Amazon is making its next move with a luxury beauty storefront and Amazon Advertising. Will the expansion capture consumers, or is it too little too late?
Amazon Australia has announced that it is expanding its range of beauty products, with consumers now able to purchase Chanel, Clinique, Elizabeth Arden, Estée Lauder, Dyptique and almost 200 other brands.
The expansion comes with a curated storefront, making luxury brand names front and centre.
There are currently 29 categories (including beauty) available to Australian shoppers on the marketplace and 100 million products, according to Amazon. Alongside the luxury beauty and salon brands, there are already thousands of ‘everyday’ brands including Nivea, L’Oreal and Thankyou.
Rocco Braeuniger, Country Manager for Amazon Australia said that the expansion of beauty products in Australia made sense given that “Aussies take their beauty regimes seriously” and that one of the bestselling products last year was Aztec Secret Indian Healing Clay. In case you’re wondering, Aztec Secret Indian Healing Clay is a deep pore cleaning face and body mask and comes with a whopping 2,665 reviews. Spoiler alert: the secret is actually Natural Calcium Bentonite which is written on the label. Related sponsored posts include a 24k gold face mask (yes, that’s a thing now) for firming and if you think I just got lost down a beauty product rabbit-hole while researching this, you’d be absolutely correct.
“We hope that customers will be pleased with the extended range of beauty products giving them access to new and established luxury beauty brands,” Braeuniger said.
Amazon also announced on its Blog last Friday that it has now launched Amazon Advertising in Australia. It was reported that this was previously in Beta mode, as Amazon tested its products before full launch last week. The Advertising suite includes Display Ads, Video Ads and Amazon DSP. Like Amazon Multichannel Fulfilment, this marks Amazon’s move not just as a contained marketplace, but as a full service offering across all e-commerce sites. According to analysis, Amazon more than doubled its advertising revenue last year to hit an estimated $US6 billion.
It’s no secret that Amazon Australia has come under public scrutiny for not meeting consumer expectations when it comes to pricing and availability of products and brands. While it has rolled out its offerings, including FBA, Prime and now Amazon Advertising relatively quickly since initial launch, it hasn’t quite shifted Australian shopping patterns just yet. In fact, Power Retail’s Spotlight Series Report Amazon Australia: Year One found that despite universal awareness and a high level of trial, Amazon has only converted a relatively small proportion of online shoppers, with only 6 percent of the total market found to have become engaged Amazon Australia shoppers.
Is this current expansion a sign of a more aggressive move to target consumers as well as retailers across the board? Like, an anti-aging mask, only time will tell.
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