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While Amazon (AMZN) – Get Free Report has long become the first destination people turn to for everything from makeup products and yoga mats to home cleaning supplies, the e-commerce giant has had a turbulent history with many popular fashion brands.
Amazon and Nike (NKE) – Get Free Report parted ways in 2019 due to the latter wanting to maintain the exclusivity of its products and strengthen its direct-to-consumer relationship.
High-end players like Chanel, Hermès, and LVMH (LVMHF) have taken a categorical position against appearing on the site and waged major battles against any fake listings that pop up.
While brands are in a constant push-and-pull over the risk of fakes, brand dilution, and the exposure that Amazon can provide, the tide has once again been shifting toward the latter.
Last April, Victoria’s Secret (VSCO) – Get Free Report started selling its beauty, wellness, and fragrance products on Amazon. Kate Spade is another fashion brand that has a strong presence on Amazon.
Looking For That Gap Hoodie On Amazon
The latest brand to announce a collaboration with Amazon is longtime preppy fashion giant The Gap (GPS) – Get Free Report. As of Thursday, everything from the brand’s hoodies and denim to sleepwear and beauty products will appear on Amazon in the U.S. and Canada.
Baby Gap clothing as well as the toys, nursery furniture, and strollers that the Gap started selling in the last few years will also be available to purchase through the platform. The items will as well be eligible for faster delivery for Prime members.
The new Amazon.com/Gap online store looks similar to the Gap’s regular website in that it allows users to search by categories like Men and Women as well as Toddlers and Baby Gear.
While none of the items sold on Amazon are exclusive and can also be purchased directly from the Gap, having them on there is meant to reach the customer who is typing “Gap” into the search bar on Amazon.
“Collaborating with Amazon Fashion provides us a new channel to deliver Gap’s modern American essentials to even more customers in the U.S. and Canada,” Mark Breitbard, the CEO of Global Gap Brands, said in a statement to news outlets. “We are excited to take this step with Amazon Fashion, to expand our product offering and to deepen our connection with consumers through the Gap brand store.”
The Double-Edged Sword Of Selling Your Brand On Amazon
After Gap and Amazon announced the news, shares of the former soared by nearly 7% on Thursday and were up 2.78% at $11.85 by Friday. The exposure offered by Amazon can do wonders for both big and large brands alike.
Earlier this fall, New York consignment shop What Goes Around Comes Around established a presence on the platform in the form of Luxury Stores at Amazon — the online storefront features used models of Gucci, Louis Vuitton and Hermès handbags.
Such digital storefronts have, in the last year, been rising in popularity — having one allows the brand to maintain its own presence rather than being swept up by the millions of other items one can stumble upon while searching.
“The question of whether retailers should distribute on Amazon ultimately comes down to whether the platform can provide incremental sales without eating into their bottom lines,” Zak Stambor wrote for Insider Intelligence in May. “There’s little question that Amazon can drive volume, but retailers need to be careful to ensure that volume doesn’t come at the cost of customer loyalty.”
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