Looking Into the Future with Zalando

eCommerce
Written By Rick Watson

Zalando reported Q1 earnings to somewhat of a mixed bag last week but there were a few standout comments I noticed:

Here are a few takeaways:

  • Unlike many companies, Zalando is giving full-year guidance. Even that is a miracle in today's market. GMV growth is up 14% in Q1, and guiding to double-digit GMV growth this year, and "clear profitability." Likely that means barely profitable, but still.

  • Kids, beauty and sports categories continue to outpace their expectations, offsetting seasonal misses in bridal and other seasonal businesses impacted by the virus.

  • I had written previously about their Connected Retail program - a way to drive traffic into Stores from Zalando's search engine. During this crisis, they did something remarkable -- move to ZERO commissions in April and May for any retail sales they drove.

  • Across all categories, their marketplace is 20% of sales. In Germany, that number is 40%. They are also seeing strong growth in Zalando Fulfillment Services (ZFS), particularly due to supply chain issues across the world. 

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
Previous

A Statement of Understanding for Sales
Next

Imagine If The Justice Department Limited Amazon's Marketplace Fees