Amazon finally enters Luxury Fashion Market

According to various fashion trade publications, ‘E-tailer’ Amazon is planning its own digital platform for luxury fashion in the first half of 2020.

The platform will operate in a way that we see in department stores and specialty retailers. Brands lease space or pay a percentage of sales to run their own mini-shops within the store. On the new platform companies will have complete control over the look of their online space, which products they sell (or don’t), and any discounts they offer. At the same time, they will have access to Amazon’s vast logistics network for fast delivery, as well as its customer service. Although no names have been announced, about 12 brands are claimed to be working with Amazon already. The platform will be launched in the US first, and will later be rolled out in the international market.

A successful entry into luxury would mark a shift for Amazon. The  company already is a top player in apparel sales, but it has – until now – only focused on basic items such as t-shirts and sweatpants without high-end brands. By this jump, the ecommerce giant may be able to replicate the Alibaba success in fashion. This company launched its own luxury-focused platform in 2017 with high-end brands such as Burberry, Givenchy, and Versace.