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Unlocking Amazon’s Potential: A Guide for Luxury Brands

Written by
Vince Houghton

For years, Amazon has been viewed as a platform for mass-market and discount products, causing many luxury brands to question its fit with their premium positioning. However, this perception doesn’t reflect the modern Amazon experience. Today, Amazon offers sophisticated tools specifically designed to protect and enhance brand image. Features like Luxury Stores, Premium A+ Content, and Brand Protection allow luxury brands to maintain their identity, control pricing, and deliver a premium shopping experience. 

 

Why Luxury Brands Should Reconsider Amazon: Debunking Common Misconceptions

1. Misconception: Luxury brands lose control over their brand narrative on Amazon.

What often sets luxury brands apart is how they meticulously cultivate their brand image and messaging across all channels. They worry about losing control over this narrative on Amazon, where they might have less influence over product presentation, customer reviews, and the overall shopping experience.

The Reality: As Amazon has evolved, so has sellers’ control over product presentation and brand image. Brands can now create premium, high-touch shopping experiences that mirror their direct-to-consumer (DTC) presence. Specifically, Amazon offers several key tools for luxury brands:

  • Luxury Stores provide a dedicated, elevated shopping environment where brands can curate their product selection and control their brand story, separate from the general Amazon marketplace. 
    •  For example, Luxury Stores offer dedicated brand pages with significantly more visual real estate, allowing for larger, high-resolution imagery and videos that highlight craftsmanship and design. 
  • Premium A+ Content allows brands to go beyond basic product descriptions and create visually rich content, including lifestyle imagery, videos, and comparison charts, to showcase product details and brand heritage. These features offer enhanced content capabilities that the general Amazon marketplace does not, allowing brands to create distinct and tailored brand experiences. 

 

By leveraging these tools, luxury brands can maintain exclusivity and educate shoppers on product craftsmanship, brand heritage, and collection launches — aspects that other third-party resellers cannot replicate.

 

2. Misconception: Luxury customers don’t shop on Amazon.

Since Amazon is widely perceived as a destination for deals, discounts, and convenience, it creates the impression that the platform caters primarily to price-sensitive shoppers. Luxury customers, on the other hand, are typically thought to prioritize quality, exclusivity, and the overall experience of purchasing a product, rather than seeking out the lowest price. Because of this, there’s a belief that luxury shoppers avoid Amazon, assuming it doesn’t reflect the values or exclusivity they associate with high-end purchases.

The Reality: Amazon is a dominant starting point for online product searches, including luxury goods. For instance, 57% of U.S. consumers start their online shopping searches on Amazon. Moreover, according to a recent study,  67% of luxury shoppers frequently engage with Amazon, making it an ideal space for luxury brands to advertise where luxury shoppers are already frequently browsing. 

By establishing a strong presence on Amazon, luxury brands can meet existing demand and prevent competitors from capturing valuable market share. This ensures they remain relevant, build brand loyalty, and maintain control in the evolving luxury landscape.

 

3. Misconception: Selling on Amazon makes luxury brands seem less exclusive and prestigious.

Luxury brands often fear that selling on a mass-market platform like Amazon could dilute their brand image and devalue their products. They worry it might make their products seem less exclusive by placing them alongside more affordable options.

The Reality: Listing products on Amazon, with intentional planning, allows brands to control their image and preserve exclusivity, brand narrative, and customer experience. Amazon’s Luxury Stores provide a separate, high-end shopping space where brands can showcase select products, limited editions, and exclusive collaborations. This strategic approach allows them to maintain exclusivity for certain items while leveraging Amazon’s reach.

Luxury brands can also use targeted advertising to connect with affluent customers and maintain their premium identity. Additionally, they can “gate” their presence on Amazon, allowing only the brand and trusted partners to sell their products on the platform. This prevents unauthorized resellers and reduces exposure to price-sensitive shoppers.

 

4. Misconception: Brands on Amazon have less control over pricing.

Luxury brands maintain strict pricing strategies to preserve their exclusivity. A common concern for luxury brands considering Amazon is the potential for price wars, unauthorized discounting, and third-party sellers undercutting their prices, which could erode profit margins and brand perception.

The Reality: Selling directly on Amazon gives luxury brands more control over pricing and helps reduce unauthorized discounting. By ‘gating’ products and restricting sales to trusted partners, brands can minimize the risk of third-party sellers undercutting them. However, it’s important to note that if lower prices for the same SKU exist online, Amazon may automatically price match, reinforcing the need for a well-managed distribution strategy.

Direct selling also helps mitigate price wars by allowing brands to enforce Minimum Advertised Price (MAP) policies and work with Amazon to address violations. While some authorized resellers may still exist, reducing reliance on third-party sellers significantly decreases the risk of price erosion and unauthorized discounting.

 

5. Misconception: Amazon’s customer service doesn’t meet the standards of luxury brands.

A large part of the luxury experience is the exceptional customer service associated with it. Brands often worry about maintaining this level of service on Amazon, where they might have less direct control over the customer experience and rely on Amazon’s customer service infrastructure.

The Reality: While brands don’t control every aspect of the Amazon customer experience, they have significantly more control than they realize. Within Seller Central, brands can directly manage customer inquiries, respond to questions, resolve issues, and provide personalized support. This direct interaction allows brands to maintain their brand voice and provide personalized service. Brands can also offer real-time support through live chat, either using Amazon’s built-in feature or by integrating a third-party live chat tool.

Luxury brands can enhance their customer experience on Amazon by providing detailed product information, comprehensive FAQs, and educational content to address potential questions before they arise. Additionally, brands can proactively guide customers to brand-owned contact channels for inquiries about orders or fulfillment, ensuring a seamless and high-touch service experience.

Luxury brands once avoided Amazon, but the landscape has shifted. With tools to control pricing, manage brand storytelling, and reach high-intent shoppers, Amazon now offers solutions that help luxury brands maintain their exclusivity and high-end identity. At WITHIN, we understand that luxury brands require a tailored approach — one that balances performance with brand integrity. We specialize in helping luxury brands successfully navigate Amazon’s ecosystem and leverage its potential.

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Written by
Vince Houghton

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