20 Best Luxury Dropshipping Suppliers in 2024
Contents
Dropshipping luxury products can be highly profitable, especially if you promote products from known luxury brands. Luxury clothing, luxury watches, and jewelry can make you some solid cash in profits if you put some serious effort into dropshipping them.
However, this niche can be tricky to navigate. First, you can get into messy legal issues if you dropship luxury brands without proper permission. In addition, it isn’t remotely easy to find luxury dropshipping suppliers. The latter is the hardest challenge most dropshippers looking to get into this niche face.
If you are looking to dropship luxury products, or are already right into it but want to amp up your game, you need to master the art of finding the best luxury dropshipping suppliers. More importantly, you should be able to tell fake luxury dropshipping suppliers from the original ones.
In this post, we will share tried-and-true hacks for finding reliable suppliers to source luxury goods. On top of that, we will share some of the vetted suppliers we can vouch for. So be sure to read through to the end.
Key Takeaways
- Can you dropship luxury brands directly?
- Challenges of dropshipping luxury brands
- How to find the best luxury dropshipping brands
- 20 best luxury dropshipping suppliers
- Tips for securing good deals with dropshipping suppliers
Can You Dropship Luxury Brands Directly?
We know you might be wondering if dropshipping luxury products is even possible. And if it is, won’t you get into serious legal trouble dropshipping luxury items?
The truth is, it’s rare to find opportunities to dropship established luxury brands directly. Most luxury brands have strict distribution policies and work with authorized retailers or boutique partners. They rarely (if ever) engage in dropshipping, as they want to maintain complete control over their brand image, pricing, and customer experience. Dropshipping disrupts these control mechanisms by introducing third parties who may not adhere to the same level of service or quality.
For example, brands like Louis Vuitton or Rolex tightly regulate their supply chain to ensure authenticity and preserve the exclusivity of their products. They will likely not permit you to dropship their products on your website – unless you intend to become a vetted distributor.
Does this mean you should kill that idea of selling luxury fragrances, clothes, watches, etc., passing up on a huge opportunity? Not by a long shot!
Here’s what you should do instead.
How to Successfully Dropshipping Branded and Luxury Items
- Work with Third-Party Luxury Suppliers: Some companies specialize in selling luxury goods from various high-end brands. These third-party luxury suppliers often have partnerships with wholesalers or distributors who have permission to resell authentic products. Suppliers like BrandsGateway, The Luxury Closet, or Spocket’s premium sellers offer luxury goods that you can dropship without needing to deal with the brands directly.
- Focus on High-Quality Non-Branded Luxury Items: Not all luxury goods are tied to famous brands. You can focus on dropshipping non-branded luxury items, such as high-end furniture, bespoke jewelry, artisanal fashion, or premium skincare products. These items may not carry the same brand recognition but can still command high prices based on craftsmanship and quality.
- Sell Pre-Owned Luxury Items: The pre-owned luxury market has exploded in recent years. Platforms like The RealReal and StockX allow buyers and sellers to trade authenticated second-hand luxury items, ranging from watches to handbags. Some dropshipping suppliers specialize in pre-owned luxury products, providing a way to sell authentic luxury goods while adhering to the market’s standards and policies.
- Partner with Boutique Brands: While established luxury brands may not be available for dropshipping, you can partner with up-and-coming boutique brands that offer high-end products. These boutique brands may be more flexible and open to working with dropshippers to gain exposure and sales. This allows you to offer high-quality, unique products that appeal to luxury buyers.
Challenges of Dropshipping Luxury Brands
Besides finding the best luxury dropshipping supplier, you will also encounter several other challenges when entering this niche market. Knowing these challenges from the onset can better prepare you to handle them well.
Some of the common ones we know are as follows:
- Authenticity Issues: The luxury market is rife with counterfeit products, and selling fake goods—even unintentionally—can lead to legal troubles and irreparable damage to your reputation. Always verify that your suppliers are legitimate and provide authentic products with the necessary proof of authenticity, such as certificates or branded packaging.
