Otto noticed a big decline in income prior to now fiscal yr. Nonetheless, the buying and selling quantity barely elevated, because of gross sales from companions on Otto’s market. They account for one-third of the revenue. Otto goals to broaden its market providing inside Europe.

The German distance promoting icon introduced this alongside its annual monetary outcomes. Within the fiscal yr 2023/2024, Otto’s income decreased by 8 % to 4.2 billion euros. This efficiency was “nonetheless nicely above market comparability”, Otto refers to figures from the Bundesverband E-Commerce und Versandhandel Deutschland (bevh), which famous an 11.8 % decline and described 2023 as a “low level” for ecommerce in Germany.

Gross Merchandising Worth

In its press launch, Otto highlights the constructive growth of Gross Merchandising Worth (GMV), which elevated by 2 % to six.5 billion euros. “The slight improve in Otto’s platform gross sales, regardless of the continuing disaster ambiance in retail, makes us cautiously optimistic”, says CEO Marc Opelt. He beforehand referred to the platform mannequin because the “key progress engine” of the web division retailer.

Platform gross sales make Otto cautiously optimistic.

In the course of the previous fiscal yr, Otto expanded the variety of market companions by 33 %, to over 6,500. Collectively, they accounted for one-third of the income on the procuring platform.

European market companions

Regardless of the lengthy and rising distance by way of income on Amazon, Otto is “very nicely positioned” with German market sellers, in response to Opelt. “Now we’re making ready to open it as much as European market companions.” Initially, Otto will join warehouses of German market sellers in different European nations to its platform. Beginning subsequent yr, market members from different European Union member states can even provide their merchandise on Otto’s platform. At the moment, a German VAT quantity is required for this.

Vendor choice

Opelt signifies that Otto has intentionally chosen the European perspective: “We depend on merchandise that meet the very best high quality and sustainability requirements. Due to this fact, we fastidiously choose who might promote their items on our market – and who might not. Sooner or later, cheaply produced disposable objects may even not play a job in Otto’s enterprise mannequin.”

‘We fastidiously choose who can promote on Otto, and who can not.’

From summer season onwards, Otto will open its market to extra product classes, together with dietary dietary supplements and vitality know-how.