How To Navigate Cosmetics and Beauty Fulfillment

The global cosmetics market reached $425 billion in 2024 and is on track to hit $760 billion by 2034, expanding 6% annually. Customers don’t just seek a foundation to perfectly match their skin tone or a conditioner formulated for curly hair. They want products that align with their values—from vegan and cruelty-free to sustainable and environmentally conscious. 

This industry offers a huge opportunity for brands looking to break in or broaden their existing offerings. However, cosmetics are a unique industry with distinct challenges for fulfilling and shipping orders. Whereas shipping a t-shirt is as straightforward as making sure it gets from Point A to Point B, delivering a frosted glass bottle of body oil or a pressed powder palette requires specialized handling and thoughtful inventory management practices. 

Learn about these and other fulfillment hurdles, and find out how partnering with the right third-party logistics provider (3PL) can help solve them.

6 challenges in cosmetics and beauty fulfillment

1. Organizing huge inventories
2. Maintaining climate-controlled storage
3. Safeguarding fragile products during shipping
4. Monitoring product expiration ideas
5. Navigating complex regulatory requirements
6. Streamlining returns management

1. Organizing huge inventories

Beauty brands need to cater to their customers’ wide-ranging needs and preferences to stay competitive. Take foundation, for example. A single product line might boast 40 SKUs with 20 shades, each available in dewy and matte finishes per product variant. Factor in just a few more product categories—say, lipsticks and liners—and you’re looking at a logistical labyrinth.

Keeping this vast array of products in order isn’t just about organization. It ensures accurate order fulfillment, maintains stock levels, and ultimately delivers the right product to the right customer. Inventory mismanagement can lead to costly errors, disappointed customers, and lost sales.

When OSEA Malibu started up in 1996, Melissa Palmer was helping her mom create and ship simple, holistic sea-inspired skin care products right in their garage. At the time, there wasn’t much infrastructure to enable a small business such as theirs to compete with major retailers, so they focused on fulfilling wholesale orders placed over the phone by spas. 

Then, around 2015, Melissa saw that ecommerce offered opportunities to sell directly to consumers. “We went from being 99% wholesale to having this ecommerce platform really picking up,” she said during an interview on the Shopify Masters podcast. “We grew 10% every year.” 

Today, ecommerce platforms like Shopify make inventory management simple for D2C businesses like OSEA. Shopify effortlessly syncs your inventory in real time across both online platforms and in-store POS systems. Workflow automations and ABC inventory analysis reports ensure that even the smallest of businesses can handle the complexities of inventory management as seamlessly as large-scale competitors do. 

2. Maintaining climate-controlled storage 

Cosmetics and beauty products are delicate, demanding careful storage to maintain quality. For example:

• Lipstick bullets soften during transit. Cream formulas can melt when truck temps spike above 40°C. 
• Serums can lose potency within weeks when stored between 37°C and 40°C.
• Probiotic moisturizers can spoil in warm storage and make creams watery. 

Beauty and skin care fulfillment services need to safeguard against potential mishaps that could wipe out thousands of dollars in inventory (and customer trust) in one fell swoop.

3. Safeguarding fragile products during shipping

The thrill of unboxing a new beauty product can quickly turn to disappointment if the item inside isn’t intact or as expected. Imagine the letdown of opening a package to find a pressed blush reduced to a powdery mess, a glass perfume bottle in shards with fragrance everywhere, or a face wash that oozed through a broken seal. 

These scenarios aren’t just customer satisfaction nightmares—they’re also real financial losses, damaging your brand and your business. Safeguarding these delicate items requires a meticulous approach to packaging, one that can withstand the rigors of warehouse handling and the unpredictable journey to a customer’s doorstep. 

4. Monitoring product expiration dates

Although cosmetics and beauty products aren’t as perishable as produce or dairy, they still have a finite shelf life. A luxurious face oil can turn rancid if it sits too long in a warehouse, while a cutting-edge retinol cream might lose its wrinkle-fighting potency before it ever reaches a customer’s vanity. Even unopened, factors like ingredient stability, packaging materials, and storage conditions can shorten a product’s usable life, leading to spoilage, reduced efficacy, and wasted inventory.

Managing expiration dates takes a careful balance of accurate inventory tracking and smart sales forecasting. This is a key conversation to have when selecting a 3PL. Ask about their processes for managing shelf life and how they’ve supported other beauty brands. Request data such as spoilage or expiration rates, average time-in-inventory, and first-in, first-out (FIFO) compliance. These insights will help you gauge whether they can minimize waste while ensuring customers receive products at peak quality.

On your side, focus on sales forecasting, production scheduling, and inventory allocation. Tools like Shopify’s built-in analytics can help you predict demand, plan replenishment, and avoid overstocking. Addressing these considerations from the start will set you up for long-term success. If you develop your product and packaging with storage, spoilage, and margin factors in mind, you can reduce waste, preserve quality, and create more room for growth.

