In this Reuters video, Lily Jamali interviews L2 Researcher Mabel McLean about brand relationships with Amazon. When leading L2’s Intelligence Report: Amazon, McLean found that Prestige brands can have a variety of relationships with the e-tailer. Some such as Tumi, Kate Spade, and Cole Haan officially distribute on the platform whereas others have taken a standoffish approach. Tiffany & Co. and Hermès have stroked agreements with the retailer restricting third-party sellers from listing their products.


One of the surprises was Chanel, who went against its image as a traditional brand to work with Amazon and reduce its Beauty SKUs on the platform from 400+ to less than 20. Another was Dior, who had thousands of SKUs available on Amazon despite LVMH’s no-engagement policy with the e-tailer.


While distributing through Amazon does not necessarily equate to gray market cleanup on the platform, some brands (L’Occitane, Burberry) have managed to strike agreements exchanging distribution for third-party listing restrictions. Often, these brands are in categories in which Amazon wants to grow, and must offer an incentive for brands to participate. See full video here.

Daily Insights in Your Inbox

Edit your preferences or unsubscribe