Much to the chagrin of Sally Beauty and Ulta, Amazon just launched the Amazon Professional Beauty Store. Now beauty pros with a state-issued cosmetology, barber or aesthetician license can create a free Amazon Business account and upload their license to get access to top professional-use products typically found in salons and spas. They can also utilize speedy shipping options with Business Prime. Sally Beauty stock plunged over 16% after the announcement, and Ulta almost 3%.
"Stylists can find more of what they need at great prices with convenient delivery options, freeing up their time to focus on what's important: their customers," said Steve Kann, Director of Customer Driven Experience, Amazon Business.
Not only will customers have access to all their favorite beauty basics like shampoos and nail polish, the store also has a vast selection of professional supplies ranging from styling tools to shampoo sink basins to full barber salon stations.
Cause for concern?
Sally Beauty and Ulta might be a little nervous right now, but Amazon doesn't always succeed at taking over a sector. Sometimes you can't be "everything" to everyone, although Amazon sure seems to try. Here are a few of their failures:
The Fire Phone - They failed to compete with Androids and iPhones despite selling it for 99 cents at one point. (pictured left)
Destinations - They failed to compete with other travel booking sites with this short-lived travel site.
Amazon Local - They failed to compete with sites like Groupon and Living Social with this hub for local deals.
Amazon Local Register - They failed to compete with mobile credit card processing devices like Square.
Amazon Restaurants - Their most recent failure, they couldn't compete with food delivery services like Grubhub and Uber Eats.
Getting caught in Amazon's cross hairs
More and more businesses are cringing at the thought of Amazon's next venture. It seems that every day, they're attempting to delve into another business sector. What can companies do to keep Amazon off their turf? And how can they stop it given Amazon's deep pockets? We'd love to hear what you think! Email us: inquiries@ripcordbrands.com or give us a call: (303) 536-5505.