Shizu Okusa, founder of Apothékary, learned this lesson early. Her first venture, JRINK, delivered fresh-pressed juices with a three-day shelf life. “The most stressful parts of building the first business were always around money and spoilage of product,” she said on the Shopify Masters podcast. “That’s how I thought of reverse-engineering the margins at Apothékary.” 

Instead of creating a product first and then figuring out how to make it fit fulfillment constraints, Shizu started with her desired profitability and operational realities—and built the business around them.

Whenever possible, choose formulations and packaging that extend shelf life without compromising quality. This could mean using light-blocking materials, incorporating ingredient stabilizers, or standardizing packaging across SKUs to simplify storage and shipping. Refillable formats can also reduce storage needs while aligning with consumers’ preference for low-waste products.

5. Navigating complex regulatory requirements 

For beauty brands serving a global target audience, keeping track of regulatory requirements is a must. Varying national regulations require brands to offer different product formulations or even bar them from selling certain items. Take skin-lightening ingredients like hydroquinone, for example, which is banned for over-the-counter sale in many countries, but legal in others. 

This regulatory complexity creates implications for fulfillment operations. It requires sophisticated inventory management systems to ensure your company stocks and ships the correct product variants to the appropriate regions without risking delays or fines.

Shopify Managed Markets simplifies this. It allows you to sell your goods through a third-party merchant of record (MoR). That third-party MoR effectively becomes your sole customer: You’ll be selling your product to the MoR, which will then resell the product to your customers.

This legal workaround relinquishes you of the complex financial, legal, and logistical responsibilities of international sales. That includes managing local tax compliance, customs documentation, fraud protection, and more. Managed Markets also localizes your storefront, prices in local currency, and avoids foreign exchange fees for your customers.

Gyve Safavi, co-founder of sustainable oral care brand SURI, experienced these benefits firsthand. “From day one, we launched on Shopify Managed Markets, and we were able to be in the US, UK, Germany, and a few other markets,” Gyve told Shopify Masters. “That has enabled us to act like a big brand and fulfill like one, while still being just two people at the kitchen table.”

6. Streamlining returns management

The average ecommerce return rate is around 17%, according to the latest data. Cosmetics and beauty brands have embraced innovative tools to help customers make informed purchases online—ranging from virtual try-on technology and influencer-led tutorials to detailed product descriptions and swatch comparisons. 

These strategies reduce the likelihood of returns, but they can’t eliminate them entirely. A foundation shade may still be off, or a lipstick color might not suit the buyer’s complexion.

Unlike many other retail sectors, most returned beauty products can’t be restocked due to hygiene and contamination risks. That means every return is often a total loss. Limiting returns isn’t a viable solution, because restrictive policies can hurt customer trust and discourage repeat purchases. As Charlotte Palermino, cofounder of Dieux Skincare, explains on the Shopify Masters podcast, “When something doesn’t work out for somebody, we just refund you and there’s no hard feelings.”

To manage this reality, brands should focus on two areas: prevention and planning. 

Prevention means equipping customers with the information they need to make confident purchases. Education is central to Dieux Skincare’s marketing strategy: “I don’t want you to buy my products if they don’t work for you,” Charlotte says. The brand provides clear instructions on how to use each product, explains how it fits into an existing skin care routine, and details how it works. “I find that when you do it that way, you have a high loyalty rate.”

Planning means building the cost of inevitable returns into your pricing and margins, and ensuring your operations can handle quick refunds, proper disposal of unsellable products, and accurate accounting for these losses. By making returns management part of your business model, you can protect your margins while maintaining customer trust.

7 qualities to look for in a 3PL partner

The challenges of cosmetics and beauty fulfillment can overwhelm even the most organized in-house teams. This is where third-party logistics providers (3PL) can help with the complex fulfillment process—from inventory management and warehousing to order processing and shipping. 

However, not every 3PL is equipped to provide the right beauty and cosmetics fulfillment services. Here’s what to consider when looking for the right fit:

1. Advanced inventory tracking capabilities
2. Controlled-environment facilities
3. Delicate item handling expertise
4. Product life cycle management
5. Responsive customer support
6. Hybrid fulfillment model
7. Flexible fulfillment capabilities

1. Advanced inventory tracking capabilities

When selecting a 3PL for your business, steer clear of providers primarily catering to companies with single flagship products. Instead, seek out partners equipped to handle the complexities of a diverse beauty brand, including the ability to swiftly integrate new SKUs for seasonal gift boxes or limited-edition collaborations. 

Look for a 3PL that uses advanced inventory management systems with real-time tracking capabilities, batch and lot control, and integration with your ecommerce platform. 

Shopify Fulfillment Network, for example, links merchants to a vetted network of fulfillment partners that plug directly into the Shopify admin. Every pick, pack, return, and transfer happens inside one platform, so you can access real-time inventory data. 