- High Customer Expectations: Luxury buyers have higher expectations than average e-commerce shoppers. Satisfying them can be quite tough. They expect top-tier customer service, fast shipping, and premium packaging. Why wouldn’t they have these expectations considering they pay premium prices? If your supplier fails to meet these expectations, it could lead to bad reviews, returns, and lost customers.
- Limited Supplier Options: Unlike more general dropshipping niches, where suppliers are abundant, finding reputable luxury dropshipping suppliers is more challenging. Many of the best suppliers require more extensive vetting processes, higher fees, or even purchasing agreements to get access to luxury products.
- Brand Restrictions and Legal Issues: Selling certain luxury brands without permission can result in legal issues, as many brands have strict policies regarding who can sell their products. Be aware of trademark and copyright laws to avoid potential lawsuits or account closures.
- Inventory and Pricing Control: Luxury brands closely control pricing to avoid discounting and maintain exclusivity. Some suppliers may not allow you to set your own prices, limiting your ability to compete or adjust pricing to suit market demand.
How to Find the Best Luxury Dropshipping Suppliers
Now you’ve seen that it’s possible to build a successful luxury dropshipping business, it’s about time we showed you how to find the best suppliers for your online store.
But how can you tell if a prospective supplier is a good fit for your business? The simplest way is to vet them based on certain key factors. Let’s have a look at some of them:
1. Product Authenticity
When dealing with luxury goods, product authenticity is non-negotiable. Your customers are paying a premium for high-quality, branded items, and delivering anything less can seriously damage your reputation and even result in legal issues.
What to look for in a supplier:
- Authenticity guarantees: Ensure the supplier provides proof of authenticity for the products they sell. This can include certificates of authenticity, branded packaging, or official partnerships with luxury brands. Anything that proves they’ve been authorized to distribute branded products from a luxury brand.
- Supplier transparency: Work with suppliers who are transparent about where their products come from and how they source their items. Trustworthy suppliers will have no problem providing detailed information about their product origins.
- Avoid counterfeit products: The luxury market is rife with counterfeit products, and selling these—intentionally or unintentionally—can harm your business. If nothing else, it can drive away your customers and can attract hefty legal fines. Always vet your suppliers to ensure they have a reputation for selling genuine luxury goods. Consider asking around to better understand a supplier’s track records.
2. Supplier Reputation
Your supplier’s reputation can rub off on yours. If your supplier has a history of unreliable service, shipping delays, or poor-quality products, your business will suffer the same fate. It’s inevitable.
Here are some hacks to vet a supplier’s reputation:
- Check reviews and ratings: Look for reviews from other dropshippers who have worked with the supplier. Sites like Trustpilot, SaleHoo, and Alibaba can offer valuable insights into a supplier’s performance.
- Industry reputation: Consider whether the supplier has partnerships with any reputable luxury brands or wholesalers. Being recognized or affiliated with established companies can be a good indicator of the supplier’s credibility.
- Longevity: Suppliers who have been in the industry for a long time often have more experience and are more likely to have established a solid reputation for reliability and quality.
3. Quality Control & Standards
Luxury customers expect the best, and that means the products you sell must meet the highest standards in terms of quality and craftsmanship. To maintain your brand’s reputation, it’s critical to ensure that your suppliers have stringent quality control processes.
Here are some questions to ask to accurately evaluate the quality control process:
- How are products inspected?: Ask them how they inspect the products before shipping. Do they conduct quality checks to ensure that items are free from defects and meet luxury standards?
- What materials are used?: Luxury goods often come with premium materials such as fine leather, high-grade metals, or handcrafted components. Verify that your supplier is sourcing products made from these top-quality materials.
- Sample orders: Before fully committing to a supplier, order product samples to inspect the quality firsthand. This allows you to personally verify the craftsmanship and packaging before shipping off products to customers.
4. Shipping and Delivery Reliability
The shipping and delivery process is crucial when dealing with luxury products. Your customers expect their items to arrive quickly, safely, and in perfect condition. Any delays or damages can result in negative reviews and lost sales.
