Amazon is betting on premium beauty to bolster its Prime Day 2025
Amazon 25/06/2025
Amazon has launched a strategic offensive ahead of its flagship event, Prime Day 2025, which for the first time will be held over four consecutive days, from July 8 to 11. Far from focusing solely on electronics or technology—historically popular categories—the company is redirecting its efforts toward the premium beauty segment, with brands such as Estée Lauder, Olaplex, and Urban Decay in the promotional spotlight.
This move is no coincidence. The high-end beauty sector has demonstrated solid performance, even in uncertain economic contexts. Between April 2024 and April 2025, sales in this category on Amazon grew by 20%, reaching $15 billion, thanks to a combination of high margins, a growing average ticket price, and leaner logistics than other verticals (source: Reuters).
The answer lies in the growing tensions of the macroeconomic and geopolitical context. On the one hand, Amazon is facing new tariff policies that penalize the import of products manufactured in China, especially in low-cost categories. On the other hand, there has been a notable reduction in third-party sellers in its marketplace, a situation that diminishes the variety of offerings in certain price-sensitive verticals.
In this context, premium beauty represents a defensive category: consumers are increasingly seeking products that combine emotional value with functionality, as is the case with high-performance cosmetics, hair care products, or anti-aging serums. Brand loyalty is high, and the perceived value compensates for the premium prices. Furthermore, these types of products tend to have periodic purchasing cycles, which generates repeat customers and fosters customer loyalty and retention.
For Amazon, Prime Day is not only a massive sales event, but also a real-time laboratory for testing product performance, price elasticity, and consumer response. Focusing on categories like premium beauty allows it not only to boost average ticket sales during the event, but also to capture data on purchasing behavior in key segments for future growth.
Logistics also plays in their favor: most products in this category are compact, lightweight, and non-perishable, which facilitates more cost-effective distribution and reduces pressure on logistics centers during peak demand.
The Amazon case offers three key lessons for any brand, retailer, or marketplace looking to optimize its value proposition in high-impact campaigns:
In today's dynamic environment, having digital intelligence tools like DIP Insights allows brands and retailers to monitor :
Thanks to DIP Insights' comparative and dynamic vision, it is possible to detect commercial opportunities in advance, respond quickly to market movements and adjust the strategy based on actual consumer behavior.
Amazon is making its move. Brands that want to compete on this new stage need more than just good products: they need data-driven decisions.
This move is no coincidence. The high-end beauty sector has demonstrated solid performance, even in uncertain economic contexts. Between April 2024 and April 2025, sales in this category on Amazon grew by 20%, reaching $15 billion, thanks to a combination of high margins, a growing average ticket price, and leaner logistics than other verticals (source: Reuters).
Why is Amazon now focusing on everyday luxury?
The answer lies in the growing tensions of the macroeconomic and geopolitical context. On the one hand, Amazon is facing new tariff policies that penalize the import of products manufactured in China, especially in low-cost categories. On the other hand, there has been a notable reduction in third-party sellers in its marketplace, a situation that diminishes the variety of offerings in certain price-sensitive verticals.
In this context, premium beauty represents a defensive category: consumers are increasingly seeking products that combine emotional value with functionality, as is the case with high-performance cosmetics, hair care products, or anti-aging serums. Brand loyalty is high, and the perceived value compensates for the premium prices. Furthermore, these types of products tend to have periodic purchasing cycles, which generates repeat customers and fosters customer loyalty and retention.
Prime Day as a showcase for strategic verticals
For Amazon, Prime Day is not only a massive sales event, but also a real-time laboratory for testing product performance, price elasticity, and consumer response. Focusing on categories like premium beauty allows it not only to boost average ticket sales during the event, but also to capture data on purchasing behavior in key segments for future growth.
Logistics also plays in their favor: most products in this category are compact, lightweight, and non-perishable, which facilitates more cost-effective distribution and reduces pressure on logistics centers during peak demand.
What can brands and retailers learn from this strategy?
The Amazon case offers three key lessons for any brand, retailer, or marketplace looking to optimize its value proposition in high-impact campaigns:
- Maintaining the category mix : It's not all about volume. In saturated markets, high-margin, high-loyalty categories can make the difference.
- Reading the context to refocus efforts : External constraints such as tariffs or third-party withdrawals must be offset by more resilient and profitable verticals.
- Transforming events into market intelligence : Every marketing campaign should also be a source of data for learning about preferences, pricing, and positioning.
DIP Insights: How to anticipate e-commerce dynamics with data
In today's dynamic environment, having digital intelligence tools like DIP Insights allows brands and retailers to monitor :
- The evolution of our own and our competitors' product catalogues.
- Real-time price fluctuations before, during, and after key campaigns like Prime Day.
- The emergence of new brands or references in strategic categories.
- Changes in the availability, popularity, or positioning of your products on marketplaces.
Thanks to DIP Insights' comparative and dynamic vision, it is possible to detect commercial opportunities in advance, respond quickly to market movements and adjust the strategy based on actual consumer behavior.
Amazon is making its move. Brands that want to compete on this new stage need more than just good products: they need data-driven decisions.
