How to Sell Luxury Products Online

E-commerce stores focusing on high-end products must understand how to sell luxury items online effectively based on the expectations of luxury shoppers. Quality, exclusivity, aspiration, uniqueness, and craftsmanship are some of the reasons an increasing number of consumers set their hearts on luxury goods.

Selling luxury items online allows savvy retailers to tap into two trends: premium products and e-commerce. However, knowledge of the unique challenges retailers need to meet is essential to get ahead in the luxury goods game.

1. Write a Business Plan

Your business plan will be the foundation on which you build a successful business. Research suggests that business owners who complete a business plan are 2.6 times more likely to persevere through the business emergence phase than those who don’t. You may experience fewer bottlenecks when you start your business journey if you put in solid groundwork before jumping in head first.

Your business plan will help you establish your vision and set out the steps you’ll take to achieve your goals. A business plan should describe what your niche will be (such as selling luxury accessories, skin products, or handbags), your target market, your short- and long-term goals, and a roadmap for establishing and marketing your luxury boutique.

Define Your Target Audience

Being successful at selling luxury goods online will be a question of knowing your audience and what sells. Start by asking yourself who buys from luxury brands and the motivations that drive them.

It can be easy to jump to conclusions, so invest resources into pinpointing your target audience and their purchasing habits. Remember that it may change depending on which items you sell too. The market for luxury accessories may be totally different from high-end fashion, for example.

Under 40s Are the Most Frequent Luxury Shoppers in Europe

Research conducted in the first quarter of 2024 suggests that high-income under-40s are more likely to make frequent luxury purchases than over-40s, so targeting a younger audience may result in more sales. This could be partly due to the influence of social media and the aspiration it inspires in younger people.

However, this data doesn’t take into account individual purchases or differences from country to country. France is particularly strong in the luxury market, with Louis Vuitton and Chanel supporting a buoyant luxury market in the country. Find out the key trends in your country as well as in Europe if you want to set up a business with an international outlook.

Frequency of Luxury Designer Fashion Purchases Among Affluent Consumers in Europe in the 1st Quarter 2024, by Age Group

 

2. Register Your Business

The procedure for registering a business differs from country to country. You may need to take some of these steps:

• Select the right business structure: This will affect taxation and how much personal risk you take if your business fails.
• Establish a business location: This needs to be the address you use to declare your taxes or receive business-related documents.
• Register a business name: Register your business formally in the necessary agencies.
• Register your tax details: You may need to get a tax identification number or take other steps to pay taxes in your country.

3. Set Up an E-Commerce Store

Starting a luxury online boutique has never been easier, with a myriad of platforms to help you set up your e-commerce store. You can ask a web developer to make a tailor-made website from scratch. However, using a web builder will probably be enough for your online store.

Website builders like Shopify, WordPress, or Squarespace are perfect tools to build an online luxury goods store. You’ll find plans at different price points plus tools and add-ons to build and then market your store even if you have no experience in coding.

Must-Have Elements in Your E-Commerce Store

Some elements are a must in every online store that sells luxury items:

• Home page: Make sure everything about your home page suggests luxury and exclusivity. Avoid brash colours, generic design elements, or less-than-perfect images. Visitors’ first impression is key. You must reflect the qualities you want the customer to associate with your brand on the home page.
• Collection pages: Make it easy for customers to find what they want. Categorise your products into product type, occasion, price point, season, material, or brand.
• Product pages: Your product pages must be exquisite and flawlessly convey the luxury of the product. Include information like sizing, materials, care instructions, and the manufacturing process.
• Contact: The exclusivity of your brand mustn’t end with the products. High-end customers will expect first-rate customer service at every point of their customer journey. Offer customer service that goes above and beyond via different communication channels.

Pro tip: Implement our online retail strategy tips to make the most of the opportunities e-commerce offers your business. These include optimising elements of your e-commerce website as well as other vital aspects of good business practice like providing unparalleled customer service.

4. Set Up Payment Processing

Setting up payment processing is a crucial step in establishing your small business. European businesses with ambitions to sell luxury goods in Europe or further afield will benefit from partnering with a payment processing provider that accepts more than 100 currencies, ensures secure transfers, and accepts a range of payment methods.

Set up a merchant services account with an integrated global payment gateway to accept payments quickly and easily. Your business will also benefit from:

• A greater number of accepted payments
• A mobile dashboard that helps you manage all your transactions wherever you are
• Fraud and chargeback protection

The ability to store customer data will also help you plan your marketing campaigns, keep your customers up-to-date with current offers, and monitor customer satisfaction.

5. Find Your Suppliers

Finding reliable and trustworthy suppliers can have a very positive influence on your business. Prioritise suppliers with a proven record in reliability and who you know will supply the high-quality products your luxury store sells.

6. Get the Word Out

The luxury goods market is highly competitive. A strong digital marketing strategy is therefore vital to stand out from the crowd. You can use social media to reach people as a key part of your customer acquisition strategy.

