Otto expects barely increased income for the upcoming year-end interval in comparison with the identical interval final yr. In keeping with CEO Marc Opelt, the platform mannequin is the “key progress engine” of the net division retailer.
Opelt describes himself as “cautiously optimistic” in regards to the gross sales outcomes on the finish of this difficult yr. “2023 has not been a straightforward yr for on-line buying and selling. We now anticipate a slight restoration for Christmas actions.”
Extra orders, smaller quantities
Otto observes that prospects spend a mean of seven % much less per order, however the variety of orders is growing twice as quick (plus 14 %). In economically difficult instances, Otto.de manages to have interaction web shoppers. As Opelt states:
‘Total, we’re making a slight acquire in market share.’
The CEO attributes the expansion to the “very constructive improvement” of the platform enterprise mannequin. At the moment, 6,500 companions are linked to Otto.de, in comparison with solely 5 hundred firstly of 2020. Investments in self-service and automated integrations have paid off.
The rising significance of third-party gross sales
Otto is the namesake and flagship of the Otto Group, which, after the COVID-19 interval, is going through declining revenues. Third-party gross sales are an essential and rising supply of revenue for Otto, simply as they’re for MediaMarkt and Zalando, additionally primarily based in Germany.
MediaMarkt and Zalando additionally more and more depending on platform gross sales
Ceconomy, the proprietor of MediaMarkt and Saturn, noticed its on-line income lower, however the market revenues greater than doubled. By the tip of July, there have been greater than a thousand gross sales companions energetic on the buyer electronics web sites. Zalando now attributes 39 % of its barely decreased buying and selling quantity to gross sales companions on its web site, which is 4 share factors greater than a yr in the past.
