The beauty of online shopping extends far beyond the convenience it gives the consumer to access a variety of products from the comfort of their couch; it offers a seemingly endless selection, competitive pricing, and the ability to explore new products discreetly. You are not wrong if you interpreted this to imply a limitless opportunity to reach consumers and sell. However, this ease of purchase comes with a hidden cost: an alarmingly high return rate. Across all online retail categories, the average return rate sits at a staggering 30%. In the beauty industry, this number sits at around 22%.

This statistic translates into a significant financial burden for cosmetics companies. The financial impact is undeniable between processing returns, issuing refunds, and managing reshipping.

So, why are so many beauty products finding their way back to the warehouse? The culprit often lies in the inherent challenges of online beauty shopping. Unlike a physical store where you can test products and seek advice from a beauty consultant, online shopping demands informed decision-making based on limited information. Choosing the perfect foundation shade online can be a gamble. Similarly, navigating the vast array of skincare products, each catering to specific concerns can leave many consumers feeling overwhelmed.

This information gap leads to a significant portion of returns stemming from:

  1. Mismatched Shades: Choosing the right foundation shade or lipstick color online can be tricky. Relying solely on product descriptions and pictures often leads to unsuitable shades, resulting in disappointment and returns.
  2. Unsuitable Products: Skincare is a personal journey. Without expert guidance, navigating the plethora of products can be confusing. Consumers may purchase products that are not compatible with their skin type or don’t address their specific concerns.
  3. Impulse Purchases: The ease of adding items to a virtual cart can lead to impulse purchases. Without the physical act of picking up a product and examining it, consumers may end up with items they don’t truly need or want.

The Beauty Tech Revolution: Empowering Informed Choices

Fortunately, advancements in technology offer a powerful solution to these challenges. The beauty industry is embracing “Beauty Tech” innovations that are revolutionizing the online shopping experience and significantly reducing return rates. Here’s how:

Virtual Try-On Tools: No more second-guessing! Virtual try-on tools allow customers to virtually “wear” makeup before they buy. This innovative technology utilizes augmented reality to overlay makeup products onto a user’s face through their webcam or smartphone camera. Customers can experiment with different shades, styles, and products to find the perfect match for their skin tone and features.

The benefits are clear:

  1. Reduced Returns: By allowing customers to “try before they buy,” virtual try-on tools significantly reduce the number of returns due to unsuitable shades or product types.
  2. Increased Customer Satisfaction: Finding the perfect shade or product fosters a positive customer experience, leading to greater satisfaction and brand loyalty.
  3. Boosting Confidence: Experimenting with makeup in a virtual space allows customers to try products they might not have otherwise, fostering a sense of empowerment and exploration.
  4. AI-Powered Personalization: Virtual try-on represents just the first step. Artificial intelligence (AI) can take personalization even further. By leveraging customer data (with clear user consent, of course!), AI algorithms can recommend products and complete looks tailored to individual preferences and skin concerns. Imagine a virtual beauty consultant who analyzes your past purchases, skin type, and desired outcome to suggest a personalized product regimen. This not only enhances the shopping experience but also creates strategic upselling opportunities that cater directly to the customer’s needs.

Technology represents a powerful tool for optimizing online cosmetics sales. However, fostering trust and catering to diverse customer needs are equally important.  Our recently published case study dives deep into the impact of Maybelline’s Virtual Try-On Tool. This in-depth analysis explores how the tool has revolutionized the online shopping experience for Maybelline customers; not only reducing return rates and boosting customer satisfaction but also celebrating the beauty of diverse consumers.

Download the full report via the link: https://www.pierrine-consulting.com/expertise/resources/beauty-personalization-through-technology/