About You limits free delivery
About You wants to introduce a minimum order value for free shipping in all of its markets this year. The German fashion platform is hoping to cut costs by having fewer orders with low values in the future. About You is currently testing the minimum order value in some of its markets.
The company has informed the German news site Neuhandeln that it will optimize its logistics costs. About You did not reveal where free shipping will only be available with a minimum order value. However, Neuhandeln figured out that French customers have to pay 3.90 euros shipping costs if their order is lower than 24.90 euros. According to the newspaper, About You is also testing this concept in Belgium and Ireland.
Zalando and H&M limited free delivery already
In other countries, such as Germany and the Netherlands, shipping is still free. Later this year the platform wants to introduce a minimum order value in all of its markets. Similar platforms, like Zalando and H&M, limited their free delivery already.
About You didn’t manage to make profit.
About You specializes in online fashion and is currently represented in 28 European markets and in Saudi Arabia. The platform launched in Germany in 2014 and advertised with free shipping from the start. Until now, the platform did not manage to make profit. By introducing a minimum order value for free shipping, About You hopes to reduce the company costs and to increase consumer spending.
Consumers are more likely to buy discounted items
Because of the current economic uncertainty, consumers are more likely to buy discounted items. As a result, the average value of an order fell by six percent to an amount of 55.3 euro last year. On the other hand, the average number of times a customer orders from About You has increased to three times a year.