Amazon Prime Wardrobe seen as a big ASOS fashion challenger

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The FT has reported that “Asos investors were spooked” by the news and launch of the new beta Amazon Wardrobe which was revealed earlier in the week. We wrote about it here: The new Amazon Prime Wardrobe ‘try before you buy’ fashion service.

Amazon Prime Wardrobe, offers subscribers free shipping and free returns on clothing. The less you return, the better the discount. Currently in beta with selected shoppers in the US, and likely limited to Prime subscribers anyway, it’s not currently a challenge. But, such is Amazon’s muscle, even the very notion of Wardrobe is worrying to some.

Bankers Citi say of the new scheme: “For most retailers, the idea of potentially receiving 10 returned items would be a logistical and markdown nightmare. It may be for Amazon as well but Amazon doesn’t have the same traffic and/or profit pressures as (most) retailers face.” It could be that scale will be Amazon’s saviour.

Asos already offers free returns in Europe, the US and Australia. And the received wisdom is that ASOS sees between 40% and 50% returns as part of the business model. But the Wardrobe offering is generous and doubtless worrying.

You may be a fashion and apparel seller. How do you deal with returns? How do you feel about Amazon Prime Wardrobe?

One Response

  1. ASOS should be worried, as should everyone else. Amazon is slowly but surely taking over. The uptake from consumers is going to be huge, however not sure about leaving the box on your doorstep for collection!

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