To this end, you will want to work with a supplier that guarantees fast and secure shipping. In addition, customers should have a way to accurately track their orders.
Furthermore, you should also take product packaging into consideration. Nobody wants to pay $5k for a product that comes in a packaging material that looks like a trash bag.
5. Return and Refund Policies
Customers paying a premium for high-end goods expect a seamless return process if the product doesn’t meet their expectations or arrives damaged. A difficult return experience can lead to dissatisfied customers and hurt your brand’s reputation.
Therefore, ensure that the supplier has a hassle-free return process. Besides being hassle-free, it should also be fast. On top of that, check if they give refunds too – or are at least willing to exchange damaged products when at the request of your customers.
6. Supplier Communication and Support
Efficient communication with your suppliers is crucial, especially when selling high-ticket luxury items. You need to be able to quickly resolve any issues that arise with inventory, shipping, or customer inquiries. A supplier who is unresponsive or slow to address problems can harm your ability to provide excellent service.
It’s also important to evaluate their means of communication. If you can only reach them via email, you might have to look elsewhere. Ideally, it’s better to work with suppliers that have multiple channels of communication, from emails, to live chats, to Zoom calls. In addition, they should also be readily available, even at the shortest moment’s notice, to field inquiries.
7. Pricing and Profit Margins
One of the most important considerations in choosing a luxury dropshipping supplier is the pricing structure and the potential for profit margins. Since luxury goods often come with higher price tags, it’s essential to ensure that your supplier’s prices allow you to maintain profitable margins while still being competitive in the market.
What to look for in supplier pricing:
- Competitive wholesale prices: Ensure that the supplier’s prices are reasonable compared to the retail value of the products. High-quality luxury products will always carry a premium, but you should still be able to secure a good profit margin.
- Volume discounts: Some suppliers offer discounts for larger orders. If you plan to scale your business, this could be a way to maximize profits and reduce costs.
- Hidden fees: Be aware of any additional fees that could eat into your profits, such as shipping fees, transaction fees, or restocking fees for returns. Make sure you have a clear understanding of all the costs involved.
8. Legal Compliance and Ethical Standards
Finally, it’s important to ensure that your supplier complies with all legal and ethical standards when selling luxury products. This is especially important if you’re selling branded luxury goods that are subject to trademark and copyright laws.
Furthermore, it’s important to ensure that the supplier is familiar with international customs and tax regulations, especially if you plan to sell to customers outside your country. This might require some research on your part, but it will be well worth it.
20 Best Luxury Dropshipping Suppliers
This post will never be complete if we don’t show you some of the best luxury dropshipping suppliers you can go wrong. Here are the best 20 we can vouch for.
1. Sell The Trend
Although not a luxury dropshipping supplier per se, Sell The Trend allows you to easily find unbranded luxury, affordable products across multiple online marketplaces. You can also use it to find luxury products trending on social media platforms like TikTok.
What kind of luxury products can you source using Sell The Trend? Virtually everything from luxury sunglasses, wristwatches, totes to clothing (men and women), hand gloves, and many more.
Don’t have a store yet? That’s certainly not a problem because with Sell The Trend, you can build a full-fledged online store for your dropshipping business with a few taps of the button.
Key Features
- AI-powered store automation
- One-click product push to your dropshipping store
- Robust product research
- Integrates with Shopify
- Gives you access to thousands of profitable luxury products
2. BrandsGateway
BrandsGateway is one of the top luxury dropshipping suppliers, specializing in designer fashion and accessories. They offer a wide range of authentic high-end brands, including Prada, Dolce & Gabbana, and Balmain. BrandsGateway is known for its fast shipping, excellent customer service, and high-quality products. They also provide premium packaging to align with the expectations of luxury buyers. In addition, they run a dropshipping program.
