Before writing this article, I checked the websites of some of the biggest luxury brands and holy sh** they’re expensive. The prices don’t even make sense, how can a handbag cost more than a car?
Although I personally am not into luxury items, I do enjoy the branding side of things. I love how you can increase the perceived value of a product by simply branding it in a specific way that makes the consumer feel as though it will improve their social status.
We all know the profit margins on luxury items are very high, which is why you’re probably looking into dropshipping them. But is dropshipping luxury items even possible?
The biggest luxury brands in the world such as Gucci, Versace and Chanel will never approve you to dropship their products. You can however dropship smaller known brands and create your own luxury store online store selling many of these items.
The reason luxury brands will never approve you to dropship their products is because their reputation is everything. It’s far too risky for them to trust some random online seller with their brand’s reputation. In addition to this, luxury brands would not want their high-end products dropshipped.
- 1 Why Do People Buy Luxury Items?
- 2 Which Luxury Brands Can you Dropship?
- 3 Why Dropshipping Luxury Products May be a Bad Idea?
- 4 How to Advertise Luxury Products Online
- 5 Luxury Dropshipping Suppliers
- 6 Final Thoughts – How I Would Dropship Luxury Products!
Why Do People Buy Luxury Items?
Many products are of high quality but are not necessarily considered a luxury. The quality aspect of a product is often not the reason why consumers buy them. Nobody needs luxury items as they are non-essential so why would someone actually buy them?
People buy luxury products for more of the beneficial emotions and social validation it provides and less for practicality. Purchasing a luxury item can make someone feel superior, entitled, validated, inclusive, powerful, accepted, successful and even loved.
Luxury brands play on a person’s psychology and make them feel as if buying a specific product will enhance their life by increasing their social status.
As well as empowering emotions luxury items can provide, they also alleviate many of the negative emotions people feel such as insecurity, failure, low self-esteem, inadequate, doubt and exclusion.
Luxury brands know their target audience and they portray a desirable lifestyle their customers aspire to be like. When someone is buying luxury goods, they are visualizing how it will make them feel and how others will react to it. Nobody spends $50,000 on a Rolex watch because it’s good at telling them the time.
Which Luxury Brands Can you Dropship?
Although the most well-known luxury brands are out of the question, there are many brands you can still dropship. There are a ton of brands who will approve you to dropship their products, but are they luxury brands? I guess that depends on your interpretation of luxury.
The term luxury is relative. I saw a Louis Vuitton face mask for $480 simply because of the name they attach to it. That’s insane in my opinion but what may be luxury to me may not be luxury to you and vice versa.
When most people think of luxury items, we think of:
- Sports Cars
However, this is a narrow perspective of the kinds of luxury products which can be sold. Everyday household products have a luxury version you can always dropship.
Check out the kettles below, the one on the left is $9 and the one on the right is $650 because it has a brand name attached to it. You could literally create a luxury kettle store if you wanted.
Think outside the box when it comes to selling luxury products online. Just about every product has a luxury version meaning you can sell anything from luxury toilets to luxury camping gear. There is a reason the term “glamping” was created.
If you use a dropshipping supplier such as Spocket or Salehoo you will have access to many suppliers outside of China who will stock many brands. To be able to sell these brands at luxury prices, you’ll need to design your store so it feels luxurious.
Salehoo now has a ecom accelerator program which is essentially a step by step course. It teaches the process of dropshipping and then transitioning into buying in bulk wholesale. It’s only worth considering if you are planning to use Salehoo to dropship from anyway.
I suggest you read my article on how to build a branded dropshipping store step by step.
If you want to work with suppliers who sell luxury brands, it won’t be as easy to get approved as it would be for unbranded products. I have an article on how to secure these types of suppliers to give you your best chance of approval.
Why Dropshipping Luxury Products May be a Bad Idea?
There is one very big and obvious benefit to selling luxury products, the profit margins are incredible. There are however several negative aspects to dropshipping luxurious items. You need to decide whether the negative aspects outweigh the positive benefit.
- It will be difficult to get approved to dropship luxury brands online. The top suppliers will vet anyone who plans to sell their products and it will take some serious convincing to get approved to be a reseller of these brands. Many suppliers will deny you right away if they know you’re a beginner.
- Because luxury products are non-essential, they are often trends that eventually die out. It’s like keeping up with the Joneses, people copy others to avoid feeling excluded until the next trend emerges.
