How To Navigate Cosmetics and Beauty Fulfillment (2024) - Shopify Philippines

From managing extensive inventories to ensuring product integrity, cosmetics and beauty brands have to think about many challenges.

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The cosmetics and beauty industry is enormous. It includes everything from skin care to cosmetics to hair treatments. Customers don’t just seek a foundation to perfectly match their skin tone or a conditioner formulated for curly hair; they want products that align with their values—from vegan and cruelty-free to sustainable and environmentally conscious.

This industry offers a huge opportunity for brands looking to break in or broaden their existing offerings. However, cosmetics is a unique industry with distinct challenges for fulfilling and shipping orders.

You’ll need to think about challenges like safely shipping glass bottles and managing countless stock keeping units (SKUs) for individual lipstick hues and eyeshadow shades. Learn about these and other fulfillment hurdles, and how partnering with the right third-party logistics provider (3PL) can help solve them.

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Shipping a t-shirt is less involved than a glass foundation bottle or a pressed powder palette. From managing extensive inventories to ensuring product integrity through specialized handling, cosmetics and beauty brands have to think about the following challenges:

Beauty brands need to cater to their customers’ wide-ranging needs and preferences to stay competitive. Take foundation, for example. A single line might boast 40 SKUs, with 20 shades each available in dewy and matte finishes. Factor in just a few more product categories—say, lipsticks and liners—and you’re looking at a logistical labyrinth.

Keeping this vast array of products in order isn’t just about organization. It ensures accurate order fulfillment, maintaining stock levels, and ultimately delivering the right product to the right customer. Inventory mismanagement can lead to costly errors, disappointed customers, and lost sales.

Manage all your inventory from Shopify

Shopify comes with built-in tools to help manage warehouse and store inventory in one place. Track sales, forecast demand, set low stock alerts, create purchase orders, count inventory, and more.

Cosmetics and beauty products are delicate, demanding careful storage to maintain quality. A wax stick designed to tame flyaway hair could melt into unusable muck without proper temperature control. Similarly, vitamin C serums, notorious for their instability, can quickly degrade if exposed to heat or light, reducing their efficacy. Beauty and skin care fulfillment services need to safeguard against potential mishaps that could wipe out thousands of dollars in inventory (and customer trust) in one fell swoop.

The thrill of unboxing a new beauty product can quickly turn to disappointment if the item inside isn’t intact or as expected. Imagine the letdown of opening a package to find a pressed blush reduced to a powdery mess, a glass perfume bottle in shards with fragrance everywhere, or a face wash that oozed through a broken seal.

These scenarios aren’t just customer satisfaction nightmares—they’re also real financial losses, damaging your brand and business. Safeguarding these delicate items requires a meticulous approach to packaging, one that can withstand the rigors of warehouse handling and the unpredictable journey to a customer’s doorstep.

🧁 Success Story: Why Getting Packaging Right Was Important to This Brand

The founding couple behind Pastreez moved to the US to share their love of traditional French sweets with a new market. They faced a challenge: packaging that would protect delicate confections in the mail but also represent their brand and be special enough to give as a gift.

Although cosmetics and beauty products aren’t as perishable as produce or dairy items, they do have a finite shelf life. A luxurious face oil can turn rancid if it languishes too long in a warehouse, while a cutting-edge retinol cream might lose its wrinkle-fighting potency before ever gracing a customer’s vanity.

Managing expiration dates is a delicate dance of inventory tracking and sales forecasting, using sophisticated systems to monitor stock age and predict turnover rates.

For beauty brands serving a global target audience, keeping track of regulatory requirements is a must. Varying national regulations require brands to offer different product formulations or even bar them from selling certain items. Take skin-lightening ingredients like hydroquinone, for example, which is banned for over-the-counter sale in many countries, but legal in others.

This regulatory complexity creates implications for fulfillment operations. It requires sophisticated inventory management systems to ensure your company stocks and ships the correct product variants to the appropriate regions.

Cosmetics and beauty brands are innovating to help customers make informed purchases online, employing different models, influencer partnerships, and AR technology to showcase products accurately.

