Creating A Standard in Luxury on Amazon

    Written by MJ Johnson
    on February 04, 2020

    Amazon is once again sweeping its website and removing counterfeits in an effort to be considered a legitimate retailer of luxury goods. 

    Counterfeits on Amazon

    As of last week, news reports revealed Amazon will now report counterfeits to law enforcement on the first strike. Amazon is taking a stand and streamlining the process of going after counterfeit sellers and products. 

    We discussed in our blog why brands such as Pop Socket, Nike & Birkenstock have all recently pulled their products from Amazon. Why? Amazon didn’t hold up its end in policing counterfeits. 

    “When there are fake products from well-known brands such as Cartier, Hermes, Paul Mitchell and Levis Jeans, to name a few, luxury brands are going to be hesitant to put efforts in building a channel on Amazon. The mutual respect isn’t there yet,” says Laura Meyer, co-founder and CEO of Envision Horizons. 

    Taking a serious step towards eliminating counterfeits is crucial and a necessary next step for Amazon in order to break through the luxury market.

    Convenience in Luxury

    There is a huge opportunity for luxury brands on Amazon because of the convenience factor. 

    “When it comes to luxury products, the strategy on Amazon is very different. My response to the ‘stigma’ of Amazon is that the new form of luxury is convenience. When I think of my own shopping habits, luxury is being able to order a product and have it delivered to my door in a quick manner,” says Meyer in a recent Business of Home article entitled “Can Luxury Work on Amazon”

    Luxury brands that sell their entry price point products such as wallets, key chains, and other accessories, have a tremendous opportunity to acquire new consumers and build brand loyalty. But, for Amazon to succeed picking up where Barneys, Neiman’s and Saks are dropping the ball, they too, have to be able to offer authentic products. 

    Amazon needs to gain consumers trust if they expect them to switch from purchasing luxury fashion in-store to online. But, even if the consumer eventually trusts Amazon will the luxury brands trust and sell on Amazon?

    Success in Beauty

    For the beauty category, Amazon was able to make moves by introducing the luxury program, which helped combat the issue of unauthorized sellers in the beauty category. They’ll need to follow suit for fashion and accessories in order to succeed in these categories.

    Historically, beauty is a growing category where fashion and accessories hasn’t been as promising. Amazon is now setting their next big takeover in Fashion. 

    Will Luxury Brands Sell on Amazon?

    With a quick search of Louis Vuitton bags on Amazon you’ll see they've already started to clean up the luxury pages on Amazon. 

    Our initial thought is that luxury re-sellers saw the articles claiming that Amazon is cutting down on counterfeits. Having hope that consumers might now trust luxury purchases on the site, they’ve began proactively listing the resale of their luxury goods. 

    But, is Amazon doing enough to win over luxury brands? In a recent article Michael Sweeney, senior legal counsel at Incopro said, “Amazon’s various initiatives make good headlines, and it’s good PR. With the amount of money that luxury brands pour into protecting their intellectual property — and that’s where so much of their value is — Amazon is not doing nearly enough from a luxury perspective. Until there are actual results, and I mean tangible, data-driven results, I can’t see how any luxury brand with their colossal overhead would want to be within 100 miles of Amazon.”

    To read more on if luxury really can work on Amazon check out Laura Meyer's feature in Business of Home.