Ulta Beauty’s UB Marketplace debut may have moved the beauty specialty retailer a step forward in gaining online market share, but it isn’t quite sitting right with some shoppers frustrated by a lack of information about the new initiative and their inability to apply rewards to purchases.
Over the past two weeks, customers have taken to Reddit in droves to express their annoyance with Ulta for rolling out UB Marketplace with little to no explanation about what it is, how it works or what makes it unique. Many view the move as Ulta mimicking Amazon or Walmart’s online model in a bid to simply capture more dollars, eroding their trust in the retailer. Others see no benefit in shopping from UB Marketplace brands since they can’t use Ulta Beauty Rewards points toward purchases on them and aren’t eligible to purchase with promotions or discount codes.
“If anyone from Ulta corporate is reading, we DO NOT want Ulta Marketplace! I think I speak for many of us when I say we buy from you in large part because you are a trustworthy retailer selling legitimate products,” writes a Reddit user with the handle MichyMakeup. “A marketplace with third party sellers could erode that trust and send us shopping elsewhere.”
Another Reddit user with the handle Kellzz writes, “They should’ve been more open and transparent about all of it before it launched rather than making customers dig for information. I think less people would be upset if they had been transparent.” Yet another Reddit user with the handle Qrvne comments, “I don’t necessarily hate the idea. I do think it’s an insanely bad idea that they’re using the term ‘Marketplace’ because it has such negative associations with dropshipped bootleg crap that ‘marketplace’ sites are inundated with.”
Asked about the complaints, an Ulta spokesperson tells Beauty Independent the retailer understands “the importance of transparency and choice, which is why product pages clearly identify Marketplace items and note that they’re fulfilled by a trusted brand partner. We’re seeing strong early interest in the new UB Marketplace brands available on ulta.com and in our app, and we will continue to listen to guest feedback as we refine the experience and thoughtfully shape the assortment.”
Ulta publicly announced UB Marketplace on Tuesday, but emailed customers on Sept. 29 that it had changed the terms and conditions for its Beauty Rewards program. Ulta’s critics on Reddit claim the email was the only official communication they received from the retailer about the new marketplace. The online backlash underscores how swiftly a business’s equity can take a hit when it fails to deliver on that equity in customers’ minds.
Over 100 emerging beauty brands have been onboarded onto Ulta’s website as part of UB Marketplace as the retailer aims to increase its digital beauty business in a fiercely competitive beauty retail landscape where Amazon is now the biggest beauty retailer and customers will soon be able to buy beauty products through ChatGPT. Marketplace brands span across multiple categories, including wellness, grooming, personal care, luxury, tools and international beauty. Manucurist, Apotheke, Blinc, Inked by Dani, Oars + Alps, Babe Original, Ogee, Saturday Skin, Nuxe, Esker Beauty, Sara Happ, Caldera + Lab, Saalt, Wrinkles Schminkles and Byroe are among the brands listed on UB Marketplace.
Reddit user Thirsty_4_Knowledge has already abandoned Ulta as a result of the marketplace. The user writes, “I started looking through new arrivals for holiday gift ideas and almost everything was a marketplace item. I gave up and shopped at other online department stores and gave them my business…the main reason why I’m willing to pay a little more for my products from Ulta is because of gifts with purchase and promotions and since those can’t be used on marketplace items then why would I buy them from Ulta?”
Ulta emphasizes it has tight control over the brands on its marketplace and all brands are approved by it before joining the marketplace. The chain is attempting to ensure a seamless customer experience with UB Marketplace by fully integrating the platform across its site and app, with participating brands identified to the customer by a line under each brand’s listing that reads, “Fulfilled by a trusted brand on UB Marketplace.” Marketplace brands handle their own fulfillment since Ulta does not hold inventory for them, and customers can earn, although not redeem, rewards through purchases of their products.
The Ulta spokesperson says, “With the launch of UB Marketplace, our goal is to offer a broader selection of products that are complementary to the beauty and wellness assortment we already carry. And in doing that, we intentionally chose to take a curated approach that prioritizes quality over quantity. Brand participation is by invitation only – no resellers or unknown sellers – and our teams review every Marketplace brand for quality, authenticity and compliance to the same standards as our core assortment before going live on our site.”
An Ulta employee with the Reddit handle Legitimate_Tip_697 tried to set the record straight about UB Marketplace soon after the retailer’s Sept. 29 email, writing, “Stop overreacting about UB Marketplace and actually listen to what it is. THIS IS NOT RANDOM 3RD PARTY SELLERS. THIS IS ULTA CONTRACTED PRODUCT being shipped by the brand vendors themselves. There is no loss of quality control.”
While a few users responded positively to the clarification, many still weren’t convinced. “I get it. That doesn’t mean it doesn’t suck lol,” writes a Reddit user with the handle SwordfishPast8963. “You’re also breaking this down a lot more thoroughly than Ulta did in their original memo, which I find shady. they knew people were gonna be upset by this.”
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