Zalando started its eCommerce journey like a lot of other brands: with a recognition that the Internet offered unprecedented reach to fashion-conscious consumers around the world. The difference is that thanks to Zalando marketplace, the company is building upon its success by helping other brands grow.
How does Zalando Work and What Types of Businesses Sell on it?
Zalando Marketplace is a German-based, European eCommerce platform company that provides retail services for lifestyle and fashion brands. Though it began primarily with footwear, Zalando has since expanded into a wide range of clothing, accessories, and even toys.
Through Zalando Priivè, meanwhile, the company offers discounts to more than 2,500 other brands. Available through a mobile app, Zalando Priivè is intended to complement its core online store, which focuses on the newest and freshest assortment.
The company provides premium services for eCommerce companies interested in improving their ability to market themselves and connecting them with customers.
A data-backed approach allows Zalando to feature your products to the right customers, improving your sales performance with ZMS (Zalando Marketing Services) growth techniques, branding, and analytical insights.
Zalando’s custom API provides eCommerce integration to online retailers interested in using the platform to sell products. Zalando Marketplace also offers assistance with onboarding, product registration and uploading, and branding.
Selling premium and luxury fashion on Zalando marketplace
According to an article on FashionUnited, Zalando is prioritizing adding premium and luxury brands that its customers are searching for online. This has led to an increase of products in these categories from approximately 30,000 in 2020 to more than 90,000 in 2023. This could make Zalando marketplace integration a good idea if you want to be part of a fast-growing platform for luxury shoppers.
At the same time, however, Zalando is responding to increased pressure to stay profitable by being more selective and removing some brands from the Zalando Partner Program, which is how sellers become part of the Zalando marketplace. This means brands looking to sell on its platform moving forward may have to stand out, either by demonstrating strong online sales to date or by offering fashion and accessories that can’t easily be found elsewhere.
The benefit of using Zalando
Selling on Zalando marketplace means your brand will gain a foothold in 25 countries. This includes more than 50 million active customers with an average basket size of 56.2 euros, according to data from Statista.
While there is no Zalando U.S. yet, the company has announced a Zalando in USA expansion plan. This could bring a Zalando USA shipping option to American customers that want greater access to European brands.
In the meantime, Zalando’s size and scale offer brands a significant platform to increase their visibility among European customers. According to data from Cross-Border Europe, for example, Zalando was ahead of Amazon in terms of cross-border eCommerce sales in Europe, boasting an 11.7% share of total sales.
As with any decision to sell on marketplaces, of course, brands need to weigh the financial commitment and investments required. While it previously only charged sellers a commission, for example, ECommerce Times reported that Zalando has introduced a subscription fee of 480 euros (or 40 euros a month) for those participating in its marketplace. Commission rates for products sold exclusively on its platform will range from 7% to 25%. When products Zalando offers directly are sold out, partners may also offer those items and will be charged a commission ranging between 5% and 22%.
Besides its Partner Program, Zalando offers wholesale services as well as a program called Connected Retail, which links physical stores to its platform.
How to get started selling on Zalando marketplace
Like most online marketplaces, Zalando requires those applying to its Partner Program to have a registered business with an online store, products available in relevant fashion and footwear categories, as well as free delivery/returns, and a 100-day return policy.
The full checklist of Zalando marketplace eligibility criteria includes:
- All products must be assigned a European Article Number
- Products must comply with Zalando labeling and packaging conditions
- As products get added, sellers should be familiar with Zalando imaging and content guidelines
- Prepare test orders that Zalando will use to check for quality assurance
- Mitigate the risk of fraud by completing Know Your Customer documents
- Download and review the most recently updated Zalando Platform Rules
Zalando also offers marketing services to assist partners in selling on its marketplace. Before that, though, you need to make one of the most critical decisions of all: how you’ll integrate your warehouse inventory with Zalando marketplace.
How marketplace integration services streamline selling on Zalando
Zalando offers what it calls a ZDirect User Interface, which brands can use to upload products to its marketplace. However, choosing this approach requires committing to a manual process that takes up employee time and resources. It’s also only available to those who opt for Zalando Fulfillment Services (ZFS).
Working with a company specializing in marketplace integration, on the other hand, accelerates your time to market on Zalando marketplace. It also streamlines ongoing tasks like setting up promotions and updating inventory information.
Benefits of Zalando marketplace integration
- A fully scalable Zalando marketplace integration solution via an API that grows with your business
- A simpler way to manage Zalando product listings and orders
- Transparent fixed pricing regardless of your monthly sales volume
- Ongoing support and assistance with onboarding
How Highstreet.io facilitates integration for fashion clients
Integrating your eCommerce products with marketplaces can be intimidating if you’re not familiar with all of the requirements. Working with Highstreet io gives you the benefit of deep technical expertise in Zalando marketplace integration.
How Zalando marketplace integration works:
- Ensure your product data is optimized to sell on this popular marketplace by using mapping tools and look-up tables to structure your data for maximum exposure. Missing EAN codes? Create your own using our platform.
- Connect to your master feed of products and upload them to Zalando using APIs. Once connected, Highstreet.io synchronize your prices and stock for a seamless connection.
- Manage the orders, inventory, promotions, and prices effectively with an easy-to-use platform
Integrating your products with Zalando marketplace could be the beginning of a powerful new chapter in the story of your brand’s eCommerce growth. Contact Highstreet.io and let us help you get started.