wholesale fashion dresses

Fashion is stuck between a rock and a hard place when it comes to working with Amazon.

Brands have the option of either selling to Amazon directly, via its wholesale model, or joining the company’s third-party marketplace as a seller. But brands and industry execs say Amazon’s rigged the game so that it’s not much of an option at all.

“Brands are feeling trapped by Amazon,” said Jim Fosina, the founder and CEO of Fosina Marketing Group, a Connecticut-based marketing agency. “As a wholesale partner, you’re falling victim to Amazon’s pricing model, which is a huge risk. But that’s the only way to unlock their distribution model. Fashion and Amazon are at a major crossroads.”

Amazon is keen on building out its Amazon Fashion platform, and it’s hoping to woo brands to join on the wholesale side. That model is similar to any retail partnership: Brands sell their merchandise to Amazon, and then Amazon distributes orders, dictates inventory and sets pricing. That’s placing a lot of control in the hands of Amazon, which Fosina called retail’s “800-pound gorilla,” noting that it’s primarily focused on looking out for its own margins and moving as much volume as possible.

For a fashion brand hoping to protect its hard-earned cachet, that’s a big gamble. But the other alternative — selling as a third-party brand on Amazon’s massive marketplace — gives brands little visibility and few of the perks that make Amazon a potentially attractive partner in the first place.
When searching for something on Amazon, the cards are already stacked in favor of the wholesale model. A hunt for a black dress brings a curated set of dresses to the top of the page, with the prompt to “shop top brands.” That takes shoppers to the curated Amazon Fashion platform, which only wholesale vendors have access to. On top of search prioritization, Amazon Fashion brands have better control over branding, with enhanced product pages and video content. Brands also have to be accepted into the wholesale program by Amazon, so (at least theoretically) biting the bullet is a way for brands to take the air out of counterfeit sellers on the platform.

Third party sellers, on the other hand, will land on the regular results page, where customers are left to sort through hundreds of pages of results. Items available for Prime shipping, which only applies to certain Prime-eligible marketplace sellers, take top priority in the list.


How Amazon prioritizes Amazon Fashion’s wholesale brands in search results

While Amazon Fashion has won over brands like Calvin Klein, Tommy Hilfiger and Michael Kors, many brands are still wary of it, particularly on the higher end. But the retail giant’s market share is hard to ignore. According to eMarketer, in 2016 Amazon took in $95 billion in e-commerce sales, an increase of 19 percent year over year, and it accounted for 53 percent of all online sales growth in the U.S.

Fashion and apparel, meanwhile, remains a major growth opportunity for Amazon.



Leave a Reply

Your email address will not be published. Required fields are marked *