Bath & Body Works Joins Amazon to Leverage Logistics Network

• Bath & Body Works will use Amazon's fulfillment network for Prime-eligible shipping while maintaining ownership of inventory and pricing, unlike traditional wholesale arrangements
• Amazon holds 47% of the U.S. online beauty and personal care market, far ahead of second-place Sephora at 9%, making it the top destination for beauty shoppers
• Other vertically integrated brands like Gap, J. Crew, and Everlane have similarly embraced Amazon as a logistics partner rather than viewing it purely as a competitive threat

Summary: Bath & Body Works Launches Amazon Partnership

Key Development:

Bath & Body Works has launched an authorized storefront on Amazon, marking a strategic shift for the vertically integrated retailer. The company will sell best-selling fragrances, body washes, hand soaps, and candles with Prime shipping eligibility to U.S. customers.

Strategic Rationale:

CEO Daniel Heaf described the move as "meeting customers where they already shop," part of the company's broader strategy to expand beyond its approximately 2,600 owned and franchised stores. Amazon commands 47% of the U.S. online beauty and personal care market in 2024, with Sephora a distant second at 9%.

Business Model:

Unlike traditional wholesale partnerships, Bath & Body Works will retain inventory ownership and pricing control while leveraging Amazon's fulfillment network for logistics. This approach mirrors strategies by other vertically integrated brands including Gap, J. Crew, Everlane, and Kendra Scott.

Market Context:

Previously, Bath & Body Works products were available on Amazon only through unauthorized third-party resellers. The official partnership allows the company to "reclaim the brand story" and capture those marketplace sales directly.

Broader Strategy:

The Amazon launch represents the "first of many milestones" in Heaf's turnaround plan focused on four pillars: innovative products, brand revitalization, marketplace expansion, and operational efficiency. Last year, the company expanded into over 1,000 college campus stores. Bath & Body Works also reduced its free shipping threshold on its own website from $100 to $50.

Implications:

The partnership signals a trend of traditional retailers viewing Amazon as a logistics partner rather than solely a competitive threat, prioritizing customer convenience and market reach over channel exclusivity.