Luxury Retail is Coming To Amazon. Here's How Your Brand Can Compete.

Discover 4 proven strategies luxury brands can leverage that Amazon simply can't match.

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Written by

Robert Woo, Writer @ Endear

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The fashion world recently dropped its collective latte upon hearing the news: Saks Fifth Avenue is setting up shop on Amazon for the first time. This is a potentially seismic shift in luxury retail, suggesting that soon more designer brands might cozy up to the ecommerce behemoth better known for delivering toilet paper in two hours and Alexa mishearing your playlist requests (no, I don’t want more Baby Shark).

What prompted this (un)holy matrimony of classic luxury and ecommerce behemoth brands? Well, the writing was on the wall since Amazon invested into Saks’ acquisition of Neiman Marcus last year, taking a minority stake in the new entity. Amazon has been looking to enter the luxury market for quite some time, and this strategic move was bound to lead to the natural conclusion we’re seeing today.

So what does this brave new world mean for luxury brands? Is it time to panic-buy ads and surrender to the Bezos machine? Absolutely not. Instead, it's your opportunity to leverage the unique strengths that Amazon simply cannot match, even with its enormous reach.

1. Embrace Exclusivity

Amazon might be for the masses (even when those masses are looking for $500 sweaters now) but your luxury brand doesn't need to go that mainstream. Think of your brand as the VIP lounge at an otherwise overcrowded airport or concert. Sure, everyone wants to be there, but only a select few can access it.

As L’OFFICIEL put it:

“One of the most effective strategies to increase their appeal is scarcity. By deliberately limiting availability, they create an aura of specialness and create high demand for their exquisite goods.”

Saks may now have a much wider audience, but it also serves to diminish the exclusive nature of the brand. And when anyone can get it, the luxury shoppers start going elsewhere.

Your luxury brand doesn’t have to play that game. Instead, consider offering limited edition collections or products only available through your own channels. Brands like Supreme have mastered this art, releasing limited drops that cause more commotion than a Black Friday Walmart opening. Limited products create urgency and exclusivity, two emotions powerful enough to help your brand leapfrog that of any that’s selling on a free-for-all marketplace like Amazon.

Don’t shy away from exclusivity; embrace it unapologetically. Host invite-only sales or previews, or provide exclusive memberships offering perks that Amazon’s algorithms could never dream of replicating.

2. Embrace the Experiential

Amazon can do many things, but providing a memorable in-store experience isn't exactly its wheelhouse. (Remember when they tried to open physical bookstores? Yeah that didn’t go well.) Your brick-and-mortar stores are one of your biggest strengths, turning shopping into an experience that rivals visiting Disneyland—but for grown-ups with much better taste. So more like Dollywood.

Transform your physical locations into experiential destinations. Take cues from brands like Glossier, whose Instagram-friendly stores often resemble chic, interactive art galleries rather than traditional retail spaces. Offer personalized fittings, exclusive in-store events, or bespoke experiences like monogramming stations or tailored consultations.

Don't forget the power of sensory branding: bespoke playlists, signature fragrances, or exclusive refreshments that turn a simple shopping trip into a memorable event. After all, no one ever fondly reminisced about the time they clicked "buy now" in their pajamas.

3. Embrace Expertise

Today's consumers have questions. Lots of them. While Amazon can suggest a great blender, it can't offer style advice that makes your client feel like they're getting fashion insights from Anna Wintour herself. Their algorithms can only go so far, and besides, no one truly goes to Amazon for expert advice. The best they can hope for is to scour the reviews to find someone to explain why this water flosser keeps leaking.

Unlike Saks on Amazon, your brand should showcase unmatched expertise in your niche. Provide customers with access to stylists who can effortlessly channel their inner Tan France, offering personalized advice and seasonal trend forecasts. Create engaging, informative content like blogs, lookbooks, and video guides that not only educate but entertain your customers.

Host regular events or workshops that delve deeply into your brand’s specialties. If you sell luxury watches, consider offering educational sessions on craftsmanship or maintenance tips. Positioning your brand as an expert in your niche not only differentiates you from Amazon but also solidifies trust with customers, turning them into loyal brand ambassadors.

4. Embrace the Extra Mile (Clienteling)

Clienteling is luxury retail’s secret sauce, and trust us, Amazon hasn't got the recipe. In fact, Amazon’s idea of clienteling is suggesting you buy 47 different types of socks just because you looked at one pair. That’s not clienteling. That’s educated guessing.

To truly compete, your brand needs to deliver clienteling on a personal, emotional level. Use tools like Endear to manage customer relationships, track detailed profiles, preferences, and past interactions, ensuring every engagement feels personalized and genuine. Offer tailored recommendations, timely reminders for special occasions, or proactive follow-ups post-purchase.

For example, Endear lets your sales team offer personalized appointments with ease, allowing high-value customers to book one-on-one time with their favorite stylist or associate so they can shop how they want, when they want, with the help of your experts. Amazon may have chatbots, but your luxury brand has Emma who’s been communicating with your client for months. One of these is certainly not like the other.

Think white-glove, concierge-level service, both online and offline. Whether it's remembering a client's anniversary or suggesting items to complement their previous purchases for a special event, superior clienteling ensures your customers feel like valued insiders rather than anonymous order numbers.

Putting It All Together

In a retail landscape shifting faster than a tariff percentage, it's tempting to see Amazon's partnership with Saks as an existential threat. But savvy luxury brands will recognize this as a prime moment to double down on their distinct advantages.

Remember: exclusivity keeps your brand desirable, experiential stores create lasting impressions, expertise builds trust and credibility, and extra-mile clienteling transforms customers into passionate brand evangelists.

Amazon might have convenience and scale on its side, but it doesn't have your unique brand DNA. Play your cards right, and you'll not only survive—you'll thrive, delivering an experience that may even win over previous Saks clients to your brand.