Saks Pulls the Plug on Amazon Partnership
In a move that underscores the persistent challenges of selling luxury online, Saks Fifth Avenue is ending its high-profile partnership with Amazon. Less than two years after Amazon invested $475 million into Saks Global as part of a deal tied to Saks' acquisition of Neiman Marcus and Bergdorf Goodman, the luxury retailer is stepping away to focus on its own digital and retail recovery post-bankruptcy.
According to court filings and reports from Reuters, Saks will no longer sell through Amazon’s marketplace. The decision reflects both strategic necessity and a broader industry reality: luxury eCommerce, particularly through mass-market platforms, is harder than it looks—even for giants like Amazon.
Why the Partnership Fell Flat
At face value, the Saks-Amazon partnership seemed promising. Amazon provided capital, and Saks offered brand prestige. But the execution never fully clicked. High-end brands were wary of being associated with Amazon's mass appeal, resulting in limited product assortments that diluted the perceived value of the storefront.
Luxury thrives on exclusivity, personalization, and high-touch service—three elements notoriously difficult to replicate in the Amazon ecosystem. Instead of increasing luxury visibility, the Saks-Amazon tie-up became a cautionary tale of mismatched brand positioning.
- Luxury brands feared brand dilution on Amazon’s mass-market platform
- Product selection remained too limited to entice affluent shoppers
- Consumers still prefer physical retail for high-ticket purchases
The Bigger Picture for eCommerce Operators
This breakup is more than corporate restructuring; it's a reality check for eCommerce operators trying to tap into luxury. Despite digital innovation across the board, less than 20% of U.S. luxury sales are projected to happen online in 2026, barely moving the needle from 2020 levels.
That doesn’t mean luxury and ecommerce are incompatible—but success requires a tailored approach. Retailers like LuxExperience (formerly Mytheresa) have done well by curating exclusive assortments and offering VIP experiences that mirror the prestige of in-store shopping.
Where the Opportunity Still Exists
If you’re an eCommerce brand eyeing the luxury segment, focus on differentiation, experience, and trust. Consider these angles:
- Private client services: Concierge shopping, exclusive drops, and personalized outreach
- Limited edition SKUs: Create scarcity and storytelling around your high-end offerings
- Resale and recommerce: Platforms like The RealReal prove there’s room for value-driven luxury buyers
Amazon’s stumble with Saks doesn’t close the book on luxury eCommerce—but it does signal that scale alone isn’t the solution. Experience, brand alignment, and curated customer journeys matter more than ever.
Bottom Line: Luxury Requires a Different Playbook
Saks’ decision to retreat from Amazon is a high-profile reminder that luxury ecommerce isn’t just about plugging into a big marketplace. For DTC operators and retail strategists, the takeaway is clear: if you want to win in premium verticals, you need to build premium experiences—not just premium price tags.
The high-end customer doesn’t just buy a product; they buy the story, the access, and the treatment. For eCommerce businesses looking to expand into luxury, it’s time to go beyond the cart and think like a concierge.
