Amazon is expanding its presence in the beauty retail industry with a new store

Amazon AMZN has launched the Amazon Professional Beauty Store in an attempt to disrupt the cosmetics and beauty products market through the power of e-commerce.

The new store is part of Amazon Business, which will offer beauty supplies and professional salon products for licensed and professional stylists, hairdressers and estheticians.

It’s worth noting that the new store will feature products from brands such as OPI Professional, RUSK, and Wella Professionals, to name a few.

Beauticians and stylists will be able to purchase the above-mentioned products. products in the new store, just create an Amazon Business account and submit your state cosmetology, hairdressing or cosmetology license.

We believe Amazon’s latest move will further strengthen its online retail business. Additionally, the store is expanding its B2B offering, which will likely increase its business customer base. As a result, this will drive the company’s top line.

The cosmetics retail market is promising

The launch of the Amazon Professional Beauty Store underscores the e-commerce giant’s initiatives to strengthen its presence in the U.S. cosmetics retail market, which is worth about $56 billion, according to Forbes.

What’s more, this initiative is likely to help the company gain popularity among beauty professionals, which bodes well for the company’s growth.

In addition, the growth of beauty product offerings on Amazon’s online platform and their easy availability is expected to position the company well to tap the U.S. cosmetics and personal care market, which is expected to generate revenues of $82.9 billion in 2019, according to a Statista report.

Additionally, the cosmetics market segment is expected to generate revenues of more than $17 billion this year.

Amazon ready to disrupt the market

The cosmetics retail market is one of the new areas that the e-commerce giant is looking at. In fact, it is poised to revolutionize the market, supported by its strong distribution power and ability to provide a convenient shopping experience.

Additionally, an improved delivery system and customer-friendly offers can help beauticians save time and money.

Additionally, Amazon is expected to pose a significant threat to existing beauty retailers such as Sally Beauty Holdings SBH, Ulta Beauty ULTA, and Sephora, to name a few.

Following the announcement of the launch of the Amazon Professional Beauty Store, shares of Sally Beauty Holdings and Ulta Beauty fell 17% and 2.6%, respectively, CNBC reports.

Moreover, Amazon has upped the ante on Walmart WMT, which also sells a variety of beauty products.

We believe that all this will likely further strengthen Amazon’s position in the US retail market.

Amazon currently has a Zacks Rank of #3 (Hold). You can see complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research