Key Features:
- Over 70,000 products, including luxury fashion items
- Designer clothing products from brands like Gucci and Versace
- Fast global shipping (1-5 days)
- 14-day return policy for dropshipping orders
- No minimum order quantity
3. BrandsDistribution
BrandsDistribution is a leading global supplier and distributor of branded fashion and luxury products. Founded in 2006, the platform offers access to a wide range of designer clothing, footwear, and accessories from internationally renowned brands. With over 120,000 products in its catalog, BrandsDistribution serves more than 120 countries, making it a popular choice for dropshippers looking to offer luxury and high-end fashion items without the hassle of inventory management.
Key Features:
- Wide Range of Luxury Products
- Authentic and Branded Products
- Dropshipping Service with Easy Integration
- Fast Global Shipping
- Customizable Pricing and Margin Control
4. MerchMixer
MerchMixer is a leading dropshipping platform designed to make it easy to source luxury products from US-based dropshipping suppliers. You will find this helpful if your customers are mostly in North America. Integrating seamlessly with Shopify, MerchMixer offers a robust catalog of over 50,000 products in categories ranging from electronics and home goods to fashion and beauty.
What sets MerchMixer apart is its focus on US suppliers, ensuring fast shipping times (typically 3-7 days) and a more reliable customer experience for American buyers. This is particularly beneficial for dropshippers looking to reduce shipping delays and avoid the complications of international logistics.
Key Features
- Easy Shopify Integration
- US-Based Suppliers
- Wide Product Selection
- No Upfront Inventory Costs
5. BDroppy
BDropshipping is one of the best platforms that make getting into dropshipping luxury goods easy, regardless of your level of experience.
BDroppy is a luxury dropshipping platform designed specifically for entrepreneurs who want to sell high-end fashion and accessories without holding inventory. Created and managed by BrandsDistribution BDroppy provides access to an extensive catalog of authentic, premium products from renowned brands like Michael Kors, Versace, Armani, and more.
The platform simplifies the process of starting a luxury fashion dropshipping business, offering seamless integration with major e-commerce platforms like Shopify, WooCommerce, and Amazon. Whether you’re a new entrepreneur or an experienced e-commerce retailer, BDroppy allows you to sell luxury goods while ensuring quality, authenticity, and fast fulfillment.
Key Features:
- Extensive Luxury Product Range
- Seamless Platform Integration
- Fast Global Shipping
- Guaranteed Product Authenticity
- Customizable Pricing and Profit Margins
6. B2B Griffati
B2B Griffati is a leading B2B platform that specializes in wholesale and dropshipping for luxury fashion brands. What we love about this platform is that it offers a wide range of premium clothing, shoes, and accessories from top designers. On top of that, B2B Griffati allows you to easily access high-end fashion items to sell through your own online stores.
Its location in Italy makes it the perfect choice for connecting with Europe-based brands that sell authentic, high-quality luxury products.
With a focus on fashion-forward and luxury items, B2B Griffati is the ideal choice for dropshipping businesses looking to curate a collection of premium designer products. Its easy-to-use platform, extensive product range, and reliable fulfillment make it a go-to supplier in the luxury fashion space.
Key Features:
- Extensive Selection of Luxury Products
- Dropshipping and Wholesale Options
- Global Shipping and Fast Delivery
- Guaranteed Authenticity
- No Minimum Order Quantity
7. Berluti
Berluti is one of the most iconic names in men’s luxury fashion, renowned for its exquisite craftsmanship, high-quality leather goods, and timeless elegance. Founded in Paris in 1895 by Italian-born Alessandro Berluti, the brand has built a reputation as a premier shoemaker for men, later expanding its offerings to include accessories, ready-to-wear collections, and bespoke services. Known for its unique blend of artistry, tradition, and modern luxury, Berluti is perfect for dropship retailers looking to dropship products from Italian fashion brands.
Key Features
- Luxury Footwear
- Leather Goods and Accessories
- Ready-to-Wear Collection
- Bespoke Services
8. Orderchamp
Orderchamp is a dynamic B2B wholesale platform that connects independent retailers with a wide selection of unique and high-quality products from top brands and emerging designers. Based in Europe, Orderchamp offers an extensive catalog that includes fashion, home decor, beauty, wellness, and lifestyle products, making it easier for retailers to discover and stock curated items that appeal to modern consumers.