In partnership with the fulfillment service Flexport, Shopify Fulfillment Network also lets you:

• Sync stock levels across your online store, POS, and up to 20 marketplace connections
• Set automatic low-inventory alerts when SKUs are about to dip below safety stock
• Distribute products automatically to optimal nodes to provide two-day ground shipping

This will help maintain accuracy throughout the fulfillment process, ensuring that every shade, finish, and product variant is accounted for and available when orders come in.

2. Controlled-environment facilities

When evaluating a 3PL partner, nothing beats an in-person tour of their facilities. During your visit, ask about the different temperature zones and their control mechanisms, ensuring they can meet the requirements of your products. 

Keep an eye out for key features like advanced HVAC systems, backup generators, and real-time environmental monitoring equipment. Ask about protocols for handling unexpected temperature changes and how they maintain consistent conditions to protect your products during storage and packing.

If sustainability is important to your brand or customers, use this opportunity to also inquire about their eco-friendly practices. This might include their carbon footprint reduction efforts, use of low-emission cargo trucks, or other green initiatives they’ve implemented in their operations. 

3. Delicate item handling expertise

A 3PL’s track record with fragile items can literally make or break your beauty product fulfillment success. Ask potential partners about their experience with handling glass bottles, pressed powders, delicate packaging, and skin care brands in general. 

Probe into how they prevent breakage or other damage during packing and shipping, like custom inserts or specialized cushioning materials. Request concrete data on damage rates and breakage-related returns to accurately assess their ability to safeguard your delicate cosmetics and skin care products.

4. Product life cycle management

The right 3PL partner should have sophisticated systems in place to track product expiration dates and ensure first in, first out (FIFO) inventory rotation. Their picking process should prioritize short-dated items to minimize waste. 

Real-time tracking of shelf longevity is important here, letting you monitor stock freshness and make informed decisions about reordering or marketing campaigns. Great 3PLs integrate expiration management with their overall order management system, maintaining product integrity from the warehouse to a customer’s doorstep.

5. Responsive customer support

The best customer service in cosmetics fulfillment goes beyond a basic ticketing system, offering phone or text support for urgent issues, and a dedicated account manager to address your unique fulfillment needs. Look for 3PLs that provide comprehensive value-added services, like custom packaging or personalized notes. These can boost brand loyalty and meet rising customer expectations.

A responsive cosmetics and beauty fulfillment partner can quickly resolve issues like damaged products or shipping delays, minimizing potential harm to your brand reputation. Choose a 3PL that treats your business as a priority, offering proactive communication and solutions that fit your beauty brand’s unique challenges and goals.

6. Hybrid fulfillment model

In some cases—such as startups, brands with limited capital, or products with strict storage requirements—a standalone 3PL may not be the best fit. In these situations, working with a manufacturer that also offers fulfillment services can be a smart alternative. 

This arrangement streamlines your supply chain by moving products directly from production into storage and shipping, without extra transfers or handling. It’s often a better fit for young, lean, or experimental brands because it reduces overhead, preserves cash flow, and keeps operations simple until you’re ready to scale.

That was the case for Underlining, a holding company that launches niche beauty brands. It partnered with a manufacturer that owned both US-based fulfillment centers and overseas production facilities. “They would manufacture for us and ship it to the fulfillment centers, but then we would pay them as we sold the product,” founder Razvan Romanescu explained on the Shopify Masters podcast. “It was like a hybrid between the two. I would call it premium dropshipping because you’re dropshipping your own brand.”

In this model, you maintain control over product design, packaging, and quality standards, while benefiting from the manufacturer’s existing fulfillment infrastructure. It can be particularly useful for testing new product lines or managing seasonal demand without overcommitting to large production runs or long-term storage costs. As sales grow, you can choose to scale within the hybrid model or transition to a standalone 3PL for greater flexibility and expanded capabilities.

7. Flexible fulfillment capabilities

The best fulfillment relationships are collaborative, not transactional. Look for 3PLs that take the time to understand your business and are willing to adapt to your needs. A flexible, long-term partner can help reduce variability, refine processes, and maintain consistency as you grow.

Flexibility matters most when your capacity doesn’t align with “industry standard” requirements. If a partner’s minimum order quantity (MOQ) exceeds what you can store or sell in a reasonable time frame, you risk tying up capital and creating unnecessary waste. Negotiation isn’t a concession—it’s part of building a sustainable operation.

“When you are buying stuff up ront, negotiate your butt off,” says Danielle Close, founder of My Skin Feels, on the Shopify Masters podcast. “I work with an amazing supplier of the tubes, where normally the minimums are 50,000, and they did it for 10,000.” That flexibility saved Danielle from locking up cash in excess inventory and gave her room to grow sustainably. This isn’t about asking for favors—it’s about finding a partner committed to growing with you. 

“Just be honest,” Danielle advises. “I’ve said, ‘I’m a startup and I don’t have a lot of money, but I want to work with you in the long run. Is there a way we can do a smaller run now, and grow together over time?’” The right 3PL will recognize that your early-stage constraints are temporary, and will invest in the relationship knowing that as you scale, your success will be theirs too.