Amazon is pushing Shopbop’s brands to sell on its platform, which isn’t enough for it to gain credibility in the space.

WHAT HAPPENED: Amazon bought Shopbop in 2006 and the companies have operated independently of each other ever since, even while offering benefits to Prime members using Shopbop. While Shopbop’s brand partners are not being forced to sell on Amazon, they are feeling pressure to expand their Amazon.com business.

WHY IT MATTERS

  • Amazon can’t become a high-end fashion destination while continuing to be a refuge for counterfeit sellers. There are currently over 849,000 apparel products from more than 2,600 brands on Amazon—an unappealing backdrop for high-end brands. While Amazon’s luxury platform will launch later this year (its starting with 12 undisclosed brands), the ecommerce giant will need to ensure that it separates its fashion business from its current apparel offering to get the right brands to sign up. If Amazon creates a fashion platform that is unique and somewhat the opposite of its “everything store”, it will have a shot at making a dent in the fashion industry.