About You introduces minimum order amount
From now on, fashion e-tailer About You only offers free shipping with a minimum order amount of 30 euros. Customers with smaller orders will have to pay 4,90 euros delivery costs. The new fees are already in effect in Germany, but will eventually be introduced in all markets.
German fashion platform About You has announced optimizing its logistics costs back in January. Now, the company is introducing shipping costs in Germany.
Minimum order value of 30 euros
For German shoppers on About You, free shipping is possible for orders starting from 30 euros. Smaller purchases have a delivery fee of 4,90 euros. Although the fees are currently only in effect in Germany, they will be introduced in all markets in 2023.
About You not profitable yet
The average order amount on About You is currently 55,3 euros. The retailer has tested minimum order values in France, Belgium and Ireland earlier this year. The company aims to reduce company costs and increase consumer spending, as it has not been profitable yet.
About You more than doubled its losses in 2021.
In 2021, About You more than doubled its losses compared to the year before. And in Q3 2022, revenue grew a mere 8,3 percent compared to a 48 percent increase during the same quarter of 2021.
Increased rates at Zalando and H&M
Ecommerce giants like Zalando and H&M have previously limited free delivery and, more recently, introduced paid returns. Only last month, fashion platform Zalando announced increased rates for merchants following disappointing financial results. After years of advertising with free shipping, About You is following in their footsteps during economic stormy weather.