Photo courtesy of Bath & Body Works
Joining a few other vertically-operated retailers, Bath & Body Works opened its first storefront on Amazon’s U.S. platform.
Bath & Body Works is offering a limited selection of its top-selling fragrances, body washes, hand soaps, and candles for Amazon’s U.S. shoppers. Under the set-up, Bath & Body Works retains ownership of the inventory and controls pricing while using Amazon’s fulfillment network for Prime eligibility.
The partnership is part of the retailer’s Consumer First Formula’s transformation plan announced last year, which includes opening up distribution to third-party accounts to better reach new and younger customers.
“Our Amazon launch reflects our commitment to bringing consumers what they want—seamless access to the products they love across an integrated marketplace,” said Maly Bernstein, Bath & Body Works’ chief commercial officer, in a statement.
Last August, Bath & Body Works began selling to 600 college campus stores across the U.S., with a curated collection of Gen Z favorite products to mark its first store sales outside its owned locations.
Bath & Body Works and Amazon Team-Up in the Cards For Some Time
In first revealing plans to open with Amazon last November, Daniel Heaf, Bath & Body Works’ CEO, said Amazon will enable the retailer to “reach new consumers and reengage lap ones, and we will launch with a curated assortment of evergreen, hero products and over time, introduce products designed to acquire a new consumer.”
Heaf noted that Bath & Body Works’ customer “is already there.” He estimated that between $60 million to $80 million of Bath & Body Works items were being sold on Amazon.com by third-party sellers, describing those gray sales as “brand dilutive and profit dilutive.”
However, he said the main focus is to ensure Bath & Body Works is on “the path of the consumer” -- one that isn’t restricted to its stores or website.
Heaf further told CNBC that while Bath & Body Works is upgrading its own website to drive e-commerce growth, it wants the dedicated Amazon shopper. He admits, “We know that we will never compete with Amazon in terms of their Prime Network. No one is going to be offering next-day shipping. That’s just not what we’re in the business of.”
Victoria’s Secret, Gap, and Everlane are among the few vertically integrated chains that have opened storefronts selling limited selections on Amazon. J.Crew sells its J.Crew Mercantile range that’s produced for its outlet stores. The majority, including everybody from Lululemon to Abercrombie & Fitch to Zara and L.L.Bean, avoid direct sales, reportedly due to concerns over brand perception, less control over presentation and customer service, and providing Amazon access to a brand’s customer data.