Luxury Industry Logistics: Navigating July's Challenges in E-Commerce

The luxury products industry in e-commerce is thriving. With a global revenue of 20.43 billion US dollars in 2024, it is expected to grow to 33.03 billion US dollars by 2029. This gives it a stunning CAGR of 10.12%! But despite this, the luxury industry faces certain challenges.

Beyond shipping and customs, July brings unique pressures from mid‑season sales to rising return rates and discount strategies.

The Rapid Growth of the Luxury Industry

The luxury industry is growing rapidly, with one of the highest CAGRs in the entire e-commerce sector. If we examine certain markets, such as the US, we can see that this trend is further supported. According to Market.us, the compound annual growth rate (CAGR) in the United States is estimated at 9.7%. Therefore, we can say with full certainty: the luxury industry has a lot of untapped potential.

In just Europe, the luxury goods market amounts to 119.13 billion EUR, although the CAGR is much lower than globally: only 2.26% (source: Statista). If we break it down into smaller segments, we can see that almost half of the whole industry is luxury fashion, with a stunning 43.49 billion EUR in market value. From the perspective of an e-commerce store, the potential is quite high: 

About 14.8% of the luxury industry revenue is generated directly from online sales!

Why July Matters in Luxury E‑commerce

July often marks a wave of mid‑season promotions and discount events in luxury e‑commerce, particularly in markets like China, Europe, and North America. According to the FT, brands such as Versace, Burberry, and Marc Jacobs have offered up to 50% discounts in China during July to clear excess inventory and stimulate demand .

But “luxury” discounts come with a cost: FT reports show that return rates among discounted luxury goods spiked by 10–20 percentage points year-over-year (e.g., Marc Jacobs’ China return rate rose from 30% to 40%, Brunello Cucinelli from 59% to 69%) . These returns create pressure on logistics and brand perception.

The Luxury Industry Supply Chain and Logistics

The luxury industry faces distinct challenges when logistics are considered. From meeting high customer expectations to managing brand identity. Here’s an overview of the most critical challenges to consider.

Packaging

Like all other industries, this one also needs to adapt to the local packaging laws, which may differ even within the EU (which has a general set of regulations). However, the legal side is not the only challenge in packaging.

The other aspect here is maintaining the luxurious image through e-commerce packaging. This means:

• selecting better packaging materials,
• ensuring that parcels arrive at their destination undamaged,
• branding the packaging in such a way that it evokes luxury.

Reliable Logistics

Not only does the packaging need to be premium in the luxury industry; every step of the customer journey needs to be such. Therefore, it is crucial that you:

• ensure your parcels arrive according to the schedule,
• provide convenient returns management, including a clear policy and easy returns pick-up.

If your brand doesn’t feel premium, it won’t be perceived as premium—bear that in mind when selecting your logistics partner.

Shipping Insurance

With excellent logistics, you will build trust. But before you do so, your customers need a guarantee. This is why ensuring luxury products is a common practice. But this is yet another challenge for you.

Even with the best logistics partner in the industry, you will still need to offer an insurance option for your customers. This involves working with third-party providers and integrating their services into your shop. You have to select an insurance company that is well-known in the target market and trusted—this choice can also be the make-or-break for some of your customers.

How to Overcome the Luxury Industry Challenges?

Entering new markets with your luxury products will not be easy, but it does not need to be difficult either. There are proven solutions to overcome the obstacles and increase your chances of success. What should you focus on?

Multi-Party Collaboration for Packaging

Work with both your logistics partner and marketing experts when designing your packaging. The former will help you select the materials that are durable and reliable, while the latter will create a design and pick the best packaging out of the initial list created by the logistics team. Don’t rely just on the expertise of one or the other—merge their experience together.

Find a Trusted Logistics Partner

To overcome the challenges, you need a reliable logistics partner with experience, infrastructure and mechanisms that shield them from disruptions and delays. A company that will help you select the right packaging. A partner with whom you will minimise the number of insurance claims.

Since the entire experience matters and needs to be luxurious, your logistics partner needs to have experience working with the most prominent brands. It has to be a large company, like Landmark Global, which can polish every detail and make shipping feel premium.

Connecting Discounts to Returns and Brand Risk

Providing steep discounts may drive traffic and short-term sales—but consumer “bracketing”, “wardrobing” and impulse buying heighten returns, diminishing margins. This aligns with research from Vogue Business: haul‑culture and social media pressure cause shoppers to buy excess items with every intention to return.

Global return rates for luxury goods average around 23%, translating to roughly 32.19 billion EUR annually in returned merchandise. Managing these returns—especially during July—is crucial to preserving brand image and profitability.

Strategies Forward

Luxury brands are evolving July logistics through:

• Targeted discounting -> Offering selective discounts in specific markets like China—up to 50%—enables stock clearance while limiting global brand dilution.
• Returns policy clarity -> Consumer trust depends on transparent returns. Landmark Global research from July 2024 underscores that seamless returns boost satisfaction and loyalty.
• Advanced reverse logistics technology -> AI, automation, and reinforcement-learning models (like those reducing storage time by 96%) are increasingly applied to process returns faster and more cost‑effectively.
• Circular economy integration -> Many luxury brands now grade returns as “A” quality and resell via resale platforms, minimizing waste and offsetting logistics costs.

Shipping Luxury Products Internationally? Partner with Landmark Global

July is more than a middle‑of‑year spike: it's a critical test of luxury logistics resilience. By carefully balancing discount strategies with strong returns management, fraud protection, and circular solutions, luxury brands can protect profitability and image—even during their busiest months. Landmark Global is here to help.

At Landmark Global, we have over 25 years of expertise and access to an extensive network of carriers worldwide. We also own infrastructure on 4 different continents and we are ready to support your operations with our know-how and resources. 

Sources:

Statista. (2024). Luxury fashion e-commerce revenue worldwide from 2017 to 2029. https://www.statista.com/statistics/1537069/global-luxury-fashion-e-commerce-revenue/ 

Market.us. (2025, March). Luxury e-commerce market size, share, trends, growth, outlook, and insights report, 2025–2034. https://market.us/report/luxury-e-commerce-market/ 

Statista. (2025). Luxury Goods – Europe. Statista Consumer Market Outlook. https://www.statista.com/outlook/cmo/luxury-goods/europe

Financial Times – China Luxury Discounts
https://www.ft.com/content/d304beae-9a75-432c-b3b6-006a70a64b93 

Vogue Business – Haul Culture & Returns
https://www.voguebusiness.com/consumers/haul-culture-is-fuelling-returns-what-can-brands-do 

Vogue Business – Circular Economy & Returns
https://www.voguebusiness.com/consumers/reimagining-returns-for-a-circular-future 

Vogue Business – Supply Chain Fraud in Luxury
https://www.voguebusiness.com/companies/how-luxury-brands-are-tackling-supply-chain-fraud 

McKinsey – Apparel Returns Management
https://www.mckinsey.com/industries/retail/our-insights/returning-to-order-improving-returns-management-for-apparel-companies 

FreightAmigo – Handling Returns in Luxury E-Commerce
https://www.freightamigo.com/all-promotion-and-news/luxury-goods-reverse-logistics-handling-returns/