DON'T MISS A THING

Many businesses operate on the simple model of offering their customers the best value for their money. However, what if your customers are not concerned with value for money, cost-efficiency, etc.? What if they want just the very best? What if they want something that no one else has or can afford? What if we’re talking about products that act as status symbols? We’re talking about luxury products; more specifically, we’re talking about luxury products in e-commerce. What strategies can you use to attract affluent customers, and which rules differ from regular (conventional) e-commerce? Let’s find out!

Discounts Are Not Always a Good Idea

Sometimes, offering a discount is a great way to sell all the products left over from the series. It’s a way to maximize your profit in the short run, but in the long run, it might hurt the value of your product. This is especially the case with luxury products.

Louis Vuitton, for instance, never goes on sale. All the products not sold (not that there are too many) are destroyed afterward. This way, there’s no depreciation, and even when there is a used items market, the price is not decreasing. Since this is such a great value protection, there’s a market for designer bags as an alternative investment.

In other words, your products have a value. It’s not your job to lower the price so the customer can afford it. It’s your job to convince that customer that the price is fair as it is since the product is worth it.

Establish All the Trust Markers

One thing that most luxury brands have in common is that they come into the game with an already established authority. Everyone has heard about the brands iPhone, Gucci, or Lamborghini. 

Even if you’re just a retailer of these well-established brands, you’re still a newcomer in the eyes of your buyers. This is why you need to establish yourself through various trust markers.

Sure, the majority of people see regulation compliance as a necessary evil. After all, you can’t run a business without these, right? Well, at the same time, these compliances are a trust marker. So, with a CCPA compliance solution, you get more than just a “permit” for work; you also get a trust marker for your audience to see. 

There are other ways to get trust markers. Reviews and positive scores online are one such example. Remember, luxury products are expensive, so people are more likely to read through these reviews before purchasing. After all, there’s more at stake. So, don’t avoid a longer format when looking for reviews. Also, people are not giving reviews as easily, and you shouldn’t be reluctant to ask for them directly. 

Adding Layers to Your Cybersecurity

The easiest way to lose this trust is to skimp on your cybersecurity. Just think about it for a second. You’re peddling some of the most expensive goods in your respective categories. This means your audience will assume you do, even if you’re not working with a huge profit margin.

So, just for a moment, imagine the optics of having poor cybersecurity and suffering from constant leaks. Sure, cybersecurity is not always a matter of money, but you can prevent most of these attacks by investing in a good cybersecurity team and layer 7 DDS protection. 

Even those less tech-savvy in your audience understand this – if your cybersecurity is poor, it’s because you either didn’t try or didn’t want to spend money to improve it.

Another thing to mention is that, again, this is an industry with an exceptionally high order value. This means that if there’s a mistake, it’s a potentially expensive one. A flaw in the system where the mistake causes a double order is more expensive than in other fields. Also, people usually link cards with more money on them (instead of just gift cards or prepaid cards). So, if this info were to fall into the wrong hands, all hell would break loose. 

Suitable USP

USP (unique selling proposition) is that one thing that sets you apart from your closest competitors. Why are they paying more for your product? Sure, people pay more for the brand, but no brand becomes a brand.

• There’s a consensus that Rolex watches are of higher quality. 

• Bugatti trumps the majority of other vehicles in terms of performance.

• The iPhone is believed to be more reliable than its counterparts, and every new version comes with a stronger processor, better camera, etc. 

In other words, neither of these products is considered luxury without a good cause. More importantly, each of these products has traits that are associated with luxury.

• Better performance

• Higher quality

• Higher reliability

Sometimes, even durability and longevity are great USPs. For instance, if you were to buy a Rolex, you would pay for an arm and a leg, but you would most likely pass it on to your children and grandchildren. These are virtually indestructible, so when you compare this single watch to the number of low-end watches it can outlive, you could even argue that you’re getting more value for your money.

Moreover, we’ve already mentioned passing on something to your descendants. Well, creating a heirloom can be a great USP, as well.

The thing is that getting more for the money is not always the way. Sometimes, the fact that not everyone can afford the product is a part of its appeal. Let’s be abundantly clear – while everything we said about Rolex and Bugatti is true, most people are not buying them for their features and performance. A luxury item is also a status symbol. In this industry, it can be the strongest USP of them all. 

Dipping Into Pop Culture

Mattel was one of the first companies that realized that by participating in popular culture, they could create a need for their products. Just think about the same action figure before and after the show created for it. What would be the difference in cost? 

The thing is that it’s still the same toy. It takes the same amount of money, labor, and time to produce it, but the difference in cost (and, therefore, the profit) would be astronomical. 

Unlike Mattel, a multi-billion dollar company, you lack the resources and leverage to manipulate the popular culture in this way. However, you can still use it to your benefit. For instance, some fashion pieces are already iconic, and by digging out the right culturally significant events, characters, or content that made it so, you’ll stand to craft a perfect TikTok marketing strategy.

Just think about Tiffany & Co. jewelry. It’s iconic even without Breakfast at Tiffany’s, but it’s the movie that makes it transcend into a whole new category. It makes it THE jewelry shopping place instead of just being one of the few highest-quality retailers. 

Everything High-End

Lastly, to be sold as luxurious products, the items you’re dealing with must look the part. Bugatti is not made to run like a two-million-dollar car. It’s made to look like one.

This is why you need to pay special attention to the design. We’re talking about three layers of design:

• Product design

• Package design

• Site design

In e-commerce, everything needs to work in sync to create the ultimate impression of an amazing service.

As we’ve mentioned with a Bugatti. We’re not suggesting that this car is not worth the money. We’re saying that the difference between a Bugatti and any $500k car is not a 4x difference. Nonetheless, any product is worth as much as the customer believes. This is something that the right approach to the visuals can change. 

Luxury E-Commerce Has Its Own Rules for You to Master

It all starts with understanding the luxury e-commerce industry. How is it different than its traditional counterparts? Then, you need to put a higher emphasis on security. Give people a safe platform to work with. Then, try to find your USP. Everything else is a cosmetic upgrade, but it gives you a clear path forward.

About the Author

Veteran content writer, published author, and amateur boxer Srdjan Gombar has a Bachelor of Arts in English Language and Literature and is passionate about technology, pop culture, and self-improvement. His free time he spends reading, watching movies, and playing Super Mario Bros. with his son.

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