Online product diversion has become a big topic in the professional skin care industry. The solution is creating a private labeled skin care component (e-commerce) for your practice website, which will negate the issue. You won’t have to worry about your products being sold by third parties on the internet, and especially about the products being sold below regular retail prices. Your patients will not be able to “shop around” and will remain loyal to your practice. You control product distribution.

1. Preventing Online
Product Diversion
Dermatologist Formulated | Medical Strength | Clinically Tested

2. Michael Ter Mors
Michael is Head of Marketing at CosMedical Technologies. Data fanatic
and experienced marketing specialist, Michael is a passionate
advocate for improving physician practices' branding and (online)
revenues. He has over 10 years of experience in developing data-
driven marketing programs and e-commerce platforms in both the
US and Europe. Feel free to connect with him if you have questions
about this white paper, or about e-commerce marketing in general.
mtermors@cosmedicaltechnologies.com
author profile

3. Preventing Online Product Diversion
Using private label e-commerce to retain your patients
How often have your patients asked you to recommend a skin care regimen that will work
best for their skin type? Your patients are looking for a customized program, education, and
expert advice from a source they trust. However, once patients find a regimen they like, what
is to stop them from going online and purchasing the products you carefully selected for
them elsewhere? What can you do to take ownership of the patient relationship? What if you
could avoid online product diversion, retain patients, and increase your revenues?
Online product diversion has become a big topic in the professional skin care industry. The
solution is creating a private labeled skin care component for your practice website, which
will negate the issue. You won’t have to worry about your products being sold by third parties
on the internet, and especially about the products being sold below regular retail prices.
Your patients will not be able to “shop around” and will remain loyal to your practice. You
control product distribution.
the private label e-commerce advantage
Adding an e-commerce store to your website essentially allows you to better serve your
patients while adding to your bottom line. Patients often say they appreciate the convenience
of ordering the specific products that you have recommended without leaving the comfort
of their home. And when they are ready to make the trip for their next procedure, your
practice will be top of mind. Not someone else’s.
Skin Care
In-Office
Procedures
Skin Care;
Online Purchases
on your Website

4. Preventing Online Product Diversion
Key advantages of introducing private label e-commerce to your practice:
• No longer having to deal with online product diversion
• Adding revenue to your overall bottom line
• Convenience for patients
• Increased patient loyalty
• Keep patients connected to the practice after treatment
• Opportunity to start targeted marketing campaigns, such as e-mail promotions
Online product diversion has become a big topic in the skin care industry. Integrating
a private label skin care website into your practice will remove any problems you might
be having with product diversion. You will control the distribution of your products and
won’t have to worry about your products being sold by third parties on the internet,
especially below retail prices. Your patients will not be able to ‘shop around’ and will
remain loyal to your practice.
SKIN CARE AND E-COMMERCE ARE GROWING EXPONENTIALLY
One of the key drivers behind the growth of skin care in the US is the large population
of Millennials. Their growing aspiration to look young and beautiful will drive demand
for skin care products throughout the country. Another fact is that roughly 12,000
Americans turn 50 every day. This is the fastest growing segment of the population, and
there is no shortage of Baby Boomers who want to change the way they age.
Even the economic downturn does not seem to have curbed consumer spending on
skin care. Research by Mintel shows the market for facial skin care has increased 20
percent in the last five years alone. It was valued at $1.6 billion in 2012 and is set to reach
Number of Americans
turning 50 every day
12,000
Market increase for
facial skin care
20% $548,220,000,000
2019 US e-retail
sales (est.)

5. about $1.8 billion in 2017, and anti-aging products make up 40% of the market. Private
label e-commerce presents an opportunity for physicians to cater to a larger portion of
the growing skin care market. Although e-commerce for physicians is not widespread
yet, it can provide substantial benefits for physicians and patients alike. Looking at the
numbers, the potential benefit for physicians is huge: eMarketer reports that “US e-retail
sales will nearly double to just over half a trillion dollars ($548.22 billion) by 2019.”
About CosMedical Technologies
Skin care, health, and beauty are competitive industries. For any single patient, there
are dozens of options when it comes to selecting products for at-home use... except in
one case: your own private label brand.
CosMedical Technologies has set the standard for medical grade private label skin care
for over 20 years. Our medical grade products have been developed by board-certified
dermatologist Dr. Loretta Ciraldo and are clinically tested, offering your patients proven
results. With CosMedical Technologies you have the option to activate a unique online
store under your private label where patients can repurchase skin care products
originally bought at your office. Orders are dropshipped directly to your patients from
our distribution facility.
Preventing Online Product Diversion

6. Building loyalty to your brand of quality skin care
products is essential to taking your practice to the next
level and we are here to assist you every step of the way.
800.275.DOCS (3627)
www.cosmedicaltechnologies.com
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