Online Clothing Retailer ASOS Loses Shares After Offering Free Shipping To Customers

ASOS, the popular online retailer for women’s fashion and men’s clothing, has seen a drop in its shares after offering free shipping to customers.
The online store has reported a market value fall of more than 8% and a hit to its gross margins due to the freebie deal of free refunds and shipping, as well as because of opening a new warehouse in Barnsley, Yorkshire, England.
The company, which sells 50,000 product lines and targets the UK, US, France and Germany, forked out £12.9 million for the costs of the new depot and as a result its overall gross margin fell by 300 basis points.
The average value of transactions has fallen in every territory except the UK, where it was boosted by January’s VAT increase and the average number of items bought per transaction also fell; so customers are spending less and buying less for free shipping charges.
1 Stop Ship has expert Groupage shipping services that are cost-effective and reputable. By not paying a fee, who knows what state of shipping your belongings are put in but with 1StopShip you can be rest assured your items are in safe hands whether you need shipping services, removals or our Excess baggage facilities.
ASOS Chief Executive Nick Robertson said the share falls occurred because even though more shoppers are visiting the site more regularly due to the free fees, they are in fat making smaller purchases. However, despite loses dividends the firm is set to continue using free delivery as a race-winning strategy against competitors.
So as you would use ASOS to buy and ship clothes, use 1StopShop for shipping Cheap excess baggage, antiques and new furniture. We specialise in providing a complete service to antique dealers, interior designers and private collectors and what is more if your shipment doesn’t arrive on time we will refund the costs!