Social Media Platforms

If you’re well-versed in social media platforms, you’ll know that every platform has its own culture. The highly visual and polished content favoured by Instagram users may be more suited to luxury goods brands than the quirkier TikTok.

Well-executed organic posts can gain traction and even go viral. However, consider paid campaigns to maximise the customer outreach of each post.

Influencer Marketing

The role of influencers in modern marketing is undeniable. If you collaborate with an influencer, make sure you choose one that matches your brand’s values. For a luxury brand, this could mean choosing an influencer known for their taste, elegance, and refinement.

Search Engine Optimisation (SEO)

SEO is a practice that gains your brand new customers through organic search rather than paid advertising campaigns. You can optimise your website for Google and other search engines using various strategies:

• Set up a blog: Blogs establish your authority within your industry. You could show your expertise by talking about certain brands, the history of luxury goods, manufacturing processes, or ethical practices within the industry. You could also use your blog to talk about the brands and products you sell.
• Use keywords to establish relevance: Use keywords throughout your website, from the home page to all your product descriptions. This helps search engines understand the relevance of each of your pages.
• Links: Include internal links to other parts of your website to direct customers to your products. Also, try to get other websites to link to your site. Backlinking helps establish your website authority and will direct traffic.

E-Mail Marketing

E-mails are the best way to stay in touch with loyal customers. You can even use e-mails to stay in touch with potential customers if they sign up for your e-newsletter. Use your e-mail marketing campaigns to keep customers informed about new products and promotions, or to build anticipation ahead of sales. You can also reward customers for their loyalty by offering exclusive products or first access to exclusive or limited items.

7. Start Selling

You’ve set up your brand, created a successful website, and established your online presence. It may feel like your work is done, but it’s only just beginning! Maintaining a high number of online sales is only possible by retaining customers. Work on ways to build customer loyalty and keep them engaged with your brand to encourage future purchases.

Top Tips to Increase Your Conversion Rate

Luxury brands must be prepared to go the extra mile in order to convert sales. Luxury purchases are often big decisions for consumers and shoppers will consider many different factors before buying a particular product from a brand. You can help your customers commit to a purchase with these tips:

1. Let Master Craftsmanship Shine

Studies suggest that the craftsmanship that goes into luxury goods increases consumers’ experience of luxury. It can also create emotional reactions to a product that ultimately drive sales of luxury goods. Superior quality in the manufacturing process is one of the key differentiating factors between luxury and high-street goods and creates the feeling of “value.”

It’s important to highlight the quality of craftsmanship through expert copywriting on your website. Highlight aspects of craftsmanship that set your luxury items apart and add interest to your products.

2. Create Inspiring Product Descriptions

Remember that aspiration is what sets luxury shoppers apart. Focus more on the value of a product rather than its features. Consider sprinkling in the history or heritage of a brand to convey how your products offer more than items at lower price points.

3. Get Expert Validation

You must build trust with your customers as a retailer of exclusive products. Justify your pricing and build confidence in your brand by offering expert validation of your products.

You must be able to prove that the brands you sell are genuine and that any claims about the quality, materials, or manufacturing process are verifiable.

4. Provide Material Sourcing Information

Weave transparency into every aspect of your website. While “fine pearls from Vietnam” may be enough for many luxury retailers, a luxury brand must take extra care when selling high-ticket products.

Highlight verifiable aspects like sustainability and ethical practices. State whether your precious stones or fine metals are ethically sourced, for example, and provide evidence to back it up.

5. Provide Next-Level Customer Service

Post-purchase customer support is essential for luxury e-commerce. The high-ticket nature of luxury goods can seem more reasonable if products are guaranteed to last. Provide some of the following services to add that extra touch during the post-purchase experience:

• Tracking shipping from beginning to end
• Excellent return and return conditions
• Omnichannel communication options

Exceptional customer service must be considered fundamental for any luxury goods brand. Your ability to sell luxury goods isn’t only about offering products; it’s about offering an experience from beginning to end.

6. Offer Virtual Try-On

Part of the appeal of luxury stores is the premium service they offer in-store. Luxury e-commerce stores selling luxury fashion or products like make-up can use augmented or virtual reality to replicate this in-store experience.

7. Add Value to the Customer Journey

Attention to product care is an essential part of selling high-end goods like luxury handbags and luxury jewellery. Include a link to product care details on each product page.

Mastering the Art of Online Luxury Sales

Selling luxury products online demands a unique approach that blends exceptional product presentation, personalised customer service, and a strong brand identity. Focus on building trust, creating exclusive experiences, and leveraging digital marketing effectively to position your luxury brand at the forefront of the online marketplace.

Remember, the secret to thriving in the luxury e-commerce industry lies in catering to the expectations of high-end consumers. By delivering exceptional value and cultivating a loyal customer base, you can establish your brand as a leader in the luxury industry.