By Janina Sidhu | Consultant

Our international trading team offer their top tips for successfully trading on Otto - Germany's second largest marketplace.

Otto ranks only behind Amazon in Germany’s largest online marketplaces, generating 1.9milion visits per day and receiving an order every 10 seconds. It boasts 6.5million active users and in the 17/18 financial year reported a 2.95 Billion Euro turnover, growing by 8.5% and raising revenues for an eighth consecutive year. 

Otto was established in 1949 and became one of the biggest mail order catalogues for everyday shopping. Today, 90% of its turnover comes from online which supports a wide variety of product categories - from fashion to household goods and furniture. Otto lists over 6800 brands and 3 million products. Although Otto only recently made full the transition from catalogue business to marketplace, the brand has not suffered from this change and its brand awareness and presence in the market has only grown. For retailers and brands looking to expand their operations in Germany, Otto represents a unique opportunity to tap into its established customer base.

To trade your brand successfully on Otto you will need:

Dedicated resource with German language capability.

Translation and transformation capabilities are key to success on OTTO.de. Product listings must be translated correctly and tailored to the German consumer. In addition, the back-end reporting on OTTO.de is only available in German and requires the knowledge of operating within a German business for brands to maintain good visibility.

Clear product information.

According to the Bundesverbands des Deutschen Versandhandels (Federal Association of Mail Order Business) around 70% of German ecommerce shoppers read product descriptions or accompanied catalogues. 

This is a key statistic for trading on Otto and successfully targeting its typical customer. Otto identifies its key demographic of customers as the “Mid-Moderns” which predominantly consists of 25-44 year old modern and fashionable women that are up to date with the latest trends.

Localised sizing and depth of product range.

Attributing products correctly increases visibility in category, size and search results pages. Offering a large assortment of products in a wide range of localised sizes provides customers with the comfort and reassurance of choice. These are both important factors for German customers.

Price competitiveness.

German consumers are especially savvy and will compare items from a variety of brands looking for the best price. Pricing products competitively will encourage customers to make a purchase, even if they are not familiar with the brand.

Brands must be aware that German marketplace customers are likely to buy but also return more items. This higher frequency of orders stems from traditional shopping behaviour with consumers choosing to try on items at home before committing to a purchase. Brands will most likely experience a higher returns rate, however, Otto will not charge for returns. 

If your business is looking to enter the German market or is disappointed with marketplace sales, please get in touch with our team of local European trading experts and contact us at hello@practicology.com.
 

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