-friendly interface
- High visual content and images
- Mobile friendly
- Safe and secure website browsing
- Optimization both before and during the development of an eCommerce website
- Website search and filtering capabilities
- Terms and conditions
- Return policy
- Payment facilities
- Shipping rates
- CMS integration
- A website design that corresponds to the products you sell
- Attractive shopping cart design
- Showcase product with proper descriptions
- Customer support and contacts
Skincare e-commerce future scope: market performance
The skincare market grew by 41% from 2012 to 2019. And it is estimated to reach a $189 billion valuation by 2025.
However, consumer spending capacity has also increased. As a result, “teenagers spend approximately $44 billion a year on beauty products, and American women spend a monthly average of $313 on their appearance.”
This led to attracting more new opportunities for skincare brands and new players to enter the market as well.
To sum it up
Although, building a skincare eCommerce website can help you to achieve your business goals by scaling it.