INDUSTRY REPORT
Beauty ecommerce report: Q3 2025
Beauty brands proved that traffic volume doesn't determine success. In Q3 2025, the category achieved 9.2% sales growth year over year despite glance views dropping 4.6%—the lowest point since last year. The difference? Brands that optimized conversion rates on the digital shelf outperformed those chasing traffic alone.
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Key takeaways
- Conversion strength offset traffic declines: Glance Views fell 4.6% YoY, but stronger conversion rates enabled sales to grow 3.3%, showing shoppers arrived with clear purchase intent.
- Inventory discipline maintained: On-hand inventory rose just 3.3% YoY, reflecting a conservative approach to stock positioning ahead of key shopping events.
- Fill rates improved without excess: PO fill rates increased 5.4% YoY, demonstrating brands met demand efficiently despite minimal inventory accumulation.
- Margins held better than most: Unit margins declined only 0.9% YoY while OPS increased 9.2%, showing relative profitability resilience compared to other categories.
- Media efficiency peaked: ROAS reached its highest point since January as ad spend decreased 1.8% & CPCs remained stable, indicating improved campaign effectiveness.
- Revenue loss from stockouts surged: Revenue lost to OOS incidents increased 79% YoY even as Rep OOS% declined 2.64%, suggesting unavailability hit higher-value items disproportionately.
