How about dropship luxury brands worldwide

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babaku

Age: 2023
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As the statistics from Google Trend shows that the interests of luxury brands is keeping on a higher level which is approx 75 worldwide. It is believed that
luxury brands and its products are always welcomed by customers because of its
brand awareness, product quality and designs. Moreover, there are so many famous
luxury brands in the world such as Gucci and Hermes, and the sales of these
brands are keeping on a higher level in the world especially in the developed
countries. It is possible to understand that selling luxury products still can
be profitable because of its larges audiences and higher brand awareness. In
this post, I’m gonna introduce both pros and cons of dropship luxury brands in
the world, and give some suggestions to retailers who are prefer selling luxury
products in the drop shipping market.
Pros and cons of dropship luxury brands
In this part, I’ll list some of the pros and cons when retailers are selling luxury products in the dropshipping market.
Also Read: how to dropship on amazon
Pros:
a. Higher brand awareness. As we know that most of luxury brands should have higher brand awareness rather than other brands. It is believe that luxury
brands should have a large number of loyalty consumers who loves to purchases
the specific series or categories of the luxury brands, which means luxury
brands have higher brand awareness among consumers from the world. The higher
brand awareness should bring much more sales to the luxury brands once the new
products released.
b. Higher quality. It can easily understand that most of customers in the world should focus on the product quality when they are purchasing luxury
products with higher prices. It is believe that most of luxury brands should
owned professional quality control team to make sure each products manufactured
are totally having higher quality. As we know that luxury brand consumers are
much focus on the product quality because it is the major reason why they pay so
much many to buy a luxury products. Therefore, the higher product quality is one
of the main pros of dropship luxury brands because retailers do not need to
worry about the product qualities.
c. Trendy design. It is possible to understand that trendy designs of each luxury product should be the main selling points, and the unique design is the
main reason why consumers pay so much money for a single T-shirt or even a
slippers. For example, the following picture is one of the most popular sneakers
in the market, which is made by Balenciaga. As we can see that the sneakers uses
the designs of the combination between socks and sneakers, which means the upper
materials is quite similar as socks that allows consumers do not need to wearing
socks before dress up this sneaker. Furthermore, the designs of this sneaker is
not only welcomed by consumers, but also sneaker manufacturers such as Nike and
Adidas Original. Therefore, the sock sneaker is one of the most trendy design
for luxury sneaker brands. It can clearly understand that the trendy design
should be one of the main reason why people would like to pay for a higher
price.
Cons:
a. Lower profit margins. As we know that the profit margin of most drop shipping business is approx 15-30%, which should be lower than other business
model. Moreover, the higher costs of selling luxury products should also limit
the profitability of the drop shipping business.
b. Higher requirement of logistics. It is believe that luxury products should require higher levels of logistics because retailers should make sure that all
the luxury products are safely receive by end-customers.
c. Tax fees. According to different policies in countries and regions worldwide, the tax fees charged by governments are different among countries and
regions. Moreover, the luxury products are always charges for tax fees because
of its higher profits and values. Therefore, the extra tax fees should increase
the costs if retailers deliver luxury products globally.
Also Read: baby clothes wholesale uk
Posted 09 Aug 2018

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