Bath & Body Works Launches Official Amazon Storefront to Combat $60M Gray Market Sales

Quick Facts

  • Bath & Body Works launched its first authorized Amazon storefront on February 20, 2026, featuring iconic fragrances like Champagne Toast and Mahogany Teakwood
  • The move addresses $60-80 million in existing gray market sales from unauthorized third-party sellers that CEO Daniel Heaf called ‘brand dilutive’
  • Amazon dominates U.S. online beauty sales with 47% market share, while Bath & Body Works reported declining Q3 2025 sales of $1.6 billion, down 1% year-over-year

Bath & Body Works officially launched on Amazon’s U.S. platform, marking the fragrance retailer’s first authorized presence on the marketplace after years of fighting unauthorized third-party sellers.

The launch features curated selections of the brand’s most popular fragrances, including Champagne Toast, A Thousand Wishes, Mahogany Teakwood, and Eucalyptus Spearmint. Products span fine fragrance mists, body wash, body cream, hand soap, candles, and Wallflowers.

CEO Daniel Heaf revealed Bath & Body Works was already generating ‘$60 to $80 million of gray market sales’ on Amazon through unauthorized sellers, which he described as ‘brand dilutive and product dilutive.’ The official storefront aims to reclaim control over brand presentation and customer experience.

‘Launching our first authorized brand storefront on Amazon allows us to put ourselves directly in the path of the consumer,’ Heaf said. ‘It’s about meeting them where they already shop.’

The Amazon expansion comes during a challenging financial period for Bath & Body Works. Third-quarter 2025 net sales dropped 1% to $1.6 billion, while earnings per share fell to $0.37 from $0.49 the previous year. Operating income plunged 26% to $161 million.

Amazon commands 47% of the U.S. online beauty and personal care market in 2024, up from 44% in 2023, according to Euromonitor. Sephora holds second place with just 9% market share. An estimated 39% of all beauty and personal care sales happen online.

Under the agreement, Bath & Body Works retains inventory ownership and pricing control while using Amazon’s fulfillment network for Prime eligibility. This positions Amazon as a logistics partner rather than a traditional retailer.

Chief Commercial Officer Maly Bernstein emphasized the strategic approach: ‘We see Amazon as a gateway into our brand, because it will always have a limited assortment,’ ensuring customers visit Bath & Body Works’ own channels for the full product range.

The Amazon launch forms part of Heaf’s ‘Consumer First Formula’ turnaround plan, introduced in November 2025 after shares fell 25%. The transformation targets $250 million in cost savings over two years.

Bath & Body Works joins other vertically integrated brands like Gap, J.Crew, and Everlane that have established Amazon storefronts. The company operates 1,934 locations in the U.S. and Canada, plus 544 international franchised stores.

Read more: Exclusive: Bath & Body Works launches on Amazon

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