E-Commerce Benchmarks for Beauty Brands

The beauty industry is at a crossroads of innovation and transformation in today’s digital age, where every click and swipe leaves a data trail. For beauty brands vying for a coveted spot in the ever-expanding e-commerce landscape, the compass for success is the knowledge of e-commerce benchmarks. 

This blog post will explore the intricate world of e-commerce benchmarks specifically tailored for beauty brands. To support smaller brands in reaching their goals, we have compiled data from the beauty brands we collaborate with daily. This information serves as an industry benchmark for key e-commerce metrics, providing valuable insights and guidance.

Average Conversion Rate

A conversion rate (CVR) represents the percentage of visitors who purchase. For example, if the conversion rate is 10%, it means that out of 400 visitors, 40 completed a purchase.

According to Statista, the conversion rate of the Beauty and Skincare industry worldwide in the first quarter of 2023 is 2.4%. For comparison, the average conversion rate of e-commerce sites across all selected sectors stood at two percent.

One common mistake e-commerce sites make is evaluating new campaigns’ success or failure solely based on past campaigns. However, overlooking general industry trends and performance can lead to missed opportunities. That’s why understanding benchmarks for beauty subscriptions’ conversion rates is crucial for long-term success.

Customer Retention Rate

According to the US-based e-commerce platform Metrilo, the average customer retention rate in beauty is 23%, which means brands can only expect 1.6 orders per customer. 

This creates the need for brands to constantly work on acquiring new customers, a process that can be both costly and unpredictable. However, imagine if you could build a loyal following of customers who keep returning month after month.

Average Customer Lifetime Value (CLV)

Customer lifetime value (CLV) is crucial for ROI. It directly affects profitability and determines how much you can spend on customer acquisition without losing money.

Average Customer Lifetime Value

Only Special ($189) and Full range ($687) brands surpass the industry’s average CLV of $188. As expected, these brands have the highest retention rates.

Average Order Value

Average Order Value

The global Average Order Value (AOV) is $109 (as of June 2023). The Beauty & Personal Care sector ranks 7th with an AOV of $72.

Beauty businesses can implement a customer loyalty program to improve this average order value. Research from Bain & Company shows that the top 10% of a business’s customers order more than three times per order compared to the rest. The top 1% of customers order more than five times more than the rest and after 30 months of loyalty, customers spend over 67% more than their first purchase.

For example, Neom Cosmetics implemented the Loyalty Lion program, encouraging customers to become members (offering five Neom points for every £1 spent) and providing personalized communication throughout the customer journey. Shortly after its implementation, the campaign gained strong support and boosted AOV by 45%.

Average Transactions per User

Average Transactions per User

In terms of performance, the top three categories are Makeup (70 days), Haircare (93 days), and Skincare (104 days), with the average being 107 days.

It is worth noting that Special Cosmetics and Fragrances have longer buying cycles, lasting 153 and 123 days respectively. This is valuable information for email marketing, suggesting we often send reminders too frequently. Some products naturally require more time before customers place their next order. Your email marketing strategy should consider this aspect to avoid any negative impact.

Cart Abandonment Rate

Beauty & Personal Care had the highest shopping cart abandonment rate in July at 82.87%, which increased by 0.35% from June. 

Cart Abandonment Rate

Regarding regions, APAC had the highest overall abandoned cart rate at 78.89%, followed by EMEA at 75.04% and Americas at 70.63%. Regarding device type, mobile accounted for 77.35% of shopping cart abandonment, tablet accounted for 64.4%, and desktop accounted for 60.04%.

Various reasons are contributing to high cart abandonment rates. Firstly, not all visitors are actively looking to purchase their session–some are merely seeking inspiration, exploring new brands, finding gift ideas, comparing prices, or simply window shopping.

