This week, we take a peek at the Amazon strategy of dermatology telemedicine brand Curology, which strives to take its OTC products omnichannel.
Curology is on a path toward omnichannel expansion, and Amazon is a significant part of that plan.
In early January 2023, Curology began selling 18 over-the-counter items, including cleansers, moisturizers and makeup remover. Curology’s other main business is telemedicine dermatology prescriptions. Curology started its expansion into retail by selling its OTC products at Target. OTC products accounted for just over 6% of Curology’s 2023 sales, with expectations for that percentage to double in 2024, said Heather Wallace, CEO of Curology.
“We have thousands of consumers that have searched for Curology on Amazon. It makes sense for us to be there and for us to partner with other retailers where they have a great audience and they’re receptive to the opportunities of Curology,” said Wallace.
In a press release regarding Wallace’s appointment to CEO, Curology stated that it expected to earn $200 million in revenue in 2022, reflecting a 75% compound annual growth rate since 2017, and that it had served more than 4 million patients since 2014 via its telehealth services. Just before Wallace joined the company in Oct. 2022, Curology laid off nearly 150 people and, as reported at the time, planned to shut down its office and lab facility in San Diego. The San Francisco-based company has raised at least $61.7 million in funding.
As a DTC company, Curology has historically invested in performance marketing, which typically focuses on end-of-funnel conversion tactics. But in 2024, it will broaden from that strategy to a full-funnel approach by adding on national top-of-funnel growth marketing tactics, like brand awareness campaigns, said Wallace. Some examples include livestreaming and TV, she added.
“To get the business to where we want to be in the longer term, we need to make sure that we’re not just capturing demand, but that we’re also creating new demand,” said Wallace.
It goes without saying how successful, nay necessary, Amazon has become as a beauty sales channel. According to Insider Intelligence, 57% of product searches start on Amazon. Additionally, 28% of face-care consumers shop in the category on Amazon, and of that group, a quarter of people only shop for face care via Amazon. RetailX’s Beauty and Cosmetics Report 2023 states that the largest share of the U.S. online beauty market is held by Amazon, which is almost three times higher than that of Ulta Beauty. While TikTok is certainly out to seize market share from Amazon via TikTok Shop, the clear winner at this moment is still Amazon.
“As consumers increasingly shop for personal care products online, categories that are part of our daily routine, [like] skin care, hair care and oral care, have particularly benefited,” wrote Ariane Turley, lead beauty and personal care consultant, in a 2021 SimilarWeb report. “Amazon is turning into the go-to place for consumers to stock up on their favorite skin care, hair care and makeup products; more than 50% of transactions in these categories are from users who’ve made more than one transaction.”
Curology is significantly investing in Amazon advertising, though Wallace declined to share specifics. However, she stated that it was the brand’s biggest advertising investment in its OTC products. The first area that Curology is focused on is the “shelf” of Amazon, which includes page one of search results and is where 85% of sales occur, said Wallace. Curology will invest in Amazon key search terms such as “acne cleanser” and “dark spot serum” as an always-on strategy to ensure the brand is always listed on the first page of results.
Additionally, Curology will invest more during its initial launch in Amazon’s off-platform “demand-side platform” ads to drive traffic to Curology on Amazon. This ad inventory is exclusive to Amazon’s DSP and includes Audible, Shopbop, Twitch and IMDb. Wallace said Curology will test over an unspecified period across all DSP websites to see which yields the best results.
Lastly, Curology will participate in Creator Connections, Amazon Posts and Amazon Engagement Campaigns to drive brand awareness on Amazon. Creator Connections, which debuted in Aug. 2023, allows brands and Amazon sellers to connect with social media, blogging and content influencers to promote products. The program is invite-only for creators, who can elect or submit to work with brands and earn an affiliate commission, in addition to the standard 5% affiliate commission paid by the Amazon Associates program for the beauty category. Amazon Posts, meanwhile, allows brand-registered sellers to share unique lifestyle images and product-related content through a “feed,” which Amazon can display in places like a product page carousel. Amazon Engagement Campaigns allow brands to send marketing emails directly to Amazon customers.
“We think about Amazon as both access and awareness,” said Wallace. “We expect this launch on Amazon and our investment in Amazon media to help drive overall awareness for the brand [outside of Amazon], and we will also be measuring that.”
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