With a focus on sustainability, craftsmanship, and innovation, Orderchamp enables retailers to offer distinctive products that stand out in today’s competitive market. The platform’s user-friendly interface, flexible ordering options, and no minimum order quantities make it ideal for businesses looking to diversify their inventory without the need for large upfront investments.
Key Features
- Curated Product Selection
- No Minimum Order Requirements
- Sustainability Focus
- Personalized Recommendations
- Fast, European-Based Shipping
9. Modalyst
Modalyst is a leading dropshipping platform that allows e-commerce businesses to seamlessly source and sell a wide variety of high-quality products. Designed for entrepreneurs using platforms like Shopify, Wix, and BigCommerce, Modalyst offers access to a curated selection of items, ranging from fashion and accessories to home decor and beauty products.
One of Modalyst’s standout features is its integration with US and European suppliers, enabling faster shipping times compared to overseas options. The platform also partners with well-known brands and independent designers, ensuring that retailers can offer premium products to their customers.
Key Features:
- Automated Dropshipping
- Wide Product Range
- Fast Shipping
- Zero Inventory Management
- Custom Branding
10. AliExpress
It’s easy to overlook AliExpress, believing it to be only for finding low-end, cheap products. However, that would be an erroneous assumption because there are numerous suppliers on the platform that sell luxury products, ranging from luxury apparel products to fashion accessories, furniture, clothing items, and many more. You will also find luxury eyewear products and luxury furniture there as well.
However, you will need to apply caution when looking for a supplier on the platform to avoid picking up counterfeit products.
Key Features:
- Wide selection of luxury-inspired products
- Easy integration with Shopify through apps like Oberlo
- Affordable pricing and low minimum order quantities
- Global shipping available
11. B2B Kids Fashion
B2B Kids Fashion is a specialized B2B platform that connects retailers with a curated selection of high-quality children’s luxury fashion products from top brands and manufacturers. Designed to meet the growing demand for stylish and comfortable kids’ apparel, the platform offers a wide variety of products, including casual wear, formal attire, accessories, and seasonal collections for infants, toddlers, and older children. This makes it an excellent niche if you are in the kids’ luxury dropshipping niche.
Key Features
- Wide Product Range
- Sustainable and Ethical Brands
- Flexible Ordering
- Global Shipping
12. Paul Parkman
Paul Parkman is a renowned brand specializing in luxury men’s footwear, known for its meticulously handcrafted shoes that combine elegance, quality, and timeless style. Each pair of Paul Parkman shoes is crafted by skilled artisans using the finest materials, including Italian leather, to create unique designs that stand out for their attention to detail and exceptional craftsmanship.
Key Features
- High-quality products from US-based suppliers
- Luxury Materials
- Unique Designs
- Global Reach
13. Tuscany Leather
Tuscany Leather is a premium brand known for its high-quality, handcrafted leather goods made in Italy at competitive pricing. Specializing in elegant dresses, bags, accessories, and luggage, Tuscany Leather combines traditional Italian craftsmanship with modern design to create timeless pieces that embody luxury and style. Each product is crafted from the finest full-grain leather, ensuring durability and a beautiful patina that develops over time. Keep in mind that there might be a minimum order value requirement, so be sure to check with them before diving in.
Key Features
- Made in Italy
- Premium Materials
- Wide Product Range
- Elegant Designs
14. J GOODIN
J GOODIN is a trusted brand known for offering stylish, high-quality fashion jewelry at affordable prices. Specializing in a wide range of pieces, from rings and necklaces to bracelets and earrings, J GOODIN caters to both men and women looking for elegant accessories that enhance any outfit, making it an ideal supplier for dropshipping stores that deal in high-end jewellery products. With a focus on affordable luxury, the brand combines modern designs with quality craftsmanship, making it a popular choice for those who want to elevate their look without breaking the bank.
