Cosmetics E-commerce Benchmarks

Why these numbers look like this

Cosmetics enjoy some of the highest gross margins in e-commerce (60-75%) because formulation and packaging COGS are low relative to perceived value, but ad costs are steep as DTC brands like Glossier and Rare Beauty bid up the same social audiences. Trends move fast—TikTok can make or break a product in weeks, requiring agile inventory and marketing. Subscription boxes and replenishment models work particularly well here, driving CLV 2-3× higher than one-off purchases.