Zalando is putting a halt to their free shipping in more and more markets. First it was Italy last November, where Zalando started asking customers to pay for shipping on orders of €25 or less. After stopping free shipping in the UK, Ireland and Spain last month, they said there were no plans to charge shipping fees in further markets, but the next places to lose free shipping have already been announced.
The countries of Finland, Denmark, Sweden and Norway will lose Zalando's free shipping after the end of May 2019. Although the fees are only going to be on small orders, this strategy is already paying off for Zalando, whose stock shares rose last month from unexpectedly positive preliminary figures. Thanks to Reuters, we know Zalando's customers haven't exhibited any negative behaviour due to the delivery fees. That's why they're expanding them to Scandinavia and Finland.
The Core Markets
Zalando, based in Berlin, does not plan to introduce these delivery charges in their core markets of Germany, Austria and Switzerland, because "customers their tend to spend more on each order" (Rubin Ritter, Co-Chief Executive). Another way to help keep delivery costs down is to reduce the number of returns. Anyone who has ordered from Zalando knows how easy it is to return things. That's why they are starting to offer size recommendations to help stop unnecessary returns.
They will also be expanding their loyalty programme called "Zalando Plus" to France and Italy in the next 12 months, as well as extending the service to more customers in Germany and Switzerland. Seeing the success story known as "Amazon Prime", it isn't any wonder that other retailers, like Zalando, are copying the idea.
Before interest and taxation, Zalando's first-quarter earnings were €6.4 million on sales up 15.2% to €1.378 billion. The average analyst forecast were for €1.377 billion.