Key Features
- Affordable Luxury
- Wide Selection
- Quality Craftsmanship
- Modern Designs
15. Calzaturificio Ellen
Calzaturificio Ellen is an Italian footwear brand renowned for its meticulously handcrafted shoes that blend traditional craftsmanship with contemporary design. Based in the heart of Italy, the brand specializes in producing high-quality men’s and women’s footwear using premium leather and materials. With a focus on comfort, durability, and style, Calzaturificio Ellen has earned a reputation for creating shoes that offer both luxury and practicality.
Key Features
- Handcrafted in Italy
- Premium Materials
- Timeless Designs
- Comfort and Durability
16. Richard Cannon Jewelry
Richard Cannon Jewelry is a premier jewelry brand known for its elegant designs and exceptional craftsmanship. Specializing in fine jewelry, including diamond rings, bracelets, necklaces, and custom pieces, Richard Cannon Jewelry offers a wide range of luxurious options that cater to those seeking both contemporary and classic styles. Whether for a special occasion or everyday sophistication, the brand’s commitment to quality and detail makes it a trusted name in the world of fine jewelry.
Key Features
- Fine Jewelry Selection
- Custom Jewelry Design
- Exceptional Craftsmanship
- Luxury and Style
17. Nulook Fashions
Nulook Fashions is a leading retailer offering trendy, stylish, and affordable clothing for men and women. Known for its wide selection of fashionable apparel and accessories, Nulook Fashions caters to customers who want to stay on top of the latest trends without breaking the bank. From casual wear to formal outfits, the brand provides a variety of options that fit every occasion, making it a go-to destination for fashion-forward shoppers.
Key Features
- Affordable Fashion
- Wide Range of Styles
- Trendy Collections
- Accessories and More
18. Opyo
Opyo is a fashion brand that combines elegance, sustainability, and modern design to create beautiful clothing for women. Known for its stylish yet eco-conscious approach, Opyo uses sustainable materials and ethical production practices to deliver high-quality, timeless pieces that not only look good but also contribute to a better planet. The brand offers a range of clothing, from casual staples to refined, chic outfits, all designed with the modern, environmentally-conscious woman in mind.
Key Features
- Sustainable Materials
- Timeless and Elegant Designs
- Ethical Production
- Versatile Collections
19. FragranceX
Do you want to make good money from dropshipping luxury fragrances? FragranceX is your best bet. FragranceX is a leading online retailer offering a vast selection of discounted designer fragrances for men and women. Known for its competitive prices, wide variety, and authentic products, FragranceX allows customers to shop for their favorite luxury perfumes and colognes at a fraction of the retail cost. With top brands like Chanel, Gucci, and Dior, the platform provides access to an extensive collection of scents, making it a go-to destination for fragrance lovers worldwide.
Key Features
- Discounted Designer Fragrances
- Wide Selection
- Authentic Products
- Global Shipping
20. TicDistribution
TicDistribution is a B2B platform specializing in the wholesale distribution of luxury watches and fashion accessories. Catering to retailers and resellers, TicDistribution offers a wide selection of premium timepieces from renowned brands like Michael Kors, Fossil, Guess, and more. The platform provides competitive pricing and guarantees the authenticity of its products, making it a reliable source for those looking to expand their inventory with high-demand, stylish accessories.
Features
- Luxury Watches
- Competitive Wholesale Prices
- Authenticity Guaranteed
- Global Shipping
Tips for Securing a Good Deal with Luxury Dropshipping Suppliers
Dropshipping luxury items can be insanely profitable if you know how to secure good deals from authorized suppliers of premium products. It’s a skill you need to master to succeed as dropship retailer. Here are some tried-and-true tips:
1. Build Strong Relationships with Suppliers
Like every other business, establishing solid business relationships with the best dropshipping suppliers is critical to succeed in this market. Building a strong relationship lays the foundation to establish trust with your suppliers.
Here are some of the ways to go about this:
- Be professional and transparent: Approach your suppliers with clear communication about your business goals and how you plan to market their products. Be transparent about your expectations and requirements.
