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When Special Offers Are Too Much

Above is a screenshot of my email account showing the last month or so’s email newsletters from ASOS. You’ve probably noticed it as well, ASOS are offering a lot of special offers at the moment to try and entice you to spend spend spend with them. But is it harming them more than improving sales?

The recent Groupon deal sold 50,000 £20 vouchers for £9 each – so for each item that was sold, ASOS lost £11 that they would normally have received. (Assuming of course that Groupon didn’t take any money for running that deal – I’ve tried to find out how much of a cut they normally take on deals, and the most popular figure was 50% – assuming thats correct, for every £20 voucher spent on the site, ASOS received £4.50. Adding that up, they received £225,000 selling goods that would normally have earnt them £1,000,000. You don’t need to know anything about accounting to know that this is going to severely affect their accounts)

The amount of free delivery codes that are sent out every week (or even every day!) will also affect their profit. ASOS Premier is a subscription service where the customer can pay £25 (currently reduced to £15) and get free next day delivery for a year. Why bother subscribing though if you can hold out for a few days until the next free delivery email appears?

ASOS is still one of my favourite sites for clothes, but these emails are starting to sounding a little desperate.

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