The State of Ecommerce: Health & Personal Care
The only category with both declining revenue and collapsing margin
- Revenue fell 7% YoY while gross margin compressed 6pp to 10%, the sharpest margin decline of any category.
- ROAS improved 33% to 5.8x, the strongest ad efficiency gain in the portfolio, standing out against broader margin pressure.
- Discounts held steady but revenue and margins kept falling. Get the data behind the mix shift squeezing HPC margins.
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Key takeaways
Inventory stayed calibrated.
HPC inventory held roughly flat YoY while OOS rates improved, reflecting steady replenishment for recurring demand.
Fulfillment is under pressure.
Fulfilled units grew 12% YoY while fill rate fell 7pp to 81%, showing demand is scaling faster than capacity.
Mix shift is pulling ASP down.
ASPs fell 5% despite discount rates easing 1pp to 17%, making pricing pressure structural rather than promotional.
Demand is softer than it appears.
Glance views rose just 2% YoY despite Prime Day timing, and conversion fell 1pp to 37%.
HPC has the sharpest margin problem.
Revenue fell 7% YoY and gross margin compressed 6pp to 10%, the steepest decline among categories.
Ad efficiency improved despite margin pressure.
Ad spend rose 10%, CPC fell 5%, and ROAS improved 33% to 5.8x, the strongest gain in the portfolio.
