Case Study:
Vinted
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Hypothysis: If Vinted offers a "Postage Pack" (suggested name to be improved), then it will reduce cart abandonment and prevent the loss of sales due to additional postage costs, thereby increasing overall revenue.
Competitor Analysis:
Direct Competitors:
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eBay, Depop, and Facebook Marketplace
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These platforms provide similar peer-to-peer selling experiences with flexible shipping options, often including buyer responsibility for postage.
Indirect Competitors:
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ASOS, Amazon: Both platforms include free postage as part of their appeal, offering streamlined, easy-to-use services with no additional shipping costs at checkout.
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Sephora, SpaceNK: These companies appeal to shoppers who value convenience and fast delivery.
Trends in the Industry:
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Increasingly, consumers expect transparent pricing, including shipping costs, up front.
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Subscription and loyalty models, like delivery services (ASOS, Amazon), are becoming key competitive advantages, providing a predictable cost structure and better customer retention.
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selling for free just adopted by ebay
Busy Mum
Student
Noah Patterson
Programming Editor
Buyer Instights
Buyer insight 1
"I often abandon my cart when I see a high postage charge. Often the addition of the postage charge means tht the second had item in now so close tothe price of a brand new item from a company that I already pay for inclusive shipping for. I’ll just go to Amazon, where shipping is included."
Buyer Insight 2
“When I’m buying a small item for £1, paying £4-5 for shipping feels like too much.”
Buyer Insight 3
" Because Vinten has no central postage system, if I want to buy multiple items from different sellers, I have to pay Postage for each item, if often use that as a way to talk myself out of buying anything
Seller Instights
Seller insight 1
“I know some buyers are put off by postage fees, when I uploaded my very first Item Vinted offered free postage (I think as an incentive 'cause I was a new seller) If they know it works I don't understand why they can't always make it an option for us.
Seller Insight 2
“I get fewer sales for low-value items—offering free postage could really help but I don’t have the option.”
Seller Insight 3
" Somtimes buyers want somthng delivered realy quickly for a gif or they're just about to go on holiday. The only postage options are for 2/3 day delivery times. I can see why thy just go on ASOS & PLT ato get next day delivery instead and it's ofent included in their premium postage subscription
Research Findings:
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Cart abandonment rates increase significantly when buyers are surprised by additional fees, especially for cheaper items.
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The presence of platforms like Amazon and ASOS offering free or integrated shipping increases price sensitivity on Vinted.
Develop
Feature Prioritization & MVP Definition:
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Postage Pack: A subscription model offering discounted or free postage for users, potentially bundled with other services.
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RICE Score: High — this directly addresses the core issue of cart abandonment.
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Seller Boost with Free Postage Option: Allowing sellers to offer free shipping as a way to entice more buyers.
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RICE Score: Medium — may benefit larger sellers more than individual ones.
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Reward Program for Free Postage for Limited Time: Offering free postage for a limited period for specific users or categories.
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RICE Score: Medium — creates urgency, but may not solve long-term pain points.
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Solution Options Explored:
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Postage Pack: A subscription service that reduces postage costs for users, offering a predictable cost structure.
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Free Postage Boost: Allowing sellers to add free postage for higher visibility.
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Superfast Delivery Option: For urgent or gift purchases, providing faster shipping with guaranteed delivery times.
User Testing & Feedback
Insights from User Interviews:
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Postage Pack had the most positive feedback, with users expressing that the subscription model would make them feel more comfortable purchasing multiple items, knowing the shipping costs are covered.
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Free Postage Boost received mixed responses, with some sellers excited but unsure how to manage the cost-effectively.
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Superfast Delivery was viewed positively for urgent purchases, but users were concerned about the higher costs associated.
Final Solution
Postage Pack:
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How it Works: A subscription service offering discounted or free postage for all items. This would be especially beneficial for frequent buyers and sellers, encouraging them to purchase more without worrying about additional shipping costs.
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Why it Solves the Problem: By removing the surprise of high postage costs, the solution reduces cart abandonment, particularly for low-cost items, while encouraging repeat purchases and increasing overall revenue.
Launch & GTM Strategy
Launch Plan:
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A/B Testing: Launch the Postage Pack for a subset of users to measure its impact on sales and cart abandonment.
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User Education: Announce the feature through in-app notifications, emails, and social media, explaining the benefits of the Postage Pack.
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Timing: Launch during peak shopping periods (e.g., holiday season) to maximize user adoption and impact on sales.
Measuring Success
Key Metrics to Monitor:
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North Star Metric: Increased revenue from completed sales.
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Leading Indicators:
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Reduced cart abandonment rate.
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Increased purchases per user.
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Higher seller engagement with the boost feature.
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Lagging Indicators:
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Total revenue growth.
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Improved user retention rates.
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Counter Metrics: Increased costs of subscription service could impact margins; monitor user adoption closely to avoid overspending.
Future Iterations
Potential Future Features:
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Superfast Delivery Options: Provide expedited shipping for urgent purchases, especially gifts.
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Seller Incentives: Reward sellers who offer free shipping with enhanced visibility or promotions.
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Postage Reward Program: Reward users who frequently purchase with free or discounted postage.
Closing Summary
Summary: By addressing the issue of high postage fees, the Postage Pack solution directly tackles the core problem of cart abandonment, improving the user experience, increasing sales, and boosting brand loyalty. This solution will not only make purchases more attractive to users but also help Vinted stay competitive in a market where platforms like Amazon and ASOS dominate with integrated shipping options. The expected outcome is an increase in sales, customer retention, and overall platform growth.
Contact
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