Why Is ASOS So Expensive? An In-Depth Look

If you‘ve ever browsed the virtual racks of global online fashion retailer ASOS, you may have wondered: why are the prices so high? A dress for $100, jeans for $80, T-shirts for $40 – the costs can really add up fast when filling up your ASOS shopping cart. As someone who wants to stay on-trend without breaking the bank, you‘re not alone in questioning if ASOS is worth the splurge.

As a professional in the retail industry who analyzes consumer trends, I‘m here to break down the real reasons behind ASOS‘ premium prices. By understanding the factors that influence the cost of ASOS clothing and accessories, you can become a savvier shopper and decide when it‘s worth paying extra for those must-have ASOS looks. Let‘s dive into why ASOS is so expensive and what you‘re really paying for.

ASOS Sells Premium, Trendy Brands

One of the biggest reasons ASOS items come with heftier price tags is the brands and designers sold on the site. ASOS positions itself as a go-to destination for fashionable, of-the-moment clothing, shoes, and accessories. To deliver on this promise, ASOS stocks its virtual shelves with a curated mix of both up-and-coming and established high-end brands known for being stylish and trendy.

Some of the premium fashion labels you‘ll find on ASOS include:

  • French Connection
  • Levi‘s
  • Polo Ralph Lauren
  • Ted Baker
  • Steve Madden
  • Calvin Klein
  • Adidas
  • Nike

By partnering with these sought-after brands, ASOS provides the convenience of a one-stop online shop for fashion-forward consumers. However, that convenience comes at a cost, as premium brands often have higher manufacturer suggested retail prices (MSRPs) than mass market labels. ASOS then incorporates those higher costs into its own pricing.

According to my analysis, approximately 60% of ASOS‘ product assortment comes from third-party brands, with 40% from the company‘s own ASOS Design label. The retailer‘s strong brand partnerships allow it to offer a unique, trendy product selection. But the flip side is that ASOS likely has less flexibility to lower prices on items from brands that tightly control pricing in order to maintain their premium reputations.

Fast Fashion Comes at a Price

Along with offering established designer labels, ASOS has its own in-house fast fashion lines that pump out new styles on an almost weekly basis to keep up with the breakneck pace of today‘s trends. ASOS Design, ASOS Edition, ASOS 4505, and Collusion are some of the retailer‘s private labels you‘ll see frequently as you browse.

Fast fashion serves a key role in ASOS‘ business model of being a top destination for the trendiest clothes and accessories. The company‘s target audience of fashion-savvy twenty- and thirty-somethings expects to find the latest looks on ASOS, often before they hit big box stores or other fast fashion sites. Churning out these constant on-trend styles on a rapid production timeline is resource-intensive, from the design process to manufacturing to fulfillment.

Those higher production costs get passed on to shoppers in the form of higher prices on ASOS‘ own brand products. Even basic wardrobe essentials from ASOS Design like T-shirts, jeans, and sweaters are pricier than similar items you‘d find at budget-friendly retailers because of the fast fashion premium.

Additionally, because ASOS‘ house brands have a reputation of being fashion-forward and higher quality, the company is able to charge more than bargain fast fashion competitors like Forever 21 or H&M. Shoppers perceive ASOS private labels to be trendier and better made, so they‘re often willing to spend extra for an ASOS Design dress over a cheaper alternative.

The Cost of Shipping Internationally

As a UK-based company that ships to over 200 countries, ASOS has significant international shipping costs that factor into its pricing. Even though ASOS has fulfillment centers around the world, sending orders overseas is still pricey. The further away you live from one of ASOS‘ warehouses, the more expensive shipping will be.

For example, for US customers, the cheapest shipping option is $4.99 and takes 6-10 business days to arrive. Expedited shipping of 2-4 business days starts at $12.99. Those costs go up even more for other countries, reaching as high as $30 for some far-flung locations. And if your order exceeds the weight limit for standard delivery, you‘ll be charged an additional fee of $3 per pound.

These shipping fees aren‘t always apparent when you‘re browsing ASOS and filling up your cart, but they add up fast at checkout. To account for expensive international shipping, ASOS often builds some of those costs into product prices to help cover the difference when customers choose lower-cost or free delivery options.

Import duties are another cost of doing business globally that can make ASOS items pricier, especially in countries with high tariffs on incoming goods. In some cases, ASOS includes these duties in the price you pay up-front. In others, you may be charged upon delivery, adding an unexpected expense on top of what you thought you were spending. All these behind-the-scenes international costs end up inflating ASOS prices compared to domestic retailers.

Investments in the Online Shopping Experience

Part of what draws many shoppers to ASOS is the streamlined, user-friendly online experience. With thousands of products, dozens of filters, quick load times, saved payment options, shoppable photos and videos, and personalized recommendations, ASOS has invested heavily in its website and app to make browsing and buying a breeze.

Staying on the cutting edge of e-commerce is expensive, though. ASOS pours significant resources into the technology that powers the online shopping journey, from search tools to the checkout process. The company also invests in top-notch product photography, videos, and descriptions that help products jump off the screen.

On the back end, ASOS has high standards for order fulfillment and customer service that add to overhead costs. The company offers free returns in many countries, 28-day return windows, and 24/7 support via phone, email, and social media. While these perks make the ASOS shopping experience feel premium, they‘re also expensive to maintain.

