Hair stylists, estheticians, and barbers looking to stock the best products for their clientele often must seek out their supplies at various places. Some salons might have contracts with the manufacturers, but in other cases, the service providers hunt through the offerings at their local Sally, Ulta, or Sephora store to find the items that will help their clients look their best. That’s the sort of inconvenience that is going to get Amazon’s attention eventually.
And thus it has happened: Amazon now hosts a dedicated online store designed just for beauty professionals, where they can find everything they need. Rather than running from store to store (or even clicking from site to site), they can get every brand, every size, and every color in a single location. The prices are good of course, and then the stylist can have the items delivered directly to the salon, rather than having to lug everything from the store to the car and then into the salon.
To gain access to this online store, the professionals must submit their credentials, such as a cosmetology license; regular shoppers do not have access to the professional deals and offerings. Once they do so, Amazon also encourages the beauty professionals to sign up for a Business Prime account, which provides additional benefits. Moreover, the retailer is promoting its newly introduced private label skincare line, suggesting the professionals might want to try out with their customers.
None of these competitive moves is particularly new; Amazon has followed similar paths in other markets. However, they are new in the beauty industry, and the response has been notable. For example, the stock prices for Sally Beauty and Ulta both fell on the day after Amazon’s announcement.
Discussion Questions:
- Is Amazon a wholesaler or a retailer in this supply chain configuration?
- Why might beauty professionals choose Amazon over their current suppliers?
Source: Cara Salpini, Retail Dive, June 25, 2019. See also “Professional Beauty Products Now Available,” Amazon Business Blog, June 24, 2019