From Zalando’s beginnings in 2008, they have always driven sales with free delivery and a return service. This concept worked well for Zalando, helping to propel them into one of the biggest online fashion retailers in Europe.
Zalando has a great amount of fashion choices for their customers, who definitely love the shopping experience there. But lately, Zalando, based in Germany, has been recording heavy losses and lackluster revenue growth in the 3rd quarter of this year. According to ecommercenews.eu, Zalando reported a net loss of €41.7 million in this time-period. The year before, in comparison, the loss was “only” at €11.1 million.
Writing On The Wall
With these revenue losses in 2018, it’s clear that Zalando had to do something. Starting soon, customers in Italy will have to pay a shipping fee of €3.50 for orders of €25 or less. That being said, it is unclear when these shipping fees will go into effect on zalando.it. As of now, the fee is not being charged.
Italian Customer Behaviour
Zalando may be trying this strategy in Italy due to the buying behaviour of Italian customers, who are known for ordering only 1 item per order.
The Future Of Zalando Shipping Fees
Neuhandeln.de wrote that this is most likely a special case in Italy, with no apparent plans to apply the strategy in any of the other 15 European countries where Zalando is active. It could also be likely that Zalando wants to generally test shipping fees in Italy before rolling out the strategy in other markets. With these 3rd quarter losses of €41.7 million, will charging shipping fees be able to stem the tide? Hopefully for Zalando, if shipping fees became a wider reality, it won’t cause a backlash among their customers.