On the other hand, according to industry statistics, there are several common reasons why users abandon their carts without completing a purchase:

  • 55% of shoppers abandon carts because of unexpected fees, such as shipping costs
  • 21% leave the site due to complicated or lengthy checkout experiences
  • 17% express concerns about trust, fearing credit card theft or other security issues

Add-to-Cart Rate

Add-to-Cart Rate

Beauty and personal care has the second-highest add-to-cart conversion rate in March 2023, with 10.86%. This marks a marginal 0.46 percentage point increase from the previous month and is the highest rate in at least 12 months.

A higher add-to-cart rate is generally considered a positive metric for online retailers, as it indicates that a significant portion of visitors is actively interested in and engaged with the products, potentially leading to more sales if they proceed with the purchase.

E-Commerce Traffic Data 

The beauty subscription market is a part of the health and wellbeing industry. Stores in this market use different sources to attract visitors and make sales. 

These sources include direct marketing, paid search marketing, email marketing, affiliate marketing, and paid social media marketing. 

Regarding paid advertising, 36% of the budget is spent on Google Ads, 58% on Facebook Ads, and 6.8% on TikTok. 

Traffic is divided into different campaign types, such as prospecting and retargeting on Facebook, search, shopping, and YouTube on Google. It’s essential to have a well-rounded mix of traffic sources and campaign types to succeed in this market.

Number of orders per customer

Number of orders per customer

The overall average number of orders per customer in the e-commerce industry, as reported, stands at 1.8. For beauty brands, this figure slightly decreases to 1.6, indicating the industry’s ongoing challenge in customer retention.

Furthermore, it’s worth noting that Special (2.1) and Full Range (2.2) brands continue to showcase exceptional performance, reaffirming their position as top performers in the market.

Average Cost Per Click

CPC (cost-per-click) is a crucial metric that shows the average cost of each click on your paid ads. 

This metric is crucial because every click uses your marketing budget, so sending traffic to optimized pages in order to convert them into customers is vital. 

Average Cost Per Click

For this market, the median Facebook Ads CPC is $3.07, which helps you measure your costs and ensure you’re spending appropriately while generating revenue.

Takeaway tips for developing an e-commerce store

  • Know your target audience

Understanding your target audience’s demographics, preferences, and needs is crucial in creating effective marketing campaigns and product offerings.

  • Embrace social media

Utilize popular social media platforms to engage with your audience, share compelling content, and generate brand awareness. Be active on platforms like Instagram, Facebook, and YouTube to reach a wider audience.

  • Collaborate with influencers

Partnering with influential figures in the beauty industry can amplify your brand’s reach and credibility. Seek collaborations with beauty bloggers, YouTubers, and celebrities who align with your brand’s values and target audience.

  • Personalize the customer experience

Implement personalized marketing techniques such as tailored product recommendations, personalized emails, and exclusive offers to make customers feel valued and appreciated.

  • Prioritize customer reviews and testimonials

Positive reviews and testimonials can greatly influence purchase decisions. Encourage customers to leave feedback and then showcase these testimonials on your website and social media.

  • Stay updated with industry trends

Monitor the latest beauty trends, innovations, and consumer preferences, and stay ahead of the competition by incorporating these trends into your products and marketing strategies.

  • Offer exceptional customer service

Provide prompt and helpful customer support to ensure customer satisfaction. Addressing issues right away will help build customer trust and loyalty.

By implementing these strategies, beauty brands can enhance their market presence, attract new customers, and cultivate brand loyalty.


Understanding and leveraging e-commerce benchmarks is paramount for beauty brands looking to thrive in today’s digital landscape. 

Beauty brands can gain a competitive edge by benchmarking key metrics such as conversion rates, average order value, and customer retention. It allows them to identify areas that require improvement, refine marketing strategies, and enhance the overall customer experience.

As the beauty industry continues to grow, the brands that keep a keen eye on these benchmarks and adapt accordingly will be the ones who flourish in the online marketplace. So, let these benchmarks guide your journey toward success in the world of beauty.

IMP provides digital marketing services for global ecommerce companies. Our solutions help businesses increase their profits sustainably and reduce dependency on paid media.