Any fashion Brand operating in the UK and EU will have heard of Zalando. Zalando has been on an incredibly successful ride for the past few years. From humble origins in 2008, it's now a household name for fashion in Germany and rising in prominence in 21 countries across Europe.
It has become the fashion online name Amazon has aspired to be, yet failed to capture. If your Brand is in the fashion industry, Zalando has come up in discussions no doubt.
The secret sauce seems to be its highly selective process of which Brands and products it allows on to the channel. Zalando has a known stringent process and is somewhat secretive of how it picks the products and Brands it wishes to allow on its platform. Clearly there is an analysis engine tracking buyer habits and trends to good effect.
Getting accepted is only half the battle. Brands should prepare for very demanding data requirements - composition of materials, very specific imagery requirements and robust product attribute data are but a taste of the demands to expect.
Given the manual and bespoke nature of Zalando vetting procedures also adding to the process, you can expect a lot of back and forth with their teams on tweaking data changes and a 4-6 month onboarding process.
Zalando boasted a new milestone - over 50 million active customers. That’s a very big fashion-oriented audience for a Brand to leverage with just one integration. No other channel can boast such a reach in Fashion right now.
Although its internal work culture came under question a few years back, and triggered some resignations, this did not stall Zalando from growing up until 2022. This year affected Zalando as much as any online retailer, with supply chain issues causing a dip in core products being available and hampering growth. Inflation spikes and consumer spending contraction triggered a poor Q1.
However by August this year, it was becoming a distant memory with stock jumps. Zalando continues to prove that despite the global headwinds, it remains a dominant place for buyers seeking great fashion options, and while UK retail highstreet continues to suffer, online retail continues to pick up the slack.
Zalando achieves great buyer interactions not just by being selective, but also by utilising its robust network of warehouses; operating in Germany, Poland, Italy, France and Sweden. With a 100-day return window for most territories, (excluding Switzerland, Austria, Czech Republic and Ireland which operate on 30 days), buyers have almost no risk in trying Brands and products out. This does mean Brands need to be mindful of the return costs, given Zalando returns tend to be higher than other channels, even for the fashion industry norms. However the possible sales and new market penetration potential is well worth it for most Brands.
A healthy fashion Brand eager for expansion should simply make Zalando high on its expansion list for 2023. Done right, it can be an exceptional channel.
Zalando has been integrated into several systems for years. ChannelAdvisor was an early adopter, as were Tradebytes, owned by the same parent company to Zalando. ChannelEngine has the integration. Many other system providers support Zalando, including Linnworks who recently partnered with us to build an integration.
Although a system is necessary for scale and growth, you can launch manually on Zalando’s partner portal. We wouldn't recommend it for the long term, but that too is a safe way to test the waters.
We’re biassed, as service providers, but firmly believe the key for launch is expertise. Zalando is perhaps one of the most demanding channels for data and process, and mistakes in the procedure can cause weeks of delay for Brands. Added up, those weeks of delay are vastly more costly in lost revenue than engaging in some project-based expertise to guide, manage and fast-track the process for you.
So, if you’re a fashion Brand, make the Zalando application a priority. If you’re approved, be warned about doing this solo without support. However once you are launched, you will seldom be disappointed with the revenue Zalando can offer your Brand, as well as its exposure to a truly global market. All done with just a single product feed.