Amazon has entered into a partnership with online marketplace What Goes Around Comes Around (WGACA) to sell pre-owned luxury brands on its platform. This collaboration allows Amazon to tap into the growing premium second-hand market, which is expected to see annual growth of 10-15% over the next decade, according to McKinsey.
Rather than directly involving the luxury brands themselves, Amazon has teamed up with WGACA, an independent marketplace specializing in high-end second-hand items. WGACA will handle the selling and shipping of the products, while Amazon serves as the intermediary in the purchasing process. This strategic collaboration enables Amazon to offer luxury products without the direct involvement of the brands, while still ensuring authenticity on its listings.
The pre-owned luxury products from WGACA will be featured in Amazon’s Luxury Stores division, which was launched in the US in 2020 and expanded to Europe recently. The division already showcases designers such as Elie Saab and Altuzarra, with around 500 products currently available. However, the premium department on Amazon has the potential to showcase up to 2,000 second-hand items from luxury brands like Louis Vuitton, Rolex, and Hermès.
Muge Erdirik Doga, President of Amazon Fashion, emphasized that their customers, especially the younger generations (Gen Y and Gen Z), have shown interest in pre-owned luxury items. This trend is driven by a younger and environmentally-conscious clientele, as well as collectors, vintage enthusiasts, and those seeking more affordable options. With this partnership, Amazon and WGACA aim to reach a broad audience and establish their presence in the booming market of second-hand luxury products, which has been continuously growing in value, as reported by online resale platform Rebag.
Useful links:
1. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/luxury-trends-after-covid-19-the-end-of-trickle-down-consumer-behavior
2. https://www.rebag.com/
