Would You Buy a $13,000 Designer Dress From Amazon?

At a time when more consumers are living paycheck to paycheck and belt-tightening is putting a dent on discretionary spending, Amazon is looking to tap into the resilience of high-end consumers by expanding its 2-year-old Luxury division to the five wealthiest nations in Europe.

In bringing its “Luxury, out of the box” campaign to Germany, France, Italy, Spain and the United Kingdom, the world’s largest online retailer is looking to bring the convenience of mobile shopping and rapid delivery to a corner of the market normally served by exclusive boutiques and highly staffed stores. At the same time, the growing initiative is also aimed at designers themselves, by giving them another platform in which to speak directly to new customers in more ways and places than ever.

“Amazon focuses on providing brands and designers with innovative resources, including motion graphics and enhanced autoplay imagery, to further share their stories and connect to a fashion-engaged customer base,” Xavier Flamand, vice president of Amazon Seller Services, said in a statement carried by multiple media outlets across Europe.

It’s Amazon After All

For a brand that has built itself and reputation by providing consumers with maximum choices within an array of different retail segments, the Luxury line is following a similar — albeit smaller — format.

With nine core categories to browse, from “Summer Soirée” to Dresses to Statement Heels, and 52 different designers and brands to pick from, ranging from Altuzarra to sunglasses by Wires, the expansion of the format is being touted as “just the beginning” for customers and labels in Europe and beyond.

“Fashion is an area where we continue to innovate and add selection, and we’re always looking for opportunities to offer our diverse, fashion-engaged customers more of their favorite brands and styles,” Ruth Diaz, vice president of Amazon Fashion Europe said. “This is just the beginning, and we look forward to continuing to support brands with innovative tools and resources so they can share their latest collections and unique stories with our customers across Europe season after season.”

The $13,000 Dress Question

To be sure, demand for luxury goods and designer labels have outperformed their more mainstream rivals throughout the post-pandemic era of hyperinflation and recessionary fears, the glitzy, multimedia-supported campaign that features top price models and extravagant backdrops is not without its risks and challenges.

While lower priced items, such as $150 designer sunglasses or accessories will be accessible to a wider slice of consumers, many of the pricier offerings, such as a $13,345 beaded Elie Saab gown, will be strictly off-limits to all but the most affluent of customers.

Even then, the availability of such items begs the question if consumers are actually ready and willing to purchase these types of luxury items in the same manner that they might acquire a set of dishes or towels to capture the benefit of fast, free shipping.

In addition, many of the same online retail challenges — such as returns and proper sizing — that currently crush margins and complicate the sales process will be every bit as present in Amazon’s luxury designer category, only with exponentially higher stakes.

While the fashion world and related trade press, much of which is based in Europe, welcomed the expansion and launch of Amazon Luxury in their home markets, the true test will come from consumers and the need to withstand the test of time.