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Cosmetics Fulfillment & Distribution: Industry Spotlight

Cosmetics Fulfillment and Distribution

According to a recent Statista Report, the global beauty industry grew 4% in 2016, when compared to 2015. The cosmetic market in the US accounts for $56,875 billion of the $445 billion global market sales and is projected to show an increase of 6% by the end of 2017.

Why are cosmetic sales soaring?

In recent years, cosmetic sales have been soaring for a number of reasons. Coming out of the recession, as the economy continues to recover, consumers feel more inclined to spend money on themselves again. On the global scene, the economic picture seems to also be optimistic, with developing countries starting to purchase more cosmetics than ever before.

E-commerce vendors and online stores are making a huge impact on cosmetic sales

New and innovative e-commerce vendors are making a huge impact in cosmetic sales, as are large beauty companies with a strong online presence, such as L’Oréal Paris and the more niche brands like Sephora and Morphe US.  Strong social media marketing has helped boost sales, as consumers share their approval of new and emerging cosmetic products. Additionally, beauty companies are marketing more men’s beauty products, including skincare products, reaching a new audience.

Skincare leads US market, with natural ingredients driving the trend

The skincare segment, leading the US market at 34.5% of sales, is showing a trend in consumers seeking products with natural ingredients, which may call for stricter adherence to expiration date processing in the future. Hair care accounts for a healthy 24% of the cosmetics market, with a concentration on new shampoos and conditioners. Makeup sales and fragrances are holding their own at smaller percentages on the US cosmetics scene, with consumers using less makeup and springing for more premium brands, especially in foundation sales.

Increasing sales means increasing inventory

Increasing sales signals growth and expansion for cosmetic companies meaning more inventory to manage and more packages to get to your customers on time and in pristine condition. Similar to the challenges supplement companies contend with, many specific requirements are involved in inventory management, as well as the packaging and distribution of cosmetics. From a variety of specialty packaging for different retailers, to secure, humidity controlled and ambient temperature storage and product management, the cosmetics industry requires special handling, storing and shipping.

In light of the plethora of rules and regulations surrounding cosmetic order fulfillment and distribution, does it make sense to attempt this intricate undertaking in-house? Or would your company manage your growth better by outsourcing your supply chain operations to a third-party logistics company? Managing your own order fulfillment, inventory control and distribution can turn into a fulltime job with extra expenses shelled out to rent warehouse space that will need to be converted to comply with the numerous regulations, licensing and certifications required to store, package and ship cosmetics.

Phase V Fulfillment Company is ready to help you save money and manage your increasing sales

Phase V Fulfillment partners with your growing cosmetics company to learn your company’s mission and goals for expansion. We design comprehensive fulfillment solutions that custom-fit your brand’s needs. From warehousing to delivering your products to your customers, we research the most cost-effective and expedient methods to help automate your order processing and shipping.

  • Warehousing

    Located, in Ft. Myers, Florida, our warehouse is certified by the FDA to accept, store, package and distribute all manner of cosmetics. Our experienced staff of certified cosmetic handlers expertly accommodate your products with proper temperature, lighting and other environmental settings that ensure your products maintain their quality.  On receiving your inventory, our warehouse team inspects your products for quantity and quality, assigning SKUs (stock keeping units) to your products for more efficient inventory control. We then monitor your products until they arrive in your customers’ hands.

  • Technology

    With e-commerce sites and online shopping taking the lead in cosmetic sales over traditional shopping venues, superior technology is at the core of efficient order processing and inventory management. Our state-of-the-art, data-driven technology provides scalable solutions, integrating with most online shopping carts and designed to handle all of your multi-channel outlet orders. Transparency in product management allows you real-time inventory monitoring, 24/7.

    Easily generate forecast reports to help manage additional inventory projected for your busy seasons.  Use our auto inventory options to stock up for holidays helping to move time-sensitive products and items with upcoming expiration dates. Eliminate embarrassing out-of-stock and back order statuses by setting up low inventory alerts that arrive at your office in ample time to restock your products. You can also view your orders in real time, edit existing orders, create new orders and so much more.

  • Packaging

    Once your orders are placed, Phase V’s packaging specialists are skilled in handling small, delicate objects in high volumes. Our cosmetic fulfillment personnel are adept at assembling varying assortments of cosmetic sets, bundling cosmetic gift sets, and kitting various products for promotional launches and holidays. We follow your specific packaging protocols, from printing branded invoices and shipping labels to branded packaging materials. We seamlessly handle labeling and store-specific packaging, as well as gift wrapping and other specialized packaging.

  • Shipping

    Let Phase V navigate the intimidating maze of shipping and freight regulations.  Our shipping professionals are always looking to find cost and time efficient ways to ship your products. We tailor domestic and international distribution programs, offering a number of shipping options, allowing your customers flexibility, with future shipping, auto shipping, expedited shipping and other choices that close deals and reduce shopping cart abandonment.

  • Customer service

    Your customer is our priority and our customer service reps are trained to address any concerns your customer may have concerning their cosmetic product orders. We work with your customers 24/7 because online shopping never closes, and neither does Phase V’s customer service department. Good customer relationships, through on-time delivery and exceptional customer service, helps build brand loyalty, resulting in repeat sales and word-of-mouth referrals.

Phase V creates brand consistency for your cosmetics and skincare products

Exceptional customer relationships, along with a consistent customer experience help solidify your brand’s status as a reputable company. Partnering with Phase V means that your cosmetic products will be stored, packaged and shipped from one central location, streamlining your fulfillment operations. Meeting legally binding, specific storage, handling and shipping requirements for each and every product you sell, let Phase V take care of the logistics, while you focus on managing your growing cosmetic business.