Otto expects barely increased income for the upcoming year-end interval in comparison with the identical interval final 12 months. In accordance with CEO Marc Opelt, the platform mannequin is the “key progress engine” of the net division retailer.
Opelt describes himself as “cautiously optimistic” concerning the gross sales outcomes on the finish of this difficult 12 months. “2023 has not been a simple 12 months for on-line buying and selling. We now count on a slight restoration for Christmas actions.”
Extra orders, smaller quantities
Otto observes that clients spend a median of seven p.c much less per order, however the variety of orders is growing twice as quick (plus 14 p.c). In economically difficult occasions, 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 optimistic improvement” of the platform enterprise mannequin. Presently, 6,500 companions are linked to Otto.de, in comparison with solely 5 hundred initially 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 necessary and rising supply of earnings 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 p.c of its barely decreased buying and selling quantity to gross sales companions on its web site, which is 4 proportion factors greater than a 12 months in the past.