How to Sell Luxury Goods Online and Earn Profits
- What are examples of luxury goods?
- How do I sell my luxury products?
- STEP 1: Create an online store
- STEP 2: Define your target customers
- STEP 3: Find suppliers of luxury goods
- STEP 4: Promoting your luxury items
- In a nutshell
In the eCommerce industry, it becomes more and more common for boutique owners who at first were selling low-cost items to shift to selling luxury goods online. Wonder why they make such a decision? Although it’s a rather safe alternative, selling cheap merchandise doesn’t bring a significant income. So they ask themselves what other ways are there to generate bigger profits?
As it happens, in the market for luxury goods lies a bigger opportunity to make more money. The latest statistics report the following digits:
- The luxury goods market now counts US$312.60bn;
- It’s anticipated to grow by 5.40% annually in the period between 2022-2027;
- The largest segment of the market is Luxury Fashion with a revenue of US$97.23bn as of 2022;
- By the end of 2022, up to 20% of the total profit is projected to be generated via online sales.
This data puts luxury products, especially fashion ones, in a superior position as compared to low-cost merchandise and it’s the reason why many store owners are looking into the solution of switching to selling luxury items. If they try to sell low-quality products at higher prices, they could risk losing their customers’ trust. Moreover, offering these items online can be an even bigger game-changer as the eCommerce industry is known to be unbelievably profitable.
To prove our point, as reported by Statista, eCommerce retail sales have currently reached over US$5 trillion. And they won’t stop there. According to the same study, by 2026, they’re forecasted to amount to a staggering US$8 trillion.
Having all of that information in mind, in this guide, we’ll delve into the most important aspects of how to sell luxury goods online on the fashion market. We’ll start with the basics of what are ‘luxury goods’ and continue to explain how to sell them online.
What are examples of luxury goods?
Luxury goods are often used synonymously with superior goods including high-end clothing and accessories, luxury luggage, cosmetics, cars, and estates, to name a few. Learning how to sell them is a very lucrative business, and for a very simple reason. Certain individuals appreciate the value of superior quality, particularly when it comes to clothing brands. They would often pay a lot to dress and look expensive. Therefore, stocking your store with luxury fashion brands is something to think about when choosing your luxury goods niche.
With BrandsGateway's dropshipping service, you can start earning profits in the blink of an eye.
How do I sell my luxury products?
To give you a heads up, in the following sections, we’ll break down the essentials necessary to start selling fashion luxury goods and present you with the skills you’ll need to master in order to promote your business and start making sales.
STEP 1: Create an online store
To start an online boutique, the first thing every seller needs to do is create an online store. Today, the eCommerce world is modernized to the point where there is a myriad of platforms where you can create your own store in a heartbeat. To narrow down your choices to the best eCommerce platforms, you can check out our detailed guides on how to open an eCommerce store with the following leading web-building solutions:
STEP 2: Define your target customers
After establishing your store, an important question arises – Who will you sell your luxury goods to?
People with refined taste in clothing, knowing what to buy and wear, will definitely be interested in your store. These most likely include ‘Gen X’ shoppers, or the ‘ages 36-52‘ category, which mostly comprise successful entrepreneurs, lawyers, doctors, investors, real estate agents, and others with high-paying jobs. People of these ages often spend a lot on designer clothes because of their high income and pension as well as higher social status. Therefore, targeting these customers should be one of the main audience you’ll want to sell your products to.
STEP 3: Find suppliers of luxury goods
Finding vendors for your business with a good reputation is not a simple task. But once you spot them and make a deal with one, you’ll start noticing its positive influence on your business. However, it’s important to keep in mind that, during your search, you need to aim for a supplier, preferably a luxury dropshipping supplier, who’ll support you every step of the way and lead you on the right path to achieving major success. This is because dropshipping suppliers not only supply your store with clothing, but also take care of all other tasks regarding inventory, order placement, and product shipping,
To give you a rough idea of what a good dropshipping supplier should offer you, here are a few features to take into account:
- Wide-ranging catalog;
- Product authenticity;
- On time delivery;
- Premium customer support.
BrandsGateway as your supplier of luxury clothing
BrandsGateway is a dropshipping and wholesale supplier of 100% authentic luxury clothing. With warehouses across Europe and the USA, this supplier will stock up your online storefront with only the best and most trending apparel pieces and accessories manufactured from world-renowed fashion houses.
The essential features that makes BrandsGateway stand out from the crowd of suppliers are the following:
- Rich catalog of high-end clothing and accessories;
- 100% authenticity assurance on all products;
- Delivery of all items is done with their original tags and in original packaging;
- Fast worldwide shipping service;
- Customers benefit from automated dropshipping available for stores based on Shopify, WooCommerce, Wix, or Shift4Shop;
- Automatic inventory updates and dropshipping automatic orders;
- Convenient eCommerce RMA policy allowing customers to make a return within 14 days of purchasing.
The credibility of BrandsGateway can be easily proven by across numerous review websites such as Trustpilot. Additionally, BrandsGateway doesn’t shy away from sharing the success stories of their trusted dropshippers who have been working side by side with the company for years.
Register for free, start selling BrandsGateway's catalog, and skyrocket your sales.
STEP 4: Promoting your luxury items
eCommerce marketing tools are of crucial importance if you want to reap the benefits of the eCommerce industry. Social media channels are one of the greatest tools to promote your products and connect your store to new audiences. The social apps are the new “word of mouth”. Remember, you’re the curator of your content in this age of the “curation generation” so make sure you have a distinctive voice and recognizable content so that once the customer sees it, they know it’s you.
For example, let’s say you’re dropshipping designer watches. In order to successfully advertise them on your social platforms, it’s crucial to promote them in a unique light by using distinctive post formats, descriptions, and captions that’ll instantaneously make consumers acknowledge your brand. So, here’s a few social media hacks and a bunch of other general marketing strategies on how to advertise your store in the best way possible.
Using Instagram for promoting your online clothing store
It’s a known fact that people love visual content more than text. Especially when selling clothing, your potential customers need to see your products, not just a product description. That’s why the demand for visual social media platforms has become quite high. As of 2022, Instagram is one of the most popular social media channels worldwide. In 2022, the platform reported that it reached 1.28 billion monthly active users, a number that is expected to reach almost half a billion in 2025.
Find more statistics at Statista
With this number of users, online store owners like yourself can manage to do tons of promoting on the platform, whether it’s via organic or paid advertising. Here are different ways you can build an Instagram marketing strategy:
- Instagram ads. Instagram ads for dropshipping are beneficial because they can target potential customers by using lookalike audiences that help you reach a new audience of people who are similar to customers you care about. All ads can be created via the Facebook Ads manager by putting into use the information you’ve collected about your customers’ interests. Then you can run them on both Instagram and Facebook. What’s more, Instagram ads are quite affordable as well. They can cost as low as $1 per day, meaning you can still make things work even if you have a limited budget.
- Instagram shopping. If you choose to use Instagram for promoting your luxury goods, you can set up your product feed and then enable settings for Instagram shopping. This way, you’ll be able to post a product with a price tag and a link to your website where it can be purchased.
- Instagram stories and posts. If you prefer to stick to organic traffic, you can use Instagram stories and posts to showcase new arrivals and announce special sales and discounts.
Using Pinterest for promoting your online clothing store
Pinterest is another popular social media platform that, as of 2022, has registered over 400 million monthly active users worldwide, as stated by Statista.
Find more statistics at Statista
What makes Pinterest ideal for advertising is the fact that it’s full of visual content only, perfect for showing off your luxury products. As already familiar, the main feature of the platform is that it allows people to pin content that has captured their attention as they go through their feed.
When pinning these visuals, many Pinterest users have the intention of buying such products which opens up a window of opportunity for you as a seller to identify them. They usually pin what they’re interested in for future reference, which makes this platform the most ideal for getting front-end store visitors.
Offer discounts and coupons
One way to increase sales while selling luxury goods is to take care of the old customers you already have. A sense of community is present when old customers merge with the new ones. You can include coupons with the purchase. You can also have a customer loyalty program, for example, in the form of a membership card. This card gives customers discounts, a gift with the membership card for a certain amount of purchases, birthday gifts, or an exclusive offer if they recruit another member.
Use designer and brands’ names to your advantage
Dropshipping branded clothes is strong marketing by itself. Who wouldn’t want to buy a dress from Versace, Armani, or Dolce & Gabbana? Who wouldn’t want to wear an authentic Michael Kors handbag or stylish designer sunglasses? People are hooked up on famous and renowned brands and designer names and they are following the fashion trends.
If you bring some timeless Dolce & Gabbana or Michael Kors pieces, you can promote them and gain more attention. With respect to these giants, you can use these names to your advantage, but make sure to follow the rules and regulations in terms of advertising.
If you target customers globally, then know this – certain countries stand out from the rest, and it’s not just the U.S. There are numerous countries to target for dropshipping when selling branded clothes. Platforms such as Google Adwords offer the possibility to target specific locations. Of course, you’ll need to check with your local delivery services first. Other than that, if you’re targeting U.S. audiences only, there’s much to learn about country’s most prosperous cities. This way, you’ll be more precise about who you want to become your new customer.
Don’t increase your prices dramatically
When running an online boutique for luxury clothing, sellers usually buy their products at wholesale prices. So, it’s important not to get greedy and set retail prices that are increased dramatically. Naturally, by selling luxury clothing you’ll have higher profit margins than the ones you would have with selling cheap clothing. Don’t get cocky with your customers only because you’ve earned a lot of money last month. They’re the main reason for this kind of income, and without them, the balance for next month will surely decrease.
Provide exceptional customer service
Good dropshipping customer service is the best strategy for running a successful online store and gaining a loyal audience. The more satisfied customers, the more people will hear of you treating them right. Make sure they are taken care of well, to get that feeling of ‘being cared for’.
How can you achieve this?
- Secure in-real time live chats;
- Offer free delivery for orders over a certain amount of money
- Provide coupons for discounts;
- Accept customer critiques;
- Supplythem with a tracking code to check the current status of their shipment;
- Offer apologies in case of delays.
In a nutshell
Opening an online store to sell luxury goods isn’t a complex thing, however, there are some things you’ll need to take care of. To sum up the above-explained steps, the first thing is setting up a shop on an appropriate eCommerce platform.
Once you set up your store, finding an authentic supplier of luxury goods to build a long-term business relationship is vital. Upon finding a safe-to-work-with supplier for your luxury products, it’s crucial to keep this business relationship healthy. If you don’t want to lose customers, stay in constant communication with your supplier to make sure you have a secure supply of goods at all times.
Later on, mastering skills and ways how to promote your luxury goods and brands is something you mustn’t neglect. Promote your luxury items by using multiple marketing channels, such as social media apps. In the end, providing your customers with premium service and support is what will bring you the biggest benefit. As long as your customers are happy and satisfied, they’ll keep coming back, and your business will be blooming.
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