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Nail Design

Amazon Could Be Costing Beauty Stores Business

by Beth Livesay | June 25, 2019

Amazon.com has begun selling beauty products to licensed professionals. This move by the online marketplace has already hurt shares of Sally Beauty. Shares of Sally Beauty Holdings sank 17% and Ulta Beauty Inc. saw a drop of 3%.

The appeal with Amazon is that beauty professionals would no longer have to travel to multiple locations to pick up products. Amazon is also allowing professionals to upload their state-issued licenses and create a business account to buy products, which would include the likes of OPI Professional. According to DA Davidson analysts, Amazon’s entry into the professional beauty market will threaten about 19% of Sally Beauty’s operating profit and an additional 33% will likely see pressure from more competition.

Will you be buying your products on Amazon? Share your thoughts in the comments below.

This story originally appeared on reuters.com.

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