As a 3pl logistics company, we know the importance of running a competent business with lots of moving parts. Deciding to go into business is a big decision. Knowing which industry to get into is also a big decision. How do you know where to focus your attention so that you get the best results? Well, one good tactic to focus on is demand.
Where there is demand, there is opportunity. You have made a wise choice for those who have gone into the industry of health and beauty products or at least are considering it. We want to help explain the ever-growing importance of this industry as well as how 3pl logistics will help to assist in this area of expanding your operations with ease.
Table of contents
1) Demand for health and beauty products in 2021
2) 3pl Logistics and Smart fulfilment provide business leverage in other areas
3) Brand control and custom packaging with 3pl logistics
4) The importance of organic and cruelty-free products
5) Health and Beauty Product Bundling
UK HEALTH AND BEAUTY ECOMMERCE MARKET IS GROWING
Over the last year, the health and beauty industry has seen explosive growth. One study has concluded that the UK health and beauty sector will reach £39.4 billion this year. This is an increase from £27 billion in 2020. Globally the market is predicted to reach a jaw-dropping £716 billion by 2025. The fastest-growing segment for health and beauty products is the online retail market, accounting for over half the total sales.
A Vouchercloud study has shown that the UK health and beauty market is one of the largest globally, just behind the Ukraine and Sweden. It’s important to note that even though the UK eCommerce market saw a reduction in sales from 2020 to 2021 by 6.1 %, it is still the third-largest eCommerce market in the world, just below the US and China.
Brick and Mortar VS Online Selling of Health & Beauty Products
Now with the more relaxed pandemic freedoms, more customers are flocking to traditional bricks and mortar stores. Trying on products before you buy is always a great incentive for consumers. However, because the online market is still so popular, many large companies have both a physical store and an eCommerce presence. In fact, eight of the largest online retailers also have a high street presence.
With high demand can also bring high competition, so online retailers need to be as efficient and transparent as possible with their products. For traditional walk-in stores, having the extra inventory on hand to ship and send your products to your loyal customer base will keep you competitive with other exclusive online brands, allowing you to leverage both sales channels.
3PL LOGISTICS & SMART FULFILMENT PROVIDE BUSINESS LEVERAGE IN OTHER AREAS
Smart fulfilment refers to the technological practice and process of storing, managing, and sending products to your customers. 3pl logistics services allow businesses the freedom to focus on other areas of their business by leveraging our services.
In 2021 great health and beauty products are everywhere. We have the option to buy the identical product from various providers. So, why do some companies dominate and stand out from the others? Why do certain companies lead in this industry?
There are many reasons for this, but a significant reason is that these companies pay attention to more than simply offering great products. They also focus on branding, marketing, and personal service for better reach and a well-rounded 360-customer approach. Customer service is still a very critical element in a saturated post-modern online market.
Almost 90% of buyers are willing to pay more for improved customer experience
Another vital area of the business worth mentioning is fast delivery.
Quick delivery is a critical component of smart fulfilment it’s a result of optimal picking, packing, and final mile delivery. 1 to 2-day delivery provides a better D2C business relationship, encouraging future sales.
Companies that outsource to third-party logistics will have a leg up on the competition so that they can focus on all the other important areas of customer satisfaction. As you grow and scale your business and deal with recurring orders online, you will learn that automation is your best friend. Outsourcing to a 3pl will save you both money and time.
3PL logistics: Next-day delivery
If you read our article “The importance of next day delivery,” you will see that quick delivery is the new customer expectation. It is no longer a simple convenience, but I believe compulsory for businesses in 2021.
“49% of shoppers say that next-day delivery makes them more likely to shop online”
As a growing business, the ability to send more and more parcels gets more challenging as sales increase. Failing to meet the demand of delivery within 48 hours will quickly sink your business.
95% of customers tell others about a bad experience, and 87% share good experiences.
When you fail to despatch products in 1 – 2 days, you risk losing customers to another company that offers it. Next day delivery is a must.
Brand Control and Custom Packaging with 3PL Logistics
Outsourcing your health and beauty products to a 3pl provider is a wise decision. Before doing so, it may cause hesitancy to relinquish control.
You may have compared pricing with different companies, looked at warehouse locations, or feared losing brand control.
When you’ve invested so much time and energy into your business, you don’t want it to go to waste, right? Being hesitant is a normal reaction, but you don’t have to worry about that with 3pl logistics. Companies like Selazar take the time to handle your final product presentation and brand packaging with great care and meticulous attention to detail.
Brand packaging matters because customers associate with more than just the products. They also associate with values and pleasing aesthetics of the packaging. The most successful companies understand this.
“30% of businesses report an increase in revenue after improving product packaging”
With the right fulfilment partner, you don’t have to worry about these issues. You can remain steadfast with your brand control. You will always have complete brand control with every detail of your fulfilment process, generating and keeping loyal customers as always.
One of the best health and beauty brands in the UK that fulfil with Selazar is Upcircle. You can see an example of their custom packaging below.
THE GROWING IMPORTANCE OF ORGANIC & CRUELTY-FREE PRODUCTS
Unfortunately, the evidence has shown that animal testing in the Health & beauty industry is staggering. Approximately 100,000 to 200,000 animals suffer and die every year from animal testing in cosmetics alone. One company that is doing something about this is Cruelty-Free International. They gather signatures every day from regular consumers to prevent these cruel practices. They’ve collected millions of signatures from all over the world.
“A survey of over 15,000 women who buy beauty products concluded that 43% would stop using a beauty product that tested on animals.”
Why does this matter?
Well, it matters when working with similar value-centred, socially conscious companies. Growing your brand should also include a 3pl that knows the importance of responsible business practices. That’s why Selazar practices eco-friendly packaging and sustainability.
Also known as “sustainable packaging” or “green packaging,” this Earth-friendly fulfilment alternative decreases our carbon footprint. The types of eco packaging supplies associated with green packaging are renewable materials that are safe and sustainable. This includes plastic-free materials, corrugated cardboard, and gummed tape.
“75% of Millennials are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers”
HEALTH AND BEAUTY PRODUCT BUNDLING (DEALS!!!)
Selling health and beauty products comes with all sorts of miscellaneous items like cremes, foundations, brushes, and more. Product bundling or kitting involves picking and packing multiple items and pre-packing them for dispatch Accurate projections are vital with the old-school way.
However in the new-school way, when customers place an order online through your website, our innovative packaging algorithm notifies the distribution warehouse to gather multiple items into a single order. Keeping your stock dynamic – like you!
So, if a customer likes the deal you’ve virtually created, we’ll grab the components and create the bundle at pick time. Making a real bundle to your unboxing specifications. Simple. Convenient. Effective.
The health and beauty industries are only going to get better it seems. Make sure you have the right service to help you grow steadily and easily. Automation and tech-first smart fulfilment operations are key to managing your products and brand. Let us know how we can help grow your health and beauty brand with 3pl logistics.