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.
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This story originally appeared on reuters.com.
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