The growth of the beauty business and the need for 3rd party order fulfillment.

The Beauty industry is booming and growing more rapidly than ever. Privately owned beauty brands are experiencing a faster growth than the total US beauty industry as a whole and corporate accelerators  and funds are popping up and looking for the next big thing in beauty. Countless new brands have been created and an endless array of new ingredients have been developed. Because health and beauty products are particular to each user it has been one of the last industries to adapt to online sales.

Stats Don't Lie!

According to Statista, The U.S. annual household expenditure on cosmetics, perfume and bath products was higher than it has ever been and the trend looks to continue to rise. In 2016, the American and beauty personal care market was valued at about $84 billion U.S. dollars and is on the rise still.

The use and importance of e-commerce in today’s day and age, regardless of the business size, is foundational in their overall success. Consumer experience and satisfaction are a key ingredient to the success of any retail business. According to Cybba, up to 80% of online shoppers say shipping speed and price are very influential in where they shop. Because of recent world events even more people are looking online to fulfill their beauty supply needs. 

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A Newer Trend

The latest batch of beauty brands are taking a different route to building their businesses. Their focus is much more on selling direct-to-consumer (D2C) and less on selling in retail stores. With the correct business model and infrastructure in place this can be an extremely lucrative endeavor.

With D2C, businesses ship products in smaller quantities rather than truckloads, making supply chains much more piece-specific. Many times it is easier for start-ups and small to medium sized businesses to adopt this mechanism because it’s in their DNA from the beginning. Processes in the supply chain look different for D2C brands, and companies will need a warehouse network that excels at picking at the sell-unit level, rather than at the case or pallet level. When working with smaller quantities, accuracy is crucial in the overall success of the business. There is no room for one missed package because that can take a hit on the revenue. The systems used to track storage, packaging, shipping and receiving must be far more granular than what more established firms likely have in place today.

When trying to maintain, grow or just start a business it is virtually impossible  to perfect all of these aspects of the business and still have time to grow your business. Focusing on what your strengths and getting help with your weaknesses is what can make or break the business. You can go from just selling a few products online to needing to find (and pay for) a place to store your products. In order to have time to continue to build your business and brand you will need to hire a staff that can manage your stock and process orders efficiently. Then you need to find the most cost effective way to get your product to the consumer and do all of that in a timely manner or the consumer experience will be negative which will directly impact the profitability of your business.

Let Selery Fulfillment Help!

We're not your typical e-commerce order fulfillment company. Our business exists to complement and serve yours. When you do well, we do well also. We specialize in promoting your business by providing personalized packaging, multi-channel order fulfillment and warehousing by being a unique one-stop-shop eCommerce 3PL logistics provider.

Looking to start or expand your own e-commerce business? We'd love to help. Selery Fulfillment is a unique one-stop 3PL provider for small to medium sized businesses. Personalized and convenient multi-channel order fulfillment, 2-day shipping, kitting and warehousing in Dallas, Texas.