Zalando Reports Revenue and Customer Growth in Second Quarter

Germany-based fashion retailer Zalando reported a strong customer growth in the second quarter of 2019, which brought the total number of active customers across its 17 European markets to 28.3 million.

Zalando logoThe company’s revenues also increased by 20% to €1.6 billion, while its gross merchandise volume (GMV) jumped to €2 billion.

Interestingly, the report mentioned that site visits during the second quarter went up by 34.3% to 986.4 million; 84% of these came through mobile devices, hence resulting in 36.1 million orders compared to 29 million in the same period last year.

“More customers than ever before have chosen Zalando as their starting point for fashion. This proves that our continuous efforts to deliver a best in class fashion experience pay off.” – David Schröder, Chief Financial Officer, Zalando

Among Zalando’s current projects, which are focused on improving customer experience, is a new warehouse in the Netherlands to speed up delivery in western Europe.

Zalando attributes its growth to Partner Program

Unlike Amazon and eBay, Zalando requires online sellers who want to use its marketplace as a sales channel to go through a more rigorous process. They must pass a series of steps in the product validation phase before they can get into the platform’s Partner Program and start selling their goods.

If you’re lucky to get in, you don’t only get to showcase your brand on Europe’s leading fashion marketplace, but also benefit revenue-wise from its large customer base.

Because of the massive contribution of third-party sellers to the growth of its customer base, which subsequently leads to a greater GMV, Zalando aims to extend its Partner Program and continue working with other retailers.

What’s your take on Zalando’s rapid growth? Let us know what you think in the comments section below or over in our Facebook Group.

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For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

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