Despite these efforts, returns management remains a unique challenge. Even with cutting-edge shopping aids, customers may need to return a foundation that’s not quite a match or exchange a lipstick shade that doesn’t suit their complexion.

Unlike other retail sectors where returned items can often be restocked, most cosmetics and beauty products must be discarded due to hygiene concerns and the risk of contamination. This reality requires efficiently managing returns, the disposal of unsalvageable products, and accounting for the financial impact of these losses.

The challenges of cosmetics and beauty fulfillment can overwhelm even the most organized in-house teams. This is where third-party logistics providers (3PL) can help with the complex fulfillment process—from inventory management and warehousing to order processing and shipping.

However, not every 3PL is equipped to provide the right beauty and cosmetics fulfillment services. Here’s what to consider when looking for the right fit:

When selecting a 3PL for your business, steer clear of providers primarily catering to companies with single flagship products. Instead, seek out partners equipped to handle the complexities of a diverse beauty brand, including the ability to swiftly integrate new SKUs for seasonal gift boxes or limited-edition collaborations. Look for a 3PL that uses advanced inventory management systems with real-time tracking capabilities, batch and lot control, and integration with your ecommerce platform.

These systems should also be capable of managing country-specific inventory and regulatory compliance, ensuring the right products are shipped to the right markets. Effective inventory tracking facilitates efficient returns processing and reverse logistics, allowing for quick restocking of some items and proper disposal of others. This will help maintain accuracy throughout the fulfillment process, ensuring that every shade, finish, and product variant is accounted for and available when orders come in.

When evaluating a 3PL partner, nothing beats an in-person tour of their facilities. During your visit, ask about the different temperature zones and their control mechanisms, ensuring they can meet the requirements of your products.

Keep an eye out for key features like advanced HVAC systems, backup generators, and real-time environmental monitoring equipment. Ask about protocols for handling unexpected temperature changes and how they maintain consistent conditions to protect your products during storage and packing.

If sustainability is important to your brand or customers, use this opportunity to also inquire about their eco-friendly practices. This might include their carbon footprint reduction efforts, use of low-emission cargo tricks, or other green initiatives they’ve implemented in their operations.

A 3PL’s track record with fragile items can literally make or break your beauty product fulfillment success. Ask potential partners about handling glass bottles, pressed powders, and delicate packaging, particularly their experience with skin care brands.

Probe into how they prevent breakage or other damage during packing and shipping, like custom inserts or specialized cushioning materials. Request concrete data on damage rates and breakage-related returns to accurately assess their ability to safeguard your delicate cosmetics and skin care products.

The right 3PL partner should have sophisticated systems in place to track product expiration dates and ensure first in, first out (FIFO) inventory rotation. Their picking process should prioritize short-dated items to minimize waste.

Real-time tracking of shelf longevity is important here, letting you monitor stock freshness and make informed decisions about re-ordering or marketing campaigns. Great 3PLs integrate expiration management with their overall order management system, maintaining product integrity from warehouse to customer doorstep.

The best customer service in cosmetics fulfillment goes beyond a basic ticketing system, offering phone or text support for urgent issues and a dedicated account manager to address your unique fulfillment needs. Look for 3PLs that provide comprehensive value-added services, like custom packaging or personalized notes. These can boost brand loyalty and meet rising customer expectations.

A responsive partner can quickly resolve issues like damaged products or shipping delays, minimizing potential harm to your brand reputation. Choose a 3PL that treats your business as a priority, offering proactive communication and solutions that fit your brand’s unique challenges and goals.

Yes. According to a report, the cosmetics market size reached $296 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2030.

The cost of fulfillment services for beauty and cosmetics products varies based on factors like order volume, product types, and specific services required. Typically, businesses can expect to pay for storage, pick and pack, shipping, and returns management.

Yes. There are extensive regulations for cosmetic and beauty products, varying by country. These regulations cover areas like ingredients, labeling, manufacturing practices, and product claims to ensure consumer safety.

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