The insight: Amazon is trying to make a bigger name for itself in the luxury sphere—a strategy that could help soften the blow from tariffs.

The partnerships: Amazon is making good on its promise to be the “everything store” through partnerships with the likes of Saks Global—in which it is an investor—and Rebag, along with a rapidly expanding roster of upscale beauty brands.

• Saks now operates a storefront on Amazon’s US and UK sites featuring a curated selection of items from brands including Dolce & Gabbana, Stella McCartney, and Balmain.
• Rebag is making the majority of its inventory—over 30,000 pieces—available to Amazon shoppers, giving them the ability to purchase a $21,000 Hermès Birkin bag alongside their orders of shampoo and paper towels.
• And more high-end beauty brands are making their way to Amazon, some as a result of the Saks partnership (La Prairie, Chantecaille) and others (Origins, Aveda) in an attempt to capitalize on the retailer’s broad audience and increasing market share.

The situation: From Amazon’s perspective, its redoubled push into luxury could bring some relief from tariffs. Offering more high-end items could enhance its appeal to wealthier shoppers and encourage them to spend more with the retailer, while those products’ higher margins will help pad its bottom line. Luxury products are also—for the time being—less exposed to tariffs.

While Amazon’s previous forays into luxury didn’t go fully to plan, the tide may be turning as shoppers respond favorably to its growing product assortment and convenience. That’s particularly true for beauty: Premium Beauty sales on Amazon rose by nearly 20% in the 12 months to April 2025, outpacing overall category growth, per NielsenIQ data cited by Reuters.

Our take: That designer brands and retailers are eager to partner with Amazon despite its mixed track record in luxury shows the state of the industry, which is under serious pressure as economic uncertainty saps even affluent consumers’ desire to shop. Amazon’s extensive reach—three-quarters of US households are Prime users, per our forecast—and ability to drive spending even in times of volatility are making it an increasingly valuable partner for any brand looking to drive sales in an unsettled environment.