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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.
Download the full report
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.
Download the full report
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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.
