Sales of online beauty products rose by 23.6m in 2017, with ecommerce sales exceeding $5 billion, according to Top 1000 retailer data from Internet Retailer, a U.S. e-commerce research firm. That outpaced the U.S. ecommerce market's growth rate of 15.6bn in 2017, and outpaced the overall Top 1000 retailer growth rate of 18.5. It is worth noting, however, that online sales of cosmetic products account for only 4.0 of the category's total sales. Of the 27 beauty retailers on the Internet Retailer 2018 Top 1000 list, the beauty brand Glossier rose the most, to 275. Online sales accounted for 97. 1% of Glossier's total sales in 2017.
Glossier ranked 175th on the Internet Retailer 2018 Top 1000 list. The brand was launched in 2014 and in the past four years the e-commerce retailer has grown into a maker of all kinds of makeup products. The No. 2 beauty retailer is Kos é, which ranked 370. 2017, the Japanese skincare and cosmetics retailer's online sales rose by 125, compared with 85 in 2018. The company was founded in 1946 and bought cosmetics retailer Tarte cosmetics, for $135 million in 2014 before moving into North America and Europe. Since then, the Goose Group has been growing year by year, with a compound annual growth rate of 59. But overall, the skincare retailer's online sales accounted for only 12.4 percent of its 2017 sales.
In third place was Harry's, 's 218th place on the list. Founded in 2013, the retailer is an online subscription service for men's beauty products. In 2017, its online sales rose 95.0 percent from the same period a year earlier in 2016. As the range of sales expands, Harry's is not just online, but also offering products to consumers at Target and Wal-Mart. Ulta Beauty, the cosmetics retailer, is the fourth fastest growing retailer in the makeup category, ranking 91st on the list. Its online sales rose 64.7% in 2017 from a year earlier (see chart), though, In 2018, mobile generated 54% of Ulta Beauty's ecommerce sales, up from 46.2018 to date in the same period in 2017, according to 9.7%.Ulta Beauty, which accounts for only the company's total online sales. Members of the Ulta Beauty customer loyalty Program, Ultamate Rewards, contributed more than 95% of sales to the company. Active members of, Ulta Beauty grew 18. 8% to 27.8 million in 2017. At present, the company has nearly 30 million loyal members.
It is worth noting that the online sales of beauty brands in the United States account for 41% of the total sales of online beauty products (see below). Of the 27 cosmetic retailers, 13 are cosmetics and skin care brands, such as Estée Lauder, Chanel, L'Oreal, etc. L'Oreal is on the cusp of technology when it bought Canadian beauty company ModiFace, in March 2018 for an undisclosed sum to provide customers with online cosmetic tests to learn about the brand's face effects. In addition, Modiface also supports Louis Vuitton's Sephora (No. 131) and Estée Lauder's mobile apps.
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