- Generally, only wealthier people purchase luxury products. This obviously drastically reduces the number of potential customers.
- The demand for luxury items will fluctuate depending on the economy. In a recession, you can expect the demand for luxury goods will decline.
- Although your profit margin will be high, you can expect your conversion rate to be lower than stores with low-cost products.
- You will need some design and branding knowledge when creating your store. Nobody will buy luxury products from a store they don’t trust 100%.
- Anyone who buys luxury products expects the best customer experience and you need to provide it.
How to Advertise Luxury Products Online
There are obviously exceptions but you can expect the wealthy and upper-middle-class to be the main target market for luxury products. The most common demographic for this market is over 40’s.
TikTok is probably the best current platform for dropshippers in terms of return on ad spend (ROAS) however, the majority of TikTok users are in the under 40’s age bracket so I would avoid TilTok ads for advertising luxury goods.
Facebook’s user age distribution has a more even spread with the biggest Facebook users being aged between 18 and 44. It’s not ideal for advertising luxury products but you can target an audience who shows an interest in luxury goods in specific age brackets.
Google ads would be far more effective with luxury items as this type of advertising is “search intent” and most people buying luxury goods will be searching for them. Although Google ad pricing can be high, the conversion rate will be higher than advertising on TikTok or Facebook where you are trying to sell to people who are not looking for luxury items.
Using Instagram influencers can be another effective and often lower-cost method of advertising luxury items. People follow influencers who they aspire to be like and by them using your luxury products is a powerful way of promoting luxury items.
Luxury Dropshipping Suppliers
Finding suppliers that dropship can be a frustrating task, let alone dropshipping suppliers that also sell luxury products. So I’ve done some of the hard work for you. Below I’ve listed luxury suppliers that are located in the US, UK and Australia.
Sorry if you’re outside of these countries but I couldn’t list luxury suppliers for every country. I do however have an article on how to find dropshipping suppliers here. The article focuses on US suppliers but applies to all countries.
Luxury Suppliers in the USA
|Luxury Supplier||Luxury Products|
|Spocket||General (Mostly Fashion & Home Decor)|
|Nordstrom||Fashion & Accessories|
|Life in Tents||Luxury Canvas Tents|
|Fashion TIY||Fashion & Accessories|
|The Wooden Reserve||Wooden Furniture & Accessories|
|The Marine Supplies||Boating supplies|
|Aim Wholesale||RV Accessories|
|Apliiq||Print on Demand|
|Tasha Apparel||Women’s Fashion|
|Wear Jack||Luxury Ties|
|Top Dawg||General Products|
|Kettle Pizza||Pizza Ovens|
Luxury Suppliers in the UK
|Luxury Supplier||Luxury Products|
|Miss Lulu||Women’s Luxury Bags|
|Lifestyle Appliances||Outdoor Furniture|
|DQT Trade||Men’s Designer Suits|
|Hill Interiors||Luxury Home Decor|
|Cubic Aquariums||Specialised Aquariums|
|Beta Shoes||Men’s and Women’s Footwear|
|OHSO Cherished||Personal and Home Gifts|
|Artisan Furniture||Luxury Furniture|
Luxury Suppliers in Australia
|Luxury Supplier||Luxury Products|
|Global Studio||Furniture/Home Decor|
|Bespoke Baby||Baby/Nursery Products|
|Calibre Furniture||Luxury Furniture|
|I Heart Wall Art||Wall Art|
|Jewellery Warehouse||Men’s and Women’s Jewellery|
|Dasch Design||Home Decor|
Final Thoughts – How I Would Dropship Luxury Products!
Steer clear of trying to dropship the most well-known luxury brands in the world. These brands will never work with drop shippers. Instead, you have 2 realistic options if you want to build your own luxury dropshipping business.
The first is to work with lesser known luxury brands and create your own branded store selling multiple brands within a specific niche. This will require a well-designed and professional website. I suggest you get some design inspiration from this article I wrote on the 12 best branded dropshipping store examples.
The next option is to create your own brand around luxurious products from China. By connecting with suppliers on Alibaba, you can private label your own products and build your own luxury brand. Many online stores take this route as it is relatively inexpensive to alter and modify products to your own liking and have your own logo put onto products.
Having your own brand will help differentiate you from your competitors and increase your luxury brand’s perceived value.
If this is the route you decide you want to go down, check out my article on 12 tips to avoid being scammed by Alibaba suppliers.