- Place consistent orders: When you show commitment by placing consistent orders, suppliers are more inclined to offer better pricing terms. Demonstrating that you can move their products regularly builds credibility and fosters trust.
- Timely payments: Consistently paying your invoices on time builds a reputation of reliability. Suppliers appreciate working with businesses that have their finances in order, and they may reward you with better deals or payment terms over time.
2. Negotiate Pricing and Terms
If you are serious about making sizable profits from this niche market, you have to know how to negotiate the right pricing with your supplier.
While luxury goods often come with fixed price points due to their premium nature, there are ways to improve your profit margins through smart negotiation. Here’s how to do it:
- Research industry pricing: Before entering negotiations, do your research on the typical wholesale prices for the luxury items you plan to sell. Understanding industry benchmarks gives you leverage when discussing pricing.
- Ask for volume-based discounts: Many suppliers offer discounts based on order volume. If you plan to scale your business, inquire about discounts for bulk orders or commit to placing larger orders in exchange for a lower price per unit.
- Negotiate long-term contracts: If you plan to work with a supplier for the long haul, consider negotiating a long-term partnership. Suppliers may be willing to lock in better pricing or provide exclusive access to products in exchange for a commitment to future orders.
- Seek exclusivity agreements: Securing an exclusivity deal in a certain region or for a specific product line can give you a competitive advantage. In exchange for exclusive rights, suppliers may offer more favorable pricing or terms.
3. Leverage Volume and Order Frequency
Suppliers are more willing to offer discounts or better terms to businesses that provide them with regular and sizable orders. Demonstrating that you can drive consistent sales and larger orders is a strong negotiation point when seeking a deal.
How to leverage volume and order frequency:
- Plan bulk orders strategically: If you anticipate high demand for certain luxury items, consolidate your orders to qualify for bulk discounts. Even if you’re starting with smaller quantities, let your supplier know you intend to place larger, more frequent orders as your business grows.
- Highlight growth potential: If you’re a newer business, outline your growth strategy and how you plan to scale. Suppliers are more likely to offer good deals to businesses that demonstrate potential for increasing future orders.
- Negotiate tiered pricing: You can propose a tiered pricing model where the price decreases as your order volume increases. This motivates you to scale while giving the supplier the confidence that they will receive more business in the future.
4. Be Flexible with Payment Terms
While negotiating a better price is important, payment terms can also significantly impact your cash flow and overall profitability. Depending on the supplier’s policies, you can request payment terms that align with your business cycle.
To this end, keep the following in mind when negotiating payment terms:
- Net payment terms: Some suppliers offer net payment terms, where you receive the products first and pay after a set period (e.g., Net 30, Net 60). This gives you time to sell the products before needing to pay for them, improving your cash flow.
- Down payment options: If full payment upfront is required, you can negotiate for a lower down payment to minimize your initial outlay, especially when ordering luxury items with high ticket prices.
- Extended payment plans: If you’re placing large orders, ask for an extended payment plan that allows you to spread payments over time. This can ease cash flow issues while still securing the products you need for your store.
5. Negotiate Shipping and Handling Costs
Luxury products often come with higher shipping costs due to their value, weight, or need for premium packaging. After all, they are shipped by premium suppliers.
As such, if you are not careful, shipping costs can significantly eat into your margins. So the earlier you negotiate shipping and handling costs, the better for you.
Not sure how to go about this? The tips below can help:
- Ask for free or discounted shipping: Many suppliers are open to covering shipping costs for large or frequent orders. Ask if they offer free or discounted shipping for bulk purchases or a minimum order threshold.
- Inquire about international shipping options: If you’re working with a supplier based overseas, ensure they have cost-effective and reliable shipping options for your international customers. Negotiate shipping fees that don’t compromise your profit margins.
- Bundle shipping with other services: Some suppliers offer packaging and shipping as part of the product cost. If this is the case, ensure that premium packaging and fast shipping options are included in the negotiated price.
6. Take Advantage of Supplier Promotions and Deals
Just like traditional retailers, suppliers occasionally offer promotions, seasonal discounts, or clearance sales. These deals can help you save on luxury products, especially when buying in bulk or preparing for high-demand seasons.
Some helpful tips to keep in mind:
- Monitor for seasonal promotions: Suppliers often run promotions during off-peak times, holidays, or at the end of product cycles. Keep an eye out for these opportunities to secure luxury items at discounted rates.
- Negotiate during slow periods: If your supplier experiences slower sales during certain times of the year, they may be more willing to negotiate better deals to maintain steady business. Use these periods to your advantage and request discounts or better terms.
- Inquire about product bundling deals: Some suppliers offer bundle deals where you can purchase related products together at a lower cost. For example, you might be able to bundle multiple luxury items (e.g., handbags, wallets, and accessories) to increase your overall profit margins.
7. Propose Collaborative Marketing Initiatives
Suppliers often benefit from marketing exposure, especially if they’re not a well-known luxury brand or want to expand their reach. Propose marketing collaborations that benefit both your business and the supplier.
Here’s how most successful dropshippers do it:
- Offer to feature their products in exclusive promotions: Highlight specific products from your supplier in dedicated marketing campaigns or promotions. In exchange, the supplier might provide better pricing or exclusive product access.
- Run co-branded campaigns: If your supplier is willing, collaborate on co-branded campaigns that highlight the craftsmanship and quality of their luxury products. This can build brand credibility and may help you negotiate better terms as you generate more exposure for the supplier.
- Leverage influencer marketing: If you work with influencers or have an engaged social media following, offer to feature the supplier’s products in exchange for discounts. Suppliers may value the additional exposure and be more flexible on pricing.
8. Be Prepared to Walk Away
Finally, when negotiating deals with luxury suppliers, it’s important to know when to walk away. Not every deal is worth pursuing, especially if the terms don’t align with your business’s profit goals or expectations.
When should you walk away?
- Unfavorable terms: If the supplier is unwilling to negotiate reasonable prices or terms, don’t feel pressured to settle. There are plenty of other suppliers who may offer better opportunities.
- Red flags with quality or service: If a supplier shows signs of poor quality control, inconsistent communication, or questionable business practices, it’s best to walk away, even if the prices are attractive. The long-term damage to your reputation isn’t worth the short-term gain.
- Unreasonable payment terms: If payment terms are too restrictive and negatively impact your cash flow, consider finding another supplier who is more flexible.
FAQs
Can you dropship luxury brands?
Yes, you can, but certainly not all luxury brands. We’d suggest you use the dropshipping platforms we’ve shared in this post to find luxury brands you can dropship.
Can I dropship Gucci?
Yes, you can dropship Gucci products if you can partner with authorized, vetted suppliers selling Gucci products. Brandsgateway is a good example.
Can you dropship Louis Vuitton?
You can dropship Louis Vuitton products if you are able to get authorization from the brand to do so. Although getting one can be challenging, it’s still very much possible.
Do luxury brands use Shopify?
Many luxury brands have their stores built on Shopify. Some typical examples include Burberry, Victor Beckham, Charlotte Tilbury, etc.
What do luxury brands do with unsold items?
Luxury brands, more often than not, destroy their unsold items, which can cost millions of dollars. They do this to preserve brand value and maintain exclusivity.
What does Zara do with unsold items?
Like most other luxury brands, Zara often destroys unsold inventory. On some occasions, they can sell them off at discounted prices to retailers.
What does Burberry do with unsold inventory?
Largely the same thing Zara does with its unsold inventory.
Conclusion
While dropshipping established luxury brands directly can be challenging, especially as a beginner dropshipper, there are still several viable ways to get in and succeed. One surefire way is to partner with authorized suppliers licensed by the brand. By working with reputable third-party suppliers, focusing on high-quality non-branded luxury items, or selling pre-owned luxury goods, you can build a successful dropshipping business in the luxury niche.