Amazon is once again sweeping its website. 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, and Levis Jeans, to name a few, luxury brands are going to be hesitant to put efforts into building a channel on Amazon. The mutual respect isn’t there yet,” says Laura Meyer, co-founder, and CEO of Envision Horizons.
Eliminating counterfeits is crucial and a necessary step for Amazon 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 prices 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 in 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 made moves by introducing the luxury program, which helped combat the issue of unauthorized sellers. 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 haven’t been as promising. Amazon is now setting its next big takeover in Fashion.
Will Luxury Brands Sell on Amazon?
Our initial thought is that luxury re-sellers saw the articles claiming that Amazon is cutting down on counterfeits. Hoping that consumers might now trust luxury purchases on Amazon, they’ve begun proactively listing the resale of their luxury goods.
But, is Amazon doing enough to win over luxury brands? In a recent Glossy.co 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.