The skincare, cosmetics, and beauty market is a fast-growing industry. Unlike many other sectors, the skincare and beauty industry was not heavily impacted by the pandemic. Companies took advantage of e-commerce opportunities, resulting in growth from $483 billion in 2020 to $511 billion in 2021. The average monthly spend on online beauty products in the U.S. is $50, with a quarter of households spending over $101 per month. Predictions suggest the industry will maintain this upward trend, exceeding $784.6 billion by 2027.
The explosion in industry growth and the convenience of online sales provide smaller companies with an opportunity to compete alongside major brands. Yet, to avoid unexpected challenges related to fulfillment and packaging, it’s essential to partner with a reliable fulfillment provider like Daily 3PL, which specializes in cosmetics and beauty fulfillment and packaging.
Challenges of Fulfillment and Packaging in the Beauty Industry
While online sales are an attractive option for both customers and retailers in the beauty industry, navigating the demands of fulfillment and packaging can be tricky. Beauty and cosmetics retailers should be aware of these industry-specific shipping challenges:
- Expiration Date: Since many cosmetics contain perishable ingredients, it’s essential to ensure fulfillment occurs well before the best-by date. First-in-first-out (FIFO) is a common inventory method in which the first products purchased are the first ones sold and sent out to customers. With this practice, customers get fresh products at the most accurate prices.
- Organic Certificate: As the demand for natural and sustainable ingredients in beauty products increases, so do challenges related to the storage, packaging, and shipping of organic products. Organic products must be handled by certified producers, suppliers, and warehouse providers.
- Temperature Control: The optimal storage temperature for cosmetic, beauty, and hygiene products is 15-20 °C.
- Environmentally-Friendly Shipping: Along with the demand for organic beauty products comes the desire for environmentally friendly packaging and shipping processes.
- Secured Packaging: Materials used for packaging are expected to be aesthetically pleasing and secure to avoid damage to fragile products.
- Frequent Changes in Demand: Since the beauty sector is trend-driven, inventory planning and marketing can be difficult, making flexible supplier contracts essential.
- Customer Expectations for Fast Delivery: Since products are frequently impulse purchases or for a specific event, customers expect delivery to be as fast as possible.
What to Consider When Picking a Cosmetic Fulfillment Provider
When choosing a cosmetic fulfillment company, it’s crucial to partner with an experienced logistics provider prepared to address industry challenges. Here are some of the effective solutions that work within this industry.
Tech Assisted Inventory Planning
Accurate data is essential for effective inventory planning. Tech-assisted solutions that provide real-time overviews of inventory and current and historical sales can help you maintain a competitive edge.
Lot Tracking
Using identification labels, lot tracking helps users track specific batches of products from the supplier all the way to the consumer. Lot tracking enhances traceability so you can react quickly to unexpected circumstances, such as product recalls.
Strategic Locations for Fulfillment Centers
Logistics warehouses located close to your customers make sustainable, affordable, and fast shipping possible. Consider how many locations your provider has in their fulfillment network.
FIFO Shipping
The first-in-first-out (FIFO) shipping strategy works exactly as it sounds. Products stocked first are also packed and shipped first to minimize the risk of products exceeding their expiration date.
Compliance Requirements
Since cosmetics are not FDA-approved but FDA-regulated, products must fall under the definition laid out by the Federal Food, Drug, and Cosmetic Act (FD&C Act). Beauty and skincare products also must follow Fair Packaging and Labeling Act (FPLA) requirements, which state that all product labels must identify the contents, net quantity, and name and address of the manufacturer, distributor, or packer.
These additional shipping requirements are required for compliance:
- Material Safety and Data Sheets (MSDS)
- Tamper-resistant seals
- Sample products are packed and labeled separately
- Protective packaging (such as bubble wrap) must be used as necessary
How Daily 3PL Can Help With Fulfillment for Cosmetics and Beauty Products
While there are many challenges in shipping and fulfillment in the beauty industry, working with an experienced logistics partner will help you navigate the complexities. Daily 3PL is your trusted logistics partner, providing fast, reliable, and affordable fulfillment services with data-enabled logistics and a 70,000-square-foot warehousing hub in Southern California. Get in touch to learn more about how we can help you meet the demands of shipping and fulfillment in the cosmetics industry.