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Zalando, one of Europe’s largest online fashion retailers, has recently announced an increase in its marketplace fees starting from July 2023 and the introduction of a new monthly base fee. This news may come as a surprise to many brands who are already selling on the platform, so let’s break down exactly what this change means for them.
What is Zalando?
For those not in the know, Zalando is a European ecommerce company that sells clothing, shoes and accessories from over 2000 brands across 19 countries. It is one of the biggest players in the European market and has become an increasingly popular option for brands looking to expand their reach beyond traditional brick-and-mortar stores.
What Does the Fee Increase Mean?
Zalando’s decision to introduce a monthly fee for its marketplace was driven by two key factors.Firstly, the company is looking to increase its profitability and reduce costs associated with maintaining an online marketplace. Secondly, the introduction of a monthly fee is intended to improve the overall quality of the marketplace by ensuring that only serious and committed sellers are able to list their products. The new fee structure will see a monthly payment of 40€ effective from July 1, 2023 and charged for access to the marketplace and a commission rate of 15% on each sale. The fee amounts to EUR 480 per legal entity per year.
Overall, while this fee increase may seem like bad news but it’s not the end, similar changes happening by other marketplaces such as Otto…