Startup cosmetics retailer KF Beauty acquires new customers via social media videos that garner thousands of comments. 

Amazon.com Inc. doesn’t have to be the enemy.

Cosmetics retailer and WunderBrow maker KF Beauty treats Amazon as a friend, as the web giant is responsible for a third of the retailer’s total sales, KF Beauty CEO Michael Malinsky says. Of KF Beauty’s total sales, about 75% are online, which is either from Amazon or directly off its e-commerce site.

“I would be lying if we didn’t prefer a direct sale, but I think in 2017, it is a little bit presumptuous to assume that everybody will shop on your terms rather than theirs,” Malinsky says.

“We’re very happy to have customers join us either way, because our goal isn’t the one sale—our goal is winning your affinity toward our product and our brand and being able to eventually sell you more and introduce you to more products,” he adds. 40% of KF Beauty’s customers are repeat customers, Malinsky says.

Most of KF Beauty’s sales off of Amazon are sold directly by Amazon, as the web giant buys, ships and sells the retailer’s products. However, KF Beauty is also a marketplace seller on Amazon for times when Amazon sells out of its products. This way, KF Beauty’s products are never listed as out of stock, Malinsky says.

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Malinsky and co-founder Jon Davidman started KF Beauty in 2013 with hair product KeraFiber. In 2015, the pair acquired WunderBrow, which is an eyebrow makeup. Currently, the retailer sells in 27 countries, has 21 SKUs, grew its sales by 800% year over year in 2016 and now generates millions of dollars in online sales, Malinsky says, declining to give specific numbers.

He attributes most of KF Beauty’s growth to its online marketing strategy. Originally, Malinsky thought the company would market the eyebrow product to women age 45 years or older, as they are more likely to have hair loss and have more years of over-plucking their eyebrows, he says. The retailer, however, quickly realized that consumers as young as 20 are interested in eyebrow makeup, so it became a matter of positioning WunderBrow in the right way.

“We always knew there was a potential huge audience if we found a way to connect with [younger consumers] and deliver our message,” Malinsky says. He decided on social media videos, such as on Facebook, as way to spread the word about his company and reach younger consumers.

The retailer aims to have its product videos not look like traditional advertisements, Malinsky says. Instead, the videos feature customers, YouTube bloggers and influencers using the WunderBrow product and offering tips on how to use it.

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The web merchant serves different videos to consumers depending on if they are just learning about the product or are more informed, Malinsky says. For example, the first video shown to a consumer likely will be a broad introduction to the product and its effectiveness. After a consumer is introduced to WunderBrow, the next video likely will highlight one of the product’s features, such as whether it’s waterproof or vegan. For a consumer familiar with the brand but who hasn’t purchased yet, the next video likely will remind her that the retailer offers free shipping and a no-questions-asked return policy. In total, it takes up to 15 videos to acquire a new customer, Malinsky says.

KF Beauty’s videos are reaching a mass audience, as a video can have millions of views, hundreds of thousands of likes and 100 to 10,000 comments  on it, Malinsky says. The retailer aims to respond quickly to all comments, both positive and negative, he says.

A customer, for example, may say she hated the product. “Instead of erasing the comment, we say, ‘We’re very sorry to hear that. We have a no-questions-asked, 30-day money-back guarantee, and we’re happy to make good on it,’” Malinsky says.

Allowing negative comments to stay on the site builds trust with existing and potential customers, he says. “People see that and understand. Customers are not gullible,” he says.

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Of KF Beauty’s 60-member team, 12 employees are dedicated to communication with consumers, which is either via social media or customer service inquires.

The retailer also has an Amazon Dash button. Amazon does not give KF Beauty any insight into how many sales are made via the button, however Malinksy says he is confident the button works because Amazon would not setup the hardware of the Dash button unless it thought millions of people would use it.

“It’s a function of giving people the ability to order and reorder as comfortably and conveniently as they want,” Malinsky says.

 

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