Amazon’s defense against rates for his next first day? Luxury goods. The rates of President Donald Trump have stimulated some Amazon sellers who provide products from China and other countries strongly rates to eliminate the first day of the company, one of its largest sales events of the year, to protect their margins. Amazon Prime Day is now a four -day shopping event exclusively for Amazon Prime members, which will be held this year from 8 July to 11 July.
The e-commerce company based in Seattle hopes that the recent growth in sales in high margin cosmetics in its category of beauty Amazon Premium will submit the impact of rates on the revenue of the first day sales and on the feeling of consumers.
“Beauty has become, in recent years, more an essential object in the minds of consumers”, also in Hard Financial Times, said Anna Mayo, vice president of the Nielseniq beauty unit of beauty. Amazon Premium Beauty was initially avoided by luxury cosmetic players who feared that the platform would damage their image when it was launched in 2013. But those days disappeared. Now, the online retailer is promoting the products of the best beauty brands and hair care including Estee Lauder’s Clinique, Olaplex and Oreal’s Urban Decay. During the Prime Day event last year, the US buyers spent $ 14.2 billion, growing 11 % on an annual basis, according to Adobe Analytics. The best cosmetics brands can charge high prices and often do not offer steep discounts the privileged day compared to electronics, clothing and goods for the home.This year, Adobe Analytics predicts that discounts on beauty products have “milder” discounts from 10%to 17%, while electronic agreements should vary from 14%to 22%discount, said Vivek Pandya, the main analyst of Adobe Digital Insights.
This, combined with the ease of shipping of small packages of most of the products, means that the beauty goods of Amazon Premium has higher margins than other products sold on the first day.
Amazon “does not make a huge margin in most categories of things he sells online,” said Renee Parker, co-founder of the consultancy company Invinci and former Amazon manager. “They are gaining a lot of money for premium beauty products because … (they are) small and expensive and you can turn off a ton.” Vitamins and supplements are successful for similar reasons.
Amazon Premium beauty sales collected steam after the e-commerce giant started blocking counterfeits and the best beauty companies needed new ways to reach customers, said Alfonso Emanuele de Leon, a veteran of the beauty and partner of Fa Hong Kong Consultancy.Amazon was previously seen as a paria from luxury beauty brands due to the economic goods on the website, but it is no longer perceived in this way, said Emanuele de Leon.
‘Huge acceleration’
Sales at Amazon Premium Beauty increased by almost 20 % to $ 15 billion between April 2024 and April 2025, exceeding 14 % growth for beauty products outside the specialized e-commerce shop, according to Nielseniq. He also exceeded the growth year of 5 % for the sales of online stores in the first quarter, said Nielseniq.
The CEO of Oresal Nicolas Hieronimus declared during the annual meeting of the April company that having products on Amazon led to a “enormous acceleration” in the expansion of his US market share.
Estee Lauder has launched 11 brands on Amazon’s US website since March 2024. Over 75 % of the finished products of Estee sold in the United States come from the United States or Canada and are therefore protected by existing commercial agreements, Roberto Canevari, the executive vice -president of the Estee Lauder supply chain, said in June.
Lauren Gordon, vice -president of Amazon of Estee Lauder, said that Prime Days and the other “Moments of High Traffic Shopping” by Amazon offer the company the possibility of “attracting new and existing customers”.
Melis Del Rey, general manager for health and beauty for Amazon USA stores, said that his team was “very proactive” in working with premium brands to determine the tariff impacts.
“At high level, most of the procurement brands strategies are local and, therefore, the impact (rate) is less imminent,” said Rey.
Amazon Premium Beauty is a program only an invitation for the brands shipped and sold by Amazon and third -party sellers. The Department has grown up to over 10,000 products and the admissibility of the brands is determined by chance. Brands such as Dyson and Estee Lauder’s Aveda Pagano a commission more than 15 % to Amazon for each sale of websites and the third -party seller approach allows important brands to control prices and inventory.
The addition of prestige brands including Unilever’s dermalogic helped the company to compete with the beauty retailers Ulta Beauty and Sephora, which is owned by LVMH, and attract even the older buyers and higher income at a time when TikTok Shop is collecting younger customers.
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