Shipfusion Audits 110 Top DTC Beauty Brands - and Finds a Lot of Cracks in the Gloss

New Data Reveals Even Celebrity-Backed Labels Have Work to Do Ahead of Holiday Sales Surge

CHICAGO, Aug. 19, 2025 /PRNewswire/ - Shipfusion Inc., a North American leader in third-party logistics (3PL) and ecommerce fulfillment, has released its latest industry audit: The DTC Delivery Files: Cosmetics Edition. The report analyzes how 110 of the most recognizable direct-to-consumer beauty brands are handling fulfillment at a time when customer expectations are high and margins are tight.

The findings show that even the most buzzed-about brands, including those backed by celebrities, are missing critical opportunities to create loyalty after the sale. With Q4 approaching, including peak back-to-school and holiday shopping moments, brands face increasing pressure to deliver not only on product but on customer experience.

"The data makes it clear. Fulfillment is no longer just logistics. It is brand storytelling," says Brandon Luft, CEO of Shipfusion. "Beauty brands that treat shipping, packaging, and post-purchase moments as expressions of their identity will stand out. Those that do not risk falling behind, regardless of how famous the founder may be."

Key Findings from the Report:

• 1 in 3 orders arrived scuffed, and more than 1 in 10 were damaged, raising concerns around quality control during peak gifting season
• Only 18 percent of brands followed up with a post-purchase offer or incentive
• 89 percent of brands did not include free samples, despite their known impact on full-size reorders
• 44 percent of brands do not offer international shipping, limiting global reach
• Only 31 percent offer free returns, while nearly half make customers pay and 9 percent do not allow returns at all
• Just 7 percent of brands included any form of social proof at checkout

This last data point stands out in a category driven by community, reviews, and viral discovery. Simple additions like review counts, "bestseller" tags, or real-time purchase notifications can increase buyer confidence and drive conversions. For a product as personal as cosmetics, skipping these cues is a missed growth lever.

Even some celebrity-led brands revealed key execution gaps. One popular label faced fulfillment delays and shipped without branded packaging, while another's poor packing left products dented and damaged.

Name recognition may still drive clicks, but it no longer guarantees repeat business.

Why It Matters Now

Cosmetics might be a small line item, but it carries emotional weight and plays a big role in customer loyalty. Shoppers expect speed, care, and presentation - especially during the busiest shopping quarter of the year.

Brands that fail to meet expectations at the fulfillment stage risk higher return rates, lost reorders, and reduced lifetime value. Those that prioritize fulfillment as a brand-building tool will be the ones that thrive.

For the report's complete data, eye-opening details, and brand breakdowns, including how some of the celebrity lines fared, download the full report with this link.

About Shipfusion Inc.
Shipfusion is a leading fulfillment partner for fast-scaling DTC brands, offering end-to-end logistics through owned warehouses and tech-enabled facilities across North America. With 1,000,000+ square feet of space in Las Vegas, Chicago, Toronto, and York, PA, Shipfusion helps brands turn logistics into growth — delivering fast, reliable, and branded customer experiences at scale. Visit www.shipfusion.com for more.

SOURCE Shipfusion