Launching a new category after four long years increased Zalando’s revenues for the first quarter of 2018 by as much as 22% to €1.2 billion, or £1.05 billion in pound sterling.
The online fashion marketplace said they’ve managed to achieve this result despite the challenging market environment, thanks to the growing demand for their products and, of course, recently launched beauty category.
More than 4,000 products from 130 skincare and makeup brands are available on the new category to complement Zalando’s high fashion wear.
Aside from big brands like L’Oreal, Maybelline and Toni & Guy, among many others, Zalando said they are working towards getting niche brands that haven’t established their online presence in Europe yet.
If that’s you, then it looks like Zalando could be a perfect revenue stream for your business, considering that their active customers increased to 23.9 million from 3.5 million last year.
Zalando Co-CEO Rubin Ritter said their beauty category will position them as a one-stop destination for fashion and lifestyle, adding:
“We see Beauty as a really big opportunity long-term in different dimensions. First of all, as a revenue opportunity, there is an €80 billion total Beauty market in Europe.
“Secondly, we see this as a really smart cross-sell opportunity. And then thirdly, we see it as an opportunity to engage our customers even more, so to create more and more reasons for customers to come out to our site more frequently and also to shop more frequently, as you know that has been a strategic priority for us over the last years as well.”
Majority of Zalando’s customers shop with their mobile devices, as this was reflected in their mobile visit share which reached 76.6%.
Start selling on Zalando
Unlike other marketplaces that sell multitudes of products under various categories and subcategories, Zalando are exclusive to fashion items.
If you have great products that fall under clothing, shoes, sportswear, or accessories, Zalando is the perfect place to sell them.
However, you must offer free delivery and returns, a 100-day returns policy, and shipping with Hermes.
Most important of all, you must have your own online store, otherwise you won’t be eligible to sell your products.
So, what’s on your mind? We hope to hear from you in the comments below.
As always, to your continued success,
Dave & Matt