The Potential Impact of Bitcoin On The Luxury E-commerce Industry
It is no secret that most everyday consumers can barely scrape enough money together to pay for regular purchases. Some consumers, on the other hand, are more interesting in getting their hands on luxury items. Both types of customers have one thing in common: they want quick and convenient payment methods to complete their purchases. Can Bitcoin play a role in the process?
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Luxury Retail Business Is Booming
Over the past two years, more and more customers are purchasing luxury items. Part of this trend can be attributed to the success of platforms such as MatchesFashion. However, there are other factors at play as well, as smartphone shopping is becoming an important aspect of e-commerce around the world these days.
It is not easy to come by luxury items in the e-commerce space these days. Most of these items have price tags of four digits and more, making it a high-value target for credit card fraud and scammers. Imagine selling someone a US$3,000 watch online, only to see the transaction disputed by the issuing bank two weeks after the payment was made due to a fraudulent charge.
That being said, there seems to be a market waiting to be explored by luxury retailers. Businesses brave enough to explore this niche market of e-commerce are most likely to see their sales numbers increase exponentially within the first year. Furthermore, growth will increase for many years to come, as there is very little competition in this market right now.
Offering something special to customers looking to spend a fair amount of money will boost sales as well. Next-day delivery, for example, will be highly valued by customers, albeit it is not an option available everywhere in the world. Express delivery, regardless of the cost, is another alternative worth exploring.
Luxury retailers can offer something most other online retailers can not: a different type of stock, especially where fashion is concerned. While there may be some overlapping with other e-commerce platforms, luxury retailers can carefully select their stock to put up for sale online, rather than just listing everything.
Additionally, there are a lot of emerging designers in the fashion world who are chomping at the bit to get their creations advertised online. This gives luxury retailers another edge over their competitors. But despite all of these positive sides, there is still plenty of reason to stay cautious as well. Making a name for oneself in the luxury e-commerce sector will be a long and tough battle.
Introducing Bitcoin Payments for Luxury Items?
Retailers selling high-value brand goods in the e-commerce space can also differentiate themselves depending on which payment methods they accept. As previously mentioned, credit cards – as well as any online payment method using credit cards – are not the most secure solution. However, this is one of the most commonly used forms of payment around the world.
Bitcoin is a more secure payment method, and has proven to be quite beneficial to the e-commerce sector as well. According to statistics provided in the past, Bitcoin customers spend more per purchase on average, making the luxury retail business an interesting opportunity to explore.
What are your thoughts on using Bitcoin as a payment method in the luxury retail business? Which items would you like to buy with Bitcoin? Let us know in the comments below!
Source: Telegraph UK
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