The news: Ulta Beauty’s UB Marketplace is now open to shoppers on the retailer’s website and app.

• The invite-only marketplace, powered by Mirakl, is integrated into Ulta’s existing ecommerce interface to offer a seamless shopping experience.
• Customers can earn Ulta Beauty Rewards on eligible purchases and return items in-store.

The opportunity: Ulta’s marketplace will enable the retailer to offer shoppers a broader, more compelling array of products.

• The third-party marketplace model gives Ulta more room to go deeper in core categories like cosmetics and haircare and quickly expand into emerging segments like men’s grooming, fragrance, and K-Beauty.
• While keeping access invite-only has its drawbacks—including limiting how quickly Ulta can respond to beauty trends and expand its assortment—having tighter control over its ecosystem allows the retailer to provide a level of quality assurance that is harder for broader marketplaces like Amazon and Walmart.

Our take: Ulta’s marketplace initiative will help keep the retailer relevant as more beauty sales move online. We expect US online sales of cosmetics and beauty to grow more than twice as fast as total category sales this year, as more shoppers discover products on digital channels and opt for the convenience of delivery.

However, Ulta faces competition from industry heavyweights. Most beauty ecommerce dollars flow to Amazon and Walmart, thanks to their large selections and convenience.

• A growing roster of sales events—including Amazon’s upcoming Holiday Beauty Event—is cementing the two retailers’ positions as shoppers’ go-to beauty destinations.
• As more beauty brands jump at the chance to sell with Walmart and Amazon, Ulta’s ability to differentiate itself in a crowded market is under threat.
• To remain competitive, the retailer will need to draw on its main strengths, particularly its loyalty program and exclusive lineup of niche brands not available at bigger rivals.

Go further: Read our latest report on the US Beauty Consumer 2025 for exclusive data on how social and AI are redefining beauty shopping.