From Breakingviews - Battered online retailers need new fashion model
has already done, is one sure-fire way to drive down costs. It’s also the beginning of the end for the “bedroom-as-fitting-room” business plan.
Selling cheap tops and shoes to 20-somethings is a fickle business. With no physical outlets, customers buy multiple items to arrive at the perfect shape, size and colour. Retailers like 820 million pound ASOS and 710 million pound Boohoo suck up the cost of free deliveries and free returns. The latter is particularly hefty. Besides physical collection, there’s washing, processing and then a potential discount to get a returned item to sell quickly again.
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