Multichannel in focus – this is what characterizes the traditional platform OTTO

Good news: Since the release of JTL-Wawi 1.8, these new marketplace connections are available for you in addition to Amazon and eBay:

• Kaufland (Germany, Czech Republic, Slovakia)
• OTTO Market
• voelkner
• MediaMarktSaturn

In this article, we take a closer look at the OTTO Market marketplace. What exactly sets OTTO Market apart from other marketplaces? Why should retailers sell on OTTO and why are there so many customers who regularly shop on OTTO?

OTTO - the most important facts at a glance:

OTTO is the largest German online store with 11.3 million active customers and around 2.9 million qualified visits per day. Since 2019, retailers have been able to use OTTO Market, OTTO’s marketplace, to sell their products online. The growth of the platform continues to be very strong. More than 6,000 retailers now sell their products on OTTO, increasing the range to around 17 million products from more than 19,000 different brands. In the 2022/2023 financial year, combined sales amounted to 6.3 billion euros.

What makes OTTO Market special

OTTO Market is not a completely open marketplace, especially when compared to other marketplaces such as Amazon or eBay. Here are some important points that characterize OTTO Market:

1. Selection and quality of retailers: OTTO attaches great importance to the selection and quality of the retailers represented on its marketplace. The company has specific basic requirements that retailers must fulfill in order to be able to offer their products on the marketplace. Three of these requirements are: A company headquarters in Germany, a German warehouse and German-speaking customer service. You can find a complete checklist here: Requirements for selling on OTTO Market
   An early check of the basic requirements is indeed recommended so that retailers can start selling on OTTO at the planned time.
2. Focus on specific product ranges: At OTTO, retailers can sell in seven product ranges: Drugstore, Furnishing & Living, Fashion & Lifestyle, Garden & DIY, Health, Sport & Leisure and Technology & Media. Other product ranges such as car parts, books or Refurbished goods cannot currently be sold on OTTO. OTTO’s product developers have set themselves the goal of continuously developing the platform. They are currently working on making products sellable with a reduced VAT rate of 7% and 0%. This is planned to be implemented in 2024. When the time comes, retailers will also be able to sell ranges of products that are subject to these VAT rates, e.g. pet food, plants and solar systems.
3. Sustainability: “What is good for us must not be bad for others!” OTTO has been living by this principle for many decades. Responsibility for people and nature is firmly anchored in the Otto Group’s mission statement and should also be reflected in the cooperation with its business partners. Every retailer agrees to the Business Partner Declaration on Sustainability and thus makes their own contribution to the topic of sustainability. It is not a must, but retailers are rewarded with more visibility if they offer certified products with selected sustainability seals. In addition, each range has its own store in which only sustainable items are presented. If retailers offer sustainably labeled products, these are automatically listed in the product range store.
4. Focus on the German market: With marketplaces such as Amazon, eBay or Kaufland.de, it is possible to sell internationally. In contrast, OTTO only focuses on the German market. International retailers therefore currently have no opportunity to sell on OTTO. OTTO also ships products to delivery addresses within Germany. OTTO is therefore fully focused on the German market and directs all marketing activities, both online and offline, towards various customer segments in Germany.
5. Potential: Despite the strong growth due to the increase in marketplace retailers over the last four years, there are still numerous opportunities that new retailers can exploit. OTTO has set itself ambitious brand and product range targets in order to offer customers a wide variety. In all seven OTTO Market product ranges, there is still untapped potential due to gaps in the product range and missing brands. Overall, the marketplace does not seem as “crowded” and competition for items is still relatively low, meaning that retailers do not have to fight as hard for the “buy box” as in some other marketplaces.

These differences contribute to OTTO Market being seen more as a marketplace that focuses on quality, sustainability and a specific product range. Retailers who want to sell on OTTO must therefore be prepared to meet these standards. To date, there are more than 6,000 partners who sell on OTTO and meet all the basic requirements. New retailers can log in to OTTO Market here: Registration form – otto.market

Why should retailers sell at OTTO?

Selling via the platform offers several advantages, especially for retailers and brands that want to present their products to a wide and diverse audience. Here are some reasons why OTTO is an attractive option.

Wide reach: OTTO is the largest German online store with 11.3 million active customers and around 2.9 million qualified visits per day.

Trusted brand: As an established and respected brand, OTTO has enjoyed the trust of many consumers since 1949. This can have a positive effect on purchasing decisions.

Marketing and visibility: Products on OTTO benefit from the marketing and advertising power of the platform, which can increase the visibility and sales of the products.

Established eCommerce infrastructure: As an experienced online retailer, OTTO has a reliable eCommerce platform that enables the efficient processing of orders and payments and is continuously being further developed.

How interesting is OTTO Market for you? If you are interested, first use the OTTO Market registration form so that it can be checked whether you already meet all the basic requirements (e.g. company headquarters in Germany). The result of the check will be sent to you by email on the same day.