Saks Ends E-Commerce Partnership With Amazon

Saks Fifth Avenue has officially ended its e-commerce partnership with Amazon, marking a significant shift in the luxury retailer’s digital strategy just two years after the tech giant made a major financial bet on the company.

According to Reuters, the decision comes after Amazon invested $475 million in Saks in 2023 as part of a broader effort to strengthen its presence in the luxury retail space. The partnership was intended to blend Saks’ high-end fashion authority with Amazon’s logistics and technology infrastructure, aiming to modernize the luxury shopping experience while expanding reach.

The collaboration allowed Saks to operate a storefront on Amazon’s platform, giving select luxury brands access to Amazon’s massive customer base. However, the relationship faced challenges from the outset, including concerns around brand control, exclusivity, and whether Amazon’s mass-market ecosystem could truly align with luxury retail values.

While neither company has publicly detailed the precise reasons behind the split, the move underscores the ongoing tension between luxury fashion’s emphasis on curation and storytelling and big tech’s scale-driven commerce model.

The end of the partnership signals a return to a more independent digital approach for Saks, as luxury retailers increasingly reassess how and where they engage consumers online. For Amazon, it highlights the difficulty of cracking the luxury market despite substantial investment and technological advantage.

As the luxury sector continues to evolve post-pandemic, the breakup serves as a reminder that scale alone does not guarantee success in an industry built on perception, prestige, and tightly controlled brand environments.