Amazon has Estée Lauder and L'Oréal to counteract the consequences of the rate

As the first day approaches, Amazon is resorting to luxury items to help compensate for the impact of tariffs.

The commercial measures of President Donald Trump have led some sellers, particularly those who supply China and other very taxed markets, to retire from the event, one of Amazon's largest annual sales campaigns, in an effort to protect their margins.

Amazon Prime Day is now a four -day purchase event exclusively for members of Amazon Prime, which will take place this year from July 8 to 11.

The Electronic Commerce company based in Seattle expects the recent growth of sales in high margin cosmetics in its category of Premium beauty of Amazon amortiguea the impact of tariffs on sales revenue and the feeling of consumption of prime days.

“Beauty has become, in recent years, an essential element in the minds of consumers”, even in hard financial times, said Anna Mayo, vice president of the vertical beauty unit of Nielseniq.

Amazon Premium Beauty was initially rejected by luxury cosmetic players who feared that the platform would damage its image when it was launched in 2013. But those days have disappeared. Now, the online retailer is promoting products of the main beauty and hair brands, including Estée Lauder's Clinique, Olaplex and L'Oréal's Urban Decay.

During the Prime Day event last year, American buyers spent $ 14.2 billion, 11% more year after year, according to Adobe Analytics. The main cosmetics brands can collect high prices and, often, do not offer pronounced discounts on Prime Day compared to electronics, clothing and home products.

This year, beauty products agreements are expected to present “softer” discounts from 10% to 17%, compared to electronic promotions, which can vary from 14% to 22% discount, according to Vivek Pandya, main adobe digital adobe analyst Insights.

Thanks to smaller packaging and less aggressive networks, Amazon premium beauty merchandise generally produces higher margins than many other first -day offers.

Amazon “does not make a great margin in most of the categories he sells online,” said Renee Parker, co -founder of the Consulting firm Invinci and former Amazon executive. “They are earning a lot of money in premium beauty products because … (they are) small and expensive, and you can send a lot of them.” Vitamins and supplements are successful for similar reasons.

Amazon's premium beauty sales gathered with steam after the electronic commerce giant began to review falsifications and the main beauty companies needed new ways to reach customers, said Alfonso Emanuele de Leon, a veteran of the beauty industry and partner of Fa Hong Kong Consultancy.

Amazon was previously seen as a Paria for luxury beauty brands due to cheap merchandise on the website, but it is no longer perceived in that way, said Emanuele de Leon.

'Great acceleration'

Sales at Amazon Premium Beauty increased by almost 20% to $ 15 billion between April 2024 and April 2025, exceeding 14% of beauty products outside the specialized electronic commerce store, according to Nielseniq. It also exceeded the growth year after year of 5% for online store sales in the first quarter, Nielseniq said.

The executive president of L'Oréal, Nicolas Harioimus, said during the annual company meeting in April that having products at Amazon led to a “great acceleration” to expand its participation in the US market.

Estée Lauder has launched 11 brands on the Amazon site in the United States since March 2024. More than 75% of the finished products sold in the US June.

Lauren Gordon, Vice President of Amazon in Estée Lauder, said Prime Day and the other “Moments of Amazon High Traffic” give the company the opportunity to “attract new and existing customers.”

Melis del Rey, general manager of health and beauty for Amazon US stores, said his team has been “very proactive” by working with premium brands to determine tariff impacts.

“On a high level, most of the premium brands supply strategies are local and, therefore, the impact (of the rate) is less imminent,” said Del Rey.

Amazon Premium Beauty is a program only by invitation for brands sent and sold by Amazon and third -party vendors. The program has grown to more than 10,000 products, and the eligibility of the brands is determined in case.

Brands such as Dyson and Estée Lauder's Avea pay an additional commission of 15% to Amazon for each sale of websites, and the third -party vendors approach allows the main brands to control prices and inventory.

By adding prestige brands as a dermalogica of Unilever, Amazon has strengthened its position against beauty retailers established such as Ulation Beauty and Sephora owned by LVMH. The measure is also helping the platform to attract major buyers and higher income, just when Tiktok Shop continues to capture a younger audience and driven by trends.

Fashionnetwork.com with Reuters