Since its high-quality apparel, shoes, and accessories are reasonably priced, ASOS has gained a lot of traction with consumers. Buy why is ASOS so cheap?
Because many of their products are less expensive than those from other brands, ASOS is a fantastic option for online shopping. ASOS is cheap because it completely eliminates the experience of shopping in a physical store.
Due to its affordable prices, ASOS has continued to draw customers looking for trendy clothing. You can find out more about this well-known fast-fashion retailer by continuing to read.
What is ASOS?
ASOS has a wide selection of goods available in its clothing and beauty stores. The main objective of the store was to sell AsSeenOnScreen clothing.
The purpose of ASOS, according to its creators, is to give customers access to the attire worn by actors on the sets of TV shows and films.
A few times, ASOS tried to sell infant and toddler clothing, but these attempts did not have the same level of success as their young adult target market.
Their business was able to get back to normal once they started selling clothes for young adults.
Why is ASOS So Cheap?
Here are the key factors that contributed to its low price.
1. Online Operations
Since it was founded in 2000, ASOS has only ever sold its products online; as a result, it has never had any physical stores.
ASOS only recently announced that they would be making their first-ever debut of their collections in a physical Nordstrom store in 2021; this announcement became official in 2022.
The retailer has reduced overhead expenses, such as rental fees, by conducting all operations online for years.
Aside from being limited to a few locations, ASOS still requires most customers to place their orders online even though they have physical stores now.
2. ASOS Clothes Are of Poor Quality
Most ASOS brand items are of poor quality and are made on the cheap. In order to source high-quality materials, ASOS does not need to spend a lot of money.
Their products become more affordable as a result of lower manufacturing costs.
Read Mor: Does ASOS Run Small?
3. ASOS Gets Items in Bulk
ASOS is regarded as a fast-fashion brand because it creates cheap clothing items for the mass market quickly to keep up with the most recent market trends.
As a result of the retailer saving money by purchasing goods in bulk, not all of the costs are passed along to the customer.
Related Reading: When Does ASOS Restock?
4. They Collaborate With Reputable Brands
When you shop on ASOS, you can find products from the ASOS brand as well as others from well-known companies like Nike, Adidas, and Tommy Hilfiger.
As far as ASOS is concerned, every item is real and came from the manufacturers themselves.
Due to its status as a leading retailer, ASOS is able to purchase these items from renowned fashion houses at a discount and pass those savings along to customers.
5. Outsourcing is Used for Production
The manufacturing of products for internal brands is frequently outsourced to other factories worldwide. The UK is home to the corporate offices of companies like ASOS. However, Turkey, China, and India are home to the majority of factories.
Because goods are priced differently in each nation, outsourcing is less expensive.
6. ASOS Marketplace Stocks Secondhand Items
Vintage and fashion items from independent brands are sold on ASOS Marketplace. Clothing that has been previously owned and altered makes up some of these vintage items.
The sellers lower the prices a little because they are used goods. There are times when some of the items on the Marketplace are less expensive than brand-new items on the ASOS website.
7. They Have a Year-Round Business Model
ASOS has an advantage because the business deals in seasonal fashion accessories. Young adults who enjoy year-round shopping are their target market.
ASOS also carries a wide selection of clothing, including everything from casual wear to shoes and activewear. They have a consistent source of income because they sell goods all year long.
Because the business is making enough money to support itself, the retailer is able to maintain low costs thanks to the steady cash flow.
8. They Have Global Coverage
Although ASOS has fulfillment centers in the US, the UK, and Europe, they ship goods to more than 150 nations thanks to their efficient delivery system.
For instance, ASOS customers in Canada can order products and have them shipped from the US city of Atlanta. From the centers in the UK, additional orders are fulfilled.
Read More: Is ASOS Sustainable?
9. Minimizing the Scale of Operations
ASOS has kept its operations on a smaller scale by having a small number of locations to fulfill customer orders, despite shipping fashion items all over the world.
There are 4 fulfillment centers and 5 return centers in the ASOS warehouse network. Barnsley, England, and Lichfield, Germany are where these fulfillment centers are situated.
Also, Doncaster, Selby, Poznan, and Krupka are home to ASOS return centers. On the other hand, the American city of Atlanta serves as both a fulfillment and a return center.
ASOS has decreased both the number of employees required and the salaries paid to those employees by using these few centers. Customers can purchase products for less because they have lower expenses.
10. Regular Offer and Discounts
Through consistent promotions, sales, and discounts, ASOS has grown its customer base. Clothing at a discount can be found in the ASOS Outlet section of the company website.
In order to attract more customers, ASOS also provides students with a 10% discount.
On top of that, ASOS has lowered the prices of items in the Sale section of the website, where you can typically find them for less money. There are up to 80% off discounts on some of the sale items.
Such promotions have helped ASOS cultivate customer loyalty and encourage more purchases. With increased cash flow, the retailer is better able to control costs overall.
11. Many Brands, Many Choices
850+ brands are available on ASOS. Over 850 brands are available on ASOS. While the prices of the majority of well-known brands are similar, smaller chains often have items for less money.
For those wishing to purchase less expensive goods, this is a huge benefit. Smaller chain stores don’t have to spend as much on marketing or physical stores as online retail behemoths, and they don’t have to trade off product quality for price.
Read More: Why is Shein So Cheap?
What is the Price of ASOS Goods?
ASOS cannot guarantee that all items found on its site will be less expensive than those elsewhere. To ensure the best products at the most competitive prices, ASOS, however, takes all necessary precautions.
These products are produced in factories all over the world using resources that have been outsourced from other nations. This makes it possible to offer some products at lower prices, especially under in-house brands that are devoted to developing exclusive goods for the business.
While some brands may let you down in terms of quality, the majority of brands on ASOS don’t produce cheap clothing. In the country where it is produced, each item is painstakingly handmade with the best materials.
Conclusion: Why is ASOS So Cheap
At a fraction of the price of other online retailers, ASOS is a retailer that offers designer clothing and cosmetics.
For many reasons, ASOS is reasonably priced. ASOS doesn’t have a physical shop to keep them up.
Since ASOS has low overhead, it is able to offer its customers frequent discounts and promotions, which over time has helped to build a strong customer base.
ASOS keeps the prices low because most of its operations are online, allowing the company to scale operations down.
Read More: Why is Primark So Cheap?
FAQs
Is ASOS a Good Brand?
Because of its affordable prices, authentic products from trusted brands, and excellent services, ASOS is regarded as a good brand by some of its customers.
Is Asos Legit?
ASOS is a well-known business with a long history of reputable operations and happy customers.
Does Asos Sell Real Brands?
Don’t worry; ASOS is a legitimate website that completes orders.
