So I am a huge fundamentalist and try to get as much market research from socials as possible. As in trends in products or shopping. It doesn't always work, but this weekend ive seen a surge of 5-10 mentions about ASOS (who I don't use or have any shares with) changing their subscription delivery strategy. They're now implementing a "fair usage" to items being returned. You pay "x" in a one off payment, for free delivery throughout the year, but now they are then adding a charge on top.
From the posts/socials ive seen, most are either after their money back, due to a change of terms. Or if unsuccessful in that sense, then they will boycott all together.
This with negative posts on quality and sizing issues, due to the customers anger and frustrations, could lead to further negative posts and result in some serious negative fundamentals for Asos (LON:ASC) .
Obviously nothing is guaranteed, but due to this stock already having a stale market, but recently having a 15% pump, I thought it should be highlighted. There is another possibility that whilst trying to make savings/cuts and passing extra fees onto the customer, it may work as a positive in the short term. Customers may also begrudgingly return and pay the extra.
BUT
The current buzz around socials is anger and disappointment. Personally I take this as a huge negative and will be watching the stock very closely next week. It may change its decision, but so far this is a very bearish move going by the reaction of loyal customers paying the yearly "subscription" to delivery.
I have a colleague who just this week mentioned that they've received an email claiming they were 'one of a small number' of customers who return a lot of what they buy. Seems that they are trying hard to deal with this return/delivery problem (which is basically their USP for consumers so significant risk if they get it wrong!). If they are successful with meaningful tweaks (that also keep their customer base happy) then there's significant upside potential for margins, get it wrong and it's a disaster.
