6 Tips On How to Sell Luxury Items Online

By Yieldify

How to avoid crucial mistakes when selling luxury items online? In our blog post, we look at 5 strategies that will ensure your luxury marketing is on-point and sales-oriented.

By the year 2025, online luxury sales will have tripled their contribution to the global high-end market, exceeding $91 billion and accounting for 20% of all luxury sales made. This is because of an operating model the consulting corporation McKinsey refers to as ‘Luxury 4.0’.

In Luxury 4.0, luxury brands and retailers leverage data to better understand their customers, identify emerging preferences, and streamline the processes of transforming ideas into products.

Increasingly, online shopping and digital experiences are having greater impacts on how consumers choose to purchase luxury goods. 

McKinsey estimates that around 80% of luxury items bought online today are heavily digitally influenced, with consumers engaging with up to 15 digital touchpoints in their luxury purchasing journeys.

In part, this could be attributed to the generational shift that has begun to take place throughout the luxury market. Whereas before older shoppers were the target audience of luxury retailers, newer, affluent Millennial buyers, born between 1981 and 1994, and Generation Z consumers, born between 1995-2010, are now accounting for around 40% of all luxury purchases

In 2019 alone, Millennials and Generation Z consumers generated 100% of all global luxury industry growth.

With both generations now driving sales of luxury goods, and both having grown up in the age of constantly evolving digital technological advancements, luxury eCommerce retailers have never been better placed to take advantage of, and optimize for, the digital market.

When it comes to selling luxury goods online, there are lessons to be learned from luxury fashion retailers like Net-A-Porter and Farfetch, two brands that have both successfully embraced digital luxury retail. 

FarFetch especially accredits its early adoption of technology – most notably, personalization – in its establishment as a market leader. Meanwhile, Net-A-Porter revolutionized high-end retail by incorporating mobile and artificial intelligence technologies alongside data-driven strategies into its brand identity. 

In this article, we’ll break down on how to sell luxury products online using five simple steps luxury eCommerce retailers can implement immediately into their luxury marketing and sales strategies.

6 Tips on How to Sell Luxury Items Online

1. Use personalization to drive incremental sales

In its Global Powers of Luxury Goods research, Deloitte noted that the rise of eCommerce and the availability of digital channels accessible to luxury brands were creating a consumer need for both large-scale and high-quality personalized content

Nowadays, consumers want to be treated as individuals, and this need is intensified when it comes to making high-value purchases. 

One way Net-A-Porter personalize their shopping experience is by offering EIP memberships. EIP (Extremely Important People) members unlock special privileges including a personal shopper that delivers the luxury goods to a home address, waits until the products have been tried on, and then collects any items that need to be returned. 

There are also pre-order services, abilities to shop new products 36 hours before they become available to other shoppers, private sales, and surprise gifts available to EIP members. 

To become an EIP, however, it is rumored that members must have accrued around $70,000 in sales across a 12 month period. Incredibly, whilst Net-A-Porter’s EIP’s only make up 2% of its consumer base, they generate 40% of its sales

Luxury eCommerce retailers can take advantage of this high-end consumer desire and follow by Net-A-Porter’s example, even if they are only a small to medium-size business.

Segmenting audiences by their lifetime consumer value and then advertising select sales or early shopping opportunities to the highest-ranked consumers could be one way to encourage other customers to make similar purchases in order to unlock the same privileges. 

Alternatively, simply offering attention-focused customer service across the board could ensure your brand stands out from competitors by highlighting consumer individualism as a key-value and subsequent USP. Net-A-Porter also does this by advertising 24/7 Fashion Consultants.

When selling luxury products online, cross-sell strategies that recommend products to consumers based on their previous purchases, cart or wish list items could also be effective in delivering a standout, individualized experience.

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