Amazon rivals beauty chains as Australian sales shift online
Tue, 29th Sep 2026 (Today)
Pattern has released research showing online marketplaces now generate as much revenue from Australian beauty eCommerce as major specialist beauty retailers combined, pointing to a shift in where consumers buy beauty products online.
Marketplaces including Amazon generated about AUD $200 million in online beauty sales in the fourth quarter of 2025, close to the AUD $199.3 million reported collectively by specialist beauty and health retailers such as Mecca, Sephora, Adore Beauty and Chemist Warehouse.
Australia's online beauty market is forecast to expand 47% to USD $2.2 billion by 2030. The figures suggest marketplaces are becoming a bigger force in a category long dominated by specialist chains and brand-led retail websites.
"Australia's beauty market is growing rapidly, but the balance of power is shifting. Marketplaces are now competing directly with the country's established beauty retailers, while consumers are becoming less tied to traditional shopping channels and even their favourite brands," said Merline McGregor, Managing Director, Pattern Australia.
"While there is significant opportunity for beauty brands, there is also the risk of losing customers to competitors that are easier to discover and purchase online," McGregor said.
Social discovery
The research also highlights social media's role in shaping how Australians find beauty products. Nearly half of beauty buyers, 47%, said they were more likely to buy a product following a creator recommendation, compared with 15% of non-beauty buyers.
Instagram and Facebook each influenced 47% of beauty buyers to consider or purchase products in the past year. YouTube influenced 45%, while TikTok influenced 38%.
That discovery does not always lead to a purchase on the same platform. When beauty buyers find a product through social media, 39% said they would most likely buy it directly from a retailer or brand website, while 32% would go to Amazon.
"Beauty has become one of the most socially influenced retail categories, as consumers discover products through creators, watching demonstrations and researching ingredients long before deciding where to buy," McGregor said.
"But discovery and purchasing are increasingly happening in different places. A consumer might discover a skincare product on TikTok, research it on Google and then purchase it from Amazon. Brands need to connect these channels to turn consumer interest into sales," she said.
Amazon's share
Amazon recorded an AUD $66.7 million year-on-year increase in Australian beauty and personal care sales in the fourth quarter of 2025, giving the marketplace 19.9% of Australia's online beauty market.
Some 71% of Australian online beauty buyers intend to purchase from Amazon in the next 12 months. The research also found 43% are open to buying a similar product from a competing brand if their first choice is unavailable on Amazon.
The figures point to mounting pressure on a sector where repeat purchasing and familiarity have historically supported brand loyalty. For brands that limit where products are sold, marketplace availability may now have a more direct effect on market share.
"Brand loyalty has traditionally been a major strength of the beauty industry, but convenience and availability are increasingly influencing purchasing decisions. When more than four in 10 beauty buyers are prepared to switch brands because they can't find their preferred product on Amazon, that's a significant commercial risk," McGregor said.
"Consumers aren't thinking about a brand's distribution strategy. They simply expect beauty products to be available through the channels they use, and they're willing to switch brands for that convenience," she said.
AI influence
Artificial intelligence is also affecting the shopping journey. Some 38% of beauty buyers said they are relying more on AI tools to discover products online than they did a year earlier.
More than a quarter, 27%, said they had used ChatGPT or a similar AI assistant when researching or buying products. The research also found 55% trust AI-generated product recommendations.
These changes suggest beauty brands are dealing with a more fragmented path to purchase, with social platforms, search engines, AI tools, brand websites and marketplaces each playing a role at different stages.
"AI, social media and marketplaces are changing how consumers find, research and purchase beauty products. As online beauty sales surge in Australia over the next few years, the brands that grow will be those that understand how shopper behaviour is evolving across multiple touchpoints," McGregor said.
"A great product can only go so far if consumers can't discover it, find credible information about it or purchase it through their preferred channels. Brands need to make themselves visible and available at every stage of the shopping journey to grow their share of Australia's beauty market," she said.