3 million new customers for Zalando

Zalando once again looks back on a strong quarter, with higher revenue and increased profit. The number of customers is 3.1 million higher than in the second quarter of last year. The German company now serves 52.9 million consumers across Europe. With a new feed, Zalando aims to better engage and retain these users.

Zalando is an example of the recovery of the ecommerce market, both at home and abroad. After the post-COVID period put a halt to the company’s growth, Zalando has climbed back up following a few years of declining revenue. Its positioning as an ecosystem – including marketplace functionality and services for selling partners – is paying off. With the acquisition of the strong-performing About You, Zalando hopes to grow into “the next B2B powerhouse for the ecommerce industry in Europe”.

More revenue and profit

In the past quarter, Zalando’s gross merchandise volume (GMV) increased by 5.0 percent tot 4.1 billion euros, according to the company’s newest financial update. Revenue rose even more sharply, up 7.3 percent to 2.8 billion euros. Adjusted EBIT reached 186 million euros, compared to 172 million euros in the same period last year. As a result, the profit margin remained stable at around 6.5 percent.

Zalando’s profit margin remained stable

A standout metric is the growth in customer numbers: up 6.1 percent between last summer and this one, reaching a record of nearly 53 million. The number of Zalando customers grew faster than the platform’s trading volume.

Discovery feed

To boost customer spending and increase sales opportunities for platform partners, Zalando is focusing on improving the customer experience – making it more inspiring and personalized. That is why Zalando is launching a new AI-powered discovery feed, replacing the traditional home screen in its app. The feed offers curated lifestyle boards, personalized product recommendations, livestream shopping, inspirational campaign stories, and editorial content from Zalando, brands, and creators.

“From the moment users open the Zalando app, shopping becomes more immersive and entertaining”, Zalando promises about its “all-in-one, easy-to-scroll personal feed”. Content updates regularly, keeping customers engaged and coming back.

‘Shopping becomes more immersive and entertaining’

For partners, the feed opens up new opportunities to reach audiences, according to Zalando. “In summary, the feed blends the convenience of ecommerce, the entertainment of social media, the connection of idea-sharing platforms, and the inspiration of editorial content.”

The feed will initially go live in six markets, with a gradual rollout to follow, “extending the customer journey well beyond the transactional”, Zalando says.

Portugal, Greece, and Bulgaria

Zalando can also expect new customers once it launches in Portugal, Greece, and Bulgaria. The expansion plans were announced in March of this year. At the time of writing, however, Zalando is not yet active in those markets.