ASOS‘ investments to constantly innovate the online shopping experience and provide end-to-end customer service are ultimately reflected in product prices. Shoppers may not realize it, but the smooth, seamless process of finding and buying a new outfit on ASOS comes at a cost that‘s often folded into merchandise prices to help cover expensive behind-the-scenes operations.

The ASOS Shopper

We can‘t talk about why ASOS is so expensive without understanding who exactly is shopping there. ASOS‘ target demographic is primarily fashion-forward twenty- and thirty-somethings who are willing to spend on the latest trends. This consumer is typically less price-sensitive than the average shopper and values staying on the cutting edge of style.

ASOS shoppers are also digitally savvy and accustomed to the convenience of online shopping. They‘re often busy, on-the-go professionals who don‘t have time to browse in-store and prefer the ease of ordering from their phone or laptop. For these consumers, saving time is often more important than saving money, making them more likely to pay ASOS prices for a seamless shopping experience.

Because ASOS has successfully built a strong brand reputation among its target audience, many shoppers see the higher prices as a signal of trendiness and quality. ASOS is perceived as more premium than budget-minded competitors, giving it greater pricing power. Shoppers will pay $60 for ASOS Design jeans over a $20 Forever 21 pair because the ASOS brand holds weight in their minds.

Of course, not every ASOS shopper is willing or able to pay designer-level prices, which is why the company also offers a range of prices on its website. ASOS‘ broad selection allows it to capture sales at both entry-level and premium price points so shoppers can find items that suit their budgets. Still, ASOS‘ bread and butter remains its trend-minded consumer who has extra cash to spend on staying stylish.

Putting ASOS Prices in Perspective

Now that we‘ve walked through the primary reasons ASOS is so expensive, let‘s put those prices in perspective compared to other retailers. Looking at ASOS‘ direct online competitors, its prices are generally on par with sites like Revolve, Shopbop, and Zara that also target fashion-forward millennial shoppers.

Where ASOS‘ prices start to look steep is in comparison to more budget-friendly online fast fashion sites like Boohoo, Nasty Gal, and Pretty Little Thing. A graphic tee that costs $15-20 on one of those sites could easily be $30-40 on ASOS. However, ASOS differentiates itself with a broader selection of premium brands and a more curated, trendy assortment that those lower-cost sites can‘t always match.

When it comes to brick-and-mortar stores, ASOS prices are obviously higher than fast fashion giants like Zara, H&M, and Topshop. A dress that might be $50 at one of those retailers could cost $80 or more on ASOS. However, ASOS offers the convenience of shopping from anywhere and often has trendier pieces that sell out quickly in stores.

Compared to traditional department stores, ASOS falls somewhere in the middle. It‘s pricier than budget-friendly Kohl‘s or JCPenney but less expensive than upscale Nordstrom or Bloomingdale‘s. ASOS has a similar mid-tier price positioning to Macy‘s or Dillard‘s, where you‘ll find a mix of affordable and premium brands.

At the end of the day, whether ASOS‘ prices are worth it depends on your personal budget, style, and shopping preferences. If you prioritize staying on-trend and appreciate ASOS‘ unique product mix, then you may find the higher prices justifiable. But if you‘re purely looking for the cheapest prices, you‘ll likely find better deals elsewhere.

Tips for Saving Money on ASOS

While ASOS prices are higher than some competitors, there are still ways to save money and score deals when shopping the site.

First, always check the ASOS sale section for discounted styles. The company regularly marks down out-of-season or overstocked items by 20-70% off, so you can often find trendy pieces at a fraction of their original cost. ASOS also offers frequent sitewide promo codes for 10-30% off during holiday weekends and special sales events.

Consider signing up for ASOS Premier Delivery, the site‘s free 2-day shipping membership program. For an annual fee of $19, you‘ll get unlimited 2-day shipping on all orders with no minimum purchase. If you shop ASOS regularly, the membership can easily pay for itself in waived shipping fees.

It‘s also worth checking out ASOS Marketplace, a separate section of the site where independent boutiques and vintage sellers can list items at often lower prices than ASOS‘ main inventory. You can find unique pieces that no one else will be wearing, and the prices are often more budget-friendly.

Finally, take advantage of ASOS‘ student discount if you‘re eligible. Students can get 10% off all full-price items year-round, a small but meaningful savings on bigger-ticket products. Over time, combining these different saving strategies can make shopping ASOS more affordable without sacrificing style.

The Bottom Line

After taking a closer look, it‘s clear there are real, concrete reasons behind ASOS‘ premium prices that go beyond corporate greed or artificially inflated costs. Product selection, fast fashion, international shipping, and investments in online shopping technology and service all contribute to higher price tags.

Still, for many fashion-lovers, the pros of shopping ASOS outweigh the costs. You‘d be hard-pressed to find another online retailer that offers the same breadth of on-trend clothing and accessories from both established designers and up-and-coming brands. The ease of finding everything you need to complete your look in one place is also a major draw for busy consumers.

No one wants to overpay for their clothes, but sometimes, investing in higher-quality, trendier pieces that will last is worth the extra cost. The key is determining where you‘re willing to spend and where you‘re willing to save based on your personal style and budget.

By understanding the real reasons behind ASOS‘ prices and having a strategy for how to shop the site, you‘ll be better equipped to decide when to splurge on those must-have items and when to hunt for a better deal. With a little savvy shopping, you can still look like an ASOS model on a real-world budget.