According to media reports from the fashion industry, Amazon will launch a special platform for luxury products in the first half of this year. 12 popular brands have already been involved in the project.
Amazon develops a new platform that will be dedicated to luxury products, according to the American fashion portal wwd.com.
The service will operate in a similar way to the model observed in shopping malls and speciality stores, where brands rent a specific retail space and arrange boutiques in it. The companies would pay Amazon for a certain virtual ‘space’, or share some percentage of sales revenue while retaining total control over assortment, prices and promotions, Quartz portal informs.
According to WWD, manufacturers will have full control over the design of their online space on the new Amazon platform and will have access to sales statistics and discounts offered. At the same time, in addition to access to hundreds of millions of potential customers, they will also be able to rely on the e-commerce giant’s extensive logistics network to provide them with efficient customer service and fast delivery.
According to the WWD portal, the company is building a new warehouse in Arizona to operate the platform and is working on a marketing campaign for which $100 million will be spent.