Zalando, certainly one of Germany’s biggest online retailers, desires to jumpstart its flat business by branching out into B2B.
The corporate recorded no change in its gross merchandise volume (GMV) and revenue from 2022 to 2023. Now, it’s rolling out latest strategies to grow over the following five years.
B2B’s role in generating revenue for Zalando
An enormous priority is generating more revenue in B2B ecommerce, says co-CEO Robert Gentz.
“The corporate’s recently launched Zeos business enables Zalando to shape the European fashion and lifestyle industry beyond its own consumer business,” in line with an announcement from Zalando. “It makes the corporate a key enabler for e-commerce transactions beyond Zalando, for instance via the About You, ASOS or Otto marketplaces.”
Over the past 15 years, Zalando has built a strong operational logistics and technology backbone tailored to the needs of the style and lifestyle industry, the corporate says. Today, the ecommerce and logistics platform is an element of Zeos.
The logistics network is made up of 12 success centers and about 20 return centers. As well as, it advantages from relationships with greater than 40 local carriers.
How Zeos works
The technology at Zeos is powered by the corporate’s proprietary ecommerce platform and Tradebyte. Tradebyte is a fashion and lifestyle marketplace integrator that Zalando has owned since 2016.
“Zeos is uniquely positioned to assist brands and other fashion retailers overcome the inherent complexities of cross-border e-commerce in Europe, where they’re faced with quite a few languages, currencies, payment methods, delivery and returns options, in addition to the necessity to manage multiple sales channels,” Zalando says.
Thus far, Zeos has generated sales of about 900,000 euros, Zalando says.
“Zeos is running on Zalando’s operational backbone and is now constructing an operating system for the style and lifestyle industry to enable your complete value chain of multi-channel direct-to-customer, all the best way from integration to customer success,” Zalando says.
In 2023, Zalando generated GMV of 14.6 billion euros compared with 14.8 billion euros in 2022. Meanwhile, revenue in 2023 was 10.1 billion euros versus $10.